The industry has roughly divided China's current electricity dealers into two categories

The industry will be China's current electric dealers are broadly divided into two categories: one is platform-type (such as Alibaba's Day cat and a variety of "treasure"), the second is to buy and sell type (Jingdong Mall, Suning easy to buy is one of the typical), in the purchase and sale of Liu created Jingdong Mall Liu's 10 electric business Road not only high with Mengjin, but also formed their own unique "Eat sugar cane" theory, so there are insiders jokingly he is "the most will eat sugar cane traders."

First IPO, just to meet the challenge

May 22, standing in the middle of New York Times Square Liu excited! Under the background of the market environment is not very ideal, Beijing East can rob Alibaba before the listing, and so successful, really fast! After the IPO bell rang, Jingdong Mall IPO perfect finale. Beijing East Road on the first day, received 3 times times oversubscribed, the entire road in the course of the process, get 15 times times oversubscribed. Finally, Beijing East in the United States Nasdaq listing, financing scale of 1.78 billion U.S. dollars, is the New York listed in the largest IPO of Chinese Internet companies. According to the 25.7 billion U.S. dollar valuation, the Liu "worth" of more than 5.9 billion U.S. dollars, a share of 23.1%, ranks among China's first-tier rich.

Overseas investors are generally full of anticipation for Jingdong, and see Jingdong as "China's Amazon", even though Amazon has long been beaten by Beijing east. According to the Beijing-East disclosure of earnings data, last year its total revenue has reached 125.5 billion yuan level, the loss margin narrowed sharply, while the cash flow performance has also improved. According to research reports, 2013 Chinese Internet companies in accordance with the total operating income rankings, Beijing east to 69.3 billion Yuan row first, Tencent 60.4 billion yuan ranked second, as for Ali and Baidu, can only be ranked in the third and fourth place.

For Liu, the Beijing-east listing is not an end, it is a new starting point. In a live interview in New York City, Liu said he was a "cock silk" and never wanted to be a hero. In fact, in today's electric business, dare to call himself a hero, it seems that the horse is not. Liu want to be a hero, it must be with Ma Yun constantly wrestling.

After the listing of Jingdong, Liu to reassess their opponents and enemies. The IPO has brought him plenty of capital, and his opponents have become more powerful. Liu led his Jing Dong all the way to experience a lot of opponents, from the initial when, every guest, then to Suning, Gome. Alibaba, as powerful as the mountain, is now the only and even lifelong adversary of Liu.

"The Curse of Sars" as "Liu"

Electric Business (e-commerce) in the domestic first upsurge in 1999, when E-commerce is just a fashionable vocabulary, due to the large environment and the basic technical facilities do not match, the brief boom quickly cooled down. Yinghai, 8848 and so the martyrs of their own ashes to complete the first round of the concept of the popularization of electricity and consumer education; After the Hui Cong, ebay, when the former Giants have struggled to fight the way the online shopping gradually into people's lives; Alibaba that is also can only shout "let the world not difficult to do business" slogan, Stick to the hard way in business-to-business areas.

The sudden "SARS" in 2003 has unexpectedly become the turning point of China's electric business development process. It is said that when SARS raged, Ma Yun and Alibaba employees were stuffy at home office, so "stuffy" out of the idea of Taobao, so May 2003 set up Taobao. In Liu's words: "If it were not for SARS, I would not enter the electricity business." and Jingdong Mall is completely by SARS "force" out.

At that time, Liu in the People's Congress of the city and the west of the city and the east of the warehouse for more than 60 employees of the two Gold Cup van instant noodles, ham and mineral water, resolutely forbid them out, Jingdong store full of inventory simply let Liu Jihuo. "SARS" so that it products decline quickly, the most serious time one month price down 40%, and staff wages, rent, all costs can not be saved. Within 21 days, Liu lost more than 8 million, accounting for about 1/3 of his total capital.

Emergency desperately, Liu and subordinates behind closed doors to discuss countermeasures, decided to network forum to sell the disc-but at this time Liu even BBS is not know what. He applied for the installation of ADSL, and then launched the staff began in Sohu, Sina forum to post ads. He took the staff and registered hundreds of QQ number, crazy plus QQ friends, marketing their products. Liu accidentally found that online sales are not only low-cost, efficient and alarming sales growth.

By the end of 2004, the annual sales of Jingdong stores over 100 million, online only 10 million, although 95% of the profit from the line, but Liu all the costs of the east to do a amortization, "I found that the online cost is really very low, so after the allocation I believe that the electrical business must be able to kill the traditional channels, why?" The cost is too low, and the efficiency is too high! So he made up his mind to transform Jingdong into an online mall.

Metal Dog and Cat, electric business competition more exciting

Jingdong Mall was renamed "Jing Dong" last year, Liu adopted a metal dog named Joy as the brand mascot image. Have netizens ridicule, "China's electric business will be more exciting, the most interesting thing is the war between Alibaba and Jingdong Mall, the future of Metal dog and Cat will become the theme of the game." Fudan scholar Chanxi is more language, "Cat and Dog War" in 10 years after the meeting is to be seen, when Liu Metal dog will win, and become the overlord of electric commerce.

Chanxi that the Beijing-east 10 years ago to invest in its own logistics, through a sound logistics system, to get rid of other competitors can only be "low-cost" to attract consumers dilemma. Compared to other competitors distribution takes a few days, Jingdong will launch a fresh 10-minute delivery service. Since the establishment of logistics for the Beijing-East online offline (O2O) to create a very high threshold for competition, and competitors in a short period of time to catch up.

Second, Tencent successfully invested in Beijing-east this year and became the second largest shareholder, with two companies cooperating more closely. Following the Beijing-East in the micro-letter occupies a promotion position, there is news that the Beijing East will also open mobile phone QQ first-level entrance. Thus Jingdong will form a micro-letter, mobile phone QQ and mobile phone client mobile end combination of boxing layout. Not only expanded the source of consumers, but also enhance the user stickiness, greatly enhance the shopping experience, undoubtedly deepened the Beijing-east mobile electric business strategy.

With the cooperation of Tencent, the expansion of the distribution of logistics, the development of financial business, the vision in the international and so on, so that Jingdong is not just an e-commerce company, but can create an Internet ecosystem, the establishment of enterprises and consumers to create, share and win the open dialogue relationship. and the establishment of the ecosystem, will be still at the loss of the Beijing East Gorgeous turn of the important key.

Now "Cat and Dog War" in the deepening, in order to combat Ali's "double 11", Jing Dong in the effort to create a "6.18". After taking over Tencent's QQ net to buy and Pat Net, Jing Dong began to exert Consumer-to-consumer field, directed to Ali's hinterland Taobao business. In order to quickly layout the rural market, to achieve channel sinking. Beijing East and Ali in the rural war has been from the original "Brush Wall", the evolution of the expansion of logistics tentacles, bundled local governments and operators to achieve "information into the village".

Liu's theory of "eating sugarcane"

Liu has its own unique views on the core values and development strategy of Jingdong, he bluntly said: "I do not believe that there is a business model in the world, for your partners and users to create a lot of value, the end result is to collapse, failure, if this happens, it must be management team and implementation of the problem." As long as we think that what we do can create value, profit is not a problem. ”

At the same time, Liu also proposed a unique "sugar cane" business Theory: "A short period of sugar cane can be changed, but in the long term is fixed." The sugar cane becomes shorter when there are too many brands in competition and profits are reduced. In this case, the industry will take place merger and acquisition integration, such as the entire e-commerce industry before more than 40 (companies), and now the remaining only more than 10. So in the long run, the market law leads to the industry and the brand's profit relative fixed at a reasonable level. ”

Liu that "creating value in return" is the basis of all business models. He proposed "10 sugarcane" for the consumer goods industry, retail, the value chain of the consumer goods industry is divided into 10 Links: creativity, design, research and development, manufacturing, pricing, marketing, trading, warehousing, distribution and after-sale, among which the top 5 belong to the brand, and the next 5 major links are to the retailer. Jingdong in the future to try to eat 5 sugarcane on the increase in investment, efforts to "eat more sugar cane number", that is, not only to do trading platform, but also to extend the business to warehousing, distribution, after-sale, marketing and other links.

Softness's maneuvers

The outside world describes Liu from ordinary, but acting bold, sometimes reckless, but has a unique strategic vision. In the past more than 10 years, he has developed the Jing Dong from the small shop into the electric business giant, the east Beijing volume has increased 10,000 times times. Some people say that Liu as wolves generally unruly belligerent, "because of hunger, so to feed, but also to have the spirit of fighting." "became his warlike dictum.

Liu is the perfect entrepreneur in the eyes of many people, it was determined many years ago: The Jingdong Mall was founded to be the Amazon of China. In long-term strategy and short-term profitability, he always chose the former, and for this reason spent 2.2 billion of dollars for investors to layout logistics and supply chain management. He believes in "today's losses for tomorrow's people can not exceed the advantages."

Liu is known as a "destructive intruder" by abolishing existing rules and challenging rivals. He and the traditional retail giants Gome, Su Ning head-on confrontation, he dabbled in including books, clothing, including a variety of business, sniper when and Xun, he built an open platform to directly challenge Alibaba. Jingdong Mall like bulldozers to tear down the old business order, but also like engineers to rebuild the new retail rules. Most entrepreneurs are wary of today, struggling to lose tomorrow in the balance between profitability and scale; And Liu choose to stand between today and tomorrow, both High-profile fighters, but also low-key layout. It is indeed the key to his success that he always insists on one thing at all costs.

Liu 7 years of financing more than 2 billion U.S. dollars, but can always grasp the control of the company, this is worth all entrepreneurs to learn, even if the MA is not out of his right. During these years of financing, Liu is different from most entrepreneurs. He asked for money and power, no matter which day of the huge investment, even if Tencent's line of fire to invest in Beijing east, in Beijing East operation decision-making and executive appointments have no power. In order to ensure control over the company, Liu often invited the mainland, Hong Kong and American law firms to sign a hundreds of-page contract, and it would take three or four hours to sign a deal.

Liu once explained his understanding of corporate control: "I think an entrepreneurial enterprise, if it loses control, might as well sell it." This is a bottom line I set, if one day I lost the control of Jingdong, I will sell it directly, I will completely quit to get the money to leave. I definitely do not allow the lack of control of the situation, but also to occupy the company's shares, but also with investors in this ghost play, I do not have the time and energy. ”

Liu the first round of large financing after the first thing is not to build logistics, but the start of the Beijing-East Management Trainee program, starting from 2007 to now has been running for 8 consecutive sessions, invested over billion training fees. Liu and the Beijing-East vice-president of the executive level of personal selection, training and even with the side of training. Outside of the Liu style is mixed, but to his sense of loyalty, heavy human practices or unanimously recognized. "No matter the company listed not listed, I am cock silk, Jing Dong now has more than 50,000 employees, our idea is the same." Liu said, the Jing Dong to do is to let their employees, especially courier can live a good life, can be rich in home for parents to buy a house, so that children can learn in the city.