JD pre-ipo inside: liu li lei jun liu chuanzhi torture

this post is jingdong listed on the eve of liu in a meeting with Mr Liu, li, lei jun bosses closed communication activity, due to the jingdong listed as sensitive period, the article has not been issued to, jingdong listed now, I want to, you can look at a few prominent people of liu “sharp torture”.

lei jun also asked about “the jingdong size so big, face what are the main difficulties and risks”, liu is how to answer? Friends in the article to find ~ ~ ~

on retail real money want to rely on technology

robin li, baidu, chairman and CEO: jingdong’s main business is retail, just talked about the ious and loans and other financial products, I want to ask in the next five years or more, the profits of financial services to account for much of the total profits?

liu: wal-mart global net profit 45% is from cash flow and investment income, net profit of each store sells goods truly is 55%. Jingdong expected may be more bold, after ten years of 70% of the net profit will be from the financial business.

li: jingdong is a retail company, and half of financial firms.

liu: retail is that we get the user and data. Retail bring good consumer experience to consumers, consumers will buy the things I every day, so that I can get users, access to data. But to really make money on the retail want to rely on technology, which is never squeezing suppliers of jingdong.

li: recently saw a technical patents, it can predict customers decide what goods, orders from customers before the goods had been sent out. The patents on the barriers in the future will become an obstacle to the development of jingdong?

liu: Chinese enterprises go out was accused, and the problem is real. But from their own development, jingdong compared to the amazon go too early, our product sales order prediction than it was still early, jingdong last year 67% of the orders is six hours into consumers’ hands, amazon is made in the United States. We can, because we through the analysis of the data in advance to have the goods sent to the nearest warehouse to consumer. Amazon no distribution system in the United States, jingdong has distribution system in China. After they had predicted to have the goods sent to Fedex, UPS temporary staging sorting center, and then sent to the consumer’s home, and we is to put the cargo to our warehouse, pattern is completely different.

why jingdong Courier will be please to sign it at home?

Mr Liu (legend holdings co., LTD., chairman of the board) : jingdong own products online sales compared with the other services platform where their advantages, such as the customer to buy their own products of jingdong, if take a fancy to the reliability of the it service, brand, and the price of the platform? Please stand in the perspective of the customer to compare.

liu: our whole platform products are divided into two categories, one kind is a standardized product, category is a standardized product. 3 c, cosmetics, milk powder, maternal and child are standardized products, sellers do not have a standardized product group can sell us, tens of thousands of home sellers to about 5% of the total turnover of jingdong. Because we are organized, have the sourcing, planning in advance to predict consumer spending behavior, six hours distribution, third-party sellers product is sent to within two to three days, we provide door-to-door service, small sellers do door-to-door service.

jingdong proprietary product after-sales service, such as lenovo notebook maintenance, consumers to be registered in our system, after-sales personnel basically can reach consumers in two hours and 15 minutes at home, if it is credit higher gold members, after-sales staff will bring a new lenovo laptop on the spot to replace, the seller of small, these services provide, so through evolution, 95% of the market is in the possession of jingdong. But other sellers are not standardized products we competition.

we adopt the method of proprietary clothing before two years, the loss of a mess, consumers are not satisfied. Because of clothing color, size, season and so on is vast, brand, we found that 70% problems of unmarketable products, although the early stage of the gross profit margin is very high, but lose all his money on a clearance. Non-standard products jingdong can not do, must introduce the sellers.

jingdong has 60000 sellers now, soon after 100000, each seller management thousands of SKU, 60000 sellers is the scale of tens of millions. Jingdong proprietary model cannot manage such a big clothing size, so not standardized product platform sellers are better than we do.

Mr Liu: jingdong’s business model in a very important characteristic is that you have your own logistics system, artificial and equipment cost in the cost of logistics itself proportion each have how many?

liu: labor costs accounted for 70%.

Mr Liu: artificial cost is high, it is for this reason lead to a lot of logistics enterprise employees badly squeezed, corporate reputation is not good. Do you have a large logistics team that will improve the staff treatment caused great influence to the entire logistics business cost?

liu: willow in this problem very well. It is through the information system to solve this problem. Jingdong have a large number of labor, but definitely not by squeezing the workers to enhance the company’s vitality. Our Courier in Beijing monthly salary deducted 5 insurances is 5600 yuan, the company also for each delivery outside purchased the business risks and specific number 200000 personal insurance.

you might find that social Courier delivery is a customer sign standing out in the hallway, and jingdong is Courier please sign into the house, which fully embodies the users of our trust. If low income they don’t happy, is likely to steal, Mongolia, cheat. We again to express a wage increase this year, we hope that our Courier income is 30% higher than the market. At the same time we also provide accommodation, shoes, hats, gloves, overalls, etc. Do five years in jingdong distribution personnel, 99% bought a house in the home county. We believe that employees do not happy will not provide good services to the customers, and make them happy core is high wages.

Mr Liu: your pressure is a very important reason is that 45% of the profits from financial business there, jingdong good reputation, a good brand of financial services itself jingdong and generate greater profits.

liu: we disclosed in the financial statements of the Numbers of the logistics, express every single 8 dollars, warehouse 4 dollars, customer service a dollar, the cost is very low. This is how to do? Jingdong express different patterns and other express company, “cross” is the grid, each Courier shipping and receiving, delivery staff have waiting time, he never know who is called in a minute, never know how much a minute customer send the parcel.

the jingdong Courier delivery not only orders. Every night we send each Courier on the following day to the number of packages, which passes through the community, including delivery route through calculation of the information system, Beijing Courier can send three hundred packages, a day delivery is far greater than the number of other Courier company. This is why the Courier treatment is very high, but at the same time, logistics cost and very low.

employment, I have two standard

let kair technology group chairman of the board of directors of the company (China) : nearly ten thousand people gathered in Beijing, the human resources including recruitment, training, incentive, assessment and other issues to let a person very headache, your business distribution throughout the country, for employee recruitment, cadre’s control including assessment, incentives, the system construction of human resources for any tips?

liu: one is the most difficult tube, jingdong recruited ten thousand people last year, this year is expected to hire fifteen thousand people. Our hiring philosophy can be, and share with you our internal model called ability values. Our recruitment requirement is very strict, our executives on average to interview more than ten people can choose a, to meet the requirements of jingdong people less than 10%. Main consideration when we hire two factors, one is ability, business ability, such as the sales staff to sell how much how much profit from sales. The second is the values, how did he know you, how to know others, how to treat the world, what is his attitude towards life. We have a measure system the interview process, and this is we find a lot of experts, professor every year adjustment, the transformation.

we want to test in our interview, ability also not line, the values we call “scrap” also not line, this certainly not to, is not the result, values, and we don’t match. Values, there is no good or bad, we only see and jingdong how much is the five core values of the matching degree. The second type is values match, but not ability to row, we call it the “iron”.

in fact this kind of people usually can be found in the work, can not find in our interview, we will give him a muddleheaded, and a training opportunity, if not yet will be fired. Jingdong 80% belongs to the third class, in 60 to 80 points, we call it “steel”, this is our foundation. And 20% scored highly ability and values called “gold”, which is the core of the company.

others ability is very strong, is values do not match, such as some sales staff to do performance is very good, the growth rate is far more than the company’s growth, but is is not the same as the values, we call it “rust”. Rust employees should be determined to kill, because rust corrosive, they brought about by the destructive would be even more devastating. Hitler is rust.

why want to keep this ratio? Many listed companies, after a lot of employee turnover, on the one hand, because employees rich, on the other hand, the listed company before a lot of people have a dream in my heart, have YiGuJin, to grow with the company, but to grow to a certain degree of psychological imbalance, there will always be part of the people have been lost. Gold can reach 20% of the content is the key to the decision team not stable. Our ability to executives conducted once every six months values assessment, assessment of regular employees once a year, every year by refresh and elimination of the last remaining company highly values with matching ability is good also.

strategy “dictatorship” is the enterprise biggest risk

lei jun (millet technology co., LTD., chairman) : jingdong to such a large scale, is facing the biggest difficulty and the risk is what? Your second question, I personally is the bulls jingdong model, the last jingdong listed after the results, I with other enterprise the focus of the debate is the high efficiency of electricity enterprise reflected in what place. On the circulation of the entire cost of jingdong spent 10% of turnover, they say you go to see the gome and suning, their efficiency is higher than jingdong. They felt that the efficiency of e-commerce more efficient in the traditional circulation channels. I didn’t verify the two data, but I think the efficiency of jingdong whether there is a further room for improvement.

liu: I will answer the second question. As far as I know, gome, suning integrated rate is 15%, wal-mart, carrefour is about more than 20%, these are the public reports. Domestic pure commercial super rate is 20%, jingdong is mixed, we put our electronic product and super mixing in a block, so the rate is 10%, if the 3 c product apart alone, the fee is much lower than 10%.

and again said that the first problem, the biggest risk, enterprise scale big, I think from the founder. Jingdong strategically by my dictatorship, can our strategy in place in time, or strategic errors could lead to the failure of the enterprise, I think this is the biggest risk.