Jingdong’s business model in the end what is the future of value added services

 

From 2004

into the business circle, the Jingdong has been a "phenomenon", some people said it is the low margin, some people say it burn, someone says it is thankless, it was said to be "blocked", but in many doubts, it maintained for 8 consecutive years the annual growth rate of more than 200% in 2012, the transaction size of more than 60 billion financial indicators continued to improve, did not see a little affected signs.

so, what is the business model of Jingdong in the end, this issue has been put forward again and again, in this, I would like to talk with you about the business model of Jingdong.

break the tradition, interpretation of Jingdong electricity supplier retail business model

talked about business before, must first talk about the traditional retail industry, because the majority of the electricity supplier mode is first according to the traditional retail industry, traditional retail profit is very simple: make the sale price, deduct other costs (such as rent or store decoration, investment, personnel, etc., display of goods) is profit. But in pursuit of greater profits, the traditional retailers need to expand the scale, and other costs will rise simultaneously, so gross margin can only maintain a relatively low level. So only the profit point on supplier exchange cash income.

and Jingdong as the representative of the electricity supplier completely broke this business model: first, relying on the Internet, in marketing, shop rent, prototype display, etc. the artificial greatly reduced or even zero cost; secondly, server purchase, website construction and other aspects of the cost related to Jingdong is a one-time investment, because when the body to reach the critical point, the "scale effect" makes the cost lower, or even negligible. From 60 billion to 100 billion, for Jingdong, just add some servers, a small number of customer service and distribution staff only.

at the same time, the domestic market after the initial price competition stage, has gradually tends to be rational and mature, the price is relatively fixed and stable; at the same time, the attention of consumers from the original price, to product quality, delivery speed and other comprehensive experience, it is said that the electricity supplier industry commodity sale price will tend to rise and stability. So, as long as the scale of the scale of Jingdong electricity supplier business reached a certain height, Jingdong can be assessed by the scale of the cost of electricity providers in the business to achieve a surplus. In other words, the Jingdong’s proprietary and open platform business, have a stable income margin, the expansion of the scale and process optimization will continue to reduce operating costs, to achieve stable so that the business can only profit. From its 2013 billion trading target, this time does not need to wait too long. This can be verified from the previous internal e-mail Liu:

"If we don’t start

in 2007 to invest in logistics and information system, we are before 2007 is profitable, the most successful individual is a profitable business! If we do not carry out category expansion, we can achieve the profit in 2010! It’s a >

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