Name: Insights: How Chinese E-Commerce Giant JD Stays Competitive
Uploaded: 2020-03-10
Duration: 4 min 54 s
Description: Founder Richard Liu explains why next day shipping and drones are part of the strategy.

[MUSIC PLAYING] SPEAKER 1: Most of you in the room will not know jd.com because very, very few, if any of you, will be customers. So I just wanted to share a few stats for you to get your heads around. Imagine if you were running a business with 300 million annual active customers. 300 million, that's larger than the United States. 515 warehouses, 2017 revenues of $56 billion US, that's 43% year over year growth, and a market capitalization of $56 billion. SPEAKER 2: One thing we know is very important. In China, China is very special, and the market is special, consumer is special, everything is special. So we have to use-- we have to build our system to more satisfy Chinese consumers. I can tell you that Chinese consumers is the most challenging thing, I think. I mean, in China today, if you buy anything from my company which is over about $10, something like that, the delivery fee is free. And you must deliver to him, to them, within 24 hours. So not like in US, you'll have to spend over hundreds of dollars to buy the Amazon Prime, and then you can get the two days fast delivery service. But I can tell you if you're in China, if they offer customers two days delivery, no, it's not fast. It's a disaster. SPEAKER 1: I think you've made it very easy for people to understand how intense the competition is in China. I want to talk about your partners, JD has very interesting partners. Tencent owns 18% of your company, Walmart owns 12% of your company, and you just brought on another major investor, Google, which owns 1% of your company. I want to start with Tencent, how important is Tencent's WeChat service, which has a different name in China. Remind me the name in Chinese. SPEAKER 2: Wei xin. SPEAKER 1: Thank you. SPEAKER 2: You're welcome. SPEAKER 1: How important is that to JD's business? SPEAKER 2: Well, first of all, I think all those partners, we have the same core values of business. It's very important. If you will collaborate with any partners or company who have different core values, it also will be a disaster. First for WeChat, in China we call the Wei xin, it's very important to us because until today, WeChat can bring almost one-fourth of the new customers, plus for every day. Also, we are developing a lot of very interesting-- just a bundle combined our social and e-commerce together. We call it [CHINESE],, I don't know. Shopping circles. SPEAKER 1: Yeah. SPEAKER 2: Yeah, and a lot of very interesting things. SPEAKER 1: And it's so interesting here because we don't have that in the United States. SPEAKER 2: You have Facebook, Instagram, a lot. SPEAKER 1: Yup, but not nearly the level of commerce is happening on those platforms, as is happening on WeChat with JD in China. True? SPEAKER 2: I think if it will come here maybe everything change. We began to invest on drone technology very earlier, it's almost several years ago. Today, actually, is over 500 drones can fly every day. Even the some in Providence, the total flying hours is over 100,000 hours already. SPEAKER 1: Of your company's drones alone? SPEAKER 2: Yes. And four types of drones were mutual already, from 5 kilograms until 50 kilograms. And on June 18 this year, this is my company's birthday. Our first heavy drone has come from the factory, which can fly about 1,000 kilometers, and that can carry almost between 1 ton to 5 tons. So we have given the level drones, and I think we are a little bit earlier and ahead of with any competitors globally. 

Insights: How Chinese E-Commerce Giant JD Stays Competitive

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Why next day shipping and drones are part of the strategy.

How Chinese E-Commerce Giant JD Stays Competitive

Founder Richard Liu explains why next day shipping and drones are part of the strategy.

most of you in the room will not know JD dot com because very, very few, if any, of you will be customers. So I just wanted to share a few stats for you to get your heads around. Imagine if you were running a business with 300 million ACT annual active customers. 300 million that's larger than the United States. 515 warehouses, 2017 revenues of $56 billion US. That's 43% year over year growth and a market capitalisation of $56 billion. One thing we know is very important in China. Chinese very special in the market, special consumers specializing in special So uh, way have to use. We have to appeal to our system. Two more steps by China's consumer. I can tell you the Chinese consumers the most, uh, challenging thing. I think I mean, like in China today it will buy anything from my company, which is over about $10 that you were free free on DDE you must deal, but with them missing kind of our so not a librarian you have You have to spend over $100 per visor. I'm on the crime and then you can get it two days. But it was. But I can tell you, you were in China off our customers. Two days Lura. No, not a fact is that I think you've made it very easy for people to understand how intense the competition is in China. I want to talk about your partners. You have J. D has very interesting partners. 10 Cent owns 18% of your company. Walmart, 12% of your company and you just bought on brought on another major investor, Google, which owns 1% of your company. I want to start with 10 cents. How important is is 10 cents? We chat service, which has a different name in China. Remind me the name in Chinese Li Xin. Thank you. How important is that to J. D's business that first of all, I think all those patterns where I will seem cole values. Oh, business is very important. If you know you were cooperative with any partners our company have given the core values is also will be a doctor. Uh oh. We've had in Tenement Correlation wiring 100 class because until today, Richard can bring almost one falls over the new customers. Also, they are developing a lot of worrying shifting Just a bundle combined. The social Andi comin together. We card like I don't know, shopping circles. Yeah, Yeah, on. Uh, yeah, a lot of wearing shoes. And it's it's so interesting here because we don't have that in the United States. You have. You have You got him a lot, but not not Nearly. The level of commerce is happening on those platforms, as is happening on. We chat with JD and China Truth. I think he will trump their Maybe everything will change. May began to invest on drunk technology. Where earlier? Almost several years ago. Today. Actually. Over 500 drunk. I can fly every day. You've given the seven Providence? Uh, totally flying hours. 0 100 1000 hours already of yours or your company's drones alone? Yes. Ah, nah. Fall type of old junk were mutual. Already from five clothes grand until 50 grand. Ah, nah on to 18 this year. This is out my companies. But the birthday our foot Have iTunes Have you come from the factory? You can't fly about daughter Nikola. Media Ana can carry almost between Anton, £5. So we have given level drunk Ana. I think they are due to be the earlier on all head of it with any competitors globally.