JD.com CEO Richard Liu shares company strategy for 2016

JD.com Liu Qiangdong
From Baidu Images.

Liu Qiangdong or Richard Liu, founder and CEO of China’s second largest e-commerce platform JD.com, shared JD company achievements for 2015 and the company’s strategic layout for 2016 at the JD annual meeting, the tech channel of Sina News reported on Monday.

JD.coms achievements in 2015

  • JD.com had a total of 110,000 full-time employees as of December 31, 2015. It will employ 40,000 more people in 2016, bringing its total workforce to over 150,000.
  • JD.com’s e-commerce platform JD Mall operated nearly 200 distribution centers in China, and total warehouse space is expected to surpass 100 million square meters in five years.
  • The company’s online-to-offline platform JD Daojia, or “JD to your door”, received over 500,000 orders on November 11, during the Double 11 shopping festival in China. It expects to receive over two million orders on the same day this year.
  • The year-on-year growth in clothing Gross Merchandise Volume (GMV) for 2015 was twice the growth of the whole industry. The company sold over 500 million pieces of clothing in 2015.
  • Founded last April, the JD Worldwide cross-border e-commerce platform expanded to 10 countries in half a year. Its growth is expected to exceed 600% in 2016.
  • JD.com’s financial subsidiary JD Finance completed its Series A financing of USD one billion, boosting its valuation to RMB 46 billion (6.9 USD billion).
  • JD.com launched Asia’s No.1 regional warehouse in Guangzhou in the second half of 2015, which was its second Asian No.1 project. The warehouse saw an order volume of 500,000 on November 11 Singles’ Day, which broke records for global warehouse order volume.
  • JD Mall had 3544 delivery stations and 140,000 village delivery staff as of last December. Its client service team had over 10,000 staff and answered over 120 million phone calls in 2015.
  • JD.com’s cloud computing service provider JD Cloud started in 2015. JD.com established a cloud computing center in Eastern China and has begun to install equipment there. The computing center is expected to go online in 2016. Other regional cloud computing centers are under construction.
  • JD.com started its investments, mergers and acquisition business in 2015, with strategic investment in Yonghui superstores, a leading Chinese hypermarket company, and FruitDay, a China’s e-commerce platform for fresh fruit.
  • JD Mall contributed a majority of the sales, revenue, and almost all the profit for JD. The earning reports for the first three quarters of 2015 suggest NON GAAP was near the profit line.

JD.coms new projects and three networks for 2016

Liu shared several new projects including a new sales channel department. The new department will supply smartphones to mom-and-pop grocery stores in small cities and villages throughout China. JD.com’s delivery network covers several thousand Chinese villages, where the company’s delivery vehicles pass every day. JD.com can provide wholesale delivery service at low cost and extend its reach there.

JD.com aims to establish three “networks”. The first network will be a business-to-customer network that integrates storage and delivery. The second network will be a storage and delivery network for big items especially big home appliances. The third one will be a network for frozen and refrigerated fresh food.

JD.com established a brand new fresh food department along with its three networks. The department is responsible for operating JD.com’s own fresh food business. It helps to build JD.com’s third network for fresh food, and attract sellers. The department will focus on providing equipment and services for partners like Yonghui Superstores and FruitDay. It will also be responsible for importing fresh food into China and providing the Chinese with healthy and high-quality food.

A trillion-yuan JD.com

JD.com aims to become “a Trillion yuan” business by making its net profit and market value both exceed RMB one trillion(USD 150 billion ).

The company will focus on the three fields of e-commerce, finance and technology. The field of e-commerce includes JD Mall and JD Daojia. The field of finance includes JD Finance and JD Insurance. The field of technology covers cloud technology and JD Smart, the company’s smart gadgets division.

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