Here comes the shopping festival again, which is JD.com 's bar mitzvah, and it is also time for JD.com to "show his muscles" to the industry with technology and supply chain.

Since June 1st, JD.com 's 18th 618 has witnessed explosive growth. On that day, 39 brands issued orders worth more than 100 million, 4800 brands' transaction volume increased by more than five times year-on-year, and more than 60% of the core open platform stores issued orders more than 100% year-on-year.

As early as March this year, Barron Weekly judged in its analysis of JD.com 's 2020 earnings that the company's rising earnings showed that the shift in the trend of consumers' online shopping, initially driven by the COVID-19 pandemic, is likely to continue. even if China has reopened the economy and lifted the blockade.

The result of this year's 618 confirms this judgment. From 0: 00 on June 1 to 14:04 on June 18, JD.com placed a cumulative order amount of more than 305.6 billion yuan. In the first three minutes of June 18, the overall turnover of JD.com supermarket increased by more than 10 times compared with the same period last year; the turnover of iPhone exceeded 100 million in 1 second; and just five minutes after zero, the turnover of Mengniu, Yili and other brands in JD.com supermarket increased by more than 200 percent over the same period last year, and the turnover of Wuliangye and Yanghe both increased by more than 300 percent over the same period last year. A large number of stores broke last year's all-day sales record in the wee hours of the morning. In particular, the performance of the new stores is remarkable. The average turnover of the core stores this year is 4.3 times that of the new stores in the same period last year.

In the huge market of more than one billion consumers in China, there are few enterprises that can undertake the flood peak of such high concurrent traffic. It can be said that JD.com has become the largest incremental field for brand merchants. Behind this, JD.com is also bringing more imagination to investors with the omni-channel model, the layout of new consumption trends and the industry-side changes at the core of the supply chain.

From a global point of view, many people think that Amazon.Com Inc has always been the target of JD.com. With the same heavy asset model and "multi-blossom" in logistics, medical and cloud services, JD.com 's current advantage in the supply chain and the rapid strength of cloud services may mean that it is about to replicate the growth of Amazon.Com Inc in his "young" period.

Amazon.Com Inc, who started e-commerce, at present, the most prominent advantage lies in the platform advantages and openness of its cloud services. From the beginning of the 21st century, it began to change its strategy, with the goal of changing from "the largest integrated online retailer platform" to "the most customer-centered enterprise". It began to promote the third-party open platform (marketplace) on a large scale, and launched Network Services (AWS) in 2002, becoming an integrated service provider. In the 20 years from 2001 to 2021, Amazon.Com Inc's share price rose from $15 to more than $3000.

Somewhat similar to the path taken by Amazon.Com Inc, JD.com has summarized his positioning as a "supply chain-based technology and service enterprise" in recent years, which has opened the door for more effective and diversified growth. it is also constantly refreshing investors' expectations in terms of revenue, profits, and the number of users.

Amazon.Com Inc has formed coverage in almost all major economic regions of the world, such as North America, Britain, Germany, France, Japan and China. JD.com is also laying out a supply chain characterized by demand-driven, open collaboration and agile response, with huge room for international business growth and prospects for the future.

According to the first quarter results report of JD.com Group released on May 19, its net income in the first quarter of 2021 reached 203.2 billion yuan ($31 billion), an increase of 39% over the same period last year. JD.com 's annual active purchasing users were nearly 500m, a year-on-year growth rate of 29%, a net increase of 112 million, the largest increase in the same period in history.

It can be said that JD.com 's new growth point is hidden in the increasingly powerful supply chain moat, and the new momentum of retail and the advantages of the supply chain are really "arming" the youth JD.com, and there is huge room for imagination for the open growth of its platform and technical services.

01 618: not just retail

With the arrival of another year, "the escalating and expanding domestic market to attract more overseas consumption back to China" has become the first trend of JD.com this year. In the 18th year, JD.com 618 is not only a shopping boom about new products and explosions, but also needs to see the promotion of the attractiveness of the platform and the dual path of consumption and industry under deeper logic.

If we explore the essence through the hustle and bustle of 618, the strong attraction of JD.com platform may be summarized into two key words: technology and industry.

On the one hand, the trends of consumer return, omni-channel flowering, new categories emerge one after another, and industry-driven rural revitalization show consumers' choices and market hotspots from the product level, and reveal the distinct context of the development of retail on the industrial side.

On the other hand, how can e-commerce giants with heavy asset model remain attractive? Relying on the technology-driven supply chain and jumping out of the simple consumption attribute, JD.com has been taking a distinct path of dual attributes of consumption and industry.

Under this logic, we have to recall one of the bright data in JD.com 's latest financial report: in terms of inventory turnover days that reflect the operating level of the e-commerce platform, JD.com reduced to 31.2 days, a decrease of 4.2 days compared with the same period last year and for four consecutive quarters; at the same time, the number of days of accounts payable was also reduced to 44.2 days, a decrease of 7.5 days compared with the same period last year. To expand the scope, the Costco inventory turnover days of the global retail turnover efficiency benchmark is about 30 days, but the managed SKU is only about 3700.

Another vivid example is that on June 18 this year, "from the time of the final payment to the time of receiving the express delivery" was searched by Weibo Corp. In the first order of JD.com 618 on June 1st, consumers received the goods in just 4 minutes after paying the final payment. With a little search on the social platform, you can see countless surprises and exclamations about the speed of online shopping and logistics.

Today's online shopping is an era of "fast but not broken", and the business model of JD.com retail has gone far beyond the online B2C e-commerce model. Behind these data and cases is the refresh of the efficiency of JD Logistics, Inc. 's integrated supply chain, and if we further explore, it will show the strong scientific and technological background of JD.com Cloud's technical support and cloud services. Jingdongyun's ultra-high-tech flexibility is reflected in the busiest time of 618: in the early hours of this morning, the peak number of user visits per second increased by 152% compared with the same period last year.

The technology-driven digital intelligent social supply chain can be said to be the real "secret weapon" of JD.com 618. behind the simple process of consumers' shopping, payment and receipt, JD.com Yun not only completed "let users decide production". It also refreshes the core of C2M: let users decide the whole supply chain.

As one of the most thoroughly containerized cloud platforms in the world, JD.com Cloud now has the largest Docker cluster in the world, achieving 100% completion of JD.com Shopping Festival orders on the cloud. It can be said that the most complex application scenarios and the longest supply chain force the optimal solution to undertake the flood peak of high concurrent flow.

From the "last kilometer" minute delivery of intelligent express vehicles at the front to the deployment of warehousing and freight transportation in the rear to reduce IT costs, intelligent storage, intelligent handling, intelligent sorting and other links are inseparable from the solid support of JD.com Cloud. As for the upper reaches of the industrial chain, the C2M reverse customization, intelligent selection, intelligent pricing and intelligent replenishment brought by supply chain coordination further improve the efficiency of the industry.

In the face of consumer demand anytime, anywhere, JD.com is establishing a diversified new business model that adapts to the changing market and satisfies consumers efficiently. Different from the physical transport capacity of traditional logistics enterprises such as Shunfeng, JD.com stands on the "cloud" and looks ahead of consumers.

In this mode, consumers' curiosity, satisfaction and purchase desire are extended and magnified to the greatest extent, and at the same time, the loss caused by the mismatch between supply and demand is almost eliminated in merchants and platforms.

Greater supply chain certainty, higher efficiency and shorter logistics time are the strongest guarantee for the rationality of the pre-sale model. In response to these goals, as early as 2020, JD.com Retail and JD Logistics, Inc. jointly launched the "pre-sale pre-sale model", which puts the pre-sold goods placed by consumers in front of the nearest express delivery site. Once the payment is successful, the goods can be received within 5 minutes at the earliest.

JD.com 618 this year, the pre-scale and category coverage of goods have been expanded. Based on the technical support of JD.com Cloud, through the system algorithm of the Y Business Department of the intelligent supply chain and the multi-level inventory front of JD Logistics, Inc. 's supply chain plan, a large amount of goods are placed in the warehouses and sites closest to consumers at all levels, so that more consumers can get it immediately. At the same time, this year's pre-sale has been extended to almost all small and medium-sized items, with nearly 50% of JD.com Express participating in it.

02 moat into the sea

From a capital point of view, JD.com 's investment in logistics is ushering in a harvest. JD Logistics, Inc. was successfully listed on the stock market on May 28th with a market capitalization of more than HK $270 billion. In addition, as early as June 5, 2020, Dada Nexus Limited, a local real-time retail and distribution platform, landed on NASDAQ in the United States, with a market capitalization of more than 10 billion US dollars on its first day of listing.

Logistics has long been regarded as JD.com 's moat, but now the river has leapt into the sea of capital and investor enthusiasm continues to rise. When JD Logistics, Inc. landed in Hong Kong stocks, he not only won a hot subscription for new shares, which was 211 times oversubscribed, but also rose 14.1 per cent on the first day of trading.

There is no doubt about the significance of logistics to retail, but JD.com 's far-reaching layout in the supply chain is more worthy of discussion.

JD Logistics, Inc. disclosed the performance data separately for the first time in the Q1 financial report in 2021. As an integrated supply chain solution and logistics service provider, JD Logistics, Inc. served more than 190000 customers in 2020 and provided integrated supply chain services to 52700 enterprises.

From a horizontal point of view, JD Logistics, Inc. is different from traditional third-party logistics such as Shun Feng and Tongda Department in that it is positioned as a "technology-driven supply chain solution and logistics service provider". With covering the whole country and reaching the global logistics infrastructure, technological advantages, rich operational experience and industry insight, we provide partners with solutions.

JD Logistics, Inc. is the largest integrated supply chain logistics service provider, and has built a comprehensive intelligent logistics system to achieve service automation, digital operation and intelligent decision-making. As of December 31, 2020, JD Logistics, Inc. has operated a total of 32 "Asia No.1" large intelligent warehouses across the country. As of March 31, 2021, JD Logistics, Inc. operates more than 1000 warehouses, including the cloud warehouse area managed by JD Logistics, Inc., with a total storage area of more than 21 million square meters.

In fact, the business layout of the supply chain flows in JD.com 's blood. JD.com has been reshaping the retail industry with "supply chain" since he went online as early as 2004 and self-built logistics in 2007. In recent years, JD.com has further laid out the intelligent supply chain to help upstream enterprises better allocate, forecast and analyze inventory and services, as well as promote the digitization process of enterprises. It can be said that the future e-commerce platform is not only a channel for merchants, but also a common decision maker of the whole supply chain.

Since 2018, JD.com has been working on the supply chain Dazhong platform, the essence of which is to "further specialize professional things" and improve omni-channel efficiency and efficiency more productively, standardised and ecologically. Today, JD.com 's "full-link" supply chain, represented by C2M reverse customization, has participated in design, production, distribution, circulation, consumption, service and other links, realizing the optimization and reconstruction of the traditional supply chain model.

The essence of 618 is to seek new and fast. Based on the advantages of its own supply chain, JD.com is exploring a new C2M model. In 618 this year, the sales of reverse customized Jingpin home appliances within 15 minutes doubled in the same period last year, while the 15-minute turnover of game phones that accurately meet personalized needs increased nine times compared with the same period last year, and the turnover of Hisense reading mobile phones increased by 550%.

The intelligent supply chain greatly promotes the supply chain control tower to shine in this 618. through the whole process of real-time supply chain big data, the platform can quickly predict and respond to coordination problems such as temporary out of stock of explosives, emergency orders, insufficient supplier inventory and so on.

03 dual path of consumption and industry

The "chain" of the supply chain is tied to consumers on one side and continues to extend on the other, which has rich room for extension on the industrial side.

On the one hand, the advantages of the supply chain bring faster and high-quality consumer services to consumers; on the other hand, after the intelligent supply chain extends upstream, it can bring changes to the whole enterprise ecology on the industrial side: through supply chain coordination and C2M, enterprises can complete more accurate production scheduling and new product planning on the basis of digitalization at the manufacturing side.

This not only has a solid guarantee for the operation level of enterprises during the 618 promotion period, but also promotes the physical enterprises to have a more efficient grasp of inventory, shipment and operation, so as to reduce costs and increase efficiency.

At the same time, for offline retail enterprises, JD.com also hopes to use its supply chain and digital advantages to open up online and offline, break the stereotype of "online and offline competition" and invigorate resources.

In addition to the front supply chain system created by big data, JD.com is also keenly aware of the growth opportunities behind real-time distribution and the "last kilometer". In fact, although it appears that e-commerce is deeply involved in people's lives, the online penetration of the entire Chinese retail industry is about 25%, but the penetration rate of many categories is only in the single digits.

According to the statistics of iResearch, the compound annual growth rate of China's local retail market is as high as 62%. In the view of JD.com and Dada, the e-commerce and macro of the traditional retail industry, which has a large stock, that is, the realization of one-hour real-time retailing, will be the greatest opportunity. This means that for real-time distribution, including takeout, fresh house distribution, super retail, pharmaceutical distribution and so on, no matter which scene, there is a huge market value.

What is noteworthy is that JD.com not only sees the value of this market, but also further promotes the digital transformation of manufacturers in the whole process from design to production through the advantages of its supply chain.

By giving full play to the advantages of both sides, let retail enterprises begin the process of digitization, which is an important step for JD.com to seek the layout of the industry side. JD.com knows very clearly that there is no point in talking about digitization out of thin air, and only by using obvious benefits, brands and values as a pry opportunity can we really promote its process.

A specific figure is: in terms of physical retail enterprises, JD.com linked more than 3 million offline stores this year, and cooperated with Dada Nexus Limited to cover the "one-hour living service circle" to about 1400 counties, districts and cities across the country.

More cases include: relying on Dada Haibo Center, JD.com is helping retailers to achieve omni-channel integrated management in the areas of performance, goods, users, marketing and so on. JD.com Zhijia, owned by Dada, is committed to creating comprehensive digital marketing solutions for brands, which has helped Yili, Mengniu, Procter & Gamble Co, Unilever, Mars Wrigley, Nestl é and other brands to achieve digital tracking and management of full-link marketing.

To sum up, the denotative meaning of JD.com 618 is increasing. As Xu Lei, CEO of JD.com Retail Group, said, JD.com 's retail ideal is to "sell goods from all over the world" and "sell goods from all over the world". The opening of China and Taiwan with science and technology as the core and the industrial side layout with the supply chain as the core will bring more growth space to JD.com, and at the same time activate and promote the digital development of the whole society.