On March 11, JD.com (NASDAQ: JD; HKEx Stock Code: 9618) released its fourth-quarter and full-year results for 2020. In the fourth quarter of 2020, JD Group’s net revenue was RMB224.3 billion, up 31.4% year on year. In 2020, JD Group’s net revenue was RMB745.8 billion, of which net service revenue accounted for more than 14% for the first time. It employs 360,000 people.
In various data in the financial report, the entity attribute of JD is increasingly clear — JD is an enterprise that grows in the real economy, takes root in the real economy and serves the real economy.
Growth in the real economy, continued to increase investment in infrastructure
As of Dec. 31, 2020, JD had 471.9 million active buying users for the last 12 months, with a net gain of nearly 110 million active users for the year, with 80% of the new users coming from emerging markets that are sinking.
Jingdong started with electricity, can get recognition of more than 471.9 million users, however, depends on not only is the pattern the advantages of the electric business platform, but the “real” jingdong unique – solid supply chain model, and the “first principles” perseverance, constantly optimize industry experience of cost, efficiency, and even the whole society.
Since the establishment of the company, JD has been increasing investment in supply chain infrastructure. By the end of 2020, JD Logistics operates more than 900 warehouses, including the cloud warehouse area managed by JD Logistics, the total warehouse area of JD Logistics is about 21 million square meters. In 2020, the listed and unlisted companies of JD system added a net 100,000 employees, and the number of employees reached 360,000 as of December 31, 2020.
Based on the supply chain, take root in the real economy
In 2020, JD explained for the first time the new generation of infrastructure facing the next decade — JD Digital Intelligence Social Supply Chain, which means to connect and optimize all links of social production, circulation and service with digital intelligence technology, so as to reduce social costs and improve social efficiency.
As a “technology and service enterprise based on supply chain”, Jingdong has two unique advantages in its digital-intelligent social supply chain. On the one hand, Jingdong’s unique integrated supply chain model has the best efficiency and flexibility. On the other hand, Jingdong has the most complete chain, the most complete process and the most valuable intelligent supply chain in the industry. This enables JD to continue to move up the retail upstream, deeply into product design, research and development and manufacturing, creating strong synergies with physical enterprises and injecting new digital momentum into them.
By the end of 2020, JD.com had further reduced inventory turnover days to 33.3 days, the best level since the company went public. By comparison, Amazon’s turnaround days are 39 days. Costco, the global retail turnaround efficiency benchmark, is in the same league as JD.com, but manages only a few thousand SKUs. JD.com now operates more than millions of its own SKU products and 900 warehouses.
Efficient inventory turnover means that brand merchants’ unsalable risks and warehouse allocation costs are greatly reduced. Jingdong, relying on its core advantages such as strong supply chain and technical services, adds new momentum to the digital upgrading of the real economy. In 2020, Jingdong will work with more partners to achieve a win-win situation. A large number of brands and merchants have achieved remarkable growth on Jingdong platform. During Jingdong 11.11, the sales growth rate of 13,532 key brands exceeded 300%, and the turnover growth rate of third-party merchants was more than twice that of the same period last year.
Serving the real economy, more efficient and sustainable
JD always believes that only with the healthy development of the whole industry, enough profits for brand manufacturers, innovation and new products, consumers will be willing to continue to buy things, and JD will have more development opportunities.
In 2020, in order to help SMEs affected by the epidemic return to work and production, JD has launched the “SME Assistance Plan”, which provides 11 subsidy support measures to hundreds of thousands of merchants on the platform, including fee reduction, financial and logistics support, flow support, technical support and health protection. The investment of hundreds of millions of yuan will effectively help restore normal production in an orderly manner and ensure social and economic order. As Song Chunzheng, vice president of Jingdong Group, said, “We are the closest people to SMEs, and it is incumbent upon us to help them.
Jingdong is never satisfied with helping brands and merchants to sell their goods online. Instead, it hopes to create more value for the industry by transforming technical services, matching supply and demand more accurately, efficiently and intelligently, and continuously optimizing cost, efficiency and experience. In fact, digitized social supply chain has become the core ability of Jingdong to help the entity industry.
Through continuous technological innovation, deepening the construction of the Central Platform, improving the efficiency of the industry, and fully supporting the real economy, Jingdong has created a SaaS solution “Shangling SaaS Mall” for the industrial belt and traditional retail. C2M cooperation with more than 1000 brands, the number of C2M products is nearly 10 times that of the same period last year; Completed the layout of the “double hundred” industrial belts, focusing on building 100 industrial belt demonstration bases and 100 source and origin demonstration bases; We will launch the “Ben Rich” plan to help open up the rural industrial chain. In the next three years, it will boost the rural output value by one trillion yuan and make the countryside “alive” and “on fire”. We provide customized supply chain services for a large number of entities, such as exporting to domestic market and expanding overseas market, to promote both domestic and international circulation.
The excellent performance of JD.com’s annual report data in 2020 reflects the strong resilience and shock resistance of China’s economy, as well as Chinese consumers’ pursuit of a better life. Under the new development pattern, jingdong will continue to “solid” help real, steadfast, for a long time for work, dedicated resources for infrastructure construction vigorously, promote scientific and technological innovation and offline retail, belt, such as real economy depth fusion, improve social efficiency, relying on scientific and technological innovation to create value for the high quality of China’s economic development, to expand new kinetic energy.