Having Understood Their Duel, You Can Understand The Future Business Pattern Of China.

Jingdong is a model of the industrial chain mode, and Tmall is the representative of the open platform mode.

Having read the duel between these two masters, we can understand the future business pattern of China.

No matter what profession or occupation you are engaged in, this is an article you have to read, reading the confrontation between these two masters, and reading the future business pattern of China.

China's e-commerce is a major engine of China's economic growth, contributing much to the rapid growth of the Chinese economy in the past ten years, and its momentum has long been ahead of the world.

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It has also become an important strategic plan for China.

It will be an important tool for China to "govern" Global trade in the future. China's future position should be the distribution center of global products.

The essence of e-commerce lies in: "the fastest and best way to make"

"And" consumers "relationship.

The 5 modes of China's electricity supplier are: industry chain mode, platform mode, O2O mode, sale mode and social mode.

Jingdong is a model of the industrial chain mode, and Tmall is the representative of the open platform mode.

We contrast the difference between the two hegemony of "Ali" and "Jingdong".

1, "Ali" is a large platform, "Jingdong" is a big business.

It starts with Liu Qiangdong's theory of "ten sugarcane". He thinks that a product should be made by brand dealers from five aspects: creativity, design, R & D, manufacture and pricing.

Then the following five links of marketing, trading, warehousing, distribution and after-sale should be done by retailers.

Jingdong positioning is the following five links: Based on pactions, extending to warehousing, distribution, after sales, marketing and other links.

Therefore, these manufacturers and Jingdong cooperation, only need to focus on the production stage of products, circulation links to Jingdong to do, more in line with the concept of professional division of labor.

It can be said that Jingdong is a retail service provider who works for brands, which is Jingdong's self operated e-commerce provider.

Ali is the platform electricity supplier, positioning is: the ten links still need to be done by the seller himself.

As a platform, I only provide exhibition opportunities and traffic sources. They need to attract all kinds of sellers as much as possible, and then give sellers a site, which is updated and maintained by sellers themselves, and they are charged for margin, service fees, royalty and so on. Sellers will naturally take market demand as the guide, so eventually a large market of category prosperity has been formed. Therefore, the category of Taobao is quite rich, varied, and everything is needed, and this is the origin of "omnipotent Taobao".

2, Ali horizontal development, Jingdong vertical extension, a fat and thin

Therefore, "Ali" positioning is to help sellers make money; "Jingdong" positioning is to make money for themselves.

It is ironic that "Ali" has not made money for sellers, and Jingdong has never earned any money for itself.

Why is that?

For Ali's "Taobao" or "Tmall", sellers only get traffic. In order to fight for traffic, they often need to pay more extra cost. They should not only be dragged down by price wars, but also keep buying advertisements.

This is also the reason why more and more sellers give up Taobao, so this is also summed up as the bottleneck of traditional e-commerce.

So Ali did not make money for businesses, but it made many consumers benefit, because Chinese consumers can indeed buy cheaper products, which is also a double-edged sword, because many fake products are flooded in.

The seller's entry determines the difficulty of management: the mouth is loose, the fake comes in naturally, the product is not thriving, and the dilemma is determined by Ali's open platform positioning.

On Jingdong, 60% products are all handled by Jingdong. Jingdong is like an Internet retailer. Wholesale products are sold on the Internet, earning a product price difference.

In the Jingdong, payment to Jingdong, packaging and delivery is also Jingdong, after sale also look for Jingdong.

So Jingdong must have a huge procurement team, sales team, customer service team, logistics team.

The mode of centralized procurement and wide distribution in the East is bound to have great demand for warehousing, and logistics must be done.

Early in Suqian, Jiangsu (Liu Qiangdong's hometown), a national call center with a total area of more than 6000 square meters was set up, and a unified standard customer system was implemented. The self logistics and distribution system was perfected. At present, it has covered 1300 administrative districts and counties, and launched distribution services such as "time limit", "speed up" and "night matching". More than 70 thousand Jingdong employees, most of whom work in warehousing and distribution positions.

Couriers can also be used as salesmen in the future and become the O2O's offline traffic entrance.

Jingdong self built logistics can not be affected by other logistics companies, and become an unusual supplier who can guarantee delivery during holidays.

It integrates the chain of traditional production enterprises and Internet marketing terminals, which makes it easier to control the whole process. This ensures product quality and wins user reputation and high loyalty. However, the huge logistics system of Jingdong has drawbacks. How far can this development pattern extend to?

(1), no expansion, the cost is too high; the expansion is too large and too dangerous.

(2) heavy assets are running and funds are deposited on fixed assets, and funds can not be efficiently turned around.

According to Liu Qiangdong's plan, Jingdong hopes to have 600 thousand employees in the future. The pace of expansion is very risky.

To manage an enterprise with 600 thousand employees, to maintain the efficiency of the two aspects of retail and logistics, first is not so simple as it may be.

Make a comparison: in 2013, Taobao + Tmall completed 11 billion 300 million orders.

Assuming that Jingdong's logistics team can't fulfill their order capacity, they need 1 million 440 thousand people's logistics team to distribute these orders. Ma Yun also questioned Jingdong: China will have 300 million packages per day after ten years. Can Jingdong still cope with it?

Jingdong needs to spend more cost to maintain order quantity, product supply, logistics storage and so on, which is the weakness of Jingdong.

Therefore, Jingdong has invested too much in the word of mouth and no profit.

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3, Alibaba is Internet +, Jingdong + Internet.

Alibaba is more like an Internet company. It is Internet +. Relying on unlimited expansion of goods, consumers will always have more choices and seize the bonus of China's economic growth: foreign trade pformation, retail pformation, grassroots entrepreneurship boom, and even rampant rampage, credit loss and so on.

It's not surprising to be a local tyrant.

Jingdong is like a traditional retail enterprise, plus Internet.

As a traditional enterprise, money needs to be earned by one point, efficiency is life, and Jingdong is destined to suffer.

So it needs continuous introduction of capital and ultimately listing.

And then continue to invest and expand through the money, and strive to protect the integrity of the industrial chain, smooth logistics system, product quality and service excellent, so as to expand the number of consumers.

Whether the Internet is your surface or your soul determines your gross profit margin. Ali's gross margin has been maintained at around 70% in recent years, even at about 78%.

Jingdong's gross margin rose to about 9.9% only last year.

Ali is standing on the premise that millions of businesses are struggling to survive. Jingdong is moving forward in the footsteps of capital and martyrs.

4, Ali open, Jingdong closed

Ali is still open mode of thinking, such as cooperation with other companies to form rookie logistics, warehouses are shared, logistics companies, Taobao sellers, businesses can use this storage service.

This will form a data of logistics paction. By analyzing, we will know what time, area and goods need.

So all kinds of sellers can put items in the regional central repository ahead of time, and at the same time, the pportation cost is smaller than a single sent to buyers everywhere. It also enables online shopping to achieve 24 hours' arrival. This initiative has built a logistics ecosystem and shared resources, which has greatly promoted the development of e-commerce in China.

The huge logistics system established by Jingdong is the warehouse as the core, covering the second tier cities.

This is also the fundamental guarantee for its rapid delivery.

But Jingdong's logistics is independent logistics, Jingdong mode is more closed.

5, Jingdong has logistics, Ali has payment.

When it comes to independent resources, Ali's Alipay has more than 300 million real users, of which active users are close to 200 million, while Jingdong's online banking has not released relevant figures, but the gap between the two is not small.

Although after Jingdong and Tencent cooperation, users can use WeChat payment to pay, but WeChat payment is Tencent's product after all. In addition to paying rate, the pition depends on WeChat payment will also affect the development of Jingdong financial extension business.

6, Jingdong is trying to imitate Ali, and Ali is imitating Jingdong.

Although Jingdong is mainly self-employed, its open platform (POP) business is also growing at a high speed.

From 3C products to full category programs, from all self to open third party platforms.

Since the second half of 2013, Jingdong began to provide warehousing services to third party platforms.

After the deployment of warehousing and logistics is basically completed, Jingdong will open up 60% of its resources to partners.

However, the problem of cleaning bills, fakes, poor service and so on will be available on Tmall, and on Jingdong's open platform.

Jingdong started with the 3C industry, and Ali also began to invade other vertical industries, and made longitudinal deepening, such as cultural entertainment, financial industry, pportation, education and so on. For example, through the acquisition of shares, Sina micro-blog, Gao De, Hua number media, cultural China, Youku potatoes and UC (excellent view) were recruited to build up a cultural and entertainment sector. Mobile Internet, vertical O2O, cloud computing services, audio and video services and other fields were also deployed in the Internet Ecosystem Bureau.

In addition, Ali has invested in the education industry through investing in TutorGroup platform, through the acquisition of poor tourism network layout tourism industry, through the acquisition of Haier and Yintai part of the equity to consolidate its logistics and physical stores.

Comment

China is about to enter the era of "market economy" in the era of "capital economy". Both Ali and Jingdong share a common feature: they are all examples of "capital operation". The essence of capital is not money, but a kind of dominating power. Bringing more control power through control is called capital operation, which optimizes the allocation of social wealth through capital operation, thus creating more social wealth, which is the social value of capital operation.