The logistics performance fee rate decreased by 0.6%, the management expense rate decreased by 0.9%, and the market expenses decreased by 0.6%. Jingdong Logistics, which continued to invest, finally showed hope of profitability.
The improvement of Jingdong Logistics’ performance has been accompanied by an increase in Jingdong’s service revenue. Jingdong’s source of income is mainly divided into two parts, one from the e-commerce business and the other from the service income including advertising, marketing and logistics. Starting from Q4 2017, Jingdong’s revenue growth rate of service business has been higher than that of e-commerce business. By Q2 in 2019, e-commerce revenue increased by 20.8% year-on-year, and service revenue grew by 42%. In the same period last year, e-commerce revenue growth was still 29.4%.
Overall, JD’s e-commerce revenue for several consecutive quarters, like the entire group’s revenue, is facing a general slowdown in growth.
Accounting for 90% of the e-commerce business, its future growth space and growth of new users is undoubtedly an important concern of the outside world and investment banks. At least the Q2 financial report has not let the outside world see the strong growth potential of the e-commerce business. Therefore, the success or failure of Jingdong’s focused strategy this year is crucial.
Jingdong plays a combination punch in the face of the sinking market
In fact, there has been intense discussion inside Jingdong on how to do the sinking market.
It is understood that at the beginning of this year, nearly 40 core executives from Jingdong gathered at the Yanqi Lake Hotel in Huairou, Beijing, for a few days of closed-door meetings. At this closed-door meeting, how to do the sinking market is the focus. One of the topics.
Finally, Jingdong’s high-level conclusion is that the combination of punching is implemented. That is to say, in the sinking market, JD will not do its best, but multiple business lines will try to innovate. Of course, the results of various attempts will determine whether this business can continue to be implemented.
Under this strategic layout, all business groups and business units in Jingdong have launched new trials in the sinking market, and various new formats have accelerated. Such as Jingdong Home Appliances Division led by Jingdong home appliance store, Jingdong Digital Division led by Jingdong computer digital store, and Q3 will be upgraded on WeChat “shopping” channel Jingdong Shopping Lot.
In the next few years, the growth rate of Jingdong’s revenue and the growth of new users will be largely based on today’s layout. Compared with the fresh supermarkets, the offline stores that do the superior category seem to be more able to inspire the Jingdong people’s fighting spirit.