China’s second e-commerce event has emerged from its own unique model and is still evolving.

Editor’s note: This article is from WeChat public number “Tencent deep network” (ID: qqshenwang), author Sun Hongchao internship operation editor Liang Dan.

In one week, the leading domestic three-home appliance platform has released a bright eye.

On August 13, Jingdong released the second quarter financial report for the fiscal year 2020 (April 1, 2019 to June 30, 2019, the same below), closing at $30.66 on the day and closing at $29.49 on the 22nd, a cumulative decline of 4 On August 15th, Alibaba released its second quarter financial report for 2020, closing at $166.97 on the day and closing at $171.91 on the 22nd, with a cumulative increase of 3%. On August 20th, it released a second quarterly financial report for the second quarter of 2020, closing on the same day. It closed at $25.96 and closed at $30.59 on the 22nd, a cumulative increase of 18%. (Note: The second quarter of 2020 is referred to as this quarter)

Before the birth of the fight, Alibaba and were once considered to be the unstoppable Gemini constellations in China’s e-commerce field. This is not only reflected in the GMV, the scale of users, but also mainly in the source of traffic: At the time, the e-commerce field was recognized for traffic. The argument is that Ali Qi, Jingdong II, and one in the other. If the clock is adjusted forward, it is China’s first e-commerce event, McCawlin, Dangdang, Jingdong, Alibaba, Jumeiyoupin, Lanting Gathering, and Vipshop.

After the birth of the two poles, under the strong pressure, some e-commerce platforms either choose to cooperate (such as Suning, Amazon China, Vipshop), or face the development of the ceiling and hit the strong invasion of the two strong (such as Dangdang, Gome ).

But as the pattern solidifies, the e-commerce industry is starting to become less sexy, and some pessimistic investors even believe that the e-commerce industry no longer has investment value. However, with the emergence of the second wave of mobile demographic dividends, the fight has grown wildly outside the bipolar horizon. When Alibaba and noticed, they have grown into an unstoppable boulder and successfully listed in the US.

This sinking market has also awakened the second spring of Alibaba and JD. The main growth directions of the two home appliance giants in recent years have also targeted the fourth- and sixth-tier cities and even the township market.

What is more concerned is that, unlike the first e-commerce company that imitated the US e-commerce company, Alibaba,, and the company have invested heavily in new technologies and new models and achieved initial results.

This means that China’s second e-commerce event has emerged from its own unique model and is still evolving.

This is the bestInterest, far better than the boring figures in the financial report.

Revenue comparison: Fight more and win faster

Alibaba achieved revenue of 114.92 billion yuan in the quarter, up 42% year-on-year, exceeding market expectations of 111.59 billion yuan; Jingdong realized revenue of 150.3 billion yuan this quarter, up 22.9% year-on-year, exceeding market expectations; Revenue for the quarter was 7.29 billion yuan, a year-on-year increase of 169%, exceeding market expectations of 6.1 billion yuan.

Compared with the same period of last year, the growth rate of Alibaba and continued to slow down, and a lot of sales still maintained a higher revenue growth rate.

Because of the different business components and operating modes, Alibaba and the company’s main revenues are all from platform commissions and advertising promotion fees. includes both the above-mentioned expenses and self-operated goods revenue (net commodity sales revenue increased by 20.8% year-on-year). Net service revenue increased by 42.0% year-on-year.

A lot of money in this quarter’s financial report said that revenue growth was mainly due to the strong growth of platform online marketing technology service revenue. In the second quarter, the sales revenue of online marketing technology services was 6.461 billion yuan, an increase of 173% over the same period last year of 2.371 billion yuan. Platform trading services revenue was 822.9 million yuan, an increase of 143% over the same period last year of 338 million yuan.

At present, more than one has built a moat in the sinking market of the main battlefield, and gradually entered the “five rings” market, which means that in the future, a lot of revenue will continue to maintain a high growth rate.

Net profit comparison: JD’s rapid growth

The net loss attributable to ordinary shareholders during the financial quarter was 1.003 billion yuan, which was significantly narrower than the 6.494 billion yuan in the same period of last year. Under the US GAAP, the net loss attributable to ordinary shareholders was 411 million yuan. , a decrease of 70% from the 1.379 billion in the first quarter. Alibaba’s non-GAAP net profit was 30.949 billion yuan, a year-on-year increase of 54%, and a net profit margin of 27%. Jingdong’s non-GAAP net profit attributable to ordinary shareholders was RMB 3.6 billion, a year-on-year increase of 644%.

Three US stocks listed in China E-commerce Company have a bright performance in terms of net profit, and the losses have been greatly reduced. JD’s net profit has grown rapidly, and Alibaba has risen again after the multi-season net profit margin declines.

The entire e-commerce industry was sung last year, and one of the core factors came from net profit performance. Alibaba’s net profit growth slowed down, with a growth rate of 22% in 2017 and a growth rate of only 3% in 2018. Since the first profit in 2016, Jingdong has achieved continuous profit for more than ten quarters, but Jingdong’s net profit growth last year. A 30% drop; a lot of spells last year surrendered a surprising loss figure of 10.2 billion (500 million in 2017).

In fact, last year’s poor performance of the e-commerce industry’s net profit was related to the slowdown in domestic market consumption growth. The three major e-commerce platforms focused on sinking the market in this quarter turned over at the net profit level and did not receive Narrow investment: continues to invest in and launches a number of strategic investments in emerging businesses; it is still increasing its subsidies in the fight for more sales. The sales and marketing expenses for this quarter were 6.104 billion yuan, compared with 2.971 billion yuan in the same period last year. It increased by 105% year-on-year, which was 125% higher than the 4.889 billion yuan in the first quarter.

This means that the three major e-commerce platforms are also looking to the future while seizing the current (net profit).

Comparison of active users: Ali still leads significantly

Alibaba’s annual active consumers reached 674 million in the current quarter, an increase of 20 million from the previous month; the number of active buyers of the platform was 485 million, an increase of 41% over the same period last year of 344 million, a net increase of 140 million. The quarterly quarter increased by 39.9 million active buyers; Jingdong’s active users in the past 12 months increased to 321 million, an increase of 11 million over the same period last quarter.

It is worth noting that although the growth rate of active users of Alibaba and is relatively low, the number has increased significantly compared with last year. For example, Jingdong’s active users grew less than 13 million last year. A lot of competition still maintains a very fast user growth momentum, considering only the annual active buyers and monthly live numbers, and has become the second largest e-commerce platform in China. However, more than half of the nation’s online shoppers have become more and more users, and it is difficult to achieve 71% year-on-year growth again.

Alibaba said that the sinking market is the main source of new users. In the quarter, more than 70% of Taobao’s new users came from sinking markets such as the 3rd, 4th and 5th tier cities and villages.

Jingdong Retail Group’s rotating CEO Xu Lei said in a conference call that nearly 70% of Jingdong’s new users are from low-tier cities; more than half of the total users are from low-tier cities.

In the future, Alibaba and Pinto will intervene in each other’s advantageous areas, and the two home appliance platforms will continue to grow at a scale of active users; in May this year, Jingdong announced that it will renew with Tencent for three years. After the strategic cooperation agreement, WeChat will continue to bring important traffic support to JD. Jingdong will continue to enter the sinking market with investment and maintain the growth rate of active users.

GMV (Total Transaction) Comparison: Fighting a lot of relative weaknesses

Note: The three home appliance business platforms have not announced the quarterly GMV, the Alibaba figure is 2019 fiscal year, the Jingdong number is 2018 year-round, and the number of fights is 12 months as of June 30, 2019.

Alibaba’s GMV in China’s retail market is 5.7 trillion yuan, a year-on-year increase of 19%; Jingdong GMV nearly 1.7 trillion yuan, an increase of 30%; a lot of GMV reached 709.1 billion yuan, an increase of 171%.

In terms of GMV, during the 12-month period ended March 31, 2019, the average annual consumption of active buyers of the multi-platform platform increased further to 1467.5 yuan, an increase of 92% over the same period last year of 762.8 yuan.

But compared with Alibaba and Jingdong, there is still a big gap in the amount of consumer spending.

Alibaba: E-commerce printing machine, mainly looking to the future

It can be clearly seen from Alibaba’s financial report this quarter that except for the core e-commerce business, which can be called the printing machine, other emerging fields are basically at the stage of investment: the core e-commerce revenue of this year is 95.544 billion yuan, a year-on-year increase. 44%; after eliminating new retail, consumer services and rookie business, core e-commerce revenue reached 71.614 billion yuan, a year-on-year increase of 28%.

These incomes will become an important pillar supporting Alibaba’s future development. The emerging business forms such as nails, Tmall Elf, Gaode Map, Youku Video will all enjoy the financial dividend of e-commerce “Big Brother”.

Cloud computing, which has been in use for many years, is becoming a typical representative: cloud computing revenue for the fiscal quarter reached 7.787 billion yuan, a year-on-year increase of 66%, mainly due to the increase in average revenue per customer; The meeting revealed that private cloud revenue increased by 250% year-on-year.

The figures show that at present, half of A-share listed companies and 80% of technology companies in China use Alibaba Cloud services. In the global cloud business, Alibaba Cloud has occupied 7.7% of the total, ranking third.

It can be contrasted that Amazon AWS has $7.7 billion in revenue in the second quarter, which means that cloud computing is still one of Ali’s most promising businesses.

Compared with the other two home appliance platforms, thanks to the strong cash advantage, Alibaba has basically opened up business services through multiple business forms: Alibaba Cloud, Nail, Ant Financial, and Rookie…

In early 2019, Ali proposed to build Alibaba’s commercial operating system and share Ali’s digital experience for the past 20 years with brand partners. In June, Ali announced a new round of structural adjustment, which will be nailed to the Alibaba Cloud system to provide a more complete digital solution for corporate customers.

Jingdong: Cash flow has improved and service revenue continues to rise

At the end of last year, carried out a new round of organizational restructuring. This adjustment is called the largest organizational change in Jingdong history: Jingdong Mall is divided into three parts: the front office, the middle office, and the back office; the new platform operation business department, the purchasing business department, and the integrated fresh business unit are incorporated. Fresh; at the same time, Xu Lei was pushed to the front of the stage, serving as the rotating CEO, Jingdong’s three major business groups from JingdongThe founder Liu Qiangdong reported that he would report to Xu Lei.

This year, known as Jingdong’s “Water Year”: At the end of January last year, Jingdong’s share price reached the highest value of 50.68 US dollars per year, and the market value exceeded 70 billion US dollars. Since then, Jingdong’s share price has plunged high and the market value is insufficient. With $30 billion, it has been surpassed by multiple data levels such as annual active users.

But Jingdong still insists on investing in technology research and development. Liu Qiangdong previously admitted on the analyst conference call that Jingdong Group’s investment in R&D in 2018 is indeed very high. In the first nine months, R&D investment increased by 88% year-on-year. It does not include the R&D investment of Jingdong Digital.

This part of the investment is slowly showing value. The cumulative amount of orders for the Jingdong 618 e-commerce war this year is 2015 billion yuan, an increase of nearly 30% compared with last year. After the net revenue and net profit increased significantly, Jingdong’s cash flow also improved significantly. As of June 30, 2019, Jingdong’s free cash flow in the past 12 months increased to 7.4 billion yuan, holding cash, cash equivalents. The total amount of restricted cash and short-term investments reached RMB 60.2 billion, an increase of more than RMB 20 billion from RMB 39.5 billion on December 31, 2018.

“Our profit is definitely not to reduce investment, or to cut off the loss business.” Liu Qiangdong said, “We will continue to increase technology investment, such as the continued sustainability of artificial intelligence, big data, cloud computing. Investment. At the same time, we will expand new categories, such as fresh, super-super, etc. We will continue to invest.”

Jingdong financial report shows that many businesses in the past few years have successively ushered in breakeven and even profitability. For example, Jingdong Logistics has ushered in a break-even point, and a large number of categories have ushered in profit.

Compared with Alibaba and Alibaba, has a more viscous core user group: unlike Alibaba and the platform model, has a stronger purchasing capability and warehousing and logistics system capabilities. Consumers on the platform also have higher spending power.

After the cash flow was improved, JD. made a number of acquisitions and investments around the retail industry. CFO Huang Xuande said at the earnings conference: In the first half of this year, we invested 1.8 billion yuan, which will have some impact. This part of the investment will be mainly used in related plans of third- and fourth-tier cities, not only including the new WeChat platform, but also Including the logistics business we hope to further penetrate in these third- and fourth-tier cities to enhance the user experience.

In the second half of the year, continued to invest: On July 19, Jingdong Group announced that it will invest 371 million Hong Kong dollars to subscribe for 5% of the property management of the community property management; on July 29, announced that it will purchase Dickson’s additional shares. 9.87% stake became the third largest shareholder of Dixon; On August 8, Jingdong Group announced that it had completed a worry-free investment in the daily life of daily necessities chain stores; on the same day, Jingdong Group announced that it would lead a new round of financing of nearly 1 billion yuan by Xinchao Media; Month 12On the 20th, Jingdong Group and Tencent jointly completed a strategic investment in the car street of the used car B2B auction platform; 8 On the 21st, Jingdong Digital announced the strategic investment in highway passenger traffic. The head office of the company, including the investment amount of tens of millions of yuan; on August 22, according to the documents submitted by the Vipshop to the SEC, June 13, 2018 Since then, Jingdong has bought a total of 5,916,178 ADSs of Vipshop in the open market, with a total investment of 55.76 million US dollars, and currently accounts for 7.6% of A-shares.

Continuous investment around the ecological environment, Jingdong’s service revenue is greatly improved: Jingdong net service revenue increased by 42% year-on-year to 16.8 billion yuan, accounting for 11.2% of the overall net income.

Pictures: Focus on e-commerce, reverse-energy manufacturing

Although there are a lot of media or investors who think that the sinking market dividends are coming to an end, there is still a bright eye for a lot of money.

Too many current major markets are still sinking users. According to a report released by Quest Mobile, as of the end of June, the number of customers in the sinking market increased by 72.2 million. During the 618 period this year, the number of orders for 3C digital products in the sinking market was more than the first- and second-tier cities.

Another question comes from the increase in marketing expenses. The cost of sales and marketing for this quarter was 6.104 billion yuan, up 105% from the same period last year of 2.971 billion yuan, compared with 48.89 in the first quarter. The growth of 100 million yuan was 1.15 billion yuan. Jiuding, vice president of strategy and strategy, said that in the second half of 2019, the fight will continue to expand the profit and subsidies.

But there is a lot of investment in the field of R&D while running at high speed. The financial report shows that the R&D expenses for the quarter increased to 803.7 million yuan, an increase of 332% over the same period last year. Platform R&D expenses accounted for 11% of revenue, higher than the industry average. This part of the investment is mainly for “intangible assets” such as talents, algorithms and systems, and fixed assets only account for a small proportion.

In many ways, it is working with many scientific research institutions around the world to continue to explore artificial intelligence, especially in the field of distributed AI. Through the application and implementation of new models and technologies, we will promote retail, agriculture, manufacturing and other industries. A new round of change has taken place.

In the field of agricultural products, as China’s leading agricultural products and agricultural and sideline products, the platform is designed to build from rural education and agricultural research, to breeding, planting, processing, and logistics. Closed-loop of integrated industries such as sales, large-scale driving down the modern industry, and promoting fresh agricultural products in remote areas to urban families.

In the manufacturing field, there is a lot to do with Chinese manufacturing companies.Through digitalization and intelligentization, we redefine the whole process of products from research and development to reach users, helping a group of manufacturing enterprises to embrace the industry Internet. Since 2019, the company has combined more than 500 high-quality brands and enterprises to develop and produce 1300 customized products that lead the industry, with cumulative orders exceeding 70 million.

The sinking market is still the three main battlefields

In April 2015, the company started to trial operation; in the same year, Shanghai Dreaming Incubated a lot of spelling items. In September 2016, the combination of good goods and multi-teams became a new one, and adopted a platform model that was much more.

Before this, China’s e-commerce industry is in the dilemma of slowing consumption growth and bottlenecks in user growth. It is most important to tap into the e-commerce platform for external (cross-border e-commerce) and downward (rural e-commerce). The direction of development.

The outside world will refer to 618 in 2015, half of which is seawater and half of which is land. At that time, the protagonist was still “seawater”. With the help of policies and capital, the cross-border e-commerce was in the limelight, while the rural e-commerce was called “the dawn here is quiet.” Except for several home appliance companies in the rural market, most e-commerce platforms do not show muscle in rural or low-line markets.

Until the thunder slammed, a lot of fights were made. The e-commerce industry finally realized that in the sinking market, it was the final treasure of the Chinese retail industry. The penetration rate of rural online shopping is low, and rural mobile Internet users account for 25% of the country, but the mobile shopping population is less than 10% of the country.

This fiscal quarter, the annual active consumers on the Alibaba e-commerce platform reached 674 million, an increase of 17% year-on-year, 3.06% quarter-on-quarter and 20 million quarter-on-quarter. The growth of users is mainly due to the penetration of sinking cities, 70% of annual active consumers come from sinking cities.

In the sinking market, Alibaba’s main focus is on cost-effectiveness. In March 2019, the combination of “Everyday Sale” and “Amoy Shopping”, which was originally part of the Taobao business group, merged to form the new Alibaba Marketing Platform Division. The cost-effective marketing tools include “Torchbearer” and “Sharing Network.” According to the data on the cost-effectiveness, there will be 3,000 brands joining the “sharing network” in the sinking market in the near future.

The past one or two lines market is the advantage market of Jingdong, but in recent years, the growth of the region has slowed down. In the sinking market, Jingdong has launched a parallel approach through online and offline integration: online, Jingdong’s partners have more than 1.1 billion users. WeChat, covering almost all of China’s touch-screen crowds, is conducive to JD’s rapid reach of hundreds of millions of low-line market users; offline, Jingdong has laid out more than 12,000 Jingdong home appliance stores, 2,000 Jingdong stores and more than 160 Jingdong computers The offline store of digital specialty stores covers most of the low-tier cities and towns in the country.

Xu Lei also said in the conference call that around October 1st,Jingdong will upgrade its WeChat first-level entry resources with Tencent’s strategic cooperation to create a new retail model targeting women and low-end markets. The new retail model will adopt a “low-point” approach to attract more merchants to provide more The goods to meet the needs of consumers in low-tier cities to create a supply chain system and commodity system that is different from Jingdong Mall.

The first mover has a lot of advantages in the sinking market. The report released by Quest Mobile shows that as of the end of June, the number of sinking market users increased by 72.2 million year-on-year, higher than the total of 70 million in the e-commerce industry. Net increase in scale. Relying on the 618 strategy, we will further promote the mobility of China’s urban and rural economy, protect the consumer’s consumption rights, and benefit more urban middle-income people. During the 618 period, users in the first- and second-tier cities of the platform consumed more than 70% of agricultural products and agricultural by-products; the year-on-year growth rate of orders for 3C digital products in the sinking market exceeded the first- and second-tier cities for the first time, and the consumption upgrade demand was effectively released.

Under the age of e-commerce, there is still a hidden crisis.

First of all, the income of e-commerce is getting closer to the ceiling of the industry. According to the National Bureau of Statistics, the online retail sales of consumer goods in January-July this year increased by 20.2% year-on-year, which is the lowest value since the statistics released by the Statistics Bureau in 2015. The growth rate has obviously slowed down. Secondly, although the sinking market still has a large user space, and the statistics of the Bureau of Statistics shows that the consumption growth in rural areas is significantly faster than the consumption growth rate of the city, but the data can be seen in the sinking market. It is still in the stage of burning money, and the lower marginal cost of the customer unit price is higher.

The eye-catching financial reports of the three major e-commerce companies may ease their doubts about their future development, but they have not yet whipped the golden gongs and sang the songs. As mentioned at the beginning of this article, Alibaba,, and the company are investing heavily in new technologies and new models. Who can truly explore their own path in order to occupy the starting position in the next era.

Now, Alibaba is still in the lead.