This time, as usual, is the Jingdong Retail Annual Meeting. However, the atmosphere presented by the two annual conferences is quite the opposite.

Xu Lei is the second time to attend the annual meeting as CEO of JD Retail Group, this time his title is no longer rotating CEO. Already “turning right” when he came to the center of the stage, the applause thundered from the audience, and Jingdong, who had been fighting for a year, had a high morale.

But at this time last year, JD.com had just completed the largest organizational restructuring in history, with external doubts and internal confusion, like a cloud covering the giant appliance company. Xu Lei, who has just served as the CEO of the mall for six months, is not in a good mood. He bluntly stated that he was anxious, and some sternly mentioned that “different departments speak their own words, talk about them, and lack a unified discourse system and behavior logic …” “.

If last year ’s annual meeting was to face up to the problem and come up with a solution, then this year is to go all out and win.

This point can be seen from the development theme developed by JD.com. In 2019, JD.com ’s main tone is to pursue “quality growth”, which is a solution proposed by JD.com after facing a series of challenges. Facing 2020, Xu Lei proposed “accelerated growth with quality”. This means that the adjustments and explorations made by JD in 2019 are effective, and the new year will accelerate iterative evolution based on successful explorations.

No matter it is the performance of financial reports or internal innovation efforts, JD.com has greatly improved from 2018. In terms of financial reports, JD.com ’s net profit has increased significantly, operating costs have been effectively reduced, and revenue has bottomed out. In terms of business innovation, the rapidly sinking JD. There are also Qi Faner and so on, all of which have caused heated discussions in the industry.

Jingdong has changed from a lot of difficulties in 2018 to a wave of e-commerce transformation and upgrading in 2019. Jingdong is ushering in the era of Xu Lei.

What’s changed in Jingdong in 2019?

Xu Lei’s annual conference speech sounds more macro, but in fact, Jingdong’s changes are very specific. Such specific changes can also help the outside world to have a clearer understanding of Jingdong in transition.

Inventory report of JD.com in the “Retail Boss Internal Reference” in 2019, we found that all business lines are undergoing drastic adjustments. Behind the adjustment is JD.com’s repositioning, which Xu Lei emphasized in January 2019. To pursue quality growth.

The first is the upgrade and adjustment of the supply chain end. A typical case is the Jingdong Supermarket’s “physical competition natural selection” system. In September this year, at the Jingdong Supermarket’s strategic upgrade conference, Jingdong Supermarket announced its own small goal, that is, the cumulative turnover of consumer goods in the next three years will exceed 800 billion yuan. How is this 800 billion goal achieved? Users, products, channels, marketing methods, price systems, and other gameplay vary, but a prominent innovation is that JD Supermarket is online”Natural Selection”.

What is “natural selection”? In the past, JD.com was known for its “Limited Delivery Time of 211”, that is, orders placed before 11 am on the same day and delivered on the same day; orders placed before 11 pm and delivered before 15:00 the next day. However, the online selection of the physical competition has further improved the logistics timeliness of JD.com, and the fastest delivery time is 30 minutes.

The realizing path of BJT is to connect JD Logistics with the JD department or partner’s offline network. Users place orders online. BJT will push the order to the offline network closest to the user. This network It may be JD’s offline formats, including JD Convenience Store, JD Home, JD Stores, etc., or it may be offline outlets of partner brands, such as Nongfu Spring, Nestle, Mengniu, etc.

This means decentralization of the logistics network, and its ultimate effect is that logistics costs are reduced and delivery timeliness are greatly improved.

As for the physical selection project, Xu Lei mentioned at the annual meeting this year, “The physical selection project is part of the omni-channel planning. When users select products in Jingdong, the physical selection system will be intelligent. The algorithm selects the best social cost and the most efficient solution from a variety of fulfillment methods, such as JD.com’s home, brand stores, KA stores, and community service stores. Operating costs are saved on average by more than 50%, and users only need 2 hours, Items will be received as soon as 15 minutes. “

Second is the exploration of sinking markets. The rise of Pinduoduo has put a lot of pressure on JD. Previously, JD had argued a lot about whether to follow up on social e-commerce, and its strategic vacillations caused JD.com to not be determined enough on social e-commerce.

But 2019 is a turning point for JD.com ’s involvement in social e-commerce platforms. Not only is it launching an independent social e-commerce platform, Jingxi, but it is also fully upgrading the WeChat first-level shopping portal to Jingxi platform. JD.com ’s support for Jingxi The intensity can be seen.

At present, Jingxi’s launch is effective. In December 2019, Jingxi announced that the average daily order volume exceeded 1 million, and the growth rate was satisfactory.

For the sinking, JD is not just the sinking of Jingxi, but the sinking of Jingdong and Jingxi. Xu Lei also emphasized again at the annual meeting: “The sinking of JD.com will be the sinking of the whole, not just a product or a business unit.”

In terms of specific business layout, in addition to Jingxi, JD.com ’s business layout for the sinking market is also accelerating. In 2019, the layout of 12,000 JD appliances stores was completed. The format emphasizes “one town, one store”, which is obvious to users in sinking markets. There are also JD convenience stores and more than 1 million JD shopkeepers’ cooperative stores; combined with JD Logistics’ “Qianxian Wanzhen 24 hours” plan, and JD Finance’s financial services, comprehensively expand the sinking emerging markets in a combined manner.

The third aspect is format innovation. Jingdong’s format innovation in 2019 is worthy of record. This year, JD promotedIt is mentioned that Jingdong has many classic cases in C2M reverse customization, such as reverse customization of laptops, Jingdong’s own brand Jingxing’s practice of reverse customization, etc. C2M reverse customization has become mature in Jingdong Quickly replicate experience across lines of business.

Xu Lei has also previously stated that in the next three years, the cumulative turnover of Jingdong Reverse Customized (C2M) products and exclusive new products on the Jingdong platform will reach 100 billion yuan.

In fact, the layout of the sinking market is also based on the core advantage of the supply chain. In view of the business layout of the sinking market, as mentioned above, the key is how to win the sinking market? The answer given by Xu Lei is, “Taking the supply chain as the core, creating a unique industrial belt expansion plan and C2M customization model, in response to the wave of sinking and upgrading of emerging markets, and providing users with a continuous stream of ultra-high cost-effective products. “

It can be seen that the core of the development of the sinking market is relying on JD’s supply chain advantages. Xu Lei also announced that JD.com ’s small target for sinking markets is to create another JD.com retail in sinking emerging markets in the next three years.

In other words, JD.com’s mining of the core advantages of the supply chain will not only achieve the continuous growth of the original business, but also help the emerging business find an effective expansion path.

However, no matter how the strategy and business change, their common foundation is the organization and culture of an enterprise. Although the organization and culture are not easy to be quantifiable and obvious factors, it is obvious that since Xu Lei took the helm of JD See his combing and reconstruction of these two elements.

At the 2018 Jingdong Retail Annual Conference, Xu Lei mentioned four changes in the future, two of which are about organizations and talents: from the vertical and vertical integration of the organizational structure to the changes in the middle and back office before building blocks; from Talent-oriented change from digital to value creation.

Interestingly, at the 2019 annual meeting, Xu Lei reiterated the importance of organization and talent.

“In terms of organizational optimization, in 2020, JD Retail will continue to deepen the construction of large, medium and large platforms, and improve the model building and capability deposition of the four major medium and large platforms, including procurement and supply chain, business, technology and data, to create synergy and separation. Growing China-Taiwan Department; At the same time, with the construction of large, medium- and high-rise platforms as the engine, the front-end, middle- and back-office organizational structure of building blocks and components is consolidated.

“In the past, the group army combat mode we are accustomed to should be transformed into a flexible and agile BIG BOSS model. Our vertical integration capability of procurement and marketing must gradually transition to horizontal and flexible resource integration capabilities around user needs.” < / p>

Xu Lei also explained before that he likes to use LEGO bricks to compare the front, middle, and backstage cooperation relationship. “Good cooperation relationship is seamless docking, and different modules are quickly spliced ​​to form a strong joint force. The partnership is to play against the cows, and let it be. ”

How to build this efficient mid-back-office collaboration model? Rely onProcesses, rules, and unified values ​​and corporate culture.

The emphasis on talent is also a good corporate culture. A healthy organization can not only attract talents, but also cultivate talents. Conversely, talents can truly lead innovation and stimulate the vitality of an enterprise.

“Talent is the ballast stone for the development of JD Mall. Especially in the period of strategic change, the emphasis on talent construction cannot be overemphasized.” Xu Lei said at the 2018 annual meeting.

After a full year of effective transformation in 2019, JD.com continues to put “big moves” on talent training. Xu Lei announced at the 2019 annual meeting that JD.com ’s salary increase resources in 2020 will continue to be high, and Great emphasis on high performance and high potential talents. The salary increase rate will reach twice the industry average, and among them, the salary increase rate for young talents will reach three times the industry average. In addition, a bonus of 1.4 billion yuan will be invested to motivate outstanding employees.

For 2020, JD.com ’s goal is to achieve accelerated growth with quality and JD.com ’s four core indicators of transaction value, revenue, users, and profits.

In 2019, JD.com’s initial success in achieving transformation, but as Xu Lei said, many of JD.com ’s innovative businesses have not yet found a path to continuous growth. In the future, it will need to continue to deepen its organization, talents and business. Jingdong has no choice.

With JD’s accelerated growth, JD Retail Group will also officially usher in the era of Xu Lei.