It is hard to say whether other enterprises can burn money in financing. Anyway, after burning, there is no following. JD.COM, on the other hand, is carrying out financing reform at the same time, often overtaking at key points, but it has also made a smooth road that is difficult to replicate from "burning money".
Liu is really hidden.
Many people's questions are: How did Liu turn losses into profits and hatch many unicorns?
In fact, no matter the development of JD.COM. COM, you can extract Liu's consistent style from all kinds of complicated information: you often "lose money" to make money.
For example, when JD.COM built its own logistics, when it was first established, everyone laughed and said that it was a thankless thing, and it would make you spend money in vain. However, Liu frantically invested various costs to "crush" the unicorn of Jingdong Logistics. In fact, the key to the success of Jingdong Logistics lies in unswervingly improving irreplaceable quality services. What Liu did from the beginning was not limited to traditional logistics. The combination of logistics and e-commerce maximizes the efficiency of self-digestion and transportation resources, just like upgrading machine parts to maximize machine efficiency. Little by little accumulation can achieve the ultimate transcendence, which is probably a little experience we can learn from Liu.
It's not just JD COM's self-built logistics, but also JD.COM retail is also bent on choosing SKU；; ; JD.COM Digital Branch provides solutions for the industry and technical support for other departments; JD Health invested heavily, regardless of the cost ... The style of these plates' persistent drilling to some points is actually the same as Liu's "crazy energy" in developing Jingdong Logistics. The more exciting rumor is that JD.COM won the history of competition with Dangdang and Newegg by losing money.
In 2009, the e-commerce industry was still in full swing. At that time, JD.COM was the third and Newegg was the fourth.
JD。 The way to "kill" the new egg directly is incredibly simple: it is to kill the price war, not to earn more than anyone else, but to lose less than anyone else. This kind of thinking and courage can't be said to be wonderful. With lower cost, lower price, larger scale and bigger market, JD.COM wins.
After finishing the new egg, JD.COM will become the boss directly. The book market is a fat meat that JD.COM has never had a chance to enter, but Dangdang has just started. Isn't it a boutique? JD.COM will make every effort to let consumers buy all the books they want in JD.COM Bookstore.
Books are free, members are discounted, and children's books are sold at a 40% discount. This directly increased the sales of the whole book category in JD.COM by four or five times, which dealt a great blow to Dangdang.
It takes great courage and accurate foresight for entrepreneurs to "lose money" first, so as to ensure overtaking in corners in every competition and get twice the result with half the effort. In fact, from Liu's logic, we can see its foresight: whether it is price war or other strategies, all actions are aimed at improving the cost-effective user experience; Do the hardest thing and pursue long-term returns. This is the so-called "Ten Sugarcane Theories", that is, your position in the industry depends on your contribution to the industry. In other words, the greater the contribution of enterprises to the industry, the greater their influence in the industry.
The style of enterprise founders often has a great influence on enterprise culture and development direction. JD.COM is an obvious example. Liu's recent unicorns have won a great victory in the shopping mall.