JD.com Announces '35711 Vision' for the Next Twenty Years
JD.com, 6/18/23
Chinese B2C e-commerce platform operator and retail infrastructure service provider JD.com (Nasdaq: JD; 9618.HK) celebrated its 20th anniversary on June 18 by announcing ambitious goals for the future. In a letter addressed to its 560,000 employees, the company introduced its "35711 Vision," which outlines a path for sustained growth and societal impact over the next two decades. These goals include establishing three enterprises with over RMB 1 trillion in revenue and RMB 70 bln in net profits, having five JD enterprises rank on the Fortune Global 500 list, and bringing seven publicly listed companies that started from zero obtain a market value of RMB 100 bln. JD.com also aims to contribute RMB 100 bln in taxes and create over 1 mln jobs.
The company's commitment extends beyond financial milestones. JD.com strives to deliver substantial societal value by providing over RMB 3 trln in benefits to front-line employees, increasing the income of 100 mln farmers, aiding 60 mln small and medium-sized enterprises in their digital transformation, and building a global supply chain infrastructure covering economies that account for 80% of the world's economic volume. JD.com also set a target to achieve carbon neutrality, reinforcing its commitment to environmental sustainability.
Implementing Three Strategies: Lower-Tier markets, Technology and Services, International Business
Sandy Xu, CEO of JD.com, outlined the strategic roadmap for the for the company's 35711 Vision during a celebratory event for the 20th anniversary held at JD.com's headquarters on June 18. She emphasized three key areas of focus: the development of lower-tier markets, advancements in technology and services, and the expansion of international business.
In the realm of lower-tier market development, JD aims to provide affordable products while enriching its product offerings. By leveraging its robust supply chain capabilities, the company plans to reach a broader user base through low-priced product options. JD.com's commitment to lower prices stems from its efficient supply chain operations, which enable cost savings without compromising quality or service. Initiatives like the recent "RMB 10 bln discount" program and the "Spring Dawn Initiative" have already attracted numerous new vendors, resulting in a significant increase in product diversity to meet consumer demands. In the first quarter alone, the number of new merchants on JD's platform soared by 240% compared to the same period last year, improving the product offering diversity to match consumers' demands.
Technology and services remain integral to JD.com's growth strategy. The company has allocated RMB 100 bln towards technological advancements since its comprehensive technology-driven transformation in 2017. JD.com's cloud computing business, JD Cloud, now serves a wide range of prominent organizations and over two mln micro, small, and medium-sized enterprises. The company continues to accelerate research and application of digital supply chain technologies across different scenarios.
JD.com's global aspirations revolve around leveraging its robust supply chain infrastructure to enhance international business operations. With nearly 90 bonded warehouses, direct mail warehouses, and overseas warehouses with a total management area of nearly 900,000 square meters, JD Logistics plays a pivotal role in facilitating cross-border trade and supporting Chinese brands selling overseas. Notably, the company's B2C retail brand, Ochama, offers an innovative retail model in Europe, integrating omni-channel shopping, intelligent supply chain management, automated warehousing, and efficient delivery services. Through partnerships, Ochama has established an extensive network of more than 400 pickup points in the Netherlands, Germany, and Belgium, and home delivery services cover more than 100 cities in Europe.
As JD.com embarks on the next chapter of its journey, the company remains committed to driving growth, promoting sustainability, and enriching the lives of its employees, customers, and society at large.
Keywords: rural Ochama e-commerce Internet overseas B2C logistics JD.com JD Logistics 9618.HK Sandy Xu
Sending
