Nov 17, 2020|
JD Q3 2020 Earnings: The “35-Cents Theory”, JD’s Business Principle with its Partners and Employees
by Vivian Yang
“If we make $1 profit, 30 cents go to our business partners, 35 cents for our employees and the remaining 35 cents for JD’s continuous growth,” said Jon Liao, Chief Strategy Officer of JD.com during the company’s third quarter earnings call on November 16th, as he explained JD’s “35-Cents Theory” put forward by Richard Liu, the company’s founder and CEO.
Guided by this business principle, “JD is fully committed to a healthy ecosystem relying on cooperation, coexistence and co-evolution,” Liao added.
An analyst during the call mentioned that, under the impact of COVID-19, more and more brands and merchants are willing to use JD’s services. This not only demonstrates JD’s ability to provide advanced supply chain and logistics services at all times to its customers but also reflects its business philosophy for long-term and “win-win” growth with its upstream and downstream partners.
Earlier this year, JD provided a number of supportive measures to its brand partners and merchants, as well as to offline small businesses to help them recover from the epidemic. In the first nine months of 2020, there were 2,004 brand partners on JD’s platform achieving over RMB 100 million yuan in sales. During this year’s Singles Day Grand Promotion, 13,532 key brands increased their sales growth by over 300%, and the transaction growth rate of third-party merchants on JD doubled, comparing with the same period last year, far exceeding the industry average.
On the employee side, as of September 30th, the overall employee number of JD.com surpassed 320,000. According to the earnings report, the number of employees for listed JD branches excluding part-time staff and interns reached 284,000.
During the first three quarters this year, JD has recruited 60,000 new employees despite COVID-19 pressure to ensure service quality and user experience and to support employment. Beyond that, it is estimated that JD’s growth has also helped to create over 18 million job opportunities in its business ecosystem during this period.