May 29, 2020|
JD Retail CEO Lei Xu: It Won’t Last Long if Only One Party Wins
by Ling Cao and Ella Kidron
In a rally to energize teams before the launching of JD’s 17th 618 Grand Promotion, JD Retail CEO Lei Xu emphasized the company’s commitment to long-term and sustainable growth with partners. He said, “We encourage all enterprises to join 618, expanding it from one company’s anniversary to a big industry promotion.” Xu added, “JD Retail will uphold its ‘open’ strategy and work with partners to develop together. This is the most important mission for this year’s 618.”
Xu sees JD’s first-quarter financial report as a touchstone that verifies JD Retail’s management strategy of quality growth. Rather than pursuing rapid growth according to a single benchmark, JD instead strives for balanced development, and is able to make dynamic adjustments according to market factors such as changes in the competitive landscape or regional development.
As a testament to JD’s long-term approach, as reported in Q1 earnings, from January to April, 572 brands on JD achieved transaction volume of RMB 100 million yuan each, and over 180 brands achieved year-on-year growth rate of over 50%.
Xu also pointed out that COVID-19 had raised new requirements for JD Retail’s future development. “China’s retail industry has already undergone huge changes which have accelerated development by between one-to-three years. He emphasized the importance of forward thinking, saying, “If we can’t see further, we can’t go further.” JD will maintain its commitment to a long-term strategy of valuable and sustainable innovation and operations.
According to Xu, the epidemic has had three important impacts on China’s business landscape. First, it has influenced how businesses manage their cash flow. “The number of traditional enterprises who have three-months of cash flow on hand is very small, to have six-months on hand is rare” Xu added.
Second is that community–based economy and commerce scenarios will significantly increase. “There is great opportunity in this sector, even in Beijing. There is not enough of this type of business,” he said.
Third is digitization. “We ourselves are a digitized company, so we have a natural advantage,” he commented.