Mar 11, 2021|
JD Retail CEO: Supply Chain, Omni-channel And Ecosystem Are Three Key Strategies
by Martin Li
JD Retail will continue focusing on the enhancement of its integrated supply chain and technology capabilities, omini-channel and online market ecosystem expansion, CEO Xu Lei shared during JD.com’s fourth quarter and full-year 2020 earnings call on Mar. 11.
“What JD aspires to is a middle platform ability that can be applied in more diverse use cases and channels. With this goal in mind, we have been investing unswervingly in supply chain and technologies to help merchants – both online and offline, big and small, including brands and factories – to improve their operations efficiency, to enhance their customers’ experience, and to improve their risk-resistance capacity,” said Xu.
The above-mentioned effort will further diversify our revenue streams and drive our service revenue in the future, according to Xu.
By the end of 2020, JD managed more than 7 million direct-sales SKUs in its network of over 900 warehouses across China.
Speaking of omni-channel, Xu stressed, “our strategy aims to increase overall retail efficiency, to satisfy customers’ diverse needs, to provide people with immediate access to products and services, and to create value for merchants and customers.”
Omini-channel is not only a key strategy for JD, but also a new trend that all retailers must address. The penetration rate of this model is still quite low among offline businesses. “We believe that there is a huge potential to integrate omni-channel and on-demand fulfillment elements with many industries in the future,” said Xu.
“In 2021, we will expand our coverage to more retail verticals, and drive the quality growth of our omni-channel business. This will provide us with additional monetization opportunities,” he added.
Xu also sees great potential for JD to build an online platform ecosystem.
“We are pleased to see that the net promoter score (NPS) of our online marketplace continues to improve over the years. So far this year, our merchant renewal rate is much higher than in the past, reflecting a significant improvement in merchants’ satisfaction and recognition of our platform,” he said.
JD will continue to experiment with new models and strategies to find the optimal strategies for its online marketplace, according to Xu.