introducing jd · • brandz top 100 most valuable global brand 2016. 2 global top 10 internet...
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Introducing
JD.com
China: #1 Ecommerce Market Globally
Data source: eMarketer, December 2014
Figures above do not include travel products and services
$21.34 $23.4 $33.05 $40.43 $46.13$82.93 $88.06 $104.22
$394.43
$714.58
13.5%15.3% 14.9%
10%
8.2%
12.9%11% 11%
13%
27%
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
700
800
Brazil Russia Canada Korea France Germany Japan UK USA China
Annual Sales
(USD Billions)
Y-o-Y Growth
Rate (%)
2016 Annual Sales Forecast for Top-10 Ecommerce Markets Globally
China is the world’s the biggest & fastest growing major ecommerce market
China eCommerce Market
688 million
Internet Users
448 million
Online Shoppers
70% Of Online
Transactions were
Mobile
12.6%Of China’s Total
Retail Sales
Data source：iResearch， CNNIC， Commerce Department 2016
Slowing China Economy, But…
11.4%
12.7%
14.2%
9.6% 9.2%
10.6%
9.5%
7.8% 7.7% 7.3%6.9%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2005-2015 China’s GDP Growth Rate
www.analysys.cn
Data source: © Analysys 易观智库 · National Bureau of Statistics of China
GDP Growth
Slows Down
GDP growth enter the era
of 6%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2005-2015 Three Main Contributors to China’s GDP
2015 Final Consumption
Expenditure Contributed to
66.4% of GDP
Net Exports
Capital
Consumption
Consumption is still growing in absolute term at 10+%, and as a share of total
GDP
Per Capita Disposable Income On The Rise
Data source: © Analysys 易观智库 · National Bureau of Statistics of China
Labour Income
increases
rapidly20152012
2012-2015 China’s per capita disposable income
21,966RMB
16,510RMB
JD.com
JD.com – All-category Online Retailer & Marketplace
One of the World’s Largest
Top International Internet Companies
Source：Resource：Google Finance 9 Mar. 2016
2015 Revenue
Company Region 2015 Revenue (USD)
Amazon.com US 107bn
Google US 66bn
JD.COM China 28bn
Facebook US 17.9bn
Tencent China 12.9bn
Alibaba Group China 11.7bn
Baidu China 10.2bn
Priceline US 9.2bn
eBay US 8.6bn
Yahoo US 4.9bn
• Member of NASDAQ-100 Index
• e-Commerce Retailer of the Year 2015, World Retail Congress
• BrandZ Top 100 Most Valuable Global Brand 2016
2 Global TOP 10 Internet Company
3 Largest Online Retailer in China
4 Largest Internet Company by Revenue in China
*
* Calculated by market value
JD.com: A Clear Global Leader
1 2016 Global Fortune 500 Company
0
1000
2000
3000
4000
5000
6000
7000
2012 2013 2014 2015 2016
Rapid Growth in GMV
462.7 billion
73.3 billion
2016 Performance
Net Revenue Fulfilled Orders
Active customer Merchants
120,000
Employees
120,622
Unit: RMB
Sustained, Rapid Growth
[1] Core business data
[2] Excluding virtual items
[3] In the 12 months ended December 31, 2016
Data source：JD.com’s financial reports
GMV
RMB658.2 billion
Increase of 47% Y-o-YRMB 260.2 billion
Increase of 44% Y-o-Y1.6 billion
Increase of 55% Y-o-Y
226.6 million
Increase of 46% Y-o-Y*
260.2 billion
125.5 billion
Net revenues for the full year of 2016 were RMB260.2 billion,
an increase of 44% from the full year of 2015.
[1] [2]
[3]
658.2 billion
JD Growing Around 2X Industry Growth Rate
Source: iResearch: 2016.11
50%
33%
4%
3%
1% 1%
1% 1% 0%
6%
2016 Q2 B2C E-commerce Market Share
Tmall
JD.com
Suning
VIP Shop
Gome
YHD
Amazon China
Dangdang
Jumei
Others
JD.com is growing at around twice
the industry growth rate – on track to
become the largest B2C e-
commerce platform in 2 years.
Guaranteeing Product Quality & Authenticity
Strict
control of
supply
channels
JD
Six Quality
Control
Measures
Strict
criteria for
approval
Random
sampling
inspection
Guaranteed
return
policy
Independent
research
Strict
penalties
system
JD.com has a strict zero-tolerance policy toward counterfeit goods.
We source products directly from world-leading global brands, and
work tirelessly to eliminate counterfeits.
Largest e-commerce logistics infrastructure in China
Small to Medium
OversizedCold Chain
Express delivery service has been upgraded to 2 hours
256 warehouses
6,906 delivery stations, pickup points, and pickup stations
in 2,655 counties and districts
Warehousing facilities covering an area of 5.6 million
square meters
Unparalleled Logistics
Data source：JD.com’s financial report, as of December 31, 2016
The leader in providing small-to-medium sized warehousing, oversized
warehousing, cold chain delivery and frozen and chilled warehousing facilities,
enabling truly global standard logistics services
Enabling Smart Logistics
Innovative technology to power smart commerce
Smart Supply Chain
Automated Operations
Data-based Operations
JD Logistics Lab is developing fully automated logistics centers,
delivery drones, warehousing robots and automated vehicles to further
improve efficiency. During 2016 Singes Day, drone delivery trials were
conducted in 4 rural areas across China.
Asia No.1 is one of China’s largest and most advanced network of
e-commerce logistics centers. As of now, 7 Asia No.1 warehouses are in
active use across China.
Inventory turnover shortened by 8 days
Consignments shortened by 2 days
Customer satisfaction raised 113%
Sales raised 97%
Saves time, labor, worry and
cost for merchants
Comprehensive service system
targeting logistics “pain points”
Open Logistics Platform Provides Merchants
One-Stop Supply Chain Solutions
Warehousing Transportation DeliveryCustomer
ServiceAfter Sales
JD DeliverySupply chain
logisticsLogistics cloud
Fully
integrated
logistics
Cold chain
logisticsLarge
package
logistics
Supply chain
finance
International
supply chain
WeChat Partnership
WeChat is a social messaging APP (like Whatsapp or LINE) with 800+ million monthly active users.
JD has an exclusive WeChat shopping channel driving a huge amount of traffic to JD.
WeChat Shopping
Channel
Tens of millions of orders
in a day, 5X compared to
the week before
JD official WeChat account’s
newsfeeds covers 80+ million
followers daily
Industry-Leading Partnerships
Chinese Consumers’ Urge For Foreign Products
Food safety scandals led to a huge demand of baby
formula, among other products, from overseas
To ensure sufficient supply to local babies, the Hong Kong
government set a two-can export limit on infant formula
Similar limits were imposed by UK and Australian retailers
The Milk Rush
Safety Availability Low Tax
Consumers seek safe
products from overseas
Lower import barriers via cross
border ecommerce allow consumers
buy products not available in China
0% customs duty; reduced VAT
and consumption tax (11.9% in
total for most categories)
Why Cross Border Ecommerce?
Growing Volume
Million USD Growth Rate
2012 – 2018 Cross Border eCommerce Transaction Value & Growth Rate
Data source: Iresearch, December 2016
$34 $69$1,738
$7,785
$17,735
$30,718
$49,519
10%
100%
1000%
10000%
0
10,000
20,000
30,000
40,000
50,000
60,000
2012 2013 2014 2015 2016e 2017e 2018e
Who’s Doing Cross Border?
Care
Health
Baby
Food
Electronics
Retailers
Two Ways To Work With JD
Source：Resource：Google Finance 9 Mar. 2016
2015 Revenue
MarketplaceBe a seller on JD
Direct SalesSell to JD
Comparable Model Shopping Mall Supermarket
For Whom?• Retailers
• Brand Owners / Distributors
• Brand Owners / Distributors
• Trading companies
Marketing Execution &
Inventory OwnershipBrands/Merchants JD
Products• New Brands
• Unique Products
• Brands with Established Track
Record
• High Volume
eCommerce Reaches Younger Consumers
Data source: © Analysys 易观智库 · National Bureau of Statistics of China
0%
5%
10%
15%
20%
25%
30%
35%
< 10 yrs 10-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs > 60 yrs
0%
5%
10%
15%
20%
10岁以下 10-19岁 20-29岁 30-39岁 40-49岁 50-59岁 60岁及以上
2015 China’s Population Age Distribution
2015 China’s Online Shoppers Age Distribution
< 10 yrs 10-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs >60 yrs
JD Overseas Warehouses
TokyoOsaka
Incheon
Hong Kong (Direct Mail)
Sydney
Melbourne
Los Angeles(Direct Mail)
New York
Neuss, Germany
Rotterdam, Netherlands
Suffolk, UK
Dymonville, France
★
： Warehousing, consolidation, separation
： Inspections
： Air & sea freight
Cross Border Logistics Models
Bonded Warehouse
Merchants / Suppliers
Sea
Air
Bonded Warehouse / Free Trade Zones
Last-mile
ConsumersOverseas Customs China Customs
Overseas Domestic
JD Overseas Warehouse
Overseas Warehouse
Merchants / Suppliers
JD Overseas Warehouse
Air
Free Trade Zones
Last-mile
ConsumersOverseas Customs
China Customs
Overseas Domestic
Land
Order-to-Customer: 1-5 days
Order-to-Customer: HK 2-8 days ; US 7-10
7 Bonded warehouses in China: Guangzhou, Shanghai, Ningbo, Hangzhou, Zhengzhou, Tianjin,
Chongqing
Faster Delivery
Cheaper Logistics
High inventory risk – hero
items only
Low inventory risk – long tail
Slower Delivery
Costlier Logistics