Tencent Technology News November 16, JD.com today announced its unaudited third quarter financial report as of September 30, 2020. The financial report shows that Jingdong’s third-quarter revenue was 174.2 billion yuan, a year-on-year increase of 29.2%; the net profit attributable to ordinary shareholders was 7.6 billion yuan, compared with 600 million yuan in the same period last year; the diluted net income of each advertisement It was 4.7 yuan, compared with 0.41 yuan in the same period last year. After the release of the
financial report, JD Retail Group Rotating CEO Xu Lei, JD Logistics CEO Wang Zhenhui, CFO Xu Ran, CSO Liao Jianwen and other executives attended the analyst conference call and answered questions.
The following is a summary of the main questions and answers of JD’s earnings analyst conference call:
Goldman Sachs Group analyst: My first question is about JD’s strategy in supermarkets. The management just said that they will invest in supermarkets, so What strategy will the management adopt next in terms of super warehouses? My other question is the management's view on some emerging models. For example, many people in the industry are now enthusiastically discussing early orders, or community group buying models such as self-promotion the next day. Jingdong has a very large number of users. Groups and very strong supply chains, what do you think about this?
Xu Ran: Let me answer this question about supermarkets and fresh food. This field is indeed a big market. Jingdong will also seize such strategic opportunities, and Jingdong has a very good strategic position in this regard. , We have verified Jingdong’s B 2 C business model, so in the future we will continue to explore and experiment with different business models in this business field, including first-tier and lower-tier cities.
There are indeed many companies entering this market, so there will not be many left. So we don’t need to be very competitive at this stage. The fresh food market is a tough industry for both retail and e-commerce. I think the role of subsidies will not be very big, the key is to improve the efficiency of the existing operating process and reduce operating expenses. We will continue to invest in infrastructure and supply chain to consolidate our key advantages in this market or in this field. We will continue to invest in infrastructure and supply chain to consolidate our key advantages in this market or in this field.
We will continue to experiment with business operating models including 7 Fresh, community group buying and super warehouses.
Jeffrey Investment Bank analyst: According to the current user growth trend of JD.com, would the management please talk about the outlook for user growth in 2021 and their thoughts on JD’s penetration strategy in lower-tier cities? The second question is the competitive situation in the online shopping field. What is the management's opinion?
Xu Lei: Affected by the epidemic this year, the overall online retail industry has performed very well. Jingdong’s growth rate has performed better in it. More and more consumers are also exposed to online shopping, and our penetration rate is also Continuous improvement, especially we found that people in the low-tier market and above 45 years old are part of the source of joining new online shoppers.
From the perspective of categories, we will see some differentiated performance, healthy home fresh food and consumer products. The growth rate of these categories is affected by strong demand. Other categories are affected by international recognition, and the growth rate will relatively slow down. On the whole, since JD is a big brand in all categories, we will maintain a steady growth. At the same time, we will further increase our market share through supply chain capabilities and unique consumption mentality.
From the overall layout perspective, on the one hand, we will further explore new online and offline traffic fields. On the other hand, we will continue to build our supply chain to provide new traffic fields for the original Unique supply chain capabilities are the biggest competitiveness of JD.com different from other brands.
We see that the user growth in recent quarters will be very strong. We also found that this includes the continuous consumption growth of our old users. New users benefit from the education of other platforms, and when consumers mature, they will Turning to their suitable platform, we have always believed that JD’s supply chain and service capabilities are very strong, matching the development of consumers’ own behavioral habits, so we are willing to look at user growth from a long-term perspective. Before
, now and in the future, we will emphasize these keywords. The first is user experience, the second is open, the third is omnichannel, and the fourth is construction.The ability to establish a supply chain.
Xu Ran: At present, we have proved that the market strategy adopted in low-tier cities is effective. According to data, 80% of our new users in the third quarter came from low-tier cities, and our marketing expenditures accounted for The proportion is also declining, which shows that we are attracting new users and retaining new users in a very effective way. These are all due to the continuous improvement of new technologies and new algorithms that we use behind the scenes. So we see a very healthy user trend.
