jd worldwide intro deck
TRANSCRIPT
China leads the growth of Global Ecommerce Market
In 2014, China has the largest sales volume among global TOP 10 online retail markets, increasing by 35% over 2013
China
305
15.7%
82
16.5%
70
14%
63
22.1%
38
12.1%
17
16%
16
22%
24
17.4%
33
13%
426
35%
Annual Sales(US$ Billions)
Y‐o‐Y Increase
USAUKJapanGermanyFranceCanada KoreaBrazil Russia
Data source: Emarketer, December 2014Figures above do not include travel products and services
Ecommerce in China: Unlimited Opportunities
7,84511,871
18,925
28,145
39,550
51,600
62,950
73,000
2011 2012 2013 2014e 2015e 2016e 2017e 2018e
China Online Retail Market
Transaction Value 2011-2018
(RMB�100�Millions)
25.7%34.6% 40.4% 45.8% 51.4% 56.1% 59.6% 62.1%
74.7%65.4% 59.6% 54.2% 48.6% 43.9% 40.4% 37.9%
2011 2012 2013 2014e 2015e 2016e 2017e 2018e
China Online Retail Market
Transaction Value Breakdown 2011-2018
C2C�Proportion B2C�Proportion
• In 2014, there are 649 million internet users and 361 million onlineshoppers;
• 2.8 trillion online retail transactions;• Online shopping accounted for 10.7% of China’s total retail sales,
the first time online penetration topped 10%.
• In 2014, China’s B2C online shopping market increased by 65.4%,significantly higher than the double growth rate of the C2C market;
• The B2C market will continue to be the main growth driver of China’sonline retail industry.
Data source:iResearch,May, 2015
Main Ecommerce Players in China
• Launched on 10th May 2003
• Renamed to Tmall on 11th Jan. 2012
• Launched Tmall Global 19th Feb. 2014
• Listed on NYSE on 19th Sep. 2014
• Tmall & Taobao
• Annual transaction volume: 230 billion RMB
• Annual orders: 1.5 billion
• Annual active users: 350 million
• Launched on 9th Jan. 2015
• 4 categories: maternal and child care, food
and health, cosmetics and personal care, and
cross‐border direct delivery
• Direct sales B2C and cross‐border sales model
• Founded in 2009 and launched online in
Jun. 2011
• Cross‐border C2C model, updates buyers’
broadcasts everyday
• Owns Beihai logistics
• Over 38 million users up to 28th Aug. 2015
• Launched the first phase of Suning.com in 2005
• Officially launched Suning.com on 1st Feb. 2010
• Sales volume of Q1 2015: 34.5 billion RMB• Total transaction volume of Q1 2015: 7
billion (tax included)• Revenues of Q1 2015: 29.5 billion RMB
• Founded in 2011 on taobao.com
• Launched Mia.com in Feb. 2014 as a
importing sales mall of maternal and child
care brands
• Finished round D financing up to now
• Launched Tuanmei.cn in Mar. 2010
• Launched Jumei.com in Jun. 2011
• Listed on NYSE in May 2014
• Annual net transaction volume: 1 billion
USD
• Annual orders: 42.6 million
• Annual active users: 13.3 million
• Launched in December 2008
• Listed on NYSE on 23rd March 2012
• Annual transaction volume: 1.4 billion USD
• Annual orders: 107 million
• Annual active users: 23.6 million
Source: 2014 annual financial statements of each company
• Established on 18th June 1998
• Renamed to JD.COM in June 2007
• Listed on NASDAQ on 22th May 2014
• Launched JD Worldwide on 15th April 2015
• Annual transaction volume: 260.2 billion
RMB
• Annual orders: 690 million
• Annual active users: 118 million
One of the Leading Global Players
Resource:Yahoo! 14 Apr. 2015
Rank Company 2014 Revenue (USD)
1 Amazon.com 89 billion
2 Google 66 billion
3 JD.COM 18.5 billion4 eBay� 17.9 billion
5 Tencent 12.9 billion
6 Facebook 12.5 billion
7 Alibaba Group 11.4 billion
8 Priceline 8.4 billion
9 Baidu 7.9 billion
10 Yahoo 4.6 billion
With revenues of $18.5 billion in 2014 and the highest year‐on‐year growth rate , JD.COM ranks 3rd among the world’s TOP 10 internet companies
Ranked 1st in the rankings of “The Strength of Chinese eTailers” in 2014 and 2015 according to Kantar Retail
On 22nd May 2014, JD.COM was officially listed on NASDAQ stock exchange (NASDAQ:JD)
On 29th July 2015, JD.COM became a member of NASDAQ‐100 Index and NASDAQ‐100 Equal Weighted Index
Won the award of “Best E‐commerce Retailer" issued by the World Retail Congress in 2015
World’s Top 10 Internet Companies (by revenue)
京东关键数据
Data�source:�2014�annual�financial�statement�of�JD.com.Note:�The�data�with�*�is�updated�to�31st Jul.�2015
56.3%
6.9%
9.4%
3.7%3.5%
3.1%2.6%
0.9% 13.6%Others
132 million active�customer�
accounts
4,760delivery�stations,�
among�2,266*�regions
196 Warehousesin�46�cities
689 million orders
USD 41.9 billion GMV
90,000*3rd party�sellers
94,615employees
Largest B2C Online Direct Sales Company in China
Data�source:iResearch,�2015�first�quarter
Largest Retailing Company in China
JD’s Key Data
JD’s Core Advantages
Our vision is to become the most trustworthy company in the world
Core Advantages
Superior User Experience Highly Efficient Logistics System
Leading Position in MobileEcommerce Market Complete ecosystem
Superior User Experience
Integrity + Authenticity
全品
类扩张
Accelerating Category Expansion
Strict criteria for approval
Strictpenalties system
Strict control for supply channels
服饰家居
3C 家电
消费品 Apparel & household
3C Home appliances
FMCG
• Computers• Consumer Electronics• Communication • Books• Life & travel• Own brands
• White Goods
• Brown Goods
• Small home
appliances
• Raw foods• Liquor• agricultural
materials• Dried foods• Personal Care• Cosmetics• Mom & Baby’s• Watches
• Clothes
• Households
• Jewelries
• Bags
Independent
R&D system
Random sampling inspection
Guaranteed return policy
Ranking 1st in Customer Satisfaction
Comparison of the User Satisfaction of China’s Top 20 Online Retailers in 2014
Source: Chinese Ecommerce Research Centre 2015
97.80%
2.58%
4.26%
5.97%
10.90%
11.30%
12.78%
13.41%
13.56%
8.30%
6.49%
70.97%
73.21%
76.54%
87.00%
96.80%
96.00%
96.50%
81.60%
79.83%
Online Retailers
Complaint Settlement Rate
User Satisfaction
Complaint Settlement Rate
Online Retailers
User Satisfaction
JD.COM is always pursuing the optimal user satisfaction
Achieving a Leading Position in Mobile Ecommerce Market
Data source: JD.COM’s second quarter financial statement of 2015 and Tencent’s second quarter financial report of 2015
In alliance with Tencent, JD.COM has formed a comprehensive mobile channel, including JD’s own apps, WeChat, Mobile QQ, and Weidian. Leveraging the traffic from PC end to our mobile platforms to reach a wider array of customers at the fastest pace.
In the second quarter of 2015, 47% orders are made from mobile end, increasing by 290%.
• JD mobile application • Monthly active users of WeChat: 600 million
• Monthly active users of Mobile QQ: 630 million
• Weidian, for 3rd party suppliers
from JD and Paipai to open 3rd
party stores
Highly Efficient Logistics System
Logistics center cities
FDCLarge parcel warehouse cities
Nationwide Located Warehouses & Last‐mile Logistics Network
Source: JD.COM’s second quarter financial statement of 2015 Note: The figure with * is updated to 31st Jul. 2015
Largest warehouse facilities in China’s ecommerce industry
7 logistics centers
196 warehouses in 46 cities
4,760 delivery stations, self pickup stations and counters, covering 2,266 counties and districts
Same‐day delivery program in 135* counties and districts
Next‐day delivery program in 951* counties and districts
Note: Our Shanghai‐based ecommerce logistics center is one of the largest and most advanced logistics centers in China
Industry‐leading contractual capacity
Brand‐Commerce Plan between JD.COM & Tencent
To build a new ecommerce business model in the era of “Internet +”
Complete Ecosystem
JD’s five point strategy is based on e‐commerce, industrial ecosystem expansion, andvalue chain improvement, for a sustained and rapid growth
Internet Finance
Globalization
Lower City Penetration
O2O
Big Data
Sustainable Growth of China’s Cross‐border Ecommerce
Source: EnfoDesk 2015
18.0 15.1
20.2
23.6 24.4 25.8 26.4
0.7 0.8 1.2 1.7 2.1 2.7 3.754%
5.6% 5.9%7.4%
8.6%10.5%
14.2%
0%
10%
20%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2008 2009 2010 2011 2012 2013 2014
Cross‐border Ecommerce Trend 2008‐2014Import�and�export�trade�volume�(1,000�Billion�RMB) Cross-border�ecommerce�trade�volume(1,000�Billion�RMB)
Cross-border�ecommerce�penetration�rate
In 2014, China’s total import and export trade volume is 26,400 billion RMB , 14.2% of which is from cross‐border ecommerce
Mission and Vision of JD Worldwide
JD Worldwide is committed to delivering a wide range of selected high‐quality products to Chinese consumers
Personal�Care�&�Cosmetics
Watch�&�Jewelry
Food�&�Health�Care
Mom�&�Baby’s
3C�&�Home�Appliances�
Milestones of JD Worldwide
• French business conference, the first step of JD’s global expansion
Feb Mar 27
• Korean business conference
Apr 15
Launched JD Worldwide www.jd.hk
Jun 1
• Japanese business conference
Jun 18
• Direct sales volume increased 17 times
• JDW has been added into the screening list of JD.COM
Jun 25 Jun 29
• Australian Business Conference
• Signed MOU with Australia Post
Jul 20
• US business conference
• Signed MOU with DHL
Jul 24
• Launched “Global Sale" and “Selected Mom & Baby’s” channel
Aug
• Signed MOU with Blackmores
Sep 8
• Signed exclusive MOU with Lotte Group
Sep 23
• Opened office in Hong Kong
• Hong Kong business conference
• Signed MOU with SaSaand Cosco Logistics
Oct 9
• German business conference
• Signed MOU with Beiersdorf
• Jessica’s suitcase was listed on JDW
• Jessica began to write articles for JD Mom & Baby’s column
Oct 14 Oct 15
• Settled direct sale warehouse in Guangzhou
Double‐model Driving, Rapidly Growth
Top Brands,High‐quality Merchants
Worldwide Direct Purchase,
“Global Shopping Spree”
Direct Sales + Platform
One‐stop Solution for Brands and SuppliersFlagship Store
Franchise Store
Settling
Overseas Leading Brands and
Products
Overseas Leading Brands and
Products
Chinese Consumers
JD Operations
Marketing SupportMarketing Support
Data AnalysisData
Analysis
JD WorldwideJD Worldwide
Technical SupportTechnical Support
Customer Service
Customer Service
TPTP
LogisticsLogistics
Settling
Direct Sale and Overseas Direct Purchase
International Commercial Termse.g. CIF , FOB, EXW
Settling
WeChat Pay
JDPartners
Note: ①&② is platform cooperation model, while ③ is direct sale model
JD Pay
1
2
3
1Oversea Warehouse
• Small Parcel Direct Mail
• Bonded Warehouse in bulk
Logistics Models for Cross‐border E‐commerce
Bonded WarehouseOversea Warehouse
Bonded WarehouseOversea Warehouse
• Oversea warehouse bulk shipments2
3
Convenience O2O growth
Direct Mail
Under Construction
In UseHangzhou Guangzhou Zhengzhou Ningbo
Shanghai Shenzhen Tianjin Chongqing
Beijing Shanghai Guangzhou
Bonded Warehouse Network
Note: The percentages represent the times of the ones in AprilData source:2015 JD Worldwide Business Data
JD Worldwide Performance Overview
390%
705%
451%
783% 1,405%
Number of valid orders
International Brands Launched in JD Worldwide
Directly communicating with brand suppliers to expand JD Worldwide’s product category by different cooperation models