Liu Qiangdong: Deciphering Jingdong'S "Ten Sugarcane Theory"

When it comes to the topic of "a values" and "strategic planning" such as < a href= "http://fz.sjfzxm.com/" > Jingdong < /a >, P will instantly open the "serious" mode.

"I don't believe that there is a business model in this world that creates a lot of value for your partners and users. The result is failure and failure. If this happens, it must be the management team and the implementation of the problem.

As long as we believe that what we do can create value, profitability is certainly not a problem. "

Liu Qiangdong's strategic thinking about the listing of Jingdong is like that.

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< p > < strong > ten sugarcane theory < /strong > < /p >

< p > when the host asked Liu Qiangdong, "what questions do you have to ask the audience?" he thought about it. "This world is fair. If you create value, you will be rewarded. Is that recognized?" < /p >

"P" the scene crowd Qi Qi answers "agrees", Liu's face uncovers the happy expression.

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< p > Liu Qiangdong believes that "creating value in return" is the foundation of all business models.

To this end, he proposed the theory of "ten sugarcane" for the consumer goods industry, that is, the value chain of the retail and consumer goods industry can be divided into ten links, namely creative (Creative store), design, R & D, manufacturing, pricing, marketing, trading, warehousing, distribution and after sales, among which the top 5 belong to the brand business, and the 5 most important part is the retailer.

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The short and short term of "P >" "a href=" http://sjfzxm.com/news/index_f.asp "> sugarcane < /a > can be changed, but it is fixed in the long run.

When too many brands come in, competition becomes fierce and profits decrease, so the cane is shortened.

In this case, mergers and acquisitions will take place in the industry. For example, there are more than 40 companies in the whole e-commerce industry, and now there are only more than 10 left.

Therefore, in the long run, market rules lead to a relatively reasonable level of profits for industries and brands.

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< p > then, how to excavate greater value at a fixed profit level? Jingdong's practice is to "eat more sugarcane nodes", that is, not only to make trading platform, but also to extend business to warehousing, distribution, after sales, marketing and other links.

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< p > Liu Qiangdong said that the reason why Jingdong built its own logistics and made it heavier and heavier is that in his view, the more things he does in the industry, the more rational and competent one day, he will be more capable and qualified to get the best interests of the industry.

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< p > < strong > team is the foundation < /strong > < /p >.

< p > when the business model is formally determined, the next step is to implement it.

In this link, "people", that is, the team of enterprises is very important.

Liu Qiangdong even said: "I think the whole world is in any country, in what kind of social, legal and cultural environment, the failure of an enterprise is just because your team can not work, all other factors are excuses."

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< p > he gave two opposite examples: IBM and Kodak.

Also facing the change of consumption pformation and flagship product, IBM's team chose to abandon the PC industry which was still a huge profit, and then pformed to software and service, thus laying a lasting glory for IBM in the next 20 years.

The first Kodak invented the digital camera chose to stick to its original camera and film business and eventually become the "dinosaur" of the times.

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< p > Liu Qiangdong said that the different choices of the team brought different fate to the enterprise. "Kodak's team has problems, and its strategic choice is contrary to the interests of consumers, and ultimately it will fail."

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< p > in fact, Liu himself is more aware of the importance of teamwork than ordinary people.

In the second half of last year, he traveled to the United States to study for 4 months, and he sent the Jingdong to the team whose sales volume had already broken 100 billion in those years. During that time, he did not even return home.

But the team he nurtured by himself did not disappoint Liu Qiangdong. Liu Houlai commented on it that "during this time, Jingdong's business was completely in chaos", waiting for his return in perfect order.

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< p > Jingdong's famous "inverted triangle" theory is that whether the brand, the key KPI or the supply chain are ultimately built on the basis of "team", which shows the importance of the team.

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< p > > a href= "http://sjfzxm.com/news/index_f.asp" > Liu Qiangdong < /a > said that the inverted triangle system "Jingdong is developing from bottom to top, that is to say, team selection, employment, training, motivation and so on are always our most important things, and we are also spending time and cost to do teams".

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< p > May this year, Jingdong successfully landed on NASDAQ.

When Liu Qiangdong asked questions from the media after opening, he said he would spend 95% of his time on the team in the future, "finding the right people and constantly improving the corporate culture".

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