In June 2023, Richard Liu’s JD.com (known as Jingdong in Europe) celebrated its 20th anniversary. The company also announced plans for the next two decades in the form of its new “35711 Vision.” Here’s an overview of the 35711 Vision and JD.com’s low-cost market strategy.
JD.com’s 35711 Vision: Sustained Growth
JD.com revealed its 35711 Vision in a letter to employees. The vision outlines a path for sustained growth over the next 20 years.
What The Numbers in “35711 Vision” Represent
The numbers in “35711 Vision” each stand for a crucial aspect of JD.com’s future-facing strategy:
● The “3” represents JD.com’s goal of establishing three businesses with more than one trillion RMB in revenue and 70 billion in net profits.
● The “5” represents JD.com’s plans to have five of its businesses included in the Fortune Global 500.
● The “7” represents JD.com’s goal of creating seven publicly listed businesses with a market value of 100 billion RMB.
● The “1s” represents JD.com’s plans to contribute 100 billion RMB globally in taxes and create more than 1 million jobs.
Creating A Clear Path for Growth
JD.com’s 35711 Vision is aimed at creating long-term, sustainable growth. Sandy Xu, CEO, set out the Company’s three main strategies for growth.
- Build the business in developing markets.
- Advancing the company’s technology and services.
- Expand JD.com’s international businesses.
Sustainability And Social Value
JD.com is also committed to having an impact on Sustainability and the Markets in which it is active. Examples include:
● Providing more than three trillion RMB in benefits to the company’s frontline employees.
● Increasing 100 million farmers’ incomes.
● Helping 60 million small- and medium-sized enterprises implement digital transformations.
● Developing a global supply chain infrastructure to support economies that represent 80% of the world’s economic volume.
● Achieving carbon neutrality.
JD.com’s Low-Cost Market Strategy
Throughout 2023, JD.com has introduced several merchants that offer cost-effective products to its platform.
The trusted e-commerce company has long served consumers with a select group of merchants. These merchants’ products often appeal to higher-income shoppers. Now, this expansion of affordable products welcomes a new class of merchants to the platform. These merchants’ cost-effective products attract a broad consumer demographic.
As part of its low-cost market strategy, JD.com has hosted initiatives to help small merchants sell low-price products. For example, the 2023 “Spring Dawn” initiative made it easy for small merchants to launch stores on the JD platform.
These merchants spanned from college students to designers, craftsmen, and farmers, among other entrepreneurs. Thanks to this initiative, the number of new merchants joining JD.com rose by 240% compared to the same period in 2022.
JD.com’s impressive history of supply chain purchasing places the company in an advantageous position to sell high-quality, low-cost products. Its warehouse and trucking network also supports the company’s strong position in this market.
Guided by its 35711 Vision, JD.com will continue to make innovative moves in the next 20 years with a focus on long-term growth.
Learn more about JD.com’s 35711 Vision.
About JD.com (a.k.a. Jingdong)
JD.com, also known as Jingdong, is a technology and service enterprise with a supply chain at its core. Founded by Richard Qiangdong Liu, JD.com is a renowned leader in China's e-commerce industry and the company has expanded across retail, technology, logistics, healthcare, insurance, property development, industrials, private label, and international business. Ranking 46 on the Fortune Global 500, JD.com is China’s largest retailer by revenue.
JD.com serves nearly 600 million customers and has set the standard for e-commerce through its commitment to quality, authenticity, and competitive pricing. The company operates the largest logistics infrastructure of any e-commerce company in China, pioneering a standard experience of same- and next-day delivery. JD.com also promotes productivity and innovation across a range of industries by offering its cutting-edge technology and infrastructure to partners, brands, and diverse sectors.
Today marks the 50th anniversary of the ATM (the Automated Teller Machine in case you never knew), and Auriga is urging banks to seize the opportunities presented by the ATM as part of a shifting financial landscape and look at the opportunities the next 50 years bring. Below, Auriga explains to Finance Monthly what ATMs could really amount to for the banking sector and its customers.
“Brits still love their ATMs – they’re a key part of the banking process and are incredibly valuable. 43% of UK respondents to the survey using an ATM on a weekly basis so banks who don’t embrace the technology are missing out on a chance to communicate with their customers and build trust,” explains Mark Aldred, who leads Auriga’s International business.
But banks are running the risk of missing out on new revenue streams and opportunities. “1 in 10 UK consumers thinks the UK doesn’t have enough ATMs that can do more than just dispense cash,” explains Mark, “they’re much more than just cash machines now. They can process bill payments, exchange currency and even sell event tickets. The demand is there from UK customers, but banks now need to meet it.”
With bank branches around the country closing, ATMs can be the middle-ground approach between the ex branch and empty buildings with no contact at all. “A combination of self-service machines and staff could be the ticket to reviving the dwindling number of bank branches,” explains Mark, “this hybrid approach appeals most to customers, if banks can strike a balance between customer autonomy and personalised support and advice. Customers want more personalisation and ATMs are a great channel to deliver this - for example pre-set fast withdrawals for the customer who always takes out £70 for weekend expenses or allowing customers to set up their dashboard to meet accessibility needs. It all adds up to a better relationship and more trust with your customers, which can only be a good thing.”
The challenge for banks is to achieve these steps despite the constraints of sometimes outmoded legacy technologies. There are countless examples outside of UK where the right software could rejuvenate existing ATMs. That’s one of the reasons we started in this industry - we began in the Age of the Internet and challenging the internet banking market to be better than ever before and it was logical for us that the ATM could benefit from the same cloud based approach – it reduces the total cost of ownership, improves time to market and eases the development of new services.”
“What is needed is a mind-set change from the current position of offering very limited services and reducing operating cost as the single most important focus, to a more optimistic outlook of expanding revenue-generating consumer services with operating costs being only one management metric. The ATM is on the brink of some very exciting developments – with technology like artificial intelligence, data analytics and chatbots poised to bring an even better experience to the ATM – but without the right infrastructure in place banks could risk missing out” concludes Mark.
