Core Viewpoint - JD.com is actively expanding its local life strategy, including entering the food delivery market, which has led to significant growth in daily orders and rider numbers, challenging the existing duopoly of Meituan and Ele.me [1][2]. Group 1: Business Strategy and Market Position - JD.com has launched its first Seven Fresh Food Mall, indicating a commitment to diversifying its local life offerings [1]. - The company has reported over 25 million daily orders in its food delivery service, with full-time riders expected to exceed 150,000 soon [1][12]. - JD.com aims to maintain its focus on instant retail and local life as strategic priorities, despite exploring various business directions within this framework [2][11]. Group 2: Investment and Resource Allocation - In the past six months, JD.com has invested more in its food delivery service than in any other new business over the previous years, indicating a strong commitment to this sector [2]. - The company acknowledges that to gain further market share, it will need to extend its investment and subsidy periods, which will increase cost pressures [2]. Group 3: User Experience and Operational Efficiency - JD.com emphasizes the importance of product quality and user experience over mere subsidies to ensure long-term growth and user retention [4]. - The company is focused on optimizing rider efficiency through better scheduling and order management, which is crucial for balancing rider earnings and platform profitability [5][6]. Group 4: Rider Welfare and Satisfaction - JD.com is committed to providing full-time riders with benefits such as social insurance, which is seen as a baseline for responsible business practices [16]. - The average monthly income for full-time riders in major cities has reached approximately 13,000 yuan, representing a 60% increase compared to their previous earnings [12]. Group 5: Cross-Platform Synergies - The food delivery service is expected to enhance user engagement with JD.com's other offerings, driving higher frequency of app usage and cross-category purchases [14][15]. - The integration of food delivery with JD.com's logistics capabilities allows for cost efficiencies and improved service delivery [14]. Group 6: Future Outlook and Growth Potential - JD.com has exceeded its initial expectations for food delivery growth, indicating a strong market opportunity and the potential for sustainable business development [10][11]. - The company is focused on building a long-term, sustainable business model rather than seeking short-term profits, which is essential for healthy industry competition [11][16].

Core Viewpoint - The article discusses the recent insights shared by JD.com's Chairman Liu Qiangdong and CEO Xu Ran regarding the company's strategic direction, emphasizing the importance of supply chain management and the upcoming differentiation of JD's food delivery service from competitors like Meituan [3][6][16]. Group 1: Company Strategy and Vision - Liu Qiangdong expressed a desire for better understanding of JD.com, highlighting the company's significant growth in employee numbers, reaching 900,000 by the end of Q2 2023, with a potential increase to 1.2 million in the next three years [3][4]. - The company aims to innovate continuously, having already initiated six new projects, and plans to focus on local life services, including food delivery and instant retail [4][5]. - JD.com is positioning itself as a supply chain-centric company rather than a pure internet company, which is reflected in its operational structure and employee count [6][16]. Group 2: Employee and Operational Insights - JD.com has a robust logistics network with 1,600 warehouses and a product catalog exceeding 10 million items, achieving a turnover rate of 30 days [12]. - The average pre-tax salary for JD's delivery personnel exceeds 13,000 yuan, with the company having invested over 100 billion yuan in employee benefits over the years [10][11]. - The company is actively hiring full-time delivery riders, with current numbers around 120,000, expected to exceed 150,000 by the end of June [5][6]. Group 3: Market Position and Competitive Edge - JD.com has established itself as a leader in the home appliance sector, with a market share significantly larger than competitors like Gome and Suning, and has achieved a net profit margin of 3-4% in this category [12][13]. - The company emphasizes a collaborative approach with brand manufacturers, advocating for a profit-sharing model that favors brand creators over retailers [12][13]. - JD's strategy for international expansion focuses on local e-commerce, local infrastructure, and local employment, aiming to establish a strong presence in Europe with over 2,000 local employees [20][21]. Group 4: Future Directions and Innovations - The company plans to unveil a new food delivery model that will differ significantly from Meituan's approach, with a focus on ensuring food safety [23]. - JD.com is committed to deepening its existing supply chain-based business models rather than introducing entirely new ones, with a long-term vision for sustainable growth [22][23]. - The international strategy involves a gradual approach to integrating 1,000 Chinese brands into local markets, which may take up to five years to fully realize [21][22].

Core Insights - The company is focusing on understanding its business model and future direction, particularly in the context of its workforce expansion and new initiatives in local living services [1][5][7] - The CEO, Sandy Xu, is seen as a key player in executing the company's strategy, particularly in local life services and the integration of various business segments [4][5][6] Group 1: Company Strategy and Workforce - The company currently has 900,000 employees, with projections to grow to 1.2 million in the next three years [1][11] - The company is emphasizing local life services as a critical area for future growth, with plans to expand new formats like the Seven Fresh Food Mall [5][6] - The integration of e-commerce, instant retail, and local living services is a strategic focus, with 40% of food delivery customers also purchasing e-commerce products [5][6] Group 2: Leadership and Management - Liu Qiangdong expressed dissatisfaction with the company's performance from 2017 to 2022, describing it as a "lost five years" with no innovation or growth [3][15] - Sandy Xu is viewed positively by Liu Qiangdong, who plans to eventually hand over domestic operations to her while he focuses on international business [3][19] - The company aims to maintain a strong supply chain focus, which is seen as the foundation of its business model, rather than being a purely internet company [8][17] Group 3: Business Model and Future Plans - The company is developing a unique food delivery model that will differ significantly from Meituan's approach, with an emphasis on food safety [2][24] - The company is committed to a long-term strategy that may take 10 to 20 years to fully realize, focusing on building a sustainable business rather than quick profits [22][23] - The international strategy will prioritize local e-commerce, local infrastructure, and local employees, aiming to support Chinese brands in foreign markets [21][22]