Ma Yun, Liu Qiangdong 10 years of mouth cannon, Ali is now surpassed by Jingdong!

On the Internet, you can often see the passages of Ma Yun and Liu Qiangdong hating each other. In fact, when there was no Pinduoduo, the B2C e-commerce field could be frontal hard steel is not Alibaba and JD.com, but over the years, JD.com has basically been suppressed by Ali for a long time. However, Dong Ge did have a kind of saying that he was not convinced of this tone, so he always went back and forth with Ma Yun in public with the attitude of a challenger, and his mouth cannon played for nearly ten years. Of course, netizens have watched the hilarity for nearly a decade.

But recently, the situation has begun to reverse, and the pattern seems to be reversed. Some netizens began to clamor, this time Ma Yun was going to punch his face. So what's going on here?

According to the "List of China's Top 500 Private Enterprises in 2021" released by the All-China Federation of Industry and Commerce in September 2021, JD Group ranked second with an annual revenue of 768.6 billion yuan, while Alibaba Group ranked fifth with an annual revenue of 644.2 billion yuan. JD.com's annual revenue is 120 billion yuan higher than Alibaba's! That's not a small amount.

However, the recently released "2021 Hurun China Top 500" list shows that Alibaba ranks third, and JD Group ranks ninth. This seems to make everyone look confused again, some friends may have to ask, so what is going on? Who is stronger, JD.com or Alibaba?

In fact, these two lists are not contradictory, the former list is calculated according to the annual revenue of the enterprise, while the list of Hurun is calculated according to the total assets and valuation of the enterprise, and it can also be said that it is arranged according to the scale of the enterprise. Ali's business is more decentralized, while JD.com is relatively more concentrated, but horizontal development is inevitable.

According to Hurun's list data, although the scale of Alibaba's enterprises is 3.9 trillion yuan, JD.com is only a fraction of it, only 901 billion yuan, but the annual revenue created by JD.com exceeds Ali's 120 billion yuan. Moreover, compared with before, Alibaba's corporate value has directly shrunk by 48%, and JD.com has also shrunk in the environment of continuous epidemics, but only 10%. According to the data of the list, the top ten companies as a whole have shrunk significantly, but ByteDance, Ningde Times and Meituan have seen a relatively large increase. ByteDance rose by 221%, Ningde era rose by 151%, and Meituan also rose sharply, at 156%.

In any case, in the past, Ma Yun did not pay attention to the Jingdong Group, and now the record, I am afraid that he feels that the meal is not fragrant. I don't know if Ma Yun will feel very funny when he recalls the big words he once said to Dong Ge one day?

In fact, when it comes to the dispute between Ma Yun and Dongge, the earliest one should start in 2008. As we all know, Alibaba has been very successful in making festivals, whether in terms of scale or influence, "Double Eleven" has now become the world's premier mega shopping event. But in fact, JD.com launched the "618 Shopping Festival" before Alibaba's "Double Eleven" began in 2008. At first, "618" was only an internal small-scale celebration to commemorate the birthday of JD.com Group, but now it has developed into a mid-year carnival shopping festival second only to "Double Eleven".

Back to "Double Eleven". Alibaba's "Double Eleven" began to be called Singles' Day, and was officially launched in 2009, and the entry point is the emotional appeal of young people who want to get rid of a single.

After the hit, other e-commerce platforms, including JD.com, of course, were not willing to be silent, and began to move with the trend and launch their own "Double Eleven". But Alibaba was not happy, he definitely wanted to enjoy the fruits of victory exclusively, so on November 1, 2011, Ali quietly registered the "Double Eleven" word trademark, and suddenly issued an announcement in 2014, stating that the "Double Eleven" shopping festival was Alibaba's exclusive brand asset, and no other platform could emulate the theme and title of Double Eleven.

Although Dong Ge also felt very confused, he was not convinced. So I also designed a "double eleven" trademark to register, and it was passed. At this time, where is Ma Yun willing? Then came a paper application, the State Intellectual Property Office abolished the trademark use right of JD.com Double Eleven, and so far, JD.com and Alibaba are still entangled around the "Double Eleven" trademark, and the two have also formed a beam.

Let's take a look at a few famous scenes of Ma Yun and Liu Qiangdong hating each other:

Ma Yun and Liu Qiangdong first met at the Wuzhen World Internet Conference in 2014, according to Liu Qiangdong: At that time, he shook hands with Ma Yun and said that he was Liu Qiangdong, but Ma Yun's first reaction was a surprised expression: Ah? Are you so young? Are you so young? This made Liu Qiangdong feel some unhappiness, and he always felt that Ma Yun was speaking in a condescending posture.

However, Dong Ge is not easy to mess with, and he often satirizes and refutes Ma Yun in public, and even directly faces it as a challenger. Once, in an interview with CCTV's "Dialogue" program, when asked who might eventually become his resistance, Liu Qiangdong said: "At present, there is only one, Ma Yun." Later, when the host asked why he and Ma Yun could not become good friends, Liu Qiangdong directly said: "It may be the age problem, he is much older than me, there is a generation gap." ”

Ma Yun once said publicly: "JD.com will become a tragedy in the future, this tragedy is what I reminded everyone on the first day, not that I am better than him, but a matter of direction, which is no way." Therefore, I have repeatedly told everyone in the company not to touch JD.com. Don't rely on us when you die. ”

Then Ma Yun once said at the World Zhejiang Entrepreneurs Conference that "people who earn one or two million a month are quite happy, and people who earn one or two billion a month are actually very uncomfortable, because this money is no longer their own, and they can't spend it."

So at the Fourth World Internet Conference in December 2017, Ma Yun's words became Liu Qiangdong's "handle", and when Dongge shared JD.com's experience in precision poverty alleviation on stage, he said: "How rich are we Chinese?" Rich enough to earn a hundred million is a small goal, rich to make billions a month has been a very painful time, rich to our Chinese the world to buy and buy. In such a rich situation, there are still tens of millions of people living in extreme poverty in the country, which is a shame for Chinese especially those who have become rich".

When talking about the business model, Liu Qiangdong said, "JD.com is engaged in e-commerce to solve the business costs and efficiency of Chinese society, and Ali is not a business model." This time, Ma Yun took the lead in making a move, took the microphone and said, "We are helping others to do e-commerce, we do not buy goods and deliver goods, we let others sell." Alibaba's goal is to cultivate more JD.com and make JD.com money. This passage caused the audience to laugh.

Afterwards, Liu Qiangdong hit back in another interview: "What surpassed him should be that our business model is superior to his." ”

So when it comes to business models, what is the difference between JD.com's model and Alibaba's? How does JD.com surpass Alibaba through its business model?

Here we have to compare the two main businesses - e-commerce platforms, as for the development of investment areas and other projects, there is no doubt that Alibaba is temporarily ahead.

The current e-commerce Internet platform is mainly three models:

The first is the model of platform + third-party brand; the second is the model of self-operation + third-party brand; the third is the brand self-operation model.

The first model is represented by Alibaba Taobao and Tmall, of course, Taobao and Tmall have recently merged. Then Jingdong is the representative of the second model, and this model currently has not many main platforms, which can be said to be the only one in Jingdong.

The core revenue of the platform + third-party brand model is advertising and commission commissions. In layman's terms, Alibaba is actually a model of selling traffic and technical services to third-party merchants. Whether it is selling traffic or selling technical services, it ultimately depends on the user experience brought about by the core competitiveness of platform technology. This model is characterized by fast development, large GMV, medium revenue, higher gross profit relative to revenue, and lower net interest margin relative to GMV. The advantages are obvious, but the pain points of this model are easy to replicate, and they need to rely on scale effects to make it bigger.

The second model of self-operation + third-party branding is actually a model unique to JD.com. It combines some of the advantages of the first platform model, and also launches a self-operated store model similar to offline Gome. If you talk about the self-operated model separately, it is characterized by a general development speed, medium GMV, high revenue, and low profit relative to revenue. However, because the self-operated model is directly managed, quality control is its advantage, and the disadvantage is that the cost is relatively high and the investment is larger.

Overall, the Ali model focuses more on traffic operation capabilities, while the JD model relies on supply chain efficiency.

But JD.com is actually a hybrid model, and he doesn't really ignore traffic operations. Just like adding a spoonful of sugar to soy milk, although the cost is high, but more people like to bring sugar or more people without sugar? Not to mention that Jingdong also has a unique self-operated logistics blessing, and it has also learned and introduced the Amazon model, so from the perspective of e-commerce platform innovation, Jingdong is undoubtedly a very prominent existence.

Some people may ask, the Jingdong model is so good, why hasn't ali been done for so many years? The answer is actually very simple, on the one hand, Ali made early efforts, the popularity of brand operation was higher than that of Jingdong, and the overall price of Taobao at that time was more advantageous than Jingdong, so the stall shop was relatively large, combined with the strong support of Japan's SoftBank Capital, so it expanded rapidly.

In addition to doing self-operated stores in the early stage, Jingdong has invested in the construction of self-built logistics systems since 2007, burning a lot of money, resulting in annual losses. The support of capital is not more advantageous than Ali, which is an important reason why the scale has been suppressed by Alibaba.

But now it is different, we look at the rebound of JD.com in recent years, the explosive power shown by it knows the mystery.

Jingdong began to stop losses in 2018 to achieve profitability, according to Jingdong Group's 2021 Q1 financial report, Jingdong achieved a net income of 203.2 billion yuan in the first quarter, an increase of 39% year-on-year. The number of active purchase users was nearly 500 million, a net increase of 112 million over the same period in 2020, the largest increase in the same period in history, of which more than 80% of the new users came from the sinking market. Compared to $40 billion in 2018, it has tripled in 3 years! In terms of market capitalization, jd.com's total market value in 2017 was only 350.6 billion yuan, ranking 25th among China's top 500 enterprises, and it has only been 4 years, and now jd.com's total market value is about 1.59 trillion yuan, directly increasing by 4.5 times! Ranked second among China's top 500 companies. What is this concept?

Therefore, it is precisely JD.com's unique self-operated model and self-built logistics system that is likely to have become the growth flywheel of JD Group's future rapid expansion! If you still think you don't understand, please refer to how Amazon has developed, or search for a theme I launched in October 2021, the keyword is: strategic loss.

#财经 #

In fact, as the top Internet tycoons, these two are successful people after all, and their thinking and action are also different from ordinary people. Strategic planning sought-after players are also not qualified to point fingers at them too much. However, from the perspective of learning and research, it is still possible to compare from different angles, and strive to find the advantages and disadvantages of both sides and the real reasons for success and failure.

Summarizing the differences in the business models of the above two enterprises, strategic planning sought-after believes that the different status quo and trends of the two enterprises are mainly driven by the following two aspects:

First of all, the starting points and goals of the people at the helm of the enterprise are different.

I also mentioned above that Liu Qiangdong said that Jingdong is doing e-commerce, and the starting point and goal of Jingdong is to solve the problem of commercial cost and efficiency in the Chinese market; while Ma Yun said that Alibaba is helping others to do e-commerce, and they do not buy goods and deliver goods, which means only intermediate platforms and resource integration. This may be the real reason why the two companies are slightly different in terms of commodity quality control, one is direct management, and the other is coordination-based supervision.

Second, the difference between business thinking and operating philosophy.

Ma Yun stressed that enterprises should expand rapidly, take advantage of the situation, and use capital operations. Liu Qiangdong, on the other hand, focuses more on doing better and deeper, starting from the important links of the entire business process and fully controlling the service and logistics costs. Although their methods of doing things are different, the goal is actually the same, that is, four words: cost and efficiency.

However, I think that as the enterprise becomes bigger and bigger, the public attributes of large enterprises will become stronger and stronger, elite talents will emerge, and their future direction will still rely on the strength of the team to control, and the two companies will eventually be superior or inferior, I think it is not appropriate to make a conclusion too early. Dear old iron, what do you think?

Pay attention to strategic planning and sought-after the market, listen to insightful views, and understand the road of enterprise entrepreneurship. Ladies and gentlemen, we'll see you in the next issue!