JD.com entered the content ecosystem with 1 billion cash and flow.
On April 10th, JD.com announced the investment of 1 billion cash and 1 billion traffic as rewards, attracting more original authors and high-quality content institutions to settle in, providing users with a better consumer experience with high-quality content, and helping brand merchants find new growth points.
For this subsidy, the person in charge of JD's content ecosystem told Pengpai News that excellent video creators are an important force in promoting the prosperity of the content ecosystem. In order to recruit more outstanding talents and institutions to settle in, JD.com has offered 1 billion in cash and 1 billion in traffic as rewards to stimulate their creative enthusiasm and produce more professional and interesting content.
Specifically, JD.com stated that on the one hand, it will provide cash subsidies to experts in over 20 creative fields, including digital 3C, home appliances, mother and baby, pets, fashion, sports, beauty and personal care, health, and automotive products. Creators who meet the recruitment requirements can receive a maximum cash creation subsidy of 30000 yuan per account within a single cycle. On this basis, creators can also enjoy video playback subsidies and sales commissions.
On the other hand, it will bring more exposure opportunities for high-quality and original videos, not only through algorithm weighting and providing subsidies for fixed traffic vouchers, but also through special display methods such as evaluation and dressing TAB in the browsing channel, as well as adding evaluation and dressing floors in the product details page, to bring more traffic to high-quality content.
In addition, JD.com has set up an institutional incentive list of up to 5 million yuan. As long as the number of people introduced by the institution reaches a certain scale, there will be a chance to receive a one-time cash subsidy every month. After the institution is established, the heads of various categories on JD.com will also provide one-on-one guidance and services to enhance its operational capabilities.
At present, JD.com is actively preparing for the incubation of top talents and plans to select the top 100 talents by the end of the year. It has already invested billions of cash in the reserve stage of talents alone, and will provide more rewards in the future to deliver more professional and valuable information to users.
On March 6th, JD.com announced its full year 2023 performance, and its financial report showed that its total revenue in 2023 was 1084.7 billion yuan, a year-on-year increase of 3.7%. The net profit attributable to ordinary shareholders in 2023 was 24.2 billion yuan, compared to 10.4 billion yuan for the entire year of 2022, a year-on-year increase of 133%; The adjusted net profit for 2023 was 35.2 billion yuan, compared to 28.2 billion yuan for the entire year of 2022, a year-on-year increase of 25%.
JD's revenue in the fourth quarter of last year was 306.1 billion yuan, a year-on-year increase of 3.6%. The net profit attributable to common shareholders in the fourth quarter of last year was 3.4 billion yuan, a year-on-year increase of 33%, and the adjusted net profit was 8.4 billion yuan, a year-on-year increase of 9%.
It is worth noting that JD's layout in the content ecosystem has already begun. According to disclosed data, in terms of video content, JD.com saw a year-on-year increase of 300% in indicators such as orders, user scale, and duration last year, and continued to grow at a high rate of 100% in the first quarter of this year.
During last year's Double Eleven, JD.com launched a topic challenge on 20 vertical tracks, generating 382 topics and generating nearly 100 million transactions with 26000 authors. During the Chinese New Year holiday, over 50000 video submissions were received on 30 hot topics, with a GMV of over 20 million through video transactions.
In terms of testing the waters of live streaming business, during last year's Double Eleven period, the total number of viewers in JD's purchasing and sales live streaming rooms exceeded 380 million; Subsequently, at the Mango TV New Year's Eve Gala on Hunan TV, JD's sales live broadcast room saw over 100 million viewers within 5 hours.
"Last year, JD.com has been accelerating the construction of its platform ecosystem and low price mentality, and its overall performance has met expectations." At that time, during a conference call, JD.com CEO Xu Ran talked about the performance of the past year and stated that this year will continue to focus on promoting price competitiveness and platform ecosystem construction, and is confident in further gaining market share.
Content ecology has become an important way for Internet giants to compete for incremental markets. For Tencent, this opportunity mainly comes from video accounts. According to disclosure, the number of creators generating revenue from video accounts increased by more than twice year-on-year in the fourth quarter of last year. Tencent has provided more monetization support for video account creators, such as promoting live streaming sales and matching creators with brands in marketing activities.
Data shows that in 2022, the sales revenue of live streaming e-commerce on video accounts surged more than 8 times year-on-year, and maintained a strong growth momentum last year.
Regarding the situation of live streaming sales, Tencent President Liu Chiping revealed in a conference call that the overall sales in 2023 have exceeded 100 billion yuan (including mini programs, not only video accounts). However, compared to the business scale of video accounts, it is still very small, and the sales volume of mini program e-commerce is also very small. We hope to seize the huge opportunity brought by this business.