21st Century Business Herald reporter Kong Haili reports from Beijing
On February 7th, JD Group (09618. HK) issued a 2024 Spring Festival congratulatory letter to all employees with the theme of "Confidence is Made".
"Battle" has always been a keyword on JD.com. In this New Year greeting letter, JD.com mentioned that the fighting spirit on the front line has been passed down since several young people in Yinfeng Building decided to fully transform into e-commerce 20 years ago. "Confidence is not spoken out, it is done out," JD.com stated that it will always welcome the new year with the confidence of "fighting! Fighting! Only being the first".
On a strategic level, over the past year, JD.com has vigorously promoted its low price strategy, taking measures such as subsidies worth billions, live streaming sales, and lowering the threshold for free shipping, aiming to cultivate users' awareness of JD.com's "multiple, fast, good, and cost-effective".
In 2024, JD.com will continue to increase its presence in the sinking market. In the congratulatory letter, JD.com stated that "the sinking market remains an important growth engine", continuously optimizing supply chain costs and efficiency, and "squeezing water" in the supply chain. The money saved can fully allow consumers to enjoy more extreme products, prices, and services, and also enable brands and businesses to earn money, which can also achieve high-quality development of JD.com.
At the organizational structure level, last year JD.com promoted the transformation of BigBoss organization in retail, logistics, health and other business lines, fully authorizing the bosses closest to users, implementing a boss self profit and loss management model, and cultivating a group of bosses who can overcome difficulties and dare to fight tough battles.
In 2024, JD.com emphasized that the more we are in a time full of changes, the more we should carry a heart of discovering and solving problems, and go to the front line and the nearest place to users to find methods and ideas. Every decision should not forget the users.
Over the past year, JD.com has also gained a strong presence in the topic of "salary increases", announcing salary adjustments for frontline retail employees. After the adjustment, the annual fixed salary increase is close to 100%, and from February 1, 2024, more than 20000 JD.com frontline customer service employees will achieve an average annual salary increase of over 30%.
In the new year, JD.com emphasizes that every team should be more pragmatic and focused, focusing resources and energy on creating value, providing more development opportunities for JD people who truly contribute, grow, and produce value, and providing long-term and comprehensive returns.
The following is the full text of the Chinese New Year greeting letter:
Confidence is achieved through hard work
- JD Group's 2024 Spring Festival congratulatory letter
Dear JD colleagues
In the sound of bidding farewell to the old and welcoming the new, we are about to welcome the Jiachen Dragon Year Spring Festival. Wishing every JD.com resident success in the new year with a roaring dragon and tiger!
This year, JD.com has once again become the exclusive interactive and cooperative platform for the Spring Festival Gala of China Central Television. It will provide 100 million physical gifts and 3 billion red envelopes to audiences at home and abroad, as well as surprise awards such as cars, mobile phones, and home appliances, to welcome the arrival of the Year of the Dragon together with Chinese people around the world. In recent days, colleagues in the project team have been working closely and preparing intensively. They will definitely bring a better interactive experience to millions of viewers at the Dragon Year Spring Festival Gala, and JD Sales will also bring good and cheap New Year goods from all over the world. At the same time, with 12 years of perseverance and dedication, our JD team has promoted "delivery during the Spring Festival" from JD's promise to an industry wide service standard. Our customer service, housekeeping, doctors, and stores are also fully committed to ensuring uninterrupted service during the Spring Festival. We have collaborated with top 100 brands and people from all walks of life to launch the "I Send New Year's Goods to Villages" campaign nationwide, and have also sent New Year's greetings to over 8000 townships.
We will invest over 500 million yuan to subsidize the delivery guys who are fighting on the front line and support them in celebrating the Chinese New Year on JD.com. To achieve an annual average salary increase of over 30% for over 20000 frontline customer service employees, the company will also provide free "visiting rooms" for the relatives of on duty customer service employees in Suqian, Wuhan, and Chengdu, allowing them to experience the warmth of the JD family while providing ultimate service to users!
From procurement and sales to logistics, from research and development to customer service, the fighting spirit on the front line has been passed down since several young people in Yinfeng Building decided to fully transform into e-commerce 20 years ago. Today, JD people are still full of vitality and sharpness. Confidence is not spoken, it is done. Faced with the uncertainty brought about by global economic growth pressure and constantly changing industries, we always welcome the new year with the confidence of "fighting! Fighting! Only being the first".
Over the past year, we have created tangible value for our users, industry, and society. JD.com has broken the hidden rules of the live streaming industry with the courage of "no pit fees, no expert commissions", allowing users to enjoy true low prices. The self operated 59 yuan free shipping and over 200 categories of "trade in" services make users more worry free. The ultimate service comes from JD's solid supply chain capabilities. In 2023, the 100th billion express delivery nationwide was delivered from "Asia No.1" to users in just 6 hours. JD Pay is fully moving towards external industry scenarios, actively promoting interconnectivity, significantly expanding the acceptance environment, and creating a new life experience for over 500 million users. Wealth management has shifted from digitalization to digitalization, providing users with a more valuable experience in intelligent financial management. JD Health is continuously improving its integrated online and offline medical and health service system, consolidating its advantageous position as the first entry point for online health consumption. The infrastructure network value of JD.com has been recognized by more new field partners such as automotive new energy and cross-border e-commerce. JD Industrial has released a new "Taipu" digital supply chain solution to better serve industrial customers in digital transformation and upgrading, as well as improving quality, efficiency, and cost reduction. JD's own brand, represented by JD Jingzao, has become an important bridge connecting upstream production and downstream consumption. JD Insurance is based on the newly released "JD Insurance" platform on the JD APP, establishing a trustworthy transaction interaction for consumers and insurance companies. Innovative retail focuses on the reconstruction of the fresh supply chain, forming a prototype of multi industry layout and continuously breaking through model innovation. JD Houda focuses on promoting consumption, assisting physical entities, and stabilizing employment, continuously strengthening local supply, and enhancing the capacity building of Dada Express delivery and fulfillment delivery.
We persistently invest in leading technological capabilities to accumulate momentum for JD's long-term growth. The Yan Xi model takes the lead in laying out industrial applications and delves into business scenarios such as retail, logistics, finance, and health to solve real-world industrial problems; JD Cloud aims to create a next-generation digital infrastructure that is multi cloud, multi active, and multi core, and continuously promote localization through "real replacement and real use"; Intelligent services broaden marketing boundaries, allowing digital people to enter live streaming rooms and become the king of traffic and sales for merchants during their leisure time; The digital platform for biological assets has brought new operational experiences to farmers; Supply chain finance technology helps enterprises solve the problem of movable property financing. We will deeply apply technological innovation to retail, from providing users with low-priced and high-quality goods through billions of subsidies and adjusting traffic allocation mechanisms, to simplifying the process of merchant entry and optimizing the merchant experience, and then combining large models with a large number of business scenarios to explore efficiency improvements. Technological innovation has also greatly improved logistics efficiency, enhancing prediction, decision-making, and execution capabilities through technologies such as digital twins, big models, and operations research; We independently develop software and hardware products, as well as new infrastructure for intelligent logistics, to help more customers achieve collaborative optimization and cost reduction and efficiency improvement.
We are persistently building an overseas omnichannel shopping platform and promoting supply chain capabilities to go global. JD Logistics has nearly 90 overseas warehouses, bonded warehouses, and direct mail warehouses worldwide, and will build a supply chain logistics network covering major countries around the world in the next three years. Nowadays, we can achieve door-to-door delivery of large items in the United States, and orders in countries such as the UK, France, Belgium, and Luxembourg can be delivered as quickly as 1 day. Ochama has expanded its door-to-door delivery services to 24 European countries and recently launched cross-border small package products, providing customers with high-quality products from around the world at the most favorable prices. JD International has established its own "buyer network" globally through three major direct procurement centers, and JD has now become the first channel for overseas luxury brands to enter China.
Over the past year, we have comprehensively and deeply promoted the organizational transformation of BigBoss in retail, logistics, health and other businesses, fully authorizing the bosses closest to users. A group of bosses who can overcome difficulties and dare to fight tough battles have interpreted the surging waves with their results; We have further clarified our employment philosophy, and under the guidance of "contributor oriented" talent management, we provide everyone with the motivation and soil to strive, encouraging diverse talents in various fields to fully utilize their strengths and achieve their dreams through hard work; We have also seen that the passionate sales of JD in the live broadcast room have become a new annotation of the fighting spirit. JD's young guys and JD customer service are sincerely and continuously guarding the most warm service experience, which is the source of JD's always youthful and surging spirit.
More employees have felt the warmth from the JD family in the past year. In order to improve the living conditions of employees, while the third phase of the "JD Smart City" in Suqian is put into use, the construction of the "JD Youth City" at the headquarters is also vigorously underway. JD has added 100000 new job opportunities. In the first nine months of last year alone, the company's total expenditure on human resources reached 76.3 billion yuan, ensuring that every JD employee can enjoy more comprehensive welfare protection. We need to not only make today's days sweet, but also make tomorrow's days promising.
Our gratitude to society has come down to fulfilling every responsibility in this year. JD.com has achieved its goal of driving rural output value exceeding 1 trillion yuan, as proposed in the "Running Rich Plan" for rural revitalization three years ago; On the front lines of flood control and disaster relief in the Beijing Tianjin Hebei region and the Jishishan earthquake in Gansu province, there has always been an emergency response from JD Red; JD Public Welfare's "Starlight Transmission, Childlike Reading Together" program has delivered nearly 70000 books that children like to more than 100 rural primary schools.
Looking ahead to the new year, domestic consumption will continue to improve, and new scenarios, formats, and models will stimulate greater consumer enthusiasm and unleash more consumption potential. We always believe that consumers, brands, merchants, and JD.com are a symbiotic and integrated ecosystem. Through technological innovation, we continuously optimize supply chain costs and efficiency, squeeze out water in the supply chain, and the money saved can completely allow consumers to enjoy more extreme products, prices, and services. It can also enable brands and merchants to earn money, and also achieve high-quality development of JD.com.
In the new year, we have clear strategic goals. The sinking market remains an important growth engine, and we will continue to expand our investment scope, enrich product supply, create a fair and efficient ecosystem for small and medium-sized businesses, and jointly serve users well; We will also continue to create a differentiated competitive advantage product matrix around technical services, optimize the development and delivery costs of technical products, and continuously improve customer satisfaction and industry influence; We will continue to promote the construction of overseas omnichannel shopping platforms, bringing consumers a richer range of low-priced goods, and strengthening JD's overseas supply chain capabilities.
We also need to be prepared to deal with complex competitive environments. Digital technologies represented by artificial intelligence are deeply integrating and changing consumer scenarios, production and supply chains. Challengers from across industries and fields are constantly rewriting industry rules. For every market participant, actively changing and breaking cognitive boundaries is often more difficult than accumulating strength to deal with a competitor. Once, with respect and reverence for users, we fought in the Zhongguancun market, where good and bad people mixed together, and fought bravely in the Internet market, where all the heroes competed for the best. Now, the more we are in a time of change, the more we should take a heart to find and solve problems, go to the front line and the nearest place to find methods and ideas, and every decision should not forget the users.
In the new year, what remains unchanged is our belief in "winning through teamwork". Up to now, a team with strong combat capabilities has been the cornerstone of JD's success. Every team should be more pragmatic and focused, focusing resources and energy on creating value, jointly creating a simple, transparent, and trustworthy team culture, and connecting individual strengths through close collaboration. We will also provide more development opportunities for JD people who truly contribute, grow, and produce value, providing long-term and comprehensive rewards, stimulating individual talents and potential, and achieving common team growth. We not only need to have the fighting spirit of being the first, but also the courage and responsibility of being the absolute first. In every challenge and test, we must temper each other to become stronger.
At this time of the year, the beginning of spring always arrives before the complete melting of ice and snow, just like JD's 20-year entrepreneurial journey. We always dare to firm our dreams in adversity and achieve value through practical work.
Wishing everyone a happy New Year again! I also wish everyone a bigger red envelope at the Dragon Year Spring Festival Gala!
JD Group
February 7, 2024
