JD.com Celebrates 20th Anniversary and Announces New Growth Strategy
We look at JD.com's 20th anniversary and new growth strategy.
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.