On the evening of December 27th, China Economic Weekly - Economic Network News, JD Group announced that starting from January 1, 2024, the annual fixed salary of frontline business personnel such as JD Procurement and Sales will increase by nearly 100%. At the beginning of 2024, JD Retail will have an average salary increase of no less than 20% for all employees.
On the 28th, according to a report by Pengpai News, the specific details of the salary adjustment disclosed by JD.com are as follows: starting from January 1, 2024, all online business colleagues of JD.com will have their original monthly performance-based salary and floating year-end bonus increased to fixed salary, enjoying a fixed year-end bonus of four times the monthly salary. After the adjustment, the annual fixed salary increase will be close to 100%. In addition, the business boss unit can receive an uncapped performance incentive by providing performance improvement based on the year-on-year improvement rate. The guidance plan will be announced by various business units in January 2024.
According to the salary increase regulations, it can be seen that JD has significantly increased the fixed salary incentives for online business employees such as procurement and sales, and improved their basic benefits. At the same time, JD.com has adopted the principle of no upper limit for business incentives to increase and stimulate business development.
It is worth noting that on the afternoon of December 28th, JD.com issued a procurement and sales call, calling on JD's procurement and sales brothers who have traveled abroad to "go home". JD stated that after JD's return to the company, the welfare age will continue to accumulate, including age subsidies, housing security funds, continuing education, exclusive titles for senior employees, and employee assistance funds. The newly launched retail sales compensation policy also applies, with a salary increase immediately upon returning home.
On the 28th, in the live broadcast rooms of JD.com Supermarket and JD.com International, slogans "Celebrating a salary increase, 50% off for the entire venue" were displayed. During the live broadcast, JD.com salespeople used phrases such as salary increases, price breaks, and 50% off to introduce products and prices, and their tone was even more excited.
It is reported that during this year's Double 11, JD's sales live streaming unexpectedly gained popularity. JD Home Appliances, 3C Digital Business Unit, Dashang Supermarket Business Unit, JD Auto, JD Health and other business and sales teams have all participated in the live streaming battle.
Public data shows that during the Double Eleven period, the total number of viewers of JD's live streaming sales exceeded 380 million. Among them, JD Supermarket purchased and sold over 3 million live streaming products, and JD Home Live's transaction volume increased by more than 10 times compared to 618. The total transaction volume of JD Jingzao's official live streaming room increased by 6.5 times year-on-year, and the total transaction users of the live streaming room increased by 4 times year-on-year.
It is worth mentioning that since the beginning of this year, JD Retail has been constantly moving in terms of personnel and business.
In March, JD.com launched a billion yuan subsidy campaign, and during the Double 11 War, JD.com directly focused on "really cheap" as the theme of the promotion.
In 2023, Liu Qiangdong launched a "low price war" in e-commerce with a new strategic model. And in response to this strategy, a series of organizational restructuring and layout have been made. In April, JD Retail launched an organizational change in its procurement and sales units, abolishing the level of business groups and transforming them into business units; At the same time, each combat unit is no longer divided into self operated and third-party merchant teams, but rather comprehensively coordinates all business under this category, promoting further "equal rights" between self operated and third-party merchants.
In May, Xu Lei, former CEO of JD.com, suddenly announced his retirement. Xu Ran, former CFO of JD.com, was promoted to CEO and reported to the board of directors and chairman of JD.com, Liu Qiangdong. On November 15th, JD Group announced that Xu Ran, CEO of JD Group, will also serve as CEO of JD Retail, effective immediately. Former CEO of JD.com Retail, Xin Lijun, will have another position at JD.com.
In August, JD.com announced a reduction in the free shipping threshold for self operated products, from 99 yuan to 59 yuan.
On the evening of December 9th at 22:00, JD founder Liu Qiangdong replied to employee comments on the company's intranet, saying, "(JD) must change, otherwise we have no way out... Of course, all these problems are due to my poor management, and I am very self blaming. However, no matter what, I will not lie flat, and I hope my brothers will not lie flat. Currently, the organization is huge, bloated, and inefficient, and changing it does take time."
On December 27th, it was reported that JD.com has updated the "JD Open Platform After sales Service Management Rules" and "JD Open Platform Transaction Dispute Handling General Rules", adding execution standards that support refunds without returns. The adjustment will take effect on the 29th.
An insider at JD.com introduced that since last year, Liu Qiangdong's frequency of "returning to Taiwan" has significantly increased. He has made multiple internal speeches and "monitored" the overall development direction of JD.com Group. Among them, he pays particular attention to the implementation of the low-priced strategy. He once mentioned internally, "If we lose the low-priced advantage, all other so-called competitive advantages will return to zero. With the success of 3C's home appliance business, many brothers have started to be arrogant and complacent, no longer paying attention to JD's low-priced advantage. If this continues, they will eventually become the second Suning."
Recently, JD Group released its third quarter financial report, which showed that it achieved a revenue of 247.7 billion yuan in the third quarter, an increase of 1.7% year-on-year. Specifically for its segmented business, its retail revenue in the third quarter was 212.1 billion yuan, a year-on-year increase of 0.1%, compared to a growth rate of 5% in the previous quarter. In terms of product revenue, JD's product revenue in the third quarter was 195.304 billion yuan, a year-on-year decrease of 0.9%. Among them, the growth rate of revenue from electronic products and household appliances stagnated, while the revenue from daily necessities was 75.9 billion yuan, a year-on-year decrease of 2.3%. The service revenue reached 52.4 billion yuan, accounting for 21.2% of the overall revenue. In the third quarter, JD Group's net profit was 7.936 billion yuan, a year-on-year increase of 33.09%, and Non GAAP's net profit was 10.6 billion yuan, a year-on-year increase of 6%.
In the financial report, it can be seen that the retail business has almost "zero growth". At the financial report conference call, Xu Ran stated that the development of retail business is JD's most core and highest proportion of revenue, and it is also the foundation of JD's diversified business. In the future, we will continue to promote the strategic implementation of retail with cost efficiency experience as the core, while promoting collaboration between retail and other business sectors. Xu Ran is optimistic about his performance in 2024. In the latest financial report conference call, he proposed that JD.com expects the impact of business optimization adjustments in 2023 to weaken by 2024. At the same time, with the gradual recovery of the economy and consumption, as well as JD's series of optimization and adjustments in algorithms and systems, it is expected to achieve high-quality business growth in 2024.
In addition, the financial report shows that in the third quarter, JD's total expenditure on human resources (including its own and external employees) reached 25.9 billion yuan, and the total expenditure on human resources in the first three quarters was as high as 76.3 billion yuan, which is 3.7 times the net profit of the first three quarters. It is reported that JD currently has over 560000 employees, including hundreds of thousands of grassroots employees such as express delivery guys and procurement and sales.
Industry insiders have stated that the large-scale salary increase for JD's sales and retail business teams reflects JD's emphasis on talent and employee benefits. This measure is also expected to further enhance JD's competitiveness in the retail industry and attract and retain more outstanding talents.