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"We can truly feel that the new generation of technology represented by artificial intelligence is accelerating its deep integration with physical scenes, and the trend is like a tide. As technology oriented, what should we do?"
On March 29th, Liu Qiangdong, founder and chairman of JD Group, announced in a letter to all members that JD's mission has been upgraded to "technology first, making life better".
Liu Qiangdong's letter from all staff exceeds 3000 words, stating that technological advancement cannot rely solely on accumulating resources, and technological iteration is not just about updating production tools. If we chose the right direction seven years ago, today we need to anchor our original intention: to treat everyone as the main body of technological innovation, and to give everyone the passion to use technology to change the status quo.
Liu Qiangdong also shared a small story about innovation in his letter to everyone: once, a warehouse brother found a way to optimize the packaging tape of the express box in his daily packaging work. Without affecting the packaging effect and aesthetics of the package, he shortened the width of the tape from 53 millimeters to 45 millimeters. After this small improvement was promoted nationwide, not only did it improve packaging efficiency and make parcels more aesthetically pleasing, but it could even reduce the waste of 5 million square meters of tape each year. The accumulation of saved resources has long been an astronomical number.
Liu Qiangdong said that innovation has no size. "In the future, we will further improve the mechanism for innovation, encourage every JD employee to work hard to create more possibilities in their positions, and encourage every team not to easily let go of any new ideas that create value for customers, so that innovative actions and results can be more recognized and motivated."
Indeed, as we enter 2024, the e-commerce industry remains the most competitive in various fields. Alibaba Group is constantly making adjustments, from business segments to executive arrangements, with "separation" and focusing on its main business becoming key words. Pinduoduo has been maintaining high-speed growth, with previously released financial reports for the fourth quarter and full year of 2023. The revenue in the fourth quarter of last year was 88.9 billion yuan, a year-on-year increase of 123%; In 2023, the revenue was RMB 247.6 billion, a year-on-year increase of 90%, and the net profit attributable to ordinary shareholders was RMB 60.0265 billion, a year-on-year increase of 90%.
For JD.com Group, 2023 marks the beginning of adjustments. In addition to introducing billions of subsidies and promoting "Everyday Low Prices," it also includes promoting 3P (third-party) business, shrinking new businesses, lowering the free shipping threshold for self operated businesses, and multiple adjustments by senior management. In 2023, JD's total revenue increased by 3.7% year-on-year to 1084.7 billion yuan; Realized a net profit attributable to the parent company of 24.2 billion yuan, an increase of 13.8 billion yuan from 2022.
Entering 2024, challenges still lie ahead of JD.com. Liu Qiangdong's letter from all staff may also have opened the curtain of "rolling".
The following is the full text of Liu Qiangdong's letter to all employees
Everything is updated, making life better
Dear brothers
The spring of 2024 has arrived, nurturing vitality and vigor. Ten years ago, at this time, we completed the cultural sorting, and through our mission, vision, and values, we had a concrete and complete description of what kind of people we are and what we need to do.
Today, 10 years later, we need to rethink this issue.
When JD.com first started doing e-commerce, online shopping was just emerging, with very few products to choose from, and there were also many counterfeit and low-quality products. Many people are not wealthy and have saved up money for several months to buy a TV or a phone online, but the experience is particularly poor. When they receive goods, they often fall and bump them, and even are directly swapped, with no way to return or refund them. So, in 2007, we made two important decisions: one was to build our own logistics, and the other was to expand from the 3C category to the full category. Although there were many opposing voices at the time, our starting point was simple and pure, to make shopping simple and enjoyable. We know that whoever can solve problems for customers can gain their trust and achieve longer-term development.
JD's growth has always been closely linked to the pulse of the times, thanks to the trust of customers, the support of partners, and the development of the times. While JD is rapidly developing and growing, it constantly uses its own abilities to give back to the outside world. We firmly believe that the value of business is not only measured by profit and revenue, but also by higher pursuits. Whether it is optimizing the experience, improving efficiency, or reducing costs, we always need to give back value to customers, partners, and society. It is precisely this sense of mission that has led JD.com to where it is now.
Nowadays, JD.com has become a private enterprise with over 600000 employees and services covering all aspects of life. Facing the future, how can we better survive and give back to the world?
As we turn 20, JD.com will embrace this world full of changes more actively and embark on a new evolution. Therefore, we have upgraded our mission and values:
Technology oriented, making life better
Starting today, JD's mission has been upgraded to "technology first, making life better".
In our 20th year of entrepreneurship, we officially proposed the "35711" dream. We need dreams, because only dreams can give meaning to every day's struggle, and maintain the passion and warmth of constantly surpassing oneself.
Facing new dreams and the future, technology is the foundation, which is the determination to believe that technology will eventually change everything.
At the beginning of 2017, we proposed a comprehensive transformation towards technology. Nowadays, we can truly feel that the new generation of technology represented by artificial intelligence is accelerating its deep integration with physical scenes, and the trend is like a tide. As technology oriented, what should we do?
Technological advancement cannot rely solely on accumulating resources, and technological iteration is not just about updating production tools. If we chose the right direction seven years ago, today we need to anchor our original intention: to treat everyone as the main body of technological innovation, and to give everyone the passion to use technology to change the status quo.
When self built logistics first started, couriers who rode bicycles across half a city every day to deliver dozens of orders may not have thought that today's supply chain network can cover over 99% of the country's regions; In 2008, the website underwent its first major overhaul. More than ten engineers rented houses in the suburbs for three months, day and night, just to expand the shopping backend to 100000 orders. No one could imagine that today we could support hundreds of millions of people shopping at the same time; The brothers picking goods in the leaky warehouse at Fenghuangling would not have thought that the "Asia No.1" warehouse in a decade would become the most advanced intelligent warehouse in the industry. JD's leading advantage in "cost, efficiency, and experience" benefits from continuous investment in technology research and development, but the core is our unremitting pursuit of improving experience and optimizing cost and efficiency. It is our belief that technology will eventually change everything!
Beauty is a word that connects multiple elements. Different eras and people have their own definitions of beauty itself, but the pursuit of beauty has always been the most simple driving force for the development and progress of social civilization!
We hope to connect every specific thing with beauty: perhaps it is to allow herdsmen on the plateau to use their favorite appliances, perhaps it is to no longer worry about the sales of agricultural specialties in the deep mountains, perhaps it is our products, prices, and services that repeatedly impress customers... Everything can be better because of you.
We also hope to connect every specific person with beauty: perhaps our first-line brothers on the site, with the support of technology, make delivery faster and more warm, and let customers feel sincere joy; Perhaps the most responsible purchasing and sales brother, through in-depth industry research and supply chain research, enables customers to buy more, cheaper, and higher quality products; Perhaps our online consultation doctors can protect the health of more patients, allowing everyone to feel the warmest service at home without having to wait in line for a long time; Perhaps it is because our business stores are becoming increasingly prosperous, shareholders have gained profits and doubled their confidence, employees are helping their families live better lives, and society is constantly giving us more recognition. Everyone has found that JD can make our lives better.
The pursuit of technology and the goodwill to make life better will become our most solid spiritual strength on the path towards our dreams!
Only innovation can truly realize our dreams
JD's values have been officially upgraded to "customer first, innovation, hard work, responsibility, gratitude, and integrity".
At JD.com, we define values as a person's spirit and temperament. Through these values, we find people with similar pursuits and work together to achieve our dreams. Innovating by incorporating JD's values conveys a spirit of active evolution, an unwavering belief, and an unwavering pursuit of higher value, greater dreams, and a farther future.
Regarding innovation, I would like to share a story: once, a warehouse brother found a way to optimize the packaging tape of express boxes in his daily packaging work. Without affecting the packaging effect and aesthetics, he shortened the width of the tape from 53 millimeters to 45 millimeters. After this small improvement was promoted nationwide, not only did it improve packaging efficiency and make parcels more aesthetically pleasing, but it could even reduce the waste of 5 million square meters of tape every year. The accumulation of saved resources is already an astronomical number.
Innovation is of no size. Nowadays, JD.com has over 600000 brothers, thanks to everyone's dedication and dedication. From the improvement of even a roll of tape to the iteration of well-known businesses such as self built logistics, 211 limited time delivery, and 100 points after-sales service, everyone can become the main body of innovation and find the value and significance of innovation in their own job positions. I believe that there is no person in the world who lacks the willingness and ability to innovate. The ability and spirit of innovation are natural for everyone to achieve their goals.
Of course, we have also paid tuition fees on the path of innovation. Once, we were attracted by too many opportunities and wanted to do everything, but our abilities may not necessarily support us. We have summarized our experience from the losses we have suffered and the pitfalls we have stepped on: successful innovation ultimately needs to return to "cost, efficiency, and experience". To evaluate whether an innovation has value, it is necessary to ensure that there is at least one significant improvement in "cost, efficiency, and experience", and the other two cannot regress in order to be successful, otherwise all are invalid.
In the future, we will further improve the mechanism for innovation, encourage every JD employee to work hard to create more possibilities in their positions, and encourage every team not to easily let go of any new ideas that create value for customers, so that innovative actions and results can be more recognized and motivated.
Innovation is the passion for striving forward, and our team is the most steadfast support behind us. At JD.com, the most precious thing has always been our team. After this upgrade, collaboration is no longer a standalone value, but is integrated into the daily practice of "customer first" and "responsibility": when customers need it, we twist it together and wholeheartedly create value for them; When the team needs it, we can step forward and proactively lend a helping hand. The spirit of collaboration will penetrate into every aspect of our work: the core responsibility of a manager is to develop the team, and every JD person also needs to better integrate into the team, trust the team, and support the team.
I have always believed that no matter what position you are in, you always need a team to cooperate and help you, and you must also receive the support of a team in order to get things done and done well.
The starting and ending points are both about creating value for customers
From the first day of opening, we have been thinking about what our customers truly need. At that time, we were in the business of CD burning equipment, not only ensuring low prices, authentic products, and invoicing, but also providing teaching materials, editing, and gift giving, so that everyone could use and make good use of them when they bought them. A customer from another city who specializes in wedding photography has been sitting in a car for a long time, coming specifically for training and learning. They have also brought their skills back to the county, allowing the "newcomers" in distant places to catch up with the "fashion" of big cities.
Fortunately, over the past twenty years, there have been new businesses and new people from JD.com, allowing innovation, big or small, to take root and constantly exceed customer expectations. This has also led to more and more customers choosing us. Because we always place the starting and ending points of our work on our clients, we are never satisfied with the status quo and want to do better to make our clients more satisfied.
Spring is the beginning of a year, and everything nurtures beautiful hope. I firmly believe that this complex era still harbors the need for simplicity and simplicity, and there are still many customer needs that have not been truly met. There is still a lot of room for growth that has not been discovered, and there are many processes that can improve costs, efficiency, and experience. There will always be a better life worth pursuing.
As long as we have the pursuit of beauty in our hearts, our footsteps will not stop; As long as there is still a longing for tomorrow, our dreams will definitely come true!
Your Liu Qiangdong
March 29, 2024
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