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Jingdong 4 years near zero profit or cash flow break channel king? – Jingdong Mall, Suning Appliance – Network Appliance Industry-hc360 HC

4 7,

Sell

The amount of 11.4 million yuan.

This figure to Liu Qiang East convinced, will be completed in 2009 Jingdong Mall 4 billion yuan sales target.

Established since 2004 to 2008, Jingdong Mall’s sales were 10 million yuan, 30 million yuan, 80 million yuan, 3.6 billion yuan and 1.32 billion yuan. Qiang East is expected that by 2010, that number would be 10000000000.

The past 4 years, Jingdong 340% average compound growth rate. Even in the rich “fast company” Internet domain, which is still a stunning pace. Compared to the traditional channels of business,

States United States

From creation to sales exceeded 10 billion yuan, with 15 years.

1999 8848, Dangdang, outstanding since the birth of China’s B2C wave through several rounds of ups and downs, has not seen in sales of more than 2 billion or even billions of the company. On the other side, the U.S. Amazon sales in 2008 reached 19.27 billion U.S. dollars.

Jingdong Mall demonstrates another possibility.

At the same time, and the average annual compound growth rate of 340% match is very, 4 years, Jingdong almost zero profit. Jingdong Liu Qiang Dong and his constantly being questioned and tortured: a high-speed expansion is not profitable company, can go far?

In the East seems to Liu Qiang, B2C is the essence of doing retail, B2C is a channel provider. 100 years of channel evolution, from country markets to department stores, to chain stores, the rise of a new business model, there is constant innovation in the two curves and enhance:

1. Supply chain efficiency. Continuously improve the inventory and cash flow, which in the retail industry benevolent.

Dominant global chain Wal-Mart, the world has its own satellite system, the rate of turnover is 30 days. States United States

Suning

Be 47 days -60 days -10 days Amazon is 7 days.

2. Cost control. High margin on the retail sector in terms of no significance.

If a circulation enterprises, high margin requirements, can only prove that it’s operating costs are too high. This business has no value in the industry chain.

“Department store’s gross margin as high as 50%, but only 15% of Wal-Mart can make money because it costs less and efficient. Do retail, Competition is the operational efficiency and cost control. If everyone in the pursuit of 40%, 50% of the gross margin, the business model will not evolve. “Liu Qiang Dong said.

Qiang East grasp of supply chain efficiency and cost control of the two curves, so did Jingdong Mall: A powerful

IT

Digestive system every day of the 1500 Order; online sales of product categories, more than 30,000 kinds of products cheaper prices than offline stores 10% ~ 20%; inventory turns were 12 days, with the current supplier Spot Results, Gome, Suning’s inventory turns were for 47 days -60 days, accounts of 112 days; cost rate than GOME, Suning is 7%, gross margins remained at 5%, the industrial chain suppliers, terminal customers more value.

36-year-old Liu Qiang East is not the master of China’s earliest Internet play. Until 2004, he never went to Dangdang, do not know excellence, never heard of 8848, the only contact with only QQ. Liu Qiang East started the business in 1998, did agents, held a chain, the final bet everything in B2C. “He’s practical, really, attention to detail, there is a certain temperament to do retail.” Today, the capital, President Xu Liu Qiang, described her first impression of the East, “Jingdong the most important value is that it engaged in a channel change , it is a subversion of traditional channels. ”

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Cash flow is a common issue in business. In this video I go into what factors in business impact upon cash flow and drive it through the business. I briefly touch upon the seven cash flow drivers which are; sales growth, gross profit, fixed costs, accounts receivable, accounts payable, inventory and capital expenditure.
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We have the lowest prices on new and used gravity flow rack including push back rack, pallet flow racks, horizontal pallet transfer systems, battery flow & quick pick or Span Track carton flow racking. Flow racking can be loaded from the back or loaded from the front and product will roll to the front of the system for easy access. Flow racks transport a steady supply of material or finished products to a certain location, such as shipping areas, sorting areas or order picking lines. Gravity racks are very popular in food distribution warehouses or anywhere there is a high product turnover. Food distributors generally make a low profit margin on their products and have to move a lot of product to make money. Initial cost and maintenance is higher than static rack but handling speed and first-in first-out (FIFO) stock rotation is excellent and creates a tremendous cost savings for your company. Please visit our website at www.palletflowrack.biz or contact us at 800-763-9020.
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nerdenterprises.acrobat.com for the original recording (better quality) When you are in the business of selling products it is important to understand how those transactions flow in quickbooks or any accounting software. In this web cast we go over how this works using quickbooks – the accounting & bookkeeping concept is the same regardless of whether you use quickbooks or something else. Also – to clarify abou the comment re: what I said at 7:49 I said if i sell 500 at $4 each the “cost” will be $1000 (500 x $2/ea) and that is correct. I wanted the fact that the cost is different from the selling ($2000) to be clear. It may have been a little confusing the way i said it. For more info on calculating Gross Profit and a template for the same click here: nerdenterprises.com
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