Cross-border e-commerce opportunities for British firms in China with JD Worldwide

JD Worldwide - Tony Qiu

Transcript

1. JD.COM INC. Make Joy Happen
2. JD.COM INC. China’s Favourite One-Stop Shop
3. JD.COM INC. We are the Largest E-tailer in China China Online Direct Sales Market Share We are the clear leader in China’s online direct sales sector, with market share in Q3 2015 Source: iResearch, 2015 .12 Other 11.4% 0.8% 1.5% 2.2% 2.4% 3.5% 4.1% 7.2% 9.9% 58.3% 56.9% 56.9% JD.COM INC.
4. JD.COM INC. 55.7% 25.2% 19.1% Source: iResearch, 2015 Q3 Second-largest B2C ecommerce platform in China, with market share of in Q2 2015 – and growing twice as fast as the overall industry. We are Growing Much Faster than the Industry Overall B2C Ecommerce Market Share 23.3% JD.COM INC.
5. JD.COM INC. One of the World’s Largest Internet Companies Listed on NASDAQ in May 2014 Top 10 International Internet Companies（by Revenue） Source：Resource：Google Finance 9 Mar. 2016 *2015 Revenue No. Company Region 2015 Revenue (USD) 1 Amazon.com US 107bn 2 Google US 66bn 3 JD.COM INC. China 28bn 4 Facebook US 17.9bn 5 Tencent China 12.9bn* 6 Alibaba Group China 11.7bn 7 Baidu China 10.2bn 8 Priceline US 9.2bn 9 eBay US 8.6bn 10 Yahoo US 4.9bn
6. JD.COM INC. JD.COM INC. in Numbers Annual Active Customers Annual Gross Merchandize Value (GMV) (US$) Average Daily Orders % of Transactions on Mobile $71.5 Billion 72.4% 3.8 Million 169 Million Source: FY2015 and Q1 2016 financial statements
7. JD.COM INC. Customers Trust Our Focus on Quality & Authenticity Qualification Checks Internal Quality Control System Penalty System 7-day Return Guarantee Spot Checks Purchasing Channel Checks Quality Control Measures Strict ‘Zero Tolerance’ policy on counterfeits
8. JD.COM INC. Most Advanced Logistics Network in China Beijing Shanghai Guangzhou Wuhan Chengdu Shenyang Xi’an Largest warehousing and fulfillment infrastructure of any ecommerce company in China 85% of direct sales packages are delivered within the same day or the next day – a service standard no other ecommerce company globally can match Source: JD financial report of 2015 Q3 209 large-scale warehouses in 50 cities 5,987 delivery centers, self-pick-up centers and machines
9. JD.COM INC. • WeChat is China’s leading social messaging platform with 700+ million monthly active users – similar to both WhatsApp and Facebook, but with many more features. • JD.COM INC. is the exclusive ecommerce partner of WeChat, driving a huge amount of traffic to JD.COM INC. website – on Singles Day 2015, half our new users came from WeChat. • Our brand partners leverage this access to reach new consumer markets. WeChat Shopping Channel Unilever’s gamification & viral sharing WeChat campaign reached over 9 million participants JD.COM INC. official WeChat account’s newsfeeds covers 50+million fans daily Seamless Integration and User Experience
10. JD.COM INC. Cosmetics Fashion Health Baby Food Electronics Some of our International Brand Partners
11. JD.COM INC. Partnerships with Global Ecommerce Leaders
12. JD.COM INC. JD.COM INC. Worldwide Positions Brands for Success  Access JD.COM INC.’s 169 million customers without needing a physical presence in China  0% customs duty; reduced VAT and consumption tax (11.9% in total for most categories)  Consumer trust in product quality, safety and authenticity  618 – JD.COM INC.’s Anniversary Event, held annually on 18 June • 1,000 iPhone SEs sold in 1 hour • 41,000 Clinie facial masks sold in 1 hour • 10 million packs of Kao diapers sold in 12 hours • 10,000 bottles of Swisse collagen supplements • 10,000 packs of Ocean Spray cranberry snacks JD.COM INC.
13. JD.COM INC. P&G: Leveraging Domestic and Cross-Border Reach • March 6 2016: P&G launched a flagship store on JD.COM INC. Worldwide. • Leveraged JD.COM INC. Worldwide’s cross border infrastructure and China’s relaxed import regulations to quickly bring to market a number of brands previously unavailable in China. • Brands introduced include Ariel, Bold, Vicks, Sarasa, Ivory, Oral-B, Aussie, Whisper, Hair Recipe, Old Spice, Lenor Happiness, Joy. • Strong response from customers, who are increasingly keen to purchase imported products and well known brands from other markets.
14. Thank you! Business Development Team worldwide@jd.com
15. JD.COM INC. $21.34 $23.4 $33.05 $40.43 $46.13 $82.93 $88.06 $104.22 $394.43 $714.58 13.5% 15.3% 14.9% 10% 8.2% 12.9% 11% 11% 13% 27% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 0 100 200 300 400 500 600 700 800 China: World’s Largest Ecommerce Market Annual Sales (USD Billions) Y-o-Y Growth Rate (%) 2016 Annual Sales Forecast for Top 10 Ecommerce Markets Globally Data source: Emarketer, December 2014 Figures above do not include travel products and services • China is expected to be the largest ecommerce market globally in 2016, growing 27% Y-o-Y
16. JD.COM INC. Overview of China’s Ecommerce Sector 688 million internet users 413 million online shoppers 55% of online transactions are made on mobile 11% of China’s total retail sales Data source：iResearch，May, 2015
17. JD.COM INC. China’s Economic Growth 11.4% 12.7% 14.2% 9.6% 9.2% 10.6% 9.5% 7.8% 7.7% 7.3% 6.9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015: China’s GDP Growth Rate www.analysys.cn Data source: © Analysys 易观智库 · National Bureau of Statistics of China GDP growth slowdown begins ( in line with 12th Five Year Plan) GDP growth transitions to era of 6+% growth (in line with 13th Five Year Plan) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 最终消费支出 资本形成总额 货物和服务净出口 2005-2015: Three Main Contributors to China’s GDP 2015: Consumption Expenditure Contributed to 66.4% of GDP Consumption is growing in absolute terms (at 10+%) and as a share of total GDP Net exports of goods and services Gross capital formation Final consumption expenditure
18. JD.COM INC. China’s Per Capita Disposable Income Is Rising Labour Income Increases rapidly 2015 2012 2012-2015: China’s per capita disposable income 21,966RMB 16,510RMB Data Source：National Bureau of Statistics of China
19. JD.COM INC. Fast-Growing Demand for Cross Border Ecommerce 240 480 12,150 54,420 98% 2446% 348% 10% 100% 1000% 10000% 0 10000 20000 30000 40000 50000 60000 2012 2013 2014 2015 Transaction Value (RMB million) Growth (%) Transaction Value and Growth of Cross Border Ecommerce Imports to China (2012-2018) Data source: Emarketer, December 2014 Data does not include travel products and services
20. JD.COM INC. Cross Border Ecommerce Logistics Solutions Solutions Tax Rate Product Compliances Before Apr 8th 2016 After Apr 8th 2016 Before Apr 8th 2016 After Apr 8th 2016 EMS (Postal Channel) Post Mail Customs random inspections (tax rate specified by Customs) Prohibited Item List Express Mail Advance tax declaration, RMB50 Exemption + Postal Article Tax Cross-Border Ecommerce Policy Direct Mail RMB50 Exemption + Postal Article Tax (VAT + Consumption Tax） X 70%； Customs duty waived Black List Black & White List Bonded Warehouse RMB50 Exemption + Postal Article Tax (VAT + Consumption Tax） X 70%； Customs duty waived Black List Black & White List + Other Requirements Data source: General Administration of Customs PRC
21. JD.COM INC. New Tax Policy Product Value New Tax Rate (customs + VAT + consumption) Regular Import Tax Rate Baby products, food, etc < RMB 500 0%  11.9% Mostly 30% - 50% > RMB 500 10%  11.9% Mostly 30% - 50% Home appliances < RMB 250 0%  11.9% Mostly 30% - 40% > RMB 250 20%  11.9% Mostly 30% - 40% Cosmetics < RMB 100 0%  32.9% 47% > RMB 100 50%  32.9% 47% Data source: General Administration of Customs PRC
22. JD.COM INC. Younger Consumers Driving Ecommerce Demand 0% 5% 10% 15% 20% 25% 30% 35% < 10 yrs 10-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs > 60 yrs 0% 5% 10% 15% 20% 10岁以下 10-19岁 20-29岁 30-39岁 40-49岁 50-59岁 60岁及以上 China Age Distribution (Overall) (2015) Age Distribution of China’s Online Shoppers (2015) < 10 yrs 10-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs >60 yrs www.analysys.cn Data source: © Analysys 易观智库 · National Bureau of Statistics of China