From June 2010, when the big warehouse in Beijing was officially operated independently, the construction of the large-scale logistics network in East Beijing took the first step. By December 2016, the first large-scale telegram order was received in Motuo County. Jingdong only completed 5 years and 6 months to complete the coverage of large logistics network in the whole country. Free circulation of refrigerators, color TV sets and washing machines, the most universal products of the industrial era, has been completed in the mainland of China, covering an average of one county every 17 hours, which is a great pioneer in the history of commercial circulation in China.

Even selling products online is a joke. How to build a logistics network?

The great development of China's express logistics industry is closely related to the rise of the electricity supplier industry. Today's e-commerce industry has shifted from the front-end product price, quality, promotion efforts to the back-end logistics distribution and supply chain integration capabilities. Especially in 2016, the "three links and one access" suddenly launched an IPO sprint race, and the rookie network is also building warehouses across the country. However, back in 2010, the total cost of Socialized Logistics in China was only 7.1 trillion yuan, compared with 10.8 trillion yuan in 2015, an increase of more than 50%. When the 211 deadline of Beijing East was just launched in Beijing, Shanghai, Guangzhou and Chengdu in 2010, people's demand for logistics services was very low and they stayed in the stage of "just deliver". Except for Beijing East, there was no "order track" for e-commerce parcels and no express order number for inquiry.

This is especially true for the distribution of large appliances. No e-commerce company in the country has an integrated logistics distribution system, which can realize the distribution of large appliances. In 2009, Liu Qiangdong's idea of "selling big appliances online" aroused heated discussion within the board of directors and the senior management team. There is no successful case of selling home appliances online in the field of global e-commerce. In China, brand manufacturers, because of the fake goods in the e-commerce market at that time, made "home appliances touch the net" in order to protect the brand. Keep a wait-and-see attitude. Sales of household appliances are concentrated online, and Gome and Suning two giants occupy 80% of the total. Guomei and Suning mainly realize the coverage of major provinces and municipalities through the dual-core logistics distribution mode of warehouse and store. However, store stock is obviously a high-cost operation mode.

Looking at the large-scale logistics industry, RiRiRishun, a member of Haier Group, has developed rapidly relying on Haier's top market share in white household appliances in the whole country and even in the world. This logistics enterprise, founded in 1999, was incorporated into Hong Kong listed companies in 2010 and has become an opponent of Jingdong in the field of large-scale logistics. Jingdong bulk logistics system is launched under the background that the whole industrial chain is firmly controlled by the giants from sales to distribution, and then to after-sales.

"City encircling the countryside" and "7 concentric circles" strategy

The construction of large-scale logistics system in East Beijing is basically divided into four steps, adopting the strategy of "encircling the countryside by the city" and "seven concentric circles".

First, from June 2010 to early 2013, based on the super-large warehouses in seven major central cities of Beijing, Shanghai, Guangzhou, Shenyang, Xi'an, Chengdu and Wuhan, the construction of large-scale exclusive warehouses within a radius of 150 kilometres, the opening of distribution sites and the encrypted layout of central cities are mainly concerned with. The satellite cities and provincial capitals radiated by the first-tier cities in the whole country, such as Beishengguang, are equivalent to seven small circles painted in the whole country.

The second step, from the beginning of 2013 to the end of 2014, is to carry out an encrypted layout of 300 kilometers around the city on the original basis, which is equivalent to drawing seven circles on the map of China with seven super-large warehouses as the center and 300 kilometers as the radius. This step basically completes the large prefecture-level cities, Beijing-Tianjin-Tang, Pearl River Delta and Yangtze River Delta. And so on.

Third, at the beginning of 2015, Jingdong initiated the service mode of Jingdong Band, which complements each other with distribution centers and carries out interactive layout. Jingdong Bang can be seen as an upgraded version of distribution center, positioned to provide one-stop service of "marketing, distribution, installation and maintenance" for rural users. It adopts the mode of "one county, one shop", and sinks the service to all villages in its jurisdiction on the basis of county. On November 20, 2014, the first Jingdong Band Store was successfully opened in Zhaoxian County, Hebei Province. Zhaoxian County was famous for Zhaozhou Bridge both at home and abroad. Zhaozhou Bridge was built in Sui and Tang Dynasty, earlier than the Beijing-Hangzhou Grand Canal, which was ordered by Emperor Yangdi of Sui Dynasty. Jingdong Band Store in Zhaoxian County became the intersection point of this strong history and modern e-commerce economy. By the end of 2016, the number of stores in Jingdong Band has reached more than 1700 nationwide.



Fourth, at the beginning of 2016, Jingdong launched the "Sky Curtain Plan" to focus on solving the blind spots of large-scale logistics operations, namely remote mountainous areas, poor counties, complex topography and landforms, and areas with harsh natural environment. The implementation of Tianmu Plan is the key to the realization of free circulation of large-scale logistics in the real sense of the whole country. It is also the core of whether large-scale logistics in Beijing and East can ultimately solve the "last kilometer" problem. Driven by this plan, the brothers of the Jingdong have completed various seemingly impossible tasks.

So far, the large-scale logistics system in Beijing and East China has covered all administrative districts and counties in the mainland of China and 530,000 administrative villages (about 650,000 administrative villages in the whole country), and even all administrative villages have been covered in the three regions of North China, East China and South China. From the east to Fuyuan on the Wusu River, from the west to Wuqia Dagobi beach in Xinjiang, from the south to Zhongsha Islands, and from the north to Mohe River in the north of Daxing'an Mountains, the distribution brothers in the east of Beijing are all over every corner of Shenzhou, regardless of plateau, desert, forest, grassland, mountains, rivers, lakes and islands.

Provide indifference service to every user.

According to the data disclosed by the Ministry of Commerce, the scale of rural online shopping market reached 353 billion yuan in 2015, an increase of 96% over the previous year. In 2016, the scale of rural online shopping market in China may exceed 460 billion yuan, which will become a new growth point of retail e-commerce market. The 21st Century Economic Research Institute jointly released the "China Rural E-commerce Consumption Trend Report 2016" which shows that the number of rural E-commerce users has increased dramatically in recent years, accounting for 30.09% of the total number of single users, and the annual compound growth rate is as high as 237.82%. During the past "Double Eleventh" period, over 280 litres of large-capacity refrigerators were sold on the platform of Jingdong, 70% of which were contributed by the countryside; over 50% of the sales of large-screen TV and drum washing machines over 55 inches came from the countryside. In 2016, in the rural market (county and township markets), the sales of flat panel TV, refrigerator and washing machine, the three most representative parts in rural areas, were close to 10 billion yuan. Taking the Jingdong Bang Service Store in Gaozhou, Maoming City, Guangdong Province as an example, its single-store sales exceeded 60 million in 2016.

In fact, as early as early as early as the beginning of 2015, Liu Qiangdong, CEO of Jingdong Group, put forward the "3F" strategy for the development of rural e-commerce in Jingdong, namely, the "Factory to Country" strategy for industrial goods, the "Finance to Country" strategy for rural finance and the "Farm to Table" strategy for fresh e-commerce. He devoted himself to solving the difficulties of farmers in buying good goods and borrowing loans. It is difficult for farmers to make money.

"Going to the countryside with industrial products" is a strategic measure for Beijing to respond positively to the national policy and improve the life of rural areas. Its core principle is to make full use of the characteristics of transparency, free and sharing of the Internet to solve the problem of information asymmetry, eliminate the price difference between urban and rural areas, and provide different users with or without it. Differentiated services. And the basis of all this is to build a large-scale logistics network that can let industrial products into the countryside and unimpeded. From then on, you can buy an identical product at the same price in any part of mainland China, and it will be delivered to your door by uniformed and professionally trained delivery staff. However, in vast China, the terrain is diverse and complex. How to deliver the good things online shopping safely and timely depends on a sound large-scale logistics system on the one hand, or on the feet of the distributors on the other.

It's a real story, not a story. "Rescue" trapped users with two feet.

In northwest China, in December 2015, Jingdong set up a service store of Jingdong Banner of Hangjin Banner in Ordos. The distribution scope of this shop includes a 1.45 million hectares Kubuqi Desert. The mobile dunes in this desert account for 61%, and the dunes are 10-60 meters high. Friends who have seen the movie "Longmen Flying Armor" are not unfamiliar, even Zhao. Huai'an and Yuhua Tian, the top experts in martial arts, are hard to protect themselves from the sand dunes. Wu Jianping, on the other hand, needs to walk across the desert with a 55-inch large color TV set and deliver the goods to users at the other end of the desert.



In the southwest, Zhou Yong, a distributor in Jingdong, often carries dozens of kilograms of goods on the muddy and rugged road to distribute goods to users. Zhou Yong jokingly called himself a farmer's brother because his "harvest" depended almost entirely on "weather" and "land", catching up with the continuous rain, which would greatly affect Zhou Yong's distribution efficiency.



In the northeast, there is a remote island called uruman island. In order to distribute refrigerators and color TV sets to users, Zhang Hui had to tow the heavy fellow from the shore to the boat and then to the users living on the island.

This is how the large-scale logistics system of Jingdong is built. For every order, they may use the most primitive means of transportation and use the most crude but effective solutions to send one refrigerator, color TV and washing machine to every corner of the land of Shenzhou. No matter how difficult the journey is, they carry it on their shoulders, hold it in their hands, or tow it by car. Ultimately, they only want people trapped by mountains, islands, deserts and rivers to enjoy the convenience of modern life.



Whether in the past or at present, e-commerce is changing the original commercial form of human beings. The difference is that this change is becoming more and more inclusive, especially with the advent of consumer upgrading and brand upgrading trend, hundreds of millions of users in China will increasingly enjoy the convenience of the Internet. Among them, Jingdong participates in the wave of great commercial change and even social and economic remodeling through the concept of genuine quality and customer-first management. The complete completion of large-scale logistics network and the three large-scale networks of self-built logistics network and fresh cold-chain network with small and medium-sized parts in Jingdong make Jingdong the largest logistics infrastructure business enterprise in the world, which also indicates that Jingdong will play an increasingly important role in the future economy.