Liu Qiangdong, who has a deep sense of crisis, has three purposes for washing out some executives, first to save money for the company, second to put pressure on all managers, and third to give opportunities to young people . Big companies change their blood and lose weight, which is good for health.
After announcing a reduction in the cash salaries of JD.com’s top executives, JD.com founder Liu Qiangdong made a strong move against JD.com’s retail management.
In this adaptation, Feng Yi (Carol), the person in charge of the fashion home furniture business group, Liu Lizhen, the Dashang Chao omni-channel business group, and Lin Chen, the person in charge of the platform business center, became the victims of the this modification. Jingdong Guan Peisheng Kong Xiangying and Wu Shuangxi took the lead.
Among them, the 3C JD.com home appliance business group was divided into the home appliance business group (the person in charge is Li Shuai) and the computer communication business group (the person in charge is Wu Shuangxi) Head of the business department.
The fashion home furniture business group was changed to the fashion beauty cosmetics business group, the former person in charge Feng Yi (Carol) retired and Kong Xiangying took over. Lin Chen, the former head of the platform’s business center, resigned, and the business was managed by Shao Jingping.
The JD.com intracity business department and platform ecology department have not yet adjusted. The person in charge of the same city business department is still He Huijian, and the person in charge of the platform ecology department is Han Rui (Simon).
After the completion of this adjustment, JD Retail has 4 major business groups – Dashangchao Omni-channel Business Group, Fashion Beauty Cosmetics Business Group, Life Service Business Group, Enterprise Business Business Group and 3 major business divisions – Division Home Appliances, Digital Business Communications Business Department and City Business Department.
The persons in charge above report to Xin Lijun, CEO of JD Retail.
According to a person familiar with JD.com, Yao Yanzhong’s experience is similar to that of Sun Jiaming, former vice president of JD.com Sun Jiaming is a former JD.com employee and was responsible for home appliances. , was adapted to be in charge of JD.com’s supermarket business extension. This time, Yao Yanzhong was modified JD.com should have considered that under the current circumstances, it is more stable to use veteran workers with 3C experience to manage the market.
“Li Shuai is the person in charge of JD.com’s retail finance. He is relatively young. It is surprising that he is only in charge of the business this time. Liu Lizhen was originally a division Feng Yi (Carol), and her health is not very good. This time, they both retired together.”
The strange thing is that Liu Qiangdong, the powerful founder, has made such a big change to JD Retail, but he has not released an internal announcement yet. Jingdong Group has not made a public response to this.
He chides JD executives for deviating from the company’s core business strategy
A few days ago, Liu Qiangdong, who was in Hong Kong, discouraged the management, especially the retail business executives, in the JD. Talking about cost, efficiency and experience is not too little.”
According to a later revelation, Liu Qiangdong believes that executives have deviated from the core of business strategy – that is, cost, efficiency and experience. Liu Qiangdong believes that if the core strategy is not grasped enough, it will be difficult to lead the team to go forward in the long run.
Then last week, Jingdong just released a financial report. The financial report shows that JD Retail’s revenue in the third quarter of 2022 will be 211.923 billion yuan (about 29.792 billion US dollars), an increase of about 7% from the 198.1 billion yuan in the same period last year. This performance growth at JD Retail is considered to be worse than expected.
Due to factors such as the market downturn, the outside world can still understand the performance of JD Retail, but in the context of the rise of Pinduoduo and the strength of Douyin e-commerce, as the founder, Liu Qiangdong has a sense of crisis. Liu Qiangdong believes that JD.com has given some users the impression that it is becoming more and more expensive. JD.com should serve multi-level users, considering rich people and ordinary people.
Liu Qiangdong also warned managers that they should not ignore the demands of many consumers on the ground just because their lives are better now, and they still pursue the cost-effectiveness of products in ultimate consumption. Liu Qiangdong believes that the management of JD.com has become arrogant and complacent, and no longer pays attention to our low price advantage. If this continues, it will become the second Suning sooner or later .
“If the retail business customer experience is divided into three elements – price, quality and service, low price is “1”, quality and service are two “0”, losing the advantage of low price, all the advantages will other so-called competitors. return to zero.”
Behind these three hours of lectures and the current major adjustments, it is estimated that many JD.com executives will break out in a cold sweat.
Remind the wage earners to make new achievements and not to rest on their laurels
In fact, JD.com will undergo a round of major adjustments every few years The last major adjustment can be traced back to 2019. At that time, Jingdong had just experienced Liu Qiangdong’s turmoil in Mingzhou, morale was low, and the stock price low. Facing the crisis, Liu Qiangdong attacked the senior management team, and professional managers lost power. At the time, CPO Jingdong (Chief Public Affairs Officer Resigned) Lan Ye and CTO Zhang Chen, Chief Legal Officer Long Yu in 2019.
At the end of 2020, JD Digits, which failed to hit the sci-tech innovation board, made a major adjustment. JD Group integrated its cloud and AI business into JD Digits to form JD Technology. During the same period, Chen Shengqiang quit to as CEO of JD Digits; and in December 2020, Jingdong Logistics CEO Wang Zhenhui resigned.
At the Davos event held in Switzerland in 2019, Xu Lei, Chen Shengqiang, and Wang Zhenhui also made a joint appearance as the heads of the three major businesses under JD.com, forming a management echelon within JD.com. In just over a year, Chen Shengqiang and Wang Zhenhui resigned as CEOs one after the other. Wang Zhenhui is the most unfortunate, falling in the half year before JD Logistics went public.
Behind this series of adjustments, Yu Rui, JD.com’s second management trainee, became the CEO of JD.com Logistics. Li Yayun, the former chief compliance officer of JD.com Group, was the CEO of JD.com Technology. Liu Qiangdong’s former female assistant, post-90s Guan Peisheng Zhang Yu also became the Chief Human Resources Officer of JD.com.
Xu Lei overcame difficulties all the way, not only helping Jingdong Group stabilize the situation, step by step from CEO of Jingdong Retail, to president of Jingdong Group, and then became CEO of Jingdong Group in 2022.
Of course, regardless of whether the status of the old team in Jingdong is further enhanced, or Guan Peisheng is promoted, the real manager of Jingdong is still Liu Qiangdong.
As of March 31, 2022, JD.com’s share structure
The annual report submitted by Jingdong shows that as of March 31, 2022, Liu Qiangdong holds 13.8% of the shares and has 76.1% of the voting rights. After Tencent distributed to its shareholders about 460 million ordinary Class A shares of JD.com, the share decreased from 17% to 2.3%, and he was no longer the largest shareholder, Liu Qiangdong had a bigger voice in JD. com.
Recently, Liu Qiangdong announced that starting from January 1, 2023, the cash salary of JD.com senior managers will be reduced by 10%-20%, and the higher the position, the greater the reduction.
Just a month ago, the case of Liu Qiangdong Mingzhou, which lasted almost four years, reached a settlement. This time, Liu Qiangdong’s 3-hour lecture and the adjustment of the executives were all regarded as a sign for Liu Qiangdong to come out again.
Of course, Liu Qiangdong is still in Hong Kong. According to people familiar with the matter, Liu Qiangdong still says in the lecture that Xu Lei is primarily responsible for the overall situation of the company, and he only helps Xu Lei to manage’ the company.
With such a large-scale adjustment of JD Retail this time, Xin Lijun, CEO of JD Retail, is still not passive. The reason is also that Liu Qiangdong needs reliable people to help him work. Otherwise, how can Liu Qiangdong manage effectively if there is no one in the company.
Regarding Liu Qiangdong’s recent actions, some analysts pointed out the fact behind founder Liu Qiangdong’s current move, and even bluntly said that JD.com does not want to become the next Suning, there is also a deep sense of crisis.
“Enterprises face economic cycles rather than unlimited expansion. For large enterprises, different management systems are needed for building a country and sitting in a country. They should be thin and fat, and they can span cycles and ultimately become a great company. Remind the salaried ones too, you have to make new achievements without resting on your laurels.”
In addition, Liu Qiangdong also wants to remind employees that as the environment deteriorates and competition intensifies, the best policy is to return to the main business, and the company’s roots must be firmly established.
At this time, the washing of some existing executives also has three purposes in terms of management: First, it saves the company money, second, it puts pressure on all managers, and third, it’ n giving opportunities to young people. Big companies change their blood and lose weight, which is good for health.
Author: Lei Jianping, source: Lei Di, original title: “Liu Qiangdong’s attack on JD.com retail: Remind wage earners to make new achievements and not rely on their laurels.”
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