How far away from the Amazon Jingdong market boundaries reverie

In February 7th

released the first "s brother Jingdong far away from the Amazon" series of articles (technology and retail companies, has been a lot of debate) feedback: most friends think this paper, there are a few friends that the two companies do not have too big contrast, some friends think it belongs to the "criticism" of Jingdong, is a haven……

on Jingdong, general brother expressed on many occasions the view is optimistic about its prospects and future prospects for the listing. Write this series of articles, only to provide a different from the perspective of pure earnings analysis to see Jingdong’s IPO. A lot of really knowledgeable people to write articles, temporarily let Pu brother published second articles, general opinion; brother from the market boundary angle compared to Amazon and Jingdong.

China business enterprise with foreign VC to talk about financing, will invariably mention: Chinese broad market, the traditional retail market development is not mature, the dispersion (reference data: 2012 China top retail sales volume accounted for the proportion of total retail sales of only 11.3%, the number of sources according to the China National Commercial Information Center); the development speed of the network retail faster, online retailers than traditional retailers have a better future. The United States, hundred retail enterprises in 2013 sales of approximately $1 trillion and 900 billion. (source: Retailnet Group), accounting for the proportion of total retail sales of more than 40%; among the top ten retailers accounted for 50% of the total retail sales of 100. Another can refer to the data is: the United States top ten Internet retailers, there are more than 9 traditional enterprises (Note: the mainstream rankings did not take into account the eBay).

China’s Jingdong and the United States are the same as the Amazon online retailers, China and the United States retail market prospects are very broad, which provides a solid foundation for the future development of Jingdong and amazon. The difference is that Chinese retail market Jingdong where quite scattered, quite weak and traditional retailers; Amazon where the American market concentration degree is high, strong traditional retailers. From two different dimensions of Sino US competition in the market, even less than the capacity of Jingdong Amazon, traditional retailers but is likely to quickly seize the weak share; and the Amazon in order to capture original belongs to the traditional retail market, relatively more difficult.

of course, the Chinese market is too fragmented, which may not necessarily be a good thing for Jingdong, Jingdong even higher than the efficiency of traditional retailers, but also faces the problem of difficult to integrate different markets. When a lot of strong pressure but long Detou she, on the efficiency of small advantage may not allow Jingdong to win. The United States is the unified market concentration is high, the Amazon direct challenge WAL-MART, full market competition, efficiency advantage can drop the absolute function; the capital market on the Amazon’s expectation is the market value of WAL-MART can win, the benchmark is to catch up even more than WAL-MART.

taking into account China’s economic growth, the future of China’s total economy and the total retail market is expected to exceed the United States; China’s Jingdong can reach a very broad market boundaries. Amazon has long been aware of the importance of the Chinese market, 2>

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