JD.com Prioritizes Quality Over Quantity in Its Strategy
In a significant development, JD.com's stock gained around five percent in domestic trading on Wednesday, reaching a multi-month high. The surge was triggered by statements from JD.com's founder and chairman, Richard Liu.
Liu announced plans to introduce a new business model this year that will advance the entire hotel industry. He emphasized that JD.com does not intend to instigate a price war in the sector, but rather, competition will be decided by quality, fair prices, and security, rather than destructive price wars.
For the hotel business, Liu promised a fair profit distribution. JD.com will retain only 70 percent of each earned yuan, with the rest going to partners. This move aligns with China's recent efforts to bolster domestic trade.
Liu drew parallels to JD.com's entry into the electronics market in 2006, when it successfully gained market share despite skepticism. He emphasized collaboration over enmity among competitors, aiming to benefit the entire hotel industry through these principles.
The focus of the new business model will be on optimizing supply chains, which Liu described as expensive and inefficient. For a more speculative approach, consider the Aktien-Report "China-Knaller 2.0".
DER AKTIONÄR continues to recommend buying the individual stock of JD.com. Additionally, the China Tech-Giant Index, developed by Boersenmedien AG, which holds the rights to the index, is also recommended for investment.
Boersenmedien AG has entered into a cooperation agreement with the issuer of the displayed securities, granting the issuer a license to use the index, and receives compensation from the issuer. The report includes a core investment with a strong dividend yield, along with two hot stocks and an exclusive options certificate.
The surge on Wednesday was a clear acknowledgment of JD.com's statements by the Chinese market. Liu announced a new hotel development plan for 2023 focusing on a practical and simple approach for private enterprises, with competition where necessary to ultimately win consumer trust based on strategy, business model, value creation, and reputation.
In the future, this new business model could revolutionise the hotel industry, offering a more sustainable and fair approach to competition and profit distribution.
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