Lingyi Zhao: This is Lingyi Zhao from SWS Research. I would like to congratulate the management team on the great results. My first question is about on-demand retail. What is the long-term vision we see in on-demand retail market? And after Dada’s integration, what adjustments have been made? And which fields will be summarized? We all see the article by in People’s Daily, which talks about promoting the deep integration of digital and real sectors of the economy. My next question is could you please introduce JD’s measures in these big trends?
Lei Xu: Thank you for the question. And I have shared a lot about the intra-city retail before. And now I want to give you some update on our thoughts and observations. So first, I want to say that for JD.com to enter into the intra-city retail business, it’s purely based on the need drive of the users, if not some opportunity, business opportunities, we jump in. It’s based on the users’ demand. And we’re looking at this business. And our understanding is based on the perspective of supply chain — I don’t want to like think in other people’s brain about how they think about intra-city retail. This is where we start from. And in terms of the entry point, different companies adopt different dimensions. For JD.com, we entered this market by building a relation with the big supermarket chains as our .
And in terms of the categories, we start with our 3C and supermarket category. And for other players, they might start with some SME stores. So we are entering in different directions. And our resources and relationships with brand partners is one of the key strengths for us in this intra-city business. And this has been based on our long-time collaboration with our already existed B2C models. We have been collaborating with our partners in many directions, in many dimensions on the supply chain cooperation, on marketing and sales, the release of new products, et cetera. And altogether, we are forging three-party winning situations among JD, brand partners and the offline supermarkets. Let me make one example about the intra-city retail cooperation with Apple.
As you know that in the September, Apple released its iPhone 14. And a lot of companies are taking this opportunity to do marketing. And according to the data we collected on this market during the same period of time, JD.com and our intra-city retailing business topped in terms of the sales. And we are 7 to 9x higher in terms of sales of iPhone 14 series as opposed to the second place, the runner-up retailer platform. However, we did not want to brag about it. Because our starting point to do this collaboration is to provide more convenience for consumers to buy the new series of iPhone. And we believe the value to collaborate with the official brands and to improve efficiency for this new phone release. And as opposed to traditional B2C model, this intra-city retail is a new type of supply chain we are building.
There’s still a big improvement room for us to improve, such as on users’ experience, the synergies we formed with our brand partners, the LBS-based services and then optimize the fulfillment and the transportation power improvement. So for now, we will focus on several indicators for this business, including user experience, their repurchase rate, improvement — the number of orders, et cetera. So still, we focus on the efficiency and experience to develop this business. And in terms of the integration with the real economy, I want to share that JD is building a responsible supply chain. And this does not only provide more stabilities and reliabilities for our own supply chain, we also opened ourselves with this capability to support our partners upstream and downstream to help in their digital transformation and improve cost and efficiency and to promote a high-quality real economy development.
