And at the same time, we continue to enhance our supply chain efficiency to generate the scale effect and to produce more money savings for our customers. And also through our different kinds of marketing activities, we want to let our customers have a very tangible and true feeling about the highly cost-effective product offering on our platform both from our first party and the third-party. So these programs are still in their very early stage and have already generated some fruitful results, and in certain aspects have already exceeded our expectations in terms of driving — activating more users, existing users and new users and bring more traffic et cetera. And for all these we are still making internal adjustments and we’ll also see how our partners and our consumers receive on it.
So overall, we believe this is a meaningful thing for JD and also for this industry. And in terms of the indicators for the success of the program, we will continue to focus on the users and the users’ performance through these programs such as the activities of the existing users and they’re returning and the new user acquisitions and users ARPU and their healthy shopping behavior on our platform there are many arranged users. And last I want to stress that of China’s largest supply chain-based technology and service provider JD’s capabilities and the competitiveness exist in our years accumulation of our supply chain capabilities, our joint efforts used together and a winning situation with our business and brand partners and our long-term user forecast business philosophies instead of a just providing giving some benefit on the superficial level.
So we remain very confident to continue to enhance our user experience and their value. Thank you.
Sandy Xu: Yeah. This is Sandy. Let me add on some additional points on the P&L impact. So in terms of the beta for this program, first of all the discount to consumers will be real discounts. But as Lei Xu said, we will work together with our suppliers and the merchants and leverage our supply chain capabilities. So not all the discounts will directly hit our gross margin or marketing expenses. Second, our target is to smooth out the operation pressure from the two major promotion seasons to improve operating efficiency for the entire supply chain and also to attract new users or recap our existing users. So we expect to receive some efficiency gains and we may reallocate our marketing budget for big promotions or user acquisition cost depending on the ROI of each initiative.
So overall, we do not intend to significantly change our overall marketing budget for the year. Bearing in mind, all the marketing spending is discretionary. It’s all flexible cart. So we could always manage through dynamic adjustments. Thank you.
Sean Zhang: Operator, next question please.
Operator: The next question is from Ronald Keung of Goldman Sachs. Please go ahead.
Ronald Keung: Can management first hear how you think about the China consumption or how retail sales may trend this year after this reopening? And in our kind of RMB 10 billion subsidy program and this background, how will we balance 1P which is our self-operated business versus marketplace growth and the implications to margins given the different margin profile for these two segments of the business? Thank you.
