Lei Xu: So with the corporate control measures out of sight, we’ve seen the macro economy is on the recovering momentum from the consumption side. We see in the short-term the social contact related to consumption is recovering quicker, including like restaurants and tourism. We’ve seen some pent-up shopping demand. But overall for our essential or like a recovery in full, it will come from the recovery of people’s confidence, it’s very important now to review consumers’ confidence and their confidence will recovery, means, the recovery of their income, which requires the resumption of production of many enterprises especially the maximize demand of SME. And currently, we have seen our government has shown out a lot of economic stimulus measures and policies and many enterprises has reduced the production and all these factors will take some time to pass on to the resident income and for the recovery of consuming consumption confidence and spending power.
So for now we see the recovery of consumption is underway. And there are imbalanced pace here and there. So it filled some time for a recovery in full. And at the same time, I want to add that we’re talking with different brands and we have a more consistent view on that. We continue to keep our cautious optimism on the recovery. And we believe that in the second half of the year, the recovery speed will be better. And sharing a little bit on the relationship between 1P and 3P, I see it as competition relations and it will be triggered by the needs of the users and which mode will eventually prevail depends on the prices and the products and services will better meet the needs of our customers. So this is a very open competition. And our 1P business have quite strong advantages in several categories based on our years of accumulation and understanding our supply chains.
And we’ve been limited the selections of the product. We try to pursue the best consumer experience. And as there are increasing number of users and they’re diversifying demand shopping on JD platform, we need to expand and enrich our supply of products on our platform. So, you’ve also noticed that in the past couple of quarters, there’s a strong increase of merchants’ number on our platform. And also, we rolled out a so-called Spring Dawn project, which faced the individual merchants to welcome them on our platform. These are all the efforts we made on sort of a JD supply side reform to meet the diversifying needs of our customers. And also, including our efforts made on our traffic allocations and our algorithm upgrading as well as the one-stop program, maybe you’ve already heard about it in the beta stage now, and all of this effort is made to improve user’s experience and to center on their need to make all our adjustments.
So this is — for this year, the biggest and determined actions we will carry on. Of course, this also needs time to pan out. On the margin impact, actually — so, on the margin impact, if we look at by GMV, I would say, it doesn’t make a significant difference either 1P or 3P, as JD always try to maintain reasonable take rate. We never try to over-monetize our users or business partners in any particular category or models. Of course, the change of 1P to 3P mix will affect our accounting margin. If our strategy of improving the 3P can be proved to be successful, it will definitely be positive to our accounting margin improvement. Thank you.
Unidentified Company Representative: Next question please.
Operator: Yes. The next question is from Ellie Jiang of Macquarie. Please go ahead.
Ellie Jiang: Let me translate myself really quick. How do we really go around and allocate multiple pillars of a Retail business, mostly importantly kind of keeping a balance between the more higher quality, more premium services, as opposed to the more price-cautious merchandises in general? Thank you.
