The rise of Jingdong bottlenecks, can borrow the blockchain again?

Editor’s note: This article from the Vernacular: block chain (micro signal: hellobtc). Author: Sun vice president, Odaily authorized to release the daily planet.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

Many people may not know, in June 23, 2017, had become an important node on the Internet Chinese milepost. On the same day, the Jingdong stocks market capitalization of $61 billion 200 million, from the “Chinese three Internet giant Baidu ($61 billion 900 million) of less than 1% of the distance.

Some industry insiders predict: the estimation of a few trading days, the Jingdong can in the market value of more than Baidu, which will be rewritten as “JAT” BAT “”.

However, U.S. observers never thought, Jingdong and Baidu this close distance, has become a Jingdong in U.S. stocks last one glorious moment. A few days later, the Jingdong’s share price declined gradually, while Baidu is gradually rising, the gap between the two is opened again. Let people surprise, after some fluctuations, the shares of the Jingdong in 2018 began to retreat, the current market value of only 320 billion, only when the 50% at Baidu head.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

Jingdong, Baidu’s market value comparison

This dramatic change, let industry observers feel unbelievable. On the one hand, the product quality is guaranteed, the Jingdong become the shopping choice of many people; on the other hand, the Jingdong is a company with the times, to the UAV unmanned shop, all kinds of black technology in the last two years, the blockchain emerge in an endless stream, the field got full of sound and colour. Why does the Jingdong’s share price will decline?

Double battle 01 Jingdong, from retail to three or four line Market

Jingdong is the earliest one of the main electronic product market in a second tier city electricity supplier company, in the past twenty years, with the era of dividends, became one of the most prestigious Chinese online retail giant. Because of good quality, competitive price, good reputation among consumers. But in recent years, along with the electronic product market growth slowing, the Jingdong also faces development bottleneck, urgent transformation.

Therefore, in recent years, the development direction of the Jingdong, mainly embodied in two aspects:

A type of merchandise is extended. To improve the single commodity structure on electronic products, which is the main direction of development of new retail, including fresh.
The two is the regional expansion. Come out from a second tier city of the original, the sales channel sink to 345 line market is small and medium-sized towns and rural areas, one of the key development direction in recent years. This is also the many Internet giants.

However, in these two fronts, Jingdong are defeated.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

Double battle Jingdong in transition

First, expand the type of merchandise. In early 2016, Jingdong will enter the fresh new retail areas, strictly speaking, not too late. Unfortunately, due to this type of business is not a can bring a lot of benefits in the early stages of development projects, while Jingdong stock has hit a record low, so in order to improve earnings perception, returned from the United States Liu Qiangdong will make snap cut most of the new retail sector. Ali began, I fear the greed of others “type of operation, bargain admission reverse operation, frequent distribution in this area.

2017 years after the outbreak of the new retail Jingdong, Ali has been fully backward. Later, struggling to catch up with the Jingdong Jingdong layout convenience stores, but there is a close family of horrors, the overall situation is too horrible to look at.

Expansion in the region, the Jingdong had extremely breath. Because the beat is a giant Jingdong by the Internet mainstream forces ignored a lot of the means of the bright younger generation spell, simple and crude, go low-end product line. This strategy is in large and medium-sized city in pursuit of luxury living is not buying it, but popular small and medium-sized city welcome, just three years, has gathered hundreds of millions of users.

In July 2018, a lot of fight landing stocks, the market value of Jingdong to burst 2/3, a time to let everyone stunned. So far, the market Jingdong in the three or four line has been unable to completely defeat the fight a lot, but the regional expansion is also caught in the dilemma.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

Jingdong and a lot of users tailor layout

The main battlefield in Jingdong electricity providers continue to falter, its “blockchain magic weapon” in what to do?

Blockchain rookie, 02 striking when pioneer, or when the martyrs?

Jingdong, entered the block chain industry relatively late. Mostly with BAT at the beginning of 2015 or 2016 block chain layout is different, the Jingdong until 2017 began to pay attention to the blockchain.

In February 2017, the Jingdong’s Y division and fresh division in the submitted to Liu Qiangdong weekly, invariably mention block chain traceability technology. Liu Qiangdong seen in two weekly newspapers, immediately reply, indicating the Y division, fresh division and three departments to set up a Jingdong cloud block chain project group, together with the study block chain technology, the Jingdong that catch the blockchain train.

However, although the Jingdong into the block chain late, but not too many detours around. A little water in the field of public, Jingdong began looking straight into the theme, block chain and 3 core business (business, finance, logistics) combined with.

It can be said that the Jingdong in the block chain is regarded as spare no effort to catch up. In the field of electricity providers, block chain traceability of its ecological has done the leading domestic; and in the financial sector, and the Tencent made the blockchain invoice racing together bridle to bridle.

But maybe it is running too fast, the Jingdong in the development process of block chain, industry chain alliance has encountered problems: who charge?

In the block chain industry, 21 node EOS has almost become a terrier, every two or three days being found out the center of criticism too. However, as the Jingdong block chain chain alliance, which called on the name of the entry node, there may be only four.

Which of the four nodes with the exception of Jingdong, the other three are: Wanda, China Merchants Bank, China unionpay. Public data shows: in the Jingdong in the 2017 year 5 month set up a month after the chain alliance, the third partner joined the Jingdong chain accounting camp. And after a month of 6 2017, the Jingdong chain will no longer account usher in a heavyweight node. At present, the Jingdong entry node chain, Nadechushou is still only four.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

Jingdong “four nodes” chain alliance building process

Strictly speaking, this result is not surprising. The alliance chain entry node to find, is actually an industrial problem. Defect alliance chain, to the Jingdong to a certain extent, had a negative impact.

03 alliance chain point, accounting and maintenance cost high node

Before the details of why the expansion of the chain alliance Jingdong did not help, first to find out why no one is willing to give the alliance chain accounting. In addition to lack of incentives, is a more important reason: at present, this kind of thing from the layout to the operation maintenance cost is not low.

Take the Jingdong chain as an example, it became the entry node, what are the benefits? Did not see the current. So, eventually become a Jingdong chain only “four node” system. After all, in the economic winter period, who are unwilling to spend money to do not return.

Jingdong are also aware of the problem, that operation and maintenance costs remain high, mainly lies in the shortage of high-end talent block chain, need to be hired, and the merchant alliance node side also need a lot of investment, especially the origin of the project requires a lot of manpower, new equipment support, one of the important reasons for this is the lack of node chain alliance Jingdong.

A large part of the alliance chain operation and maintenance costs may be borne by the sponsor, this and the respective cost chain (such as super node EOS) different. Moreover, the chain node returns higher incentive. So, the final chain will become a Jingdong only “four node” system. After all, in the economic winter period, whether it is the initiator or join node, who are unwilling to spend money to do not return.

Block chain development of Jingdong, in fact is also facing a potential crisis of credibility caused by accounting backbone node power unequal drop.

04 pressure node cost low, cannot the retail channel

In order to reduce the entry threshold to enter the block chain node, the Jingdong opened a controversial Road: Jingdong claims that for those not arranged a private cloud, does not have the ability to block operation chain group, Jingdong to open up Jingdong in the cloud, to provide free services.

This is the cost of the business alliance node eased, but the alliance chain server and network configuration cost is not high, other costs can not be ignored, still need to invest manpower and material resources to support the union node operation, and the Jingdong also requires more technical support.

It is a reminder of a news some time ago: ‘super node EOS stressed that they have strong technical strength, abundant hardware in the campaign to put into operation a standalone server. After maintenance work turned to buy Amazon and Ali cloud servers to block the production of and nodes, a time to detonate public opinion, the industry on the “data on the cloud is contrary to the center of the principle of” argument as one falls, another rises.

Despite what is going to happen, only give time to verify, but one thing is certain: even if the use of cloud server does not violate the principle of chain block to the center, but the premise is “different nodes in different cloud server”.

Jingdong, the backbone of the new node, many will be arranged in the future Jingdong on the cloud. This is full of technical maintenance personnel of the Jingdong, then the node data and the “reins” not all fall into a hand?

2017 Chinese public cloud computing market share

From this point of view, to focus on the Jingdong accounting node cloud model, although the cost is low, but it is not a permanent solution. For a long time, when we feel that this is a center of the database, it will lose the power to use it.

As a result, the Jingdong in order to maintain the blockchain credibility, will choose the other way: through interest subsidies, to attract more social organizations to participate in the blockchain in accounting.

This is quite a serious problem involving digital assets: in the absence of a large number of Jingdong cost spends layout alliance chain, how to recover? Overall, there are two ways: one is the Internet thinking, increase sales through the data chain, namely “wool in dogs”; the two is the traditional thinking, to cover the upfront costs by raising prices, namely “fleece”.

But for Jingdong, on two fronts for its future expansion, the above two ways will not work.

First of all in the sales level, in order to expand the types of goods “for the new retail core, Jingdong’s biggest enemy Ali has put the blockchain as its product standard. In the block chain service under the condition of strong homogeneity, no matter how Jingdong information chain, in this regard may be tied with Ali; and in the expansion region as the core channel sink, small and medium-sized city consumers with practical action to show that: compared to the quality of the goods, they care more about the price. Therefore, the use of basic block chain, may not have obvious promoting effect on the market sales.

In the price level, the Jingdong’s commodity prices, compared with ALI, a lot of fight, there is no advantage, what about the price.

The 05 block chain difficult transition, Jingdong can achieve counter attack?

From this point of view, the alliance chain business of Jingdong, although on the surface is done fast, but in fact it is possible in Hi “situation: it can not help the company significantly expanding the types of goods, can’t help it sinking sales channels. On the whole business, in addition to increased costs, almost no benefit.

In the new retail front, block chain may eventually become a “production date with the shelf life of fresh goods” of similar standard. You did not, but you also did, after all, when shopping, few people calculate whether it is within the warranty period.

In the battle for the channel, compared to the Jingdong, perhaps a lot of this spell “encircling the city” type enterprises, more suitable for the blockchain. Because “the best audience blockchain commodity”, actually it is to develop the small and medium-sized city — incremental user consumers.

 The rise of Jingdong bottlenecks, can borrow the blockchain again?

In finance, block chain business Jingdong although the current effect is good, but the current market the most powerful China block chain finance company, is a Jingdong for frequent electricity supplier open WeChat traffic entrance to the major shareholder of Tencent.

Tencent is the most resources in financial bets on the track, ready to let the caifutong and Alipay showdown. At this time, as a “Tencent” Jingdong in again put a leg, somewhat molimen.

Thus, in the company’s internal business is not enough to become Jingdong blockchain root soil under the condition of the Jingdong, the best choice may be a separate block chain business subsidiary.

However, from the perspective of the development history of the Jingdong, the Jingdong’s innovation once away from the “three carriages” as the representative of the industry, the success rate will be greatly reduced. For example, the Jingdong has set up a flagship intelligent hardware “intelligent Jingdong subsidiary, the results were good to Chen pan, finally had to put it back and back to the business sector.

Jingdong block chain development Limited

In this case, the block chain business of Jingdong, in recent years, may look like once the new retail sector, facing a contraction trend. After all, the human cost, node arrangement, departments and other inputs are not a small number, but it brings benefits to the Jingdong (whether explicit or implicit income data), short-term can not be realized.

Along with the information asymmetry disappear, the Jingdong is likely to think: “the blockchain (here refers to the alliance chain) but so this technology””. In this way, will Jingdong business exposed: due to the low margins, frustration tolerance of innovation co.. As for the blockchain application of financial and logistics Jingdong, in the case has not been evaluated, if the short-term business chain block can not be realized, the Jingdong may cut back related spending.

In fact, the Jingdong encountered in alliance chain on these issues, all entered the block chain development alliance chain companies are facing. Finally, see Jingdong can like electricity supplier in the field of strong break Ali encirclement, difficulties, become one of the big winners in the final, let us wait and see. Do you think that Jingdong can achieve counter attack on the block chain, to become the top three industry? Come and share it.

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