Belajar Dari GAGALNYA JD.ID Direkturnya Suka Boong?? #BedahBisnis

#BedahBisnis

10 Feb 202309:03

Summary

TLDRThe video script discusses the closure of JD.ID, an Indonesian e-commerce platform, after burning through 21 trillion rupiah. Despite initial success in China, JD's expansion into ASEAN faced challenges due to a lack of market adaptation and poor hiring decisions. The script also touches on the importance of good character in business, the need for market adaptation, and the potential for JD to refocus on international logistics.

Takeaways

📉 JD.ID, an Indonesian e-commerce platform, shut down operations after spending 21 trillion rupiah and not being able to sustain itself financially.
🦄 Despite once being recognized as a unicorn, JD.ID faced a dire situation, with its parent company's CEO, Richard Liu, criticizing the local management for dishonesty and ineffectiveness.
💼 Allegedly, 40 vice presidents were accused of being dishonest, not being transparent with the parent company, JD, and focusing on making presentations look good rather than addressing the real issues.
💡 JD.ID's closure was partly due to a lack of subscription to their services, although this was mentioned in a joking manner in the script.
💰 GoTo Group, which later merged with Tokopedia, had previously invested nearly 1 trillion rupiah in JD.ID, but the investment did not prevent the financial struggles.
🚀 JD's parent company in China, JD.com, was highly successful, even surpassing Alibaba in revenue in 2022, making it the 7th largest e-commerce platform in the world.
🛒 JD.com started as an electronics store in 1998 and transitioned to an online B2C platform in 2004, eventually becoming a full e-commerce platform by 2010.
🚚 JD.com's success in China was partly due to its strong logistics network, which allowed for efficient last-mile delivery, a strength they tried to replicate in Indonesia.
📉 JD.ID's strategy of replicating their Chinese model in Indonesia did not work, possibly due to a lack of adaptation to local market conditions and competition from local e-commerce giants like Tokopedia and Shopee.
📈 The Indonesian e-commerce market is large and growing, with a penetration rate higher than China's at 76%, making it an attractive market for international companies, but also a competitive one.
🗓 JD.ID's operations were halted as of March 31, with sellers being instructed to clear all orders, signaling the end of their e-commerce venture in Indonesia.

Q & A

Why did JD.ID have to cease operations after spending 21 trillion rupiah?
-JD.ID faced challenges in adapting to the Indonesian market, which included issues with local legalities, team building, and understanding the local consumer behavior. Despite having a strong logistics background and initial success in electronics sales, they failed to compete effectively against local e-commerce giants like Tokopedia and Shopee.
What was the background of JD before its expansion into ASEAN countries like Indonesia and Thailand?
-JD, originally known as Jindong Century Trading Co., was established in 1998 and initially sold magneto-optical disks. It transitioned to an online B2C platform in 2004 and rebranded several times before becoming JD.com in 2010. JD.com is recognized as one of the top 7 e-commerce platforms globally, with a strong focus on logistics and a successful business model in China.
How did the initial strategy of JD.ID differ from its parent company JD.com's strategy in China?
-JD.ID started with a focus on electronics, similar to JD.com's early days, but failed to adapt its strategy to the Indonesian market. JD.com's success in China was partly due to its strong logistics network and adapting to the consumer behavior shift during the SARS outbreak in 2003, which JD.ID did not replicate effectively.
What role did GoTo play in JD.ID's investment history?
-GoTo, which later merged with Tokopedia, had invested a significant amount of nearly 1 trillion rupiah in JD.ID. However, this investment did not prevent JD.ID from facing cash flow issues and eventually closing its operations.
What were the allegations made by Richard Liu, the boss of JD, regarding the management of JD.ID?
-Richard Liu accused the management of JD.ID, including 40 vice presidents, of dishonesty. He claimed that they were not truthful to JD as the parent company and focused on making presentations look good rather than addressing the actual issues.
How did the hiring practices at JD.ID potentially contribute to its failure?
-The script suggests that there were issues with bad hiring practices at JD.ID, where managers and executives may have been more focused on creating attractive presentations than on executing effective strategies and adapting to the local market.
What was the market share ranking of JD.ID before it ceased operations?
-Before its closure, JD.ID held the 8th place in the market share ranking, significantly behind competitors like Tokopedia and Shopee, which had millions more monthly visitors.
What were the three main reasons summarized in the script for JD.ID's failure in Indonesia?
-The three main reasons for JD.ID's failure were: 1) A lack of adaptation of strategies from China to Indonesia, 2) Bad hiring practices leading to poor execution of strategies, and 3) External factors such as economic impacts that forced layoffs and affected operations.
What is the future focus of JD after the closure of JD.ID's e-commerce operations?
-After the closure of JD.ID's e-commerce operations, JD plans to focus on profitability and cash flow health. They are also seeking investors for a potential buyout and are looking to strengthen their international logistics network.
What was the impact of JD.ID's closure on its employees and sellers?
-The closure of JD.ID's operations led to layoffs, with 30% of the workforce let go in December 2022. Sellers were also affected, as they had to withdraw their operations by March 31st, after which no further withdrawals were possible.
What lessons can be learned from JD.ID's experience for businesses looking to expand into new markets?
-Businesses can learn the importance of adapting strategies to local markets, the need for honest and character-driven management, and the potential pitfalls of not understanding local consumer behavior and competition when expanding into new markets.

Outlines

00:00

🛒 Closure of JD.ID and Financial Struggles

The video discusses the closure of JD.ID, an Indonesian e-commerce platform, after it exhausted 21 trillion rupiah. Despite once being a unicorn, the company faced operational challenges and announced its shutdown by March 31st, with all sellers required to complete their orders by that date. The video mentions the background of JD's success in China, contrasting it with the failure of JD.ID. It also touches on the investment from GoTo and the claim that the closure did not affect their cash flow. The speaker promises to delve deeper into the reasons behind JD.ID's closure and the success story of its parent company, JD.com, which was the world's seventh-largest e-commerce platform, surpassing Alibaba in revenue in 2022.

05:00

📉 JD.ID's Failure Analysis and Market Adaptation

This paragraph delves into the potential reasons for JD.ID's failure, suggesting that the strategies that worked in China were not well-adapted to the Indonesian market. It highlights the importance of local legal compliance, team building, and understanding the local market. The speaker criticizes the management for not being honest with the parent company, JD, and possibly focusing on beautifying presentations rather than addressing the real issues. The video also discusses the impact of bad hiring practices, suggesting that the management team may have lacked the necessary execution capabilities. It outlines three main reasons for JD.ID's failure: the unadapted strategy from China, poor hiring decisions leading to ineffective execution, and external economic forces that led to layoffs. The speaker also mentions the rise of social commerce platforms like TikTokShop as new competitors in the market. The paragraph concludes with the current situation of JD.ID's operations, noting the company's shift in focus to international logistics networks after the complete shutdown of e-commerce operations in Indonesia and Thailand.

Mindmap

Keywords

💡JD.ID

JD.ID refers to the Indonesian branch of the Chinese e-commerce giant JD.com. In the context of the video, it is mentioned as having shut down its operations after spending 21 trillion rupiah, highlighting the challenges faced by the company in the Indonesian market. The script discusses the company's initial success and eventual failure, drawing attention to its inability to adapt to local market conditions.

💡E-commerce

E-commerce is the buying and selling of goods or services using the internet, and it is the central theme of the video. The script discusses the rise and fall of JD.ID as an e-commerce platform in Indonesia, emphasizing the competitive nature of the industry and the importance of adapting to local consumer behavior.

💡Unicorn

A 'unicorn' in the business world refers to a privately held startup company valued at over $1 billion. The script mentions that JD.ID was once considered a unicorn, indicating its high market potential and investor confidence at one point in time.

💡Market Penetration

Market penetration is the process of increasing sales of a product or service in an existing market. The video script discusses how JD.ID invested heavily in an attempt to penetrate the Indonesian market, but ultimately faced challenges that led to its closure.

💡Logistics

Logistics refers to the detailed organization and implementation of a complex operation. In the script, JD.ID's logistics, through JDL Express Indonesia, are highlighted as a strength inherited from its parent company, with a network of warehouses and delivery points, which played a crucial role in the company's operations.

💡Market Share

Market share is the portion of the total market for a particular product or service that is controlled by an individual company. The script indicates that JD.ID ranked 8th in terms of market share, suggesting that it struggled to compete with other established e-commerce platforms like Tokopedia and Shopee.

💡Adaptation

Adaptation in a business context refers to the process of adjusting to new conditions or the environment. The video emphasizes the importance of adapting strategies and operations to fit the local market, which JD.ID failed to do effectively, leading to its inability to compete successfully in Indonesia.

💡Cultural Fit

Cultural fit describes how well an individual or organization aligns with the values, goals, and social environment of a company or market. The script suggests that JD.ID may have struggled with cultural fit, as its strategies successful in China did not translate well to the Indonesian market.

💡Executive Management

Executive management refers to the team of senior managers responsible for making major decisions and managing the overall operations of a company. The video script criticizes the executive management of JD.ID for alleged dishonesty and poor execution, which may have contributed to the company's downfall.

💡Investment

Investment in this context refers to the funds put into a business or project with the expectation of generating income or profit. The script mentions GoTo's significant investment in JD.ID, which did not prevent the company from eventually shutting down its operations.

💡Force Majeure

Force majeure is a clause in a contract that allows a party to avoid liability or obligation when an extraordinary circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the rest of the phrase 'act of God' (hurricane, earthquake, etc.), prevents them from meeting their obligations. The script alludes to economic factors that may have contributed to JD.ID's challenges.

Highlights

JD.ID ceases operations after spending 21 trillion rupiahs.

Initially known as an ecommerce platform for gadgets.

All sellers stopped operations by March 31.

Richard Liu criticized JD.ID's management.

40 vice presidents were accused of dishonesty.

GoTo invested nearly 1 trillion rupiahs in JD.ID.

JD.com is one of the world's top ecommerce platforms.

JD.ID struggled to compete in the Indonesian market.

JD.com's success in China didn't translate to Indonesia.

JD.ID ranked 8th in market share among Indonesian ecommerce platforms.

Bad hiring practices and poor adaptation to the local market were major issues.

Global economic impacts forced layoffs in 2022.

JD.ID's failure was also influenced by competitors like TikTokShop.

JD.ID's closure in Thailand occurred earlier than in Indonesia.

Lessons from JD.ID's failure highlight the importance of market adaptation and integrity in business.