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

Summary

The 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.