Credit：Visual China

“So many problems broke out, which certainly are all due to my poor management, and I blame myself very much. But whatever (the problems are), I will not embrace lying flat, and wish our colleagues will by no means not,” Liu Qiangdong recently commented on a post by an employee who works for JD.com’s operations management at the company’s private network, Chinese news media outlet LatePost reported.

The employee wrote a long post to list some of existing problems at JD including the complexity of  promotion mechanism, and proposed to plan the pace and intensity of the online platform’s any major promotion in advance, provide more support for merchants as parts of the platform’s ecology and to hold the low-price mindset and implement the strategy to the end, according to the report. The post gets to the point and the company has to make a change unless it will come to a dead end, Liu said. The founder called for staff to have more patience as it takes time for a organization that has grown into large, bloated and inefficient to change.”JD still has its foundation and I believe we can will definitely bounce out of the bottom,” said Liu.”Any person or company will go through several ups and downs before they become great.”

Liu Qiangdong’s response came days after Jack Ma rarely spoke out at the intranet.Ma called for change and correction and welcomed suggestions and advice from employees, especially innovative ideas. The post is about PDD’s market capitalization gap between Alibaba was narrowed to just US$8 billion as of Tuesday. According to a screenshot of the post which confirmed by Chinese news media outlets including The Paper, the creator said PDD’s closing gap of market value made a real shock and promoted him or her to write the post as a reminder and hope all the colleagues work together to regain traction. ”I believe All the Alibaba staff are witnessing and hearing, and I firmly believe Alibaba will change and make correction, ” Jack Ma commented on one of commentaries of the post that proposed streamlining the purchase and return.“Every great company is born in a winter. As the artificial intelligence (AI) era for e-commerce is right at its beginning, it is an opportunity for everyone as well as a challenge.”

While congratulating PDD for the rival’s successful decision, execution and efforts, Ma highlighted reform is a key for Alibaba’s comeback. The organization is respectable only if it can   adopt a reform to become a superpower in the future and get ready to implement it at whatever costs and sacrifice , Ma said. He also called for Alibaba to refocus on its mission and vision, namely, to make it easy doing business anywhere.
PDD posted revenue of RMB68.84 billion (US$9.43 billion) in the quarter ended September 30, exceeding by about 25% more than the average analysts’ estimate. The sales surged 94% from a year earlier, accelerating from the previous quarter’s 66% year-over-year (YoY) increase, and refreshed the record set in the second quarter, increasing around 32% sequentially.bottom line also beat the Wall Street expectation. Non-GAAP net income jumped 37% YoY to RMB17.027 billion in the third quarter, versus the expected RMB12.974 billion. Non-GAAP diluted earnings per American depositary share (ADS) that quarter rose nearly 35% YoY to RMB11.61, compared with projection of RMB8.81.

Financial results indicated PDD, the operator of Chinese discount shopping site Pinduoduo and its overseas sister Temu, is a big winner when consumers became more sensitive to price change amid uncertainty of economic recovery in China. PDD sales growth outrun major domestic rivals in the September quarter. JD.com’s net revenue increased 1.7% YoY, better than the analysts’ estimated RMB246.59 billion.But revenue still slowed down from the second quarter with a 7.6% YoY increase. Alibaba’s total revenue recorded a 9% YoY increase, and sales of its two online marketplaces--Taobao and Tmall Group gained 4% YoY.

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