GreenSky Credit is one of the more innovative companies to have come out of the fintech industry over the last few years. Although the company has followed a very conservative business model, only going after prime borrowers in markets where there is demonstrated value creation taking place, GreenSky has pioneered a new business model, the likes of which have never been seen before.
Big bets on a sure thing
GreenSky Credit’s revenue model is so unique and the business itself so novel that the company’s founder and CEO, David Zalik, found himself having a great deal of difficulty in convincing bankers to help him finance it. Back in 2005, Zalik went on the road to pitch the idea of GreenSky to bankers and other investors across the country. But the entire business model was so unique that he couldn’t find any bank that was willing to back him. He was eventually forced to liquidate his more than $12 million real estate empire and completely fund the new business himself. This would turn out to be a huge net positive for both Zalik and GreenSky.
The problem that the bankers could not overlook was that Zalik was claiming that he could get both his lending partners and his retail partners to pay GreenSky for originating instant loans while also avoiding taking on any lending risk. The bankers and prospective investors wanted to know why on Earth any lender would pay someone to originate a loan if that party was already receiving a large amount of compensation for their services from a third party, and they had no intention of taking on any downside risk at all relating to the possible non-performance of the loans. Zalik had one answer: money. And it turned out that the company was able to generate lots of it.
The secret behind the company’s ability to get its retail partners to pay 6 percent while getting its lending partners to pay a 1 percent annual carrying fee on every dollar loaned is that all of these parties are getting additional high-quality business that they never would have otherwise had.
With levels of waste pollution increasing at an alarming rate in China due to the high rate of industrialization, companies in the country are adopting and implementing eco-friendly policies in their businesses. JD.com, also known as Jingdong Mall; China’s largest and most profitable e-retailer is leading the transition by adopting a reusable eco-friendly packaging model. JD.com delivers millions of products to customers across China every day, making their efforts to work towards reusable packaging a necessary and urgent move.
According to Jingdong, the program will not only reduce environmental pollution but also cut the operational cost of last-mile delivery. JD.com adds that their new packaging system will save the company more than 32.5 million RMB annually if 10% of the orders are delivered using the reusable packing model.
The cost of operation is projected to drastically lower in the near future as more customers approve of the system while Jingdong rolls out the model in as many cities in China. Already, the packaging model has been employed in large cities such as Shenzhen, Guangzhou, Shanghai, and Beijing. As more people are rallying behind the green environment idea, more JD.com ’s customers are opting for the reusable packaging when making their orders. The company projects to deploy the model in more than 25 cities as the year comes to a close.
In an effort to motivate more clients to embrace the reusable packaging model, Jingdong offers redeemable loyalty points to those who opt for the model. Customers who chose the model are required to surrender the green box that houses their order to the delivery person, upon receipt of the order. The green box can be used to package sizable items such as makeup, jewelry, cell phones, watches, and selected medium-sized electronics. It gets better because the box can be reused for almost ten times before it is disposed of. This saves Jingdong massive amount of resources and time because almost every other product, other than fresh food, can utilize the model. Refer to This Article to learn more.
More about JD.com
The e-commerce giant has been faithful to implementing green practices in their logistics network, having rolled out the Green Stream Initiative back in 2017. Jingdong aims at replacing 50% of their plastic packing materials with biodegradable ones, as well as having more than 80% of recyclable packaging material, in the next two years.
More about Jingdong on https://cn.nytimes.com/technology/20180619/google-china-jd-com/
JD.com is teaming up with Thai retail conglomerate Central Group in order to further expand into Southeast Asia. The collaboration will be called the JD Central e-commerce platform. JD already has a little presence in the region with an e-commerce platform in Indonesia and an investment in Tiki. JD Central is set to open on September 28. It opened for testing on June 18. The new platform has direct sales and marketing models.
Sales have already boosted since the test run. The categories on the platform range from electronics, to fast moving consumer goods, fashion, books, music, and much more. As of now, roughly 80% of the site’s visitors have accessed the site on their cell phones. On the cell phones, the top sellers are fashion items and fast moving consumer goods. Chinese companies are among the most popular brands on the site. Those top brands are Huawei, Xiaomi, Lenovo, and OnePlus.
If there is an equivalent for the “Amazon of China”, Jingdong Mall is the best candidate.
How JD.com Created The New Platform
JD has used its own technology to create one of the world’s best retail operations. It now adds a top of the line logistics expertise and the fastest delivery to Thai consumers. JD Central’s warehouses are managed by JD.com’s warehouse management system. Same-day delivery will soon arrive at the Bangkok area. Using its partners in the local delivery service the new e-commerce platform will also provide nationwide coverage.
How JD.com Feels About The New Addition
JD Central’s CEO Vincent Yang says the company is thrilled to be moving forward with providing service in Southeast Asia. Central Group and JD.com; also known as Jingdong, have a very unique partnership and Thai consumers will experience the best e-commerce with a 100% guarantee of product authenticity. Leading brands are already signing on to support JD Central in reaching Thai consumers. Popular Chinese apparel retailer Vipshop has already be added to the platform. Click Here to learn more.
See Also https://www.gizmochina.com/2018/06/22/googles-550-million-investment-in-jingdong-could-see-its-hardware-products-selling-on-jd-com/