An Analysis of Jd's Financing Process for Supply Chain Companies: Based on the Symbolic Interaction Theory

Abstract

Jingdong(JD), Suning, and Alibaba, the leading IT companies in China, have started to cooperate with small and medium-sized enterprises (SMEs). SMEs have brought huge profits to e-commerce, and e-commerce has provided assistance to the development of the financing of SMEs. This paper studied the case of Jingdongfrom the perspective of symbolic interaction theory. JD is the most successful funding model with more than 160,000 SMEs participating in its own supply chain by 2017.By clarifying the development process of JD supply chain financing, we find that the JD supply chain financing process is mainly divided into two phases: the bank-enterprise cooperation phase and the self-operated financing phase. The initial stage of JD's supply chain financing business is to start business cooperation with banks. The source of financing funds is mainly provided by banks and other financial institutions, which is called the “bank-enterprise cooperation” stage. At this stage, JD as a core company helps its SMEs obtain a certain amount of financing from banks through its own credit rating and the real transaction orders of JD.com supply chain. The financing methods mainly include four types of entrusted loan, order loan financing, warehouse receipt pledge financing, and accounts receivable financing. The products belonging to JD's self-financing stage are: JingXiaoDai, YunCangJingRong, JingBaoBei. It succeeded in increasing the market share of the same industry by providing funding in the same way.