Research On Jing Dong Supply Chain Finance Models With The Corresponding Products

In recent years,the development of e-commerce in China is in so full swing that a group of high-quality e-commerce platforms represented by Jingdong have born constantly,through which a large number of small and medium-sized enterprises(SMEs)conduct their business and earn profits.At the same time,supply chain finance has emerged and grown rapidly benefited from these e-commerce platforms.In China,SMEs have a very important position in the development of the national economy,which decide on the success of people's employment.However,the development of SMEs is facing with serious financing difficulties due to problems such as low fixed assets and unclear financial status.The supply chain finance based on the e-commerce platform is a new type of internet financial model which can exactly offer effective helps for SMEs to solve the financing difficulties.Among the many e-commerce platforms which carry out supply chain finance financing business,Jingdong supply chain finance more typical.This article takes the financing model of supply chain finance as the starting point,summarizes and sorts out the relevant literature,and elaborates the concept of supply chain finance with the operating procedures and risk control points of the most common three financing models.The paper focus on the analysis of Jingdong's supply chain finance model and its corresponding innovative products.By analyzing the background and development history of JingDong's supply chain finance,we find that the rapid development of JingDong's supply chain finance is mainly due to the rapid development of Jingdong Mall,the strong financing needs of Jingdong platform merchants and self-operated suppliers,and the strategy of Jingdong Finance.The development can be divided into two phases: the "bank-enterprise cooperation" phase and the "self-funded" phase.The financing modes in the “bank-enterprise cooperation” phase mainly include the Order Financing,the Warehouse Receipts Financing,the Accounts Receivable Financing and the Entrusted Loan Financing.The “self-funded” phase focus on creating three products targeting different users,namely “Jing Baobei” for platform-based suppliers,“Jing Xiaodai” for third-party open platform merchants,and “Movable-Property Financing” for the entire supply chain participants.This paper mainly analyzes the product positioning,objectives,financing models,major advantages,and risk control mechanisms of these three products,and hopes that it can provide inspiration to other e-commerce platforms that carry out supply chain finance services.Among them,“Jing Baobei” mainly adopts the Order Financing model based on the Accounts Receivable Financing and Prepayment Financing;“Jing Xiaodai” mainly adopts the Order Financing model and the Credit Loan Financing model;“Movable-Property Financing” mainly adopts the Movable Pledge Financing basedon Finance-Transportation-Warehouse(FTW)model.In addition,this paper compares the Jingdong supply chain financial business with the traditional commercial bank supply chain financial business and finds that they are different in the participants,funding sources,target users,and risk control mechanisms.By contrast,we find that JingDong's advantages in supply chain finance are mainly low transaction costs,better risk control mechanisms,and simple and efficient processes.At the same time,it also has obvious disadvantages,mainly due to lack of funding sources,imperfect legal supervision mechanisms,and lack of talent reserves.In response to these disadvantages,corresponding solutions have been proposed.