Global regulatory changes and more so in China’s drive to tighten e-commerce industry regulation have seen companies take measures to comply with the new regulations. One of the companies that made strides to nurture and achieve compliance is China’s leading e-commerce platform JD.com. A series of the announcement and changes indicate the firm is active in complying with the new regulations.
Not long ago, the company’s logo was subtly changed. A dog mascot’s logo was changed to a more simplistic one with the same dog mascot but now with a wide smile. The change, which comes shortly after another announcement where the company announced a salary increment for its workers, is viewed by many, including independent social media outlet Fancaiju, to make the logo more appealing and acceptable.
The company, when questioned on the logo changed, did not provide an answer. However, when viewed together with the company’s earlier WeChat post on Tuesday, where it announced a salary increase, JD current affairs indicate its effort to shoulder more social responsibility.
JD.com Tuesday’s post indicated that the company was to shift from the current 14-month salary model to a 16-month salary, which would translate to a 14% salary increment that will cut JD earnings date. The company with over 370,000 employees has stirred a debate in Weibo, the China’social media platform. The announcement has also garnered widespread media attention in the country. However, some report the increment is not meant for all employees since some grassroots employees do not seem included in the announcement.
The company’s move has also sparked a hot discussion among analysts. For some independent analysts such as Ge Jia, the pay rise is not related to the country’s regulations. Instead, Jia argues that the current JD current affairs are market-driven since, as a leading e-commerce platform in China, the company is seeking to attract new talent.
Further, Jia points out that the company faces a lot of social pressure to provide better wages. In a country where there is surplus labor, companies, especially e-commerce platforms, have been accused of offering meager pay to their employees. The massive social outcry has led to the government introduce regulations that seek to reign on the perceived exploitation.
Tuesday’s JD current affairs came on the heel of an article published the same day in the People’s Political Consultative Daily. The article, a Chinese People’s Political Consultative Conference auspices, lambasted the unregulated growth of the platform economy, mostly dominated by e-commerce platforms likes JD.com. According to the article, the lack of regulation of the platform economy provided has allowed employee exploitation.
The article indicates that the current lack of regulation is also jeopardizing fair competition in the country. The claims come as China has cracked down on internet firms to maintain -control of the market. In recent years several Chinese e-commerce platforms have risen to become multi-billion dollar companies. The lack of regulations in place has always been a worry for many in China as these companies often have few social responsibilities.
According to Jia, money has been the driving factor with little concern from a social image for many of these sprawling internet firms, which has been a major source of concern for many, including in the CCP’s leadership.
Another Chinese company Ele.me, is following closely on Jd’s recent changes. The food delivery platform announced that its Summer Action was beginning with a $46 million first batch fund. The fund will provide a high-temperature summertime allowance for deliveries and improvement of general employee’s welfare.
These announcements are expected, among other things are expected to affect JD earnings date and significantly reduce profit projections. However, with more action expected from the government in terms of regulation, it is high time companies started making changes. The government is serious about optimizing the labor structure for sustainability, and internet firms must abide by these regulations instead of complaining.