JD’s revenue growth despite China’s consumer slowdown
While China’s slowdown has impacted the overall growth of JD.com, the company has still seen impressive revenue growth. This is thanks in part to JD’s focus on innovation and its strong customer base. The company is well-positioned to continue thriving even in a challenging economic climate.
JD.com’s turnover increase
JD.com Inc. has seen its revenue rise by 23% after China’s second-largest e-commerce operator managed to increase the number of users despite increased competition.
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Revenue in the December quarter reached 275.9 million yuan ($43.6 billion), compared with the average analyst forecast of 274.9 billion. It reported an unexpected net loss of 5.2 million yuan. This compares with an expected loss of 80.5 million.
JD and its larger rival Alibaba Group Holding Ltd. are under pressure from macroeconomic headwinds, as well as emerging competitors such as social networking platforms. Last month, Alibaba reported its slowest quarterly revenue growth since 2014. JDcom has come under heavy pressure in recent months after Tencent holdings Ltd announced it would distribute most of its JD shares at a single dividend. The surprising setback was made by a long-time backer.
Billionaire Richard Liu’s online shopping empire has not been directly affected by Beijing’s broad campaign to rein in big tech companies. JD has actually benefited from the crackdown, adding new brands such as Starbucks and Estee Laund to its platforms. This came after Chinese antitrust watchdogs fined Alibaba $2.8 billion and forced it to reform some of its practices regarding merchant exclusivity.
JD’s market value fell 40% from $167 billion to $97 billion last year. The stock closed up 1% on Thursday in Hong Kong, just before the company reported its results.
Although annual active customer account growth was 21%, it was still below expectations of 569.7 million for 2021.
JD.com continues to launch branded flagship shop
JD.com has launched the STARBUCKS flagship shop
Starbucks, the world’s largest coffee chain, opened a flagship shop on JD.com on March 3.
The brand’s new spring collection, including the Sakura Blossom collection, is now available online for Chinese customers. The shop sells physical products such as mugs as well as seasonal foods (such as rice balls or mooncakes) and gift certificates. This will give JD’s customers more options.
JD’s customers are a perfect match for Starbucks’ target consumers. Through JD’s national logistics network, Starbucks products are delivered quickly and efficiently to consumers who order them on JD.
The spokesperson for JD Fashion and Lifestyle said that JD’s experience and reputation for authentic product logistics and after-sales service is attracting more international brands to work with JD.
JD.com: TORY BURCH opens flagship shop
JD.com opened the Tory Burch flagship shop on 22 March. It features a wide range of products including ready-to-wear, handbags and shoes.
The brand’s iconic Kira denim bag was available for the first time in the shop. Tory Burch’s spring/summer collections with supermodel Liu Wen were also on sale.
Tory Burch, an American luxury brand founded in New York in 2004, is known for its beautiful, timeless pieces and rich stories that inspire joy and optimism.
“We are thrilled to announce the official launch of the JD.com flagship shop. This has given us a unique opportunity to reach new customers and fans on JD.com. We are excited to offer a unique shopping experience and introduce the colourful world of Tory Burch to everyone,” said Paolo Zullo SVP, General Manager of Tory Burch China.
JD has brought together more than 300 flagship shops of leading fashion and lifestyle brands. This includes jewellery, clothing and footwear. The Tory Burch flagship shop on JD.com will give consumers more options to buy fashion items online.