Posts Tagged ‘WalktheChat’
When talking about B2C platforms in China, Alibaba is usually the first name that comes to people’s mind, seldom do people think of JD.com, the largest retailer in China aiming to compete with Amazon on a global scale.
While the middle class is expanding fast in China, Chinese consumers are paying more attention to the quality and authenticity of goods, oddly enough JD.com happens to be a company focused on customer experience and quality of their products. Will JD.com take the lead in China’s e-commerce in the future?
It is not news that China is under monopolies or oligopolies in numerous sectors and the B2C e-commerce market is one of them.
In Q4 2017, two companies accounted for more than 80% of the total B2C e-commerce market in China. Unsurprisingly they are Tmall and JD.com. Meanwhile the third B2C platform only accounts for 4% of the total market share:
JD.com is China’s leading technology-driven e-commerce company, it is said to be China’s 4th largest e-commerce company right behind BAT; JD.com is a member of the NASDAQ 100 and a Fortune Global 500 company.
By looking at JD.com’s financial reports, the company appears to have been growing steadily. In 2017, JD.com’s revenue grew by 40% and the company got closer to profitability.
It’s net income/loss attributable to ordinary Shareholders however only reached a meager 116 million RMB.
Despite Tmall being the largest B2C platform and the leading e-retailer by volume, JD.com is actually the number one leading e-retailer in Asia in terms of direct e-commerce sales (while Tmall/Taobao lead the way in terms of merchandise volume from third party vendors):
According to Counterpoint, JD.com has also been leading the market in terms of direct sales from mobile devices. In April 2018, the platform had 50% of direct mobile e-commerce sales market share which is twice the market share of its nearest rival Tmall.
Furthermore, JD.com has been experiencing positive growth of annually active customer accounts since 2013 and the number of annual active customer accounts broke through 300 million already in the first quarter of 2018:
Therefore, even though Tmall is currently the single largest player, taking over 57% of the market share, JD.com has been posing an increasing threat to Tmall, especially in the mobile market.
For the rest of this article detailing JD.com’s Strategy, please CLICK HERE