JD's Revenue Growth Indicates E-Commerce Boom In China

2 min read | March 12, 2021 07:49 AM EST | By Team Kalkine Media

JD's Revenue Growth Indicates E-Commerce Boom In China

What's working for the company?

Despite emerging from the pandemic crisis and businesses resuming in full-swing, the e-commerce platform's customers continue to grow and the existing customers continue to shop from the website for a wide variety of products. From expensive products to daily groceries, the customers are buying everything online.
com's core strength is its logistics system and it is reaching easily to millions of customers. During the COVID-19 situation, when the retail sales fell by 3.9 per cent in the country, the company's logistics system enabled it to pace up its in-house delivery network and reached its customers swiftly.
Banking on its huge logistical support, JD.com was able to expand and penetrate low-tier and price-sensitive cities through its website –Jingxi. Through this, the company gave tough competition to companies like the Alibaba group and Pinduoduo.
The company’s active account customers are increasing at a good rate. In Q4 2019, the active customer accounts were 362 million and in Q4 2020, the figure was 471.9 million.

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What's next?

According to market experts, the current revenue growth rate and China's e-commerce boom indicates that JD.com will become profitable. It is estimated that the e-commerce revenue will surpass 50 per cent of China's total retail sales in 2021. The company is also expected to raise US$ 5 billion for its logistics unit through a public offering.

In a major development today, it is being widely reported that JD.com is all set to buy a stake worth US$ 1.5 billion in Sinolink Securities. The move comes amidst its aim of boosting its financial services operations.

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