JD.com: China’s e-commerce powerhouse

Founded in 1998 by Richard Liu, JD.com started as an offline electronics store. In 2004, Richard Liu moved his business online, recognizing the potential of the Internet. Since 2010, JD.com has evolved into a comprehensive e-commerce platform, expanding its offerings to include food and beverage, fashion, jewelry and accessories, health and beauty products.

Chinese e-commerce company JD.com, Inc. (HK:9618) has transformed from a small electronics store into a global e-commerce powerhouse. The company has grown into one of the largest and most reputable e-commerce platforms in China. Originally launched as a website, JD is now primarily accessed via a mobile app, reflecting Chinese consumers’ widespread preference for app-based online shopping.

Early beginnings

In May 2014, JD.com became the first major Chinese e-commerce company to list on NASDAQ under the symbol JD. In June 2020, the company completed a secondary listing on the Hong Kong Stock Exchange.

Currently, the company divides its operations into four segments: JD Retail, JD Logistics, Dada and New Businesses. According to its 2023 annual results, JD Retail contributes 88% of the company’s total net revenue, while JD Logistics contributes 13%.

Innovation and progress

Technology is at the heart of JD.com’s business. The company has adopted innovations such as artificial intelligence (AI) and robotics to optimize its supply chain and improve customer experiences. Since its technology-driven transformation in 2017, the company has invested RMB 100 billion in technological advancement.

In addition, the company boasts one of the most advanced logistics networks in China, with warehouses and delivery centers located throughout the country. JD.com’s intelligent logistics system uses artificial intelligence to predict demand, manage inventory and improve delivery routes. This extensive infrastructure enables JD.com to offer same-day and next-day delivery services, a key factor in maintaining customer satisfaction in the dynamic world of e-commerce.

Additionally, the company has deployed drones and autonomous delivery robots to reach remote areas, ensuring efficient and timely deliveries even in hard-to-reach regions.

JD Competitive Advantages

Over the past few years, JD.com has competed directly with giants such as Alibaba Group Holding (Hong Kong:9988The JD.com platform ranks among the top e-commerce platforms in China, alongside market leaders such as Alibaba’s Taobao and Tmall and PDD Holdings’ (NASDAQ:PDD) Pinduoduo.

JD.com maintains its own supply chain infrastructure, giving it a lasting competitive advantage in the industry. This direct sales approach allows JD.com to ensure the authenticity of its products, a key advantage in an industry often plagued by counterfeiting.

JD’s vision for the future

In June 2023, JD.com unveiled its “Vision 35711,” outlining its strategic goals for the next two decades. These goals include:

• Establishing three enterprises with revenues exceeding RMB 1 trillion and net profits of RMB 70 billion.
• Having five JD companies on the Fortune Global 500 list.
• Contributing RMB 100 billion in taxes.
• Creation of over 1 million jobs.

To achieve these goals, the company emphasized three main areas of focus: the development of downstream markets, advancements in technology and services, and the expansion of international operations.

In its efforts to develop downstream markets, JD.com strives to offer cost-effective products and expand its product range. Leveraging its strong supply chain capabilities, the company aims to expand its reach to a wider audience by offering a selection of products at competitive prices.

JD.com’s growth is not limited to China. The company is actively expanding its presence internationally. In recent years, it has entered Southeast Asia and Europe, leveraging partnerships with local companies to gain a foothold. JD.com’s global ambitions focus on leveraging its strong supply chain infrastructure to support international business operations.

Application

Looking to the future, JD.com intends to continue expanding into new markets and enhancing its technological capabilities. By leveraging its strengths and embracing new technologies, JD.com is well-positioned to remain a dominant force in the e-commerce landscape.

Disclosure