JD.com

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Not to be confused with JD Sports Fashion plc.
JD.com, Inc. (京东)
TypePublic
Nasdaq: JD
SEHK: 9618
Nasdaq-100 component
IndustryE-commerce
Artificial intelligence
Robotics
Autonomous car
Founded6 June 2009; 12 years ago (2009-06-06)
FounderLiu Qiangdong
HeadquartersBeijing, China
ServicesOnline shopping
RevenueIncrease CN¥745.802 billion (US$114.299 billion, 2020)[1]
Increase CN¥12.343 billion (US$1.892 billion, 2020)[1]
Increase CN¥49.337 billion (US$7.561 billion, 2020)[1]
Total assetsIncrease CN¥422.288 billion (US$64.718 billion, 2020)[1]
Total equityIncrease CN¥204.486 billion (US$31.339 billion, 2020)[1]
OwnerLiu Qiangdong (15.8%)[2]
Walmart (10.1%)
Tencent (2.3%)
Number of employees
310,000 (Dec 2020)[1]

JD.com, Inc. (Chinese: 京东; pinyin: Jīngdōng), also known as Jingdong and formerly called 360buy,[3] is a Chinese e-commerce company headquartered in Beijing. It is one of the two massive B2C online retailers in China by transaction volume and revenue, a member of the Fortune Global 500 and a major competitor to Alibaba-run Tmall.[4]

The company was founded by Liu Qiangdong on June 18, 1998, and its retail platform went online in 2004. It started as an online magneto-optical store, but soon diversified, selling electronics, mobile phones, computers, and similar items. The company changed its domain name to 360buy.com in June 2007 and then to JD.com in 2013. The latter purchase is understood to have cost $5,000,000.[5] At the same time, JD.com announced its new logo and mascot. It is partly owned by Tencent, which has a 20% stake in the company.[6]

JD.com has invested in high tech and AI delivery through drones,[7] autonomous technology and robots, and possesses the largest drone delivery system, infrastructure and capability in the world. It has recently started testing robotic delivery services and building drone delivery airports, as well as operating driverless delivery by unveiling its first autonomous truck.[8][9][10][11][12][13][14][15]

History[]

  • June 1998: The company was founded as Jingdong Century Trading Co., Ltd selling magneto-optical in Beijing, China.[citation needed]
  • January 2004: The company's B2C site went online as jdlaser.com.
  • January 2006: Shanghai subsidiary established.
  • January 2007: Guangzhou subsidiary established.
  • June 2007: began using the domain name 360buy.com, and the company name was changed to Jingdong Mall.[citation needed]
  • December 2010: 360buy.com started an online bookstore. CDs, DVDs, and ebooks were added in the following months.
  • April 2011: 360buy.com launched a platform named “POP” for brand owners.
  • October 2012: en.360buy.com was launched for the international market.
  • March 2013: the company's domain name was changed to JD.com.[citation needed]
  • March 2014: Tencent acquires a 15% stake in JD.com by paying cash and handing over its e-commerce businesses Paipai, QQ Wanggou and a stake in Yixun to JD.com, in order to build a stronger competitor to Alibaba Group Holding Ltd.[16]
  • April 2014: Subsidiary's Lawsuit Against JD.com Accepted By Court.
  • June 2015: JD.com launch the Russian site aims to expand its business to global.
  • June 2016- Wal-Mart sells its Chinese e-Commerce business Yihaodian to JD.com in exchange for a 5.9% equity stake valued at $1.5 billion.[17]
  • October 2016: Wal-Mart files 13G revealing it has nearly doubled its stake in JD.com to 10.9% [18]
  • February 2017: Wal-Mart increases investment in JD.com to 289.1 million shares, or 12.1%.[19]
  • April 2017 : JD.com participated in the Salone del Mobile featuring the installation Matrix, at the Università Statale of Milan.[20]
  • June 2017: JD.com invested $397 million into Farfetch, a marketplace for luxury brands, as part of a new strategic partnership.[21]
  • July 2017: JD.com and Walmart launch the first annual JD-Walmart August 8 shopping festival.[22]
  • September 2017: JD.com has committed to further develop China's parcel delivery efficiency, investing US$101 million to subsidise merchants on JD.com for warehousing and distribution costs, occurred from stocking up goods for the upcoming 2017 Singles' Day.[23]
  • November 2017: JD.com achieved a sales record of US$19.1 billion in 2017 Singles' Day.[24]
  • January 2018: JD.com opens first of a chain of high-tech supermarket 7Fresh.[25]
  • January 2018: JD.com invest in Vietnam's online retail service tiki.vn for $50 million.[26]
  • February 2018: JD.com invest in France and the UK, and wants to be everywhere in Europe in a few years.[27]
  • February 2018: JD.com spins off JD Finance and raises $2.1 billion in a capital raise.[28]
  • May 2018: Metcash partnered with JD.Com to sell groceries in China.[29]
  • February 2019: JD.COM acquires Jade Palace Hotel in Beijing for US$400M.[30]
  • May 2019: company partners with Jiangsu Xinning Modern Logistics in order to automate its logistic services.[31]
  • November 2019: removed all items related to Houston Rockets in response to the organization's general manager posting a tweet about Hong Kong[32]
  • April 2020: company files, confidentially, for a second listing in Hong Kong, in an offering that could raise $2bn.[33]
  • August 2020: The company reported net profits of $2.3 billion for the Q2 of 2020. It also reached a customer base of 417 million users.[34]
  • August 2020: JD.com announced that will be investing $830 million in its JD Health unit provided by private equity firm Hillhouse Capital.[34]
  • October 2020: Ping An Bank Enters Strategic Partnership with JDD, Launches Joint Credit Card.[35]

Digital marketing[]

Jingteng Plan[]

Joy & Heron - Animated promotional video by JD.com released under CC license

In 2015, JD.com and Tencent announced the launch of the "Jingteng Plan" (Chinese: 京腾计划), a portmanteau of the two companies' names, which will provide merchants with a complete solution[buzzword] to establish a brand and promote marketing effectiveness by linking JD.com consumption data with Tencent social data.[36] JD.com provides online shopping and claims "authentic low price and quality assurance" and "customer first".[37]

The Jingteng Plan has made progress in three areas: Jingdong has ~170 million E-Commerce platform users, and Tencent has the largest WeChat and mobile QQ users in China. The plan integrates consumer behaviour data and social data. The Jingteng Plan integrates marketing solutions[buzzword] for shopping and social data. “The precise orientation, closed-loop experience, user portraits, personalized creativity, unity of product and effect, and scientific measure of effectiveness” are said to be the six major aspects of the Jingteng Plan.[38]

Partnership with Farfetch[]

In light of the increasing number of mobile consumers in China, in 2017, Jingdong invested $397 million in Farfetch, which provided luxury e-commerce service based on the headquarters in London. The deal focussed on Farfetch's respect for intellectual property which has been contrasted with Alibaba's reputation.[39] The Jingdong and Farfetch partnership aims to increase their market share in China.[39]

Partnership with Ruyi[]

On 4 September 2018, JD.com signed a strategic agreement with Ruyi, a leading textile and fashion giant who owns global fashion brands including Aquascutum, CERRUTI1881, Sandro and Maje.[40] As stated in the press release, JD would deploy its smart logistics, supply chain solutions[buzzword], big data-enabled inventory management and membership systems for Ruyi's subsidiary brands.[41] Based on this partnership, JD and Ruyi will jointly establish fashion and lifestyle concept stores in core cities, such as Shanghai and Beijing.[40]

Price war with Dangdang[]

Price war in physical books[]

On December 10, 2010, JD's founder Liu Qiangdong announced through his Weibo account that every book sold on JD.com would be priced at 20 percent cheaper than its competitors. Although Liu did not give a specific name of his opponent, journalists thought Dangdang was JD.com's obvious rival in the field of online book sale.[42] Dangdang is an electronic business platform well known for its core business, selling books, and ranked first among all online B2C booksellers of 2010 in China.[43]

The price war between JD.com and Dangdang started on December 14; users of JD.com found out that the books were cheaper than from Dangdang. In response, Dangdang also began to offer discounts to customers such as 30 yuan off when they spend 199 yuan or more. On the morning of December 16, Dangdang stated that the company would invest 40 million Chinese yuan to give discounts to customers. As a result, JD.com launched the second promotion to sell books at a lower price than Dangdang that afternoon.[44] On the same day, Liu Qiangdong posted through his Weibo account that JD.com would give coupons instead of reducing prices to protect the benefits of publishers, which marked a phase of the price war.[45]

Liu said that JD.com could not get supplies from some book publishers due to contracts between Dangdang and the publishers. From Liu's perspective, Dangdang were not allowing publishers to supply books to JD.com. However, the publishers refuted the allegation.[46] Su Huiyan, a business consultant of iResearch pointed out that JD.com wanted to attract more customers by the price war.[47]

In November 2011, the second stage of the competition was triggered by Suning.com, a B2C shopping platform, announcing they would expand their business to include bookselling. JD.com and Dangdang competed with each other on lowering the prices of books again. JD.com provided its customers with a 10 percent discount on books while Dangdang, sent promotional messages to its users stating that they would be offered 200 yuan if they purchased books for more than 100 yuan total. Dangdang used the slogan “争当败家子” meaning 'striving to be a spendthrift' aiming to increase their website traffic.[48]

The sudden increase of orders not only caused network errors but also postponed transits of books, which fueled customers’ complaints.[49]

Price war in electronic books[]

On December 21, 2011, Dangdang launched its electronic book service online. More than 50,000 e-books were available on dangdang.com with over 90 percent of the e-books sold at 30 percent of the price of the physical books.[50] JD.com started the e-book selling business online on February 20, 2012, and provided customers with more than 80,000 electronic books. JD.com also offered discounts to the buyers, this situation was the unfoldment of a new round of price war.[51]

On April 17, 2013, most of the e-books on Dangdang's website were free for users to download. Consequently, JD.com priced 50,000 electronic books at 0 yuan to match. Liu Zhenyou, an author, criticized that both of them had raised their brand awareness, but their actions caused damage to book publishers.[52]

See also[]

References[]

  1. ^ a b c d e f JD.com Announces Fourth Quarter and Full Year 2020 Results // JD.com
  2. ^ Flannery, Russell. "China Billionaire's 24-Year-Old Wife Boosts JD.com's Fashion Growth".
  3. ^ China's B2C E-commerce Giant 360buy Rebrands, Retrieved December 3, 2013
  4. ^ "Selling on JD.com in China". Sampi. 14 October 2015. Retrieved 20 March 2016.
  5. ^ "JD.com: Was it Acquired for $5 Million USD? - DomainInvesting.com". 17 February 2014. Retrieved 19 June 2018.
  6. ^ "Here's The Latest Sign That China's E-Commerce Market Is White Hot". Business Insider.
  7. ^ Schiefelbein, Luke (25 July 2018). "Is JD.com The Future Of Chinese E-Commerce?". Forbes. Retrieved 22 April 2019.
  8. ^ Lee, Cyrus. "Chinese ecommerce giant JD eyes driverless deliveries | ZDNet". ZDNet.
  9. ^ "In China, an e-commerce giant builds the world's biggest delivery drone". Popular Science.
  10. ^ Glaser, April (27 January 2017). "One of China's largest online retailers is adding dozens of drone delivery routes to rural villages in 2017". Recode.
  11. ^ "JD.com testing drones that can lift one ton loads". Woodworking Network. 25 May 2017.
  12. ^ Huang, Echo. "In China, a robot has started delivering packages to people". Quartz.
  13. ^ "JD.Com Launches Robot Delivery Services In Chinese Universities". China Money Network. 19 June 2017.
  14. ^ Handley, Lucy (11 April 2017). "This Chinese retailer is building 150 drone delivery launch centers".
  15. ^ "SF Express obtains first airspace approval for delivery drones in China". gbtimes.com.
  16. ^ Tencent to Buy 15% Stake in JD.com to Boost E-Commerce // Bloomberg, March 10, 2014
  17. ^ Carew, Rick; Abkowitz, Alyssa; Nassauer, Sarah (20 June 2016). "Wal-Mart to Sell Chinese E-Commerce Business to JD.com". Retrieved 19 June 2018 – via www.wsj.com.
  18. ^ "Wal-Mart 13G Filing". fintel.io. Retrieved 6 March 2019.
  19. ^ "Why Does Walmart Keep Upping Its Stake In Chinese E-Commerce Player JD.Com?". forbes.com. Retrieved 6 March 2019.
  20. ^ "Wal-Mart 13G Filing". fintel.io. Retrieved 6 March 2019.
  21. ^ "JD.com invests $397M into luxury marketplace Farfetch as part of a new strategic partnership – TechCrunch". techcrunch.com. Retrieved 19 June 2018.
  22. ^ "Walmart and JD.com Expand Strategic Cooperation - NASDAQ.com". NASDAQ.com. Retrieved 2017-07-25.
  23. ^ "Alibaba, JD.com commit nearly US$330m to beef up parcel delivery efficiency". South China Morning Post.
  24. ^ "JD.com Ensures Alibaba Doesn't Have Singles Day to Itself". Fortune.
  25. ^ "Online Retailer JD Follows Alibaba Into the Supermarket Game". Bloomberg.
  26. ^ "JD.com leads investment in Vietnam-based e-commerce service Tiki". Tech Crunch.
  27. ^ "JD.com launches in Europe". Ecommerce News Europe, February 5, 2018.
  28. ^ "Alibaba-Rival JD to Get $2.1 Billion in Finance Arm Spinoff". Retrieved 19 June 2018.
  29. ^ "Metcash Partners with JD.Com to Sell Groceries in China - Which-50". Which-50. 2018-05-21. Retrieved 2018-05-28.
  30. ^ "Why is JD.com spending US$400 million to buy this hotel in Beijing?". Which-50. 2019-02-12. Retrieved 2019-02-12.
  31. ^ "JD.com to foster connected vehicle fleets with $55M investment". TechCrunch. Retrieved 2019-05-14.
  32. ^ Kharpal, Arjun (2019-10-08). "Alibaba shopping sites appear to have de-listed Houston Rockets products in China". CNBC. Retrieved 2020-05-04.
  33. ^ "Homecoming: E-commerce giant JD.com secretly files for Hong Kong second listing". independent. Retrieved 2020-04-30.
  34. ^ a b McMorrow, Ryan (2020-08-17). "China's JD.com reports rising profitability and sales growth". Financial Times. Retrieved 2020-08-20.
  35. ^ "Ping An Bank Enters Strategic Partnership with JDD, Launches Joint Credit Card". chinabankingnews.com. Retrieved 22 October 2020.
  36. ^ "京东是怎么玩数字营销的？". 网易财经. 黎冲森. Retrieved 15 March 2018.
  37. ^ "腾讯京东发布京腾计划 强强资源打造"品商"平台". 腾讯科技. Shanyun Liu. Retrieved 15 March 2018.
  38. ^ "大数据助力京东开启数字营销3.0时代". 搜狐科技. Retrieved 15 March 2018.
  39. ^ a b Bien, Perez. "JD.com buys US$397m stake in fashion e-commerce firm Farfetch". South China Morning Post. Retrieved 18 March 2018.
  40. ^ a b "JD.com Partners with Fashion Giant Ruyi to Make Luxury Fashion High Tech - JD Corporate Blog". JD Corporate Blog. 2018-09-04. Retrieved 2018-09-12.
  41. ^ Wightman-Stone, Danielle. "JD.com signs "boundaryless retail" tech deal with Ruyi". Retrieved 2018-09-12.
  42. ^ "国美苏宁触网 低价合围京东".
  43. ^ "京东被当当激怒 砸8000万促销图书".
  44. ^ "京东当当图书大战告停 京东准备停止直接降价".
  45. ^ "京东商城当当网降价大战升级".
  46. ^ "刘强东：京东与当当图书价格大战惊动版署".
  47. ^ "京东当当大战图书".
  48. ^ "价格大战，京东当当快疯了".
  49. ^ "京东当当展开价格大战 亏损严重仍"争当败家子"".
  50. ^ "当当电子书频道今日上线 未来或推299元阅读器".
  51. ^ "电子书之战打响：出版社不满价格低".
  52. ^ Liu, Zhenyou. 互联网+ 助传统行业旁道超车. 中国财政经济出版社.
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