China’s prominent e-commerce platform JD.com has exceeded growth expectations during this year’s 618 shopping festival. The event witnessed a record-breaking participation of online brand merchants and an impressive surge in the number of offline physical stores joining the festivities.
Online sales experienced remarkable growth as JD.com expanded its offerings with over 1,200 trending categories, resulting in a substantial 30% increase in overall sales. The number of brands achieving sales of more than 100 million RMB (13.93 million USD) witnessed a growth of over 20% compared to the previous year. In addition, nearly 50% of small and medium-sized businesses experienced a turnover increase of over 200%.
On the offline front, JD.com successfully brought together tens of thousands of offline JD.com stores and connected millions of cooperative stores across the country. JD Daojia, the core platform for JD.com’s instant retail, played a pivotal role by linking over 380,000 offline stores during the promotion period.
As a result, JD.com was able to achieve speedy delivery in minutes through online ordering, store delivery, and hourly delivery – so much so that the number of cooperative stores saw an 80% year-on-year increase. During the shopping extravaganza, its sorting centres operated round the clock, sorting over 4.5 million packages per day on average, resulting in a more than five-fold increase in efficiency.
The outstanding performance of its 618 promotion not only indicates a gradual recovery in the consumer market but also underscores the strategy of JD.com. Xu Ran, the current CEO of Jingdong Group, emphasized JD.com’s unwavering pursuit of “more, faster, better, and less expensive” products and expressed the company’s commitment to serving a larger user base.
In an open letter to its 560,000 employees, JD.com unveiled its ambitious goal for the next 20 years, labelled “35711”. This vision includes creating three companies with revenues exceeding one trillion RMB (139.29 billion USD) and net profits of over 70 billion RMB (9.75 billion USD). JD.com also aims to secure five entries into the world’s top 500 companies and establish seven listed companies with a market capitalisation of no less than 100 billion RMB (13.93 billion USD).
Overall, JD.com’s performance in this year’s 618 shopping festival indicates that the e-commerce company is on track to achieving its future goals as it concentrates on strategies to penetrate the sinking market, enhance technical services, and expand international business.