Expanding Warehousing Capacity: JD Logistics now operates more than 1,500 warehouses, with an overall gross floor area (GFA) exceeding 31 million square meters.Reduced Fulfillment Expenses: Fulfillment expenses accounted for 6.3% of net revenues, the lowest percentage compared to the same period in previous years.Efficient Inventory Management: JD.com achieved a world-leading inventory turnover speed with 32.4 inventory turnover days, all while managing over 10 million self-operated SKUs.Flourishing Merchant Base: The number of new merchants surged by 240% year-on-year, driven by multiple merchant supportive measures such as the “ Spring Dawn Initiative.”.This program has successfully collaborated with over 300,000 brick-and-mortar stores across China, providing a diverse range of products to more than 2,000 counties. Rapid Growth of JD Shop Now: The gross merchandise value (GMV) of JD Shop Now, the on-demand retail program, grew by 60% year-on-year.Dominant Market Shares: JD.com continued outperforming the industry average in various competitive categories, including household appliances, home goods, 3C, electronics, and more.
#JD.COM ECNY JINGXI WECHAT PAY MORNINGPOST PLUS#
The number of JD PLUS members reached 35 million, with their annual consumption on the platform surpassing that of non-PLUS members by 8.4 times.
Xu shared that Jingxi’s footprint already extends to 17 provinces and that the company is satisfied with the ROI thus far. Where the existing infrastructure does not allow to meet the minimum customer experience, the focus will be on improving product quality. In the future, the Jingxi business will depend on building capabilities and on whether it can provide users with an adequate level of customer experience. Xu reiterated that in developing Jingxi, JD will not compete with other players on speed but will instead take a long-term approach through investment in infrastructure, focus on building out teams and more, enhancing collaboration within JD’s various business lines to satisfy various shopping demands, and taking advantage of existing technology and infrastructure as much as possible. In addition, the local supply chain, especially in fresh produce is important. Xu said the company could leverage its existing supply chain network, B2C experience and relationship with brands to provide a wider selection of SKUs. JD has an inherent supply chain advantage through its long-established first party model and logistics business. This involves taking advantage of core capabilities to provide users with a high quality experience and better pricing.
She mentioned there is a strong desire to explore the market opportunity, adding that while most other players focus on traffic, “we believe the way to win the game is supply chain infrastructure driven by tech… we see this as a business heavily relying on supply chain”. Xu explained that the social group purchase model is a long term initiative, emphasizing the structural opportunity for JD to further penetrate lower-tier markets and provide consumers with products and services, particularly in the lower price range. On the call to discuss the results, JD.com CFO Sandy Xu spoke to the potential of JD’s social e-commerce business targeted at China’s lower-tier markets, Jingxi, and provided some indication on future growth strategies. JD.com announced its first quarter 2021 earningson May 19.
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