JD.com released its 2023 Q1 results on 11th May, 2023. JD.com (known as JINGDONG in Europe) is China’s leading supply chain-based service and technology provider. It is also the country’s largest online retailer and overall retailer.
1. Sturdy Net Revenue Growth
Net revenue increased by 1.4% to $35.4 billion (RMB 243 billion).
2. Robust Net Service Revenues
Net Service Revenues increased by 34.5%, to $6.9 billion (RMB 47.4 billion). 3. Surpassed 3.Profit Expectations
Non-GAAP net income attributable to shareholders soared to $1.1 billion (RMB 7.6 billion), an impressive 88.3% year-on-year growth.
4. Significant Growth For JD Logistics
JD Logistics, Jingdong’s supply chain business, achieved a 59.8% year-on-year increase in external customer income.
5. User Engagement and Growth
JD.com’s average revenue per user (ARPU), users’ shopping frequency, and daily active users (DAU) all achieved substantial growth.
JD PLUS membership reached 35 million customers, with each JD PLUS customer spending 8.4 times the average JD.com customer.
6. Dominant Market Shares
JD.com outperformed the industry average in electronics, home goods, household appliances and 3C (computer, consumer electronics, and communication products).
7. Rapid Growth for JD Shop Now
Jingdong’s on-demand retail program, JD Shop Now, experienced rapid growth with gross merchandise value (GMV) increasing by 60% year-on-year.
JD Shop Now has agreed partnerships with more than 300,000 brick-and-mortar stores across China.
8. Thriving Merchant Base
JD.com’s merchant base has flourished, with new merchants increasing by 240% year-on-year. A number of new initiatives were launched to support new merchants including the “Spring Dawn” initiative which was launched in January 2023. This initiative provides a fast track launch process (10 minutes) for start-ups, self-employed businesses and other enterprises.
9. World-leading Inventory Management Efficiency
JD.com is proud to be a leader in efficient inventory management, with an inventory turnover of 32.4 days and offering more than 10 million self-operated stock keeping units (SKUs).
10. Minimized Fulfillment Expenses
Fulfillment expenses were reduced to 6.3% of JD.com’s net revenues a new low for the Company.
11. Expanded Warehouse Capacity
Today JD Logistics operates more than 1,500 warehouses, with a total gross floor area (GFA) of in excess of 31 million square meters. In addition, its self-operated warehouses based in the U.S.A, have a GFA of more than 120,000 square meters.
Affordable Prices, an Open Ecosystem, and Agile Management
In 2023, JD.com will make operational adjustments to adjust to the current market fluidity and new opportunities in the post-Covid-19 landscape.
These adjustments include:
● Consolidating JD Retail’s reporting structure.
● Enhancing product categories and channels.
● Promoting fair competition between third-party merchants and first-party businesses.
JD.com CEO Sandy Xu commented that the company’s open ecosystem is vital to JD Retail’s supply-side improvement. The strategy aims to offer consumers more price and product choices, improving their shopping experience.
Xu added that JD.com uses its supply chain advantages to achieve economies of scale and ensure consumers reap the benefits. The company’s commitment to “everyday low prices” comes from its focus on “everyday low costs.”
Read details of Richard Liu’s JD.com’s Q1 2023 performance in the official financial report.
About JD.com (a.k.a. Jingdong)
JD.com, also known as Jingdong, is technology and service enterprise with supply chain at its core. Founded by Richard Qiangdong Liu, JD.com is a renowned leader in China’s e-commerce industry and the company has expanded across retail, technology, logistics, healthcare, insurance, property development, industrials, private label, and international business. Ranking 46 on the Fortune Global 500, JD.com is China’s largest retailer by revenue.
JD.com serves nearly 600 million customers and has set the standard for e-commerce through its commitment to quality, authenticity, and competitive pricing. The company operates the largest logistics infrastructure of any e-commerce company in China, pioneering a standard experience of same- and next-day delivery. JD.com also promotes productivity and innovation across a range of industries by offering its cutting-edge technology and infrastructure to partners, brands, and diverse sectors.