JD.com, Inc. (京东)
TypePublic
IndustryE-commerce
Artificial intelligence
Robotics
Autonomous car
Founded6 June 1998 (1998-06-06)
FounderLiu Qiangdong
HeadquartersBeijing, China
Area served
Brazil, Cambodia, Chile, China, Denmark, Ecuador, Finland, Indonesia, Laos, Norway, Peru, Sweden, Switzerland
ServicesOnline shopping
RevenueIncrease CN¥951.592 billion (US$149.325 billion, 2021)[1]
Decrease CN¥4.141 billion (US$649,805 million, 2021)[1]
Decrease -CN¥4.467 billion (-US$701.015 million, 2021)[1]
Total assetsIncrease CN¥496.507 billion (US$77.913 billion, 2021)[1]
Total equityIncrease CN¥245.572 billion (US$38.536 billion, 2021)[1]
OwnerLiu Qiangdong (15.8%)[2]
Walmart (10.1%)
Tencent (2.3%)
Number of employees
310,000 (Dec 2020)[1]
Websitewww.joybuy.com

JD.com, Inc., also known as Jingdong (Chinese: 京东; pinyin: Jīngdōng), internationally known as Joybuy 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] When classified as a tech company, it is the largest in China by revenue, and 7th in the world in 2021.[5]

The company was founded by Liu Qiangdong on 18 June 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.[6] 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.[7]

JD.com has invested in high tech and AI delivery through drones,[8] 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.[9][10][11][12][13][14][15][16]

History

The company was founded in 1998 as Jingdong[17] Century Trading Co., Ltd selling magneto-optical in Beijing, China.

In 2004, the company's B2C site went online as jdlaser.com, starting their internet operations and competing directly with others firms like Alibaba The Shanghai subsidiary was established in 2006, while the Guangzhou subsidiary was established in 2007. The company began using the domain name 360buy.com, and the name was changed to Jingdong Mall in June 2007.

In 2010, 360buy.com started an online bookstore. CDs, DVDs, and ebooks were added in the following months. The following year, 360buy.com launched a platform named "POP" for brand owners. en.360buy.com was launched for the international market in October 2012.

In 2013, the company's domain name was changed to JD.com.

Tencent acquired a 15% stake in JD.com in 2014 by paying cash and handing over its e-commerce businesses Paipai & QQ Wanggou plus a stake in Yixun to JD.com, to build a stronger competitor to Alibaba Group Holding Ltd.[18] That same year, a subsidiary's lawsuit against JD.com was accepted by court.

In 2015, JD.com launched its Russian site aimed to expand its business globally. Walmart sold its Chinese e-Commerce business Yihaodian to JD.com in 2016 in exchange for a 5.9% equity stake valued at $1.5 billion.[19] In October, Walmart filed 13G, revealing it nearly doubled its stake in JD.com to 10.9%[20]

In February 2017, Walmart increased investment in JD.com to 289.1 million shares, or 12.1%.[21] In April, JD.com participated in the Salone del Mobile, featuring the installation Matrix, at the Università Statale of Milan.[22] JD.com invested $397 million into Farfetch, a marketplace for luxury brands, in June as part of a new strategic partnership.[23] JD.com and Walmart launch the first annual JD-Walmart 8 August shopping festival in July.[24] JD.com also committed to further develop China's parcel delivery efficiency, investing US$101 million to subsidize merchants on JD.com for warehousing and distribution costs, for the upcoming 2017 Singles' Day.[25] In November, JD.com achieved a sales record of US$19.1 billion.[26]

In 2017, JD.com established an anti-corruption coalition with other Chinese internet companies which aims to blacklist individuals engaged in illicit behavior from seeking employment elsewhere in the internet sector.[27]

JD.com opened its first chain of high-tech supermarkets 7Fresh[28]in January 2018.[29] That same month, JD.com invested in Vietnam's online retail service tiki.vn for $50 million.[30] In February, JD.com invested in France & the Uk,[31] and also released its spin-off JD Finance, raising $2.1 billion in a capital raise.[32] Metcash partnered with JD.Com in May to sell groceries in China.[33]

JD.com acquired Jade Palace Hotel in Beijing for US$400M in 2019.[34] The company also partnered with Jiangsu Xinning Modern Logistics to automate its logistic services.[35] In November, JD.com removed all items related to Houston Rockets in response to the organization's general manager posting a tweet about Hong Kong.[36]

In April 2020, the company confidentially files for a second listing in Hong Kong.[37] In August, the company reported net profits of $2.3 billion for the Q2 of 2020, and it reached a customer base of 417 million users.[38] JD.com also announced that would be investing $830 million in its JD Health unit provided by private equity firm Hillhouse Capital.[38] In October, Ping An Bank partnered with JDD to launch a joint credit card.[39]

In January 2022, JD.com partnered with Shopify to begin selling Shopify's brands via its cross-border e-commerce site in China.[40]

Digital marketing

Jingteng Plan

In 2015, JD.com and Tencent announced the launch of the "Jingteng Plan"[41](Chinese: 京腾计划), a portmanteau of the two companies' names, which will provide merchants with a complete solution to establish a brand and promote marketing effectiveness by linking JD.com consumption data with Tencent social data.[42] JD.com provides online shopping and claims "authentic low price and quality assurance" and "customer first".[43]

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 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.[44]

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.[45] The Jingdong and Farfetch partnership aims to increase their market share in China.[45]

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.[46] As stated in the press release, JD would deploy its smart logistics, supply chain solutions, big data-enabled inventory management and membership systems for Ruyi's subsidiary brands.[47] Based on this partnership, JD and Ruyi will jointly establish fashion and lifestyle concept stores in core cities, such as Shanghai and Beijing.[46]

Price war with Dangdang

Price war in physical books

On 10 December 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.[48] 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.[49]

The price war between JD.com and Dangdang started on 14 December; users of JD.com found out that the books were cheaper than Dangdang. In response, Dangdang also began to offer discounts to customers such as 30 yuan off when they spent 199 yuan or more. On the morning of 16 December, 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.[50] 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.[51]

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 denied the allegation.[52] Su Huiyan, a business consultant of iResearch pointed out that JD.com wanted to attract more customers by the price war.[53]

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.[54]

The sudden increase of orders not only caused network errors but also postponed transits of books, which fueled customers’ complaints.[55]

Price war in electronic books

On 21 December 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.[56] JD.com started the e-book selling business online on 20 February 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.[57]

On 17 April 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.[58]

See also

References

  1. 1 2 3 4 5 6 JD.com Announces Fourth Quarter and Full Year 2021 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 3 December 2013
  4. ↑ "Selling on JD.com in China". Sampi. 14 October 2015. Retrieved 20 March 2016.
  5. ↑ "Top publicly traded tech companies by revenue".
  6. ↑ "JD.com: Was it Acquired for $5 Million USD? - DomainInvesting.com". 17 February 2014. Retrieved 19 June 2018.
  7. ↑ "Here's The Latest Sign That China's E-Commerce Market Is White Hot". Business Insider.
  8. ↑ Schiefelbein, Luke (25 July 2018). "Is JD.com The Future Of Chinese E-Commerce?". Forbes. Retrieved 22 April 2019.
  9. ↑ Lee, Cyrus. "Chinese ecommerce giant JD eyes driverless deliveries | ZDNet". ZDNet.
  10. ↑ "In China, an e-commerce giant builds the world's biggest delivery drone". Popular Science.
  11. ↑ 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.
  12. ↑ "JD.com testing drones that can lift one ton loads". Woodworking Network. 25 May 2017.
  13. ↑ Huang, Echo. "In China, a robot has started delivering packages to people". Quartz.
  14. ↑ "JD.Com Launches Robot Delivery Services In Chinese Universities". China Money Network. 19 June 2017.
  15. ↑ Handley, Lucy (11 April 2017). "This Chinese retailer is building 150 drone delivery launch centers".
  16. ↑ "SF Express obtains first airspace approval for delivery drones in China". gbtimes.com. Archived from the original on 6 January 2019. Retrieved 30 June 2017.
  17. ↑ "企业(品牌)详情". gp.chinadevelopment.com.cn. Retrieved 10 October 2023.
  18. ↑ Tencent to Buy 15% Stake in JD.com to Boost E-Commerce // Bloomberg, 10 March 2014
  19. ↑ 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.
  20. ↑ "Wal-Mart 13G Filing". fintel.io. Retrieved 6 March 2019.
  21. ↑ "Why Does Walmart Keep Upping Its Stake In Chinese E-Commerce Player JD.Com?". forbes.com. Retrieved 6 March 2019.
  22. ↑ "Wal-Mart 13G Filing". fintel.io. Retrieved 6 March 2019.
  23. ↑ "JD.com invests $397M into luxury marketplace Farfetch as part of a new strategic partnership – TechCrunch". techcrunch.com. Retrieved 19 June 2018.
  24. ↑ "Walmart and JD.com Expand Strategic Cooperation - NASDAQ.com". NASDAQ.com. Retrieved 25 July 2017.
  25. ↑ "Alibaba, JD.com commit nearly US$330m to beef up parcel delivery efficiency". South China Morning Post.
  26. ↑ "JD.com Ensures Alibaba Doesn't Have Singles Day to Itself". Fortune.
  27. ↑ Jin, Keyu (2023). The New China Playbook: Beyond Socialism and Capitalism. New York: Viking. p. 114. ISBN 978-1-9848-7828-1.
  28. ↑ "京东新零售超市7FRESH：将推出4种业态，门店1000家 新官上任三把火5月30日， 京东 7FRESH业务负责人王敬首次对外宣布7FRESH超市业态升级MSSM（Meal So... - 雪球". xueqiu.com. Retrieved 10 October 2023.
  29. ↑ "Online Retailer JD Follows Alibaba Into the Supermarket Game". Bloomberg.
  30. ↑ "JD.com leads investment in Vietnam-based e-commerce service Tiki". Tech Crunch.
  31. ↑ "JD.com launches in Europe". Ecommerce News Europe, February 5, 2018.
  32. ↑ "Alibaba-Rival JD to Get $2.1 Billion in Finance Arm Spinoff". Bloomberg News. 2 March 2017. Retrieved 19 June 2018.
  33. ↑ "Metcash Partners with JD.Com to Sell Groceries in China - Which-50". Which-50. 21 May 2018. Retrieved 28 May 2018.
  34. ↑ "Why is JD.com spending US$400 million to buy this hotel in Beijing?". Which-50. 12 February 2019. Retrieved 12 February 2019.
  35. ↑ "JD.com to foster connected vehicle fleets with $55M investment". TechCrunch. Retrieved 14 May 2019.
  36. ↑ Kharpal, Arjun (8 October 2019). "Alibaba shopping sites appear to have de-listed Houston Rockets products in China". CNBC. Retrieved 4 May 2020.
  37. ↑ "Homecoming: E-commerce giant JD.com secretly files for Hong Kong second listing". independent. Retrieved 30 April 2020.
  38. 1 2 McMorrow, Ryan (17 August 2020). "China's JD.com reports rising profitability and sales growth". Financial Times. Retrieved 20 August 2020.
  39. ↑ "Ping An Bank Enters Strategic Partnership with JDD, Launches Joint Credit Card". chinabankingnews.com. Retrieved 22 October 2020.
  40. ↑ Arjun Kharpal (18 January 2022). "Shopify steps up China expansion through tie-up with e-commerce giant JD.com". CNBC. Retrieved 21 January 2022.
  41. ↑ "解读京腾计划，核心就这三个字"大数据"-腾讯云开发者社区-腾讯云". cloud.tencent.com (in Chinese). Retrieved 10 October 2023.
  42. ↑ "京东是怎么玩数字营销的？". 网易财经. 黎冲森. Retrieved 15 March 2018.
  43. ↑ "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.
  44. ↑ "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.
  45. 1 2 Bien, Perez. "JD.com buys US$397m stake in fashion e-commerce firm Farfetch". South China Morning Post. Retrieved 18 March 2018.
  46. 1 2 "JD.com Partners with Fashion Giant Ruyi to Make Luxury Fashion High Tech - JD Corporate Blog". JD Corporate Blog. 4 September 2018. Retrieved 12 September 2018.
  47. ↑ Wightman-Stone, Danielle. "JD.com signs "boundaryless retail" tech deal with Ruyi". Retrieved 12 September 2018.
  48. ↑ "国美苏宁触网 低价合围京东". Archived from the original on 19 March 2018. Retrieved 18 March 2018.
  49. ↑ "京东被当当激怒 砸8000万促销图书". Archived from the original on 19 March 2018. Retrieved 18 March 2018.
  50. ↑ "京东当当图书大战告停 京东准备停止直接降价".
  51. ↑ "京东商城当当网降价大战升级".
  52. ↑ "刘强东：京东与当当图书价格大战惊动版署".
  53. ↑ "京东当当大战图书".
  54. ↑ "价格大战，京东当当快疯了".
  55. ↑ "京东当当展开价格大战 亏损严重仍"争当败家子"".
  56. ↑ "当当电子书频道今日上线 未来或推299元阅读器".
  57. ↑ "电子书之战打响：出版社不满价格低". Archived from the original on 19 March 2018. Retrieved 18 March 2018.
  58. ↑ 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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