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Sunday, March 7, 2021

A Roundup of JD.com News for the Second Quarter of 2020

 


JD had a busy financial year, especially during the reporting of the second-quarter earnings. JD launched its Family Doctor Program during the same period, and JD Logistics celebrated its eighth anniversary.


According to JD.com news, the company experienced significant revenue growth during the second quarter. For example, the general merchandise category experienced a 45.4% revenue increase, which is the highest it has ever experienced during the past three years. The growth can be attributed to several factors, such as significant development of its healthcare and supermarket services, and an increase in the annual number of active customers.


Earning Highlights of JD.Com


Sandy Xu, JD's CFO revealed that more than 80% of its new users during Q2 originated from lower-tier cities. The number of new users is the highest that the company has ever recorded. The CFO further explained that the company's significant customer growth could be attributed to continued user engagement improvement, especially when handling customers from lower-tier cities. Independent scrutiny of new customers shows that JD's investment and commitment to serving customers of lower-tier towns were paying off.


The company started investing in lower-tier cities several years ago through its logistics network. JD's commitment to serving the cities has seen it introduce Jingxi, an e-commerce platform. The company has also introduced a lighter version of its app, making it easier for consumers from lower-tier cities to find suitable products. According to JD.com news, JD is also working directly with several industrial belts in China, to ensure that their products are appropriate and readily available.


The earnings reported has made it clear that JD.com is China's largest supermarket and its preferred grocery store. The CFO explained that the supermarket's fresh produce and FMCG categories were the leading revenue segments in the quarter. The two components surpassed the former "champion" categories such as computers, mobile phones, and home appliances. However, the report indicated that the three categories still performed well in terms of revenue.


The report also attributes JD's great results to its brand partners and customers' trust as a reliable service provider. JD's recent investments in several categories have seen it become more visible and trustworthy. JD is committed to investing in other companies, which complement its scope and add value to its long-term strategic ideas. JD will continue to invest in infrastructure, lower-tier cities, and supply chain.


JD Experienced a Tremendous Increase in Medical Consultation Volume


JD Health experienced a significant increase in online pharmacy sales during the 2nd quarter. Its online medical consultation segment also experienced a 400% growth. Lei Xu, the JD Retail CEO, has stated that JD Health is the most prominent pharmaceutical retailer in China.


On August 18, 2020, JD Health introduced a new program called the JD Family Doctor Initiative. The program enables up to eight family members to share a package that comprises high-quality medical services. This service ensures that family members have access to high-quality medical resources at affordable prices by using available technology and resources to improve people’s lives and health. It also aims at supplementing the existing medical resources in public institutions.


One of the most significant benefits of the Family Doctor Program is that it can be used by people who want to manage their health. It is also beneficial for people who wish to support their loved ones in managing their health.


JD.com was founded by Richard Liu, who was passionate about creating a national online platform to cater to the population's needs. JD.com is known for its unique practice of obtaining goods directly from suppliers and reselling them online to its array of customers. This distinctive practice has enabled the company to verify the suppliers' authenticity; therefore, increasing customers' trust.

 

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