The leader of China’s B2C e-retail
Unlike its competitor Alibaba Group, which shows a strong presence in the B2B, B2C, and C2C e-commerce sectors, JD.com generated most of its revenue from its self-operated online retail business. By forming partnerships with brands, JD.com is allowed to acquire goods directly from the suppliers and store them in its own warehouses. JD.com is in charge of dispatching and delivering products to customers who place orders online through its own logistics chain. The vast majority of JD.com’s revenue was contributed by the direct sales of consumer electronics and home appliances. In 2021, JD.com was China’s largest electrical household appliance retailer, taking up nearly 33 percent of the total market.In recent years, JD.com has expanded into cross-border e-commerce and new retail sectors. In the two years leading up to 2021, JD.com imported approximately 310 billion yuan worth of goods. Its cross-border e-commerce platform, J.D. Worldwide, came in third place among all cross-border B2C online businesses. In addition, its group-buying mini-program Jingxi and fresh e-commerce business JD Fresh have seen great development recently.
JD Logistics
Ten years after launching its own in-house logistics services, JD.com divided its logistic business and founded the subsidiary JD Logistics in 2017. Four years later, JD Logistics raised 3.2 billion U.S. dollars in its initial public offering in Hong Kong, making it by far one of the largest unicorn exits worldwide. Owning 1,300 warehouses with a total of 316 thousand employees, JD Logistics was one of the most significant logistic service providers in China. Thanks to its in-house logistics network, JD.com outperformed the market and saw a significant increase in market share during the coronavirus outbreak in 2020.Apart from JD.com's internal delivery services, third-party clients were a growing source of revenue for JD Logistics. JD Logistics now has operations in nearly all Chinese cities and towns, as well as more than 220 nations and regions throughout the world. Looking to the future, JD Logistics intends to build more 5G-powered smart logistics parks with automated warehouses and its own air freight arm with at least 100 freighters.
