JD.com, Inc., also named Jingdong (Chinese language: pinyin: Jīngdōng), globally recognized as Joybuy and previously named 360buy, is a China-based e-commerce firm with its central office in Beijing.
JD.Com, Inc. is one of the two colossal B2C (business-to-consumer) online retail merchants in the country in terms of returns and transaction volume. It is an affiliate of the Fortune Global 500 and a principal rival of Alibaba-operated Tmall. When categorized as a technology organization, JD ranks as the biggest in China in terms of earnings, and in 2021 it stood seventh in the world.
When was JD.com, Inc. established?
Liu Qiangdong set the company up on 18 June 1998. The online retail platform of the company was launched in 2004.
How did it all start for JD.com, Inc.?
The Chinese company commenced operations in the form of an online magneto-optical shop. However, the company branched out its operations shortly, merchandizing smartphones, electronics goods, personal computers, and related stuff. In 2007 June, the organization modified the domain name to 360buy.com and subsequently in 2013 to JD.com. The second acquisition is assumed to have incurred an outlay worth US$ 5,000,000. Simultaneously, JD.com publicized its new emblem and amulet. Tencent is a part proprietor of JD.com, Inc., which enjoys a 20% shareholding in the firm.
JD.com has made significant investments in high-tech companies and Artificial Intelligence transfer via drones, robots, and independent know-how. It holds the biggest drone supply setup, network, and potential in the world.
Lately, JD has commenced screening robotic supply facilities and developing drone supply airdromes, together with running driverless supply by introducing its first self-driven van.
What type of company is JD.com, Inc.?
JD.com, Inc. is a publicly-traded company.
To which industry does JD.com, Inc. belong?
The company belongs to the following industries:
- Artificial intelligence
- Self-governing vehicle
When did JD.com, Inc. come into existence?
The company came into existence on June 6, 2009; thirteen years back.
Where is the main office of JD.com, Inc. situated?
The central office of the company is based in Beijing, China.
Which area does the company cater to?
The company caters to clients based in the following countries:
Which service does JD.com, Inc. provide?
The company is a stalwart in providing online shopping services.
How many people work for the company?
The company has hired almost 310,000 people (as of December 2020).
Who are the top stakeholders of JD.com?
The following companies enjoy shareholding in the firm:
- Walmart – 10.1%
- Liu Qiangdong – 15.8%
- Tencent – 2.3%
JD.com, Inc. timeline
The company came into existence. At the time of its inception, the name of the company was Jingdong Century Trading Co., Ltd. It sold magneto-optical goods in Beijing, the People’s Republic of China.
The firm’s B2C (business-to-customer) site got live. Its name was jdlaser.com. The company commenced its Internet services and contended straightaway with other companies such as Alibaba.
The Shanghai subsidiary company came into existence in 2006 whereas the subsidiary in Guangzhou took shape in 2007. Subsequently, JD started utilizing 360buy.com, its domain name. However, the name got modified to Jingdong Mall in 2007 June.
360buy.com launched an online bookshop. DVDs, CDs, and ebooks were available in the subsequent months. The next year, 360buy.com introduced a platform called “POP” for label proprietors. en.360buy.com took shape for the overseas marketplaces in 2012 October.
The domain name of the firm was modified to JD.com in 2013.
In 2014, Tencent assumed a 15% shareholding in JD.com via cash disbursement and passing on its e-commerce enterprises QQ Wanggou & Paipai together with a Yixun venture to JD.com. The goal was to develop a more substantial contender to Alibaba Group Holding Ltd. During the same year, the court acknowledged an ancillary’s legal proceedings versus JD.com.
JD.com introduced its Russian website targeted at growing its presence worldwide. Walmart traded Yihaodian, its China-based e-commerce enterprise in 2016 to JD.com in return for a 5.9% equity shareholding estimated at US$ 1.5 billion. In 2015 October, Walmart registered 13G, unveiling it almost replicated its shareholding in JD.com to 10.9%.
In February, Wal-Mart amplified its investiture to 289.1 million stocks in JD.com, which is equivalent to 12.1%. In April of the same year, JD.com, Inc. took part in the Salone del Mobile, sporting the system Matrix, at the Università Statale of Milan. The company invested in Farfetch to the tune of US $397 million in 2017 June as an element of a fresh tactical joint venture. Farfetch is a market for deluxe brands. Walmart and JD.com unveiled the 1st yearly JD-Walmart 8 August shopping carnival in July.
Furthermore, JD.com is devoted to additionally boosting the parcel supply competence of China, with an investment of US$ 101 million for sponsoring traders on JD.com for warehousing and delivery expenses, for the forthcoming 2017 Singles’ Day. JD.com attained a sales high of US$ 19.1 billion in November.
In January, JD.com launched its opening state-of-the-art supermarket chain named 7Fresh. In the same month, JD.com invested to the tune of US$ 50 million in tiki.vn, the online retail facility of Vietnam. The company invested in the United Kingdom and France in February. Besides, the company unveiled JD Finance, its offshoot, collecting US$ 2.1 billion in capital enhancement. In May, Metcash collaborated with JD.Com for marketing foodstuff in China.
JD.com took over Jade Palace Hotel at a cost of US $400 million in 2019 in Beijing. The firm joined hands with Jiangsu Xinning Modern Logistics as well to facilitate the computerization of its logistic facilities. JD.com took out all stuff associated with the Houston Rockets in November in reply to the general manager of the firm sending a tweet on Hong Kong.
In April, the firm privately registers for the 2nd enrolment in Hong Kong. In August, the firm disclosed net profits of US$ 2.3 billion for the 2nd quarter of 2020. Resultantly, it achieved a client base comprising 417 million subscribers. Besides, JD.com declared that it would be putting US$ 830 million in the JD Health division supplied by Hillhouse Capital, a prominent private equity firm. Ping An Bank collaborated with JDD in October, to release a combined credit card.
In January, JD.com joined hands with Shopify to commence marketing Shopify’s products through its overseas e-commerce website in China.
Digital marketing endeavors
1) Jingteng Plan
In 2015, Tencent and JD.com publicized the initiation of the “Jingteng Plan”, a blend of the names of the two firms, which will render retailers with a comprehensive solution [catchphrase] to create a brand and boost marketing potential by connecting JD.com usage data with social information of Tencent. JD.com offers online shopping facilities and asserts “customer first” and “genuinely affordable rates and quality pledge”.
So far, the Jingteng Plan has achieved advancements in 3 domains:
Jingdong features one hundred and seventy million e-commerce platform subscribers, and Tencent features the biggest smartphone QQ and WeChat subscribers in China.
The plan combines social information and customer behavioral data. It blends marketing solutions [catchphrase] for social and shopping statistics.
2) Joint venture with Farfetch
Taking into account the growing count of smartphone users in China, Jingdong endowed US$ 397 million in 2017 in Farfetch, which offered deluxe e-commerce facilities founded in the central office in London.
The pact concentrated on Farfetch’s esteem for intellectual property which is a subject of distinction with Alibaba’s standing.
The Farfetch and Jingdong collaboration targets expanding their Chinese market share.
3) Collaboration with Ruyi
On September 4, 2018, the company inked a tactical deal with Ruyi, a top-rated fashion and fabric stalwart which possesses international fashion labels such as CERRUTI1881, Aquascutum, Maje, and Sandro. As mentioned in the bulletin, JD.com would install its supply chain solutions, smart logistics, big data-facilitated stock handling, and affiliation arrangements for the ancillary labels of Ruyi. Founded on this collaboration, Ruyi and JD will together set up lifestyle ideas and fashion outlets in central cities like Beijing and Shanghai.
JD.com, Inc. frequently had price battles with Dangdang, another e-commerce platform based in China famous for its fundamental trade of bookselling, and holding the top rank among all web-based business-to-customer booksellers in China in 2010. In doing so, JD accepted too many orders from customers resulting in network snags and delays in shipment of books. Thus, there was a significant grievance among the customers. Both JD.com and Dangdang came up with attractive discounts, making most of the books on their website available for download free of cost. This move faced criticism from writers like Liu Zhenyou, who alleged that both companies elevated their brand consciousness albeit their activities led to substantial losses incurred by book publishers.
JD.com Financial Performance
|Operating income||↓ US$ 649,805 million (¥ RMB4.141 billion)|
|Revenue||↑ US$ 149.325 billion (¥ RMB951.592 billion)|
|Net income||↓-US$ 701.015 million (-¥ RMB4.467 billion)|
|Total equity||↑ US$ 38.536 billion (¥ RMB245.572 billion)|
|Total assets||↑ US$77.913 billion (¥ RMB496.507 billion)|