JD.com is a popular Chinese e-commerce industry established by Richard Liu. The Beijing-based online retailer is one of China's largest e-commerce platforms in terms of net revenue. The 1973 born entrepreneur, Richard Liu, graduated with a sociology degree from China's prestigious Renmin University. Liu's passion for computers saw him join extra classes in computer programming, a course that helped him secure a job at Zhongguancun before starting his venture. JD.com, formerly known as 360Buy, started as an offline electronic shop, but the 1993 SARS outbreak's challenges opened his eyes to the online sale. In 1994, Liu closed the offline store and embarked on selling his products entirely through e-commerce. He also diversified JD.com's products to attract a huge customer base.
According to the JD.com news round-up, JD.com is making positive progress in its growth index amid COVID-19 challenges. JD.com's 2020 second-quarter report indicates a robust growth in Fresh and FMCG sales, especially in the lower-tier cities. The firm has developed numerous strategies aimed at boosting its sales. JD.com is celebrating eight years since the launch of JD Logistic to help the firm distribute purchased items to clients all over China. The Family Doctor program has also peaked up well, especially since the outbreak of COVID-19.
In the JD.com news, the firm's net revenue had a 33.8% increase, US$ 28.5 billion, with the general merchandise recording a rise of 45.4%, US$ 9.1 billion, a rare growth rate. The increase in net revenue is due to the sales increase in the healthcare and supermarket departments. JD.com's customers increased by 29.9% in the last year to reach a record of 417.4 billion.
The lower-tier regions have almost 80% of JD.com clients. The increased customers from the second-tier cities during 2020's second quarter are due to JD.com's robust investments made in the regions. The company has continually focused on improving user engagement in the lower-tier areas. The company's long-term strategy of investing heavily in the lower-tier cities has started reaping well in the past quarter. Lower-tier cities' investments began several years ago when JD Logistics developed a robust logistic network. The company later introduced a social e-commerce platform, Jingxi, and JD app to increase clients' interaction. JD.com has plans to work closely with numerous industries across China and secure a wide variety of products to improve the lower-tier cities' customer base.
In the report, the champions in JD.com's sales were the grocery and FMCG categories. Even in the first quarter of 2020, fresh produce and FMCG toped in revenue collection, therefore surpassing electronic sales. In previous years, electronics have always topped. Customers have trusted JD.com's capability and reliability in providing them with all essentials. All the categories in JD.com got more than 100% turn over, with the highest brand reaching a 300% growth. Over 20 brands had a transaction worth 10 billion Yuan.
According to
JD.com news, the company will continue its long-term plan to have strategic growth in the lower-tier cities and develop its
infrastructure and supply chain. With the 400% increase in medical
consultations, JD.com plans to make its clients more accustomed to online
medical services. JD Health is turning out to be the largest pharmaceutical
retailers in China's health industry. It is a front runner in China's online
healthcare business. JD Family Doctor Program is allowing up to eight family
members to get discounted quality medical services. JD.coms' successes in the
past years have made Fortune name it in the list of its Global 500 companies.
JD.com was in position 102, thus jumping 37 places compared to last year's
ranking. There is an anticipation of more growth in the remaining quarters.
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