JD.com (Jingdong) reported annual active customer accounts of 305.3 million in the twelve months ended December 31, 2018 (up 4.7%), from 292.5 million in 2017. JD’s quarterly active customer accounts increased by 22% year-on-year in Q4 2018.
In Q4 2018, net revenues grew by 22.4% year-on-year in net revenues to 134.8 billion yuan (US$219.6bn) in Q4 2018. Net service revenues were 14.6 billion yuan (US$2.1bn), an increase of 45.7% year-on-year. For the full year of 2018, net revenues totaled 462.0 billion yuan (US$67.2bn), an increase of 27.5% year-on-year. Net service revenues were 45.9 billion yuan (US$6.7bn), an increase of 50.5% year-on-year.
JD’s technology and content expenses increased by 82.6% year-on-year to 12.1 billion yuan (US$1.8bn) in 2018.
JD Business Developments
In October, JD held its second “Green Planet-Sustainable Week” program, partnering with the World Wide Fund (WWF) and The China Children and Teenagers’ Fund (CCTF) to raise awareness around sustainable consumption through initiatives including recycling used clothing and appliances in around fifty cities across China.
In December 2018, JD Fresh partnered with Japanese chemical manufacturing giant Mitsubishi Chemical to open the largest hydroponic “plant factory” featuring Japanese hydroponic technology in China, providing JD customers with new options for safe, nutritious and environmentally friendly products both online and offline at JD’s 7FRESH supermarkets.
As of Q4 2018, JD.com’s joint venture, Dada-JD Daojia, had partnered with more than 100,000 stores from leading supermarket brands including Walmart, Yonghui, Carrefour, and CR Vanguard, leveraging Dada’s crowd-sourcing delivery network covering more than 450 cities. Dada-JD Daojia is China’s leading on-demand logistics and omnichannel e-commerce platform.
In October 2018, JD.com formed a strategic partnership with Xinyu Group, the largest international watch retailer in China. The partnership creates one of the largest omnichannel watch sales and service alliances in China, allowing Chinese customers to enjoy seamless shopping experiences and convenient aftersales services.
In addition, in Q4, Rado, Hamilton, and Certina joined JD’s platform, adding to the list of premium international watch brands available on JD.
Iconic New York-based luxury fashion brand DKNY, and Sulwhasoo, a leading luxury beauty brand in Korea owned by Amorepacific, launched flagship stores on JD.
As of December 31, 2018, JD.com operated over 550 warehouses covering an aggregate gross floor area of approximately 12 million square meters in China.
JD.com had over 210,000 merchants on its online marketplace and over 178,000 full-time employees as of December 31, 2018.
Alibaba generated 117,278 million yuan (US$17,057 million) in revenue for Q4 2018, an increase of 41% year-over-year. Vipshop GMV exceeded US$19bn in 2018, up 21%. Tmall and JD had a combined market share of over 85% in China’s B2C e-commerce market in Q4 2018.