- Aug 10, 2020
- Business Update
JD.com Ranks 102nd among Fortune Global 500, Rising for Fifth Year in a Row
by Vivian Yang
According to the Fortune Global 500 list released on August 10th, JD.com ranked 102nd, up by 37 places comparing with last year, marking the 5th consecutive year on the list as the largest “retail and internet service” company in China and the third largest internet company globally.
Over the past five years, JD.com has moved up 264 places on the list from its first appearance at 366th in 2016. In this period of time, the company has transitioned from being China’s biggest retail platform to a leading supply chain-based technology and service company with businesses ranging from retail, logistics, technological services, healthcare, insurance, property management, AI and Cloud, to international businesses.
In 2019, JD.com’s full-year net revenue reached RMB 576.9 billion yuan, more than tripling from five years ago. Net service income grew steadily at 44%, accounting for11.5% of overall revenue.
Over the years, the growth driver of JD.com has shifted from China’s huge e-commerce market size to the technology advantages. Technology is playing a key role in the company’s reform in terms of development and business structure. Relying on its continued development of supply chain-based technology, with growth of more than 3 times in terms of transaction volumes and doubling the number of warehouses, JD has managed to keep its inventory turnover at 35 days, the industry’s optimal level.
JD Digits, the digital technology subsidiary of JD.com, has been involving into an AI-driven technology company with a focus on providing industrial digitalization solutions that help various industries to reduce costs, improve efficiency and enhance users’ experience.
By opening its infrastructure and capacities, JD.com is currently collaborating with over 2600 global brands valued each at RMB 100 million yuan as well as hundreds of thousands of third-party merchants. The company is deepening cooperation with a number of partners such as Walmart, Game Retail, Five Star Appliance, Dixintong Technology Group (D.Phone), and Kuaishou to co-create a win-win business ecosystem based on trust and innovation.
Also in five years’ time, JD’s employees have grown from 100,000 to over 260,000, and over 15 million job opportunities have been created in the associated industry ecosystems. Moreover, JD has further integrated itself into the global industrial chain. According to the recent “Development Report on China Enterprise Digital Purchasing 2019”, as of June 30th 2020, JD serves over 8 million active business customers, covering 91% of the companies on Fortune Global 500.
On July 27th, the Chinese edition of Fortune magazine released the Fortune China 500 List for the year 2020. JD.com moved up 4 places to 13th , remaining the largest Chinese company in the “internet service and retail” category.