Mar 11, 2022|
JD.com’s Earnings Release: Number of JD PLUS members has Reached 25M
by Xiaoqian Han
The number of JD PLUS members has exceeded 25 million, and the average annual consumption is 10 times that of non-JD PLUS users, continuing to lead the rapid development of the paid membership field at the end of the fourth quarter.
JD.com released fourth-quarter and the year of 2021 earnings on March 10. Lei Xu, president of JD.com, said that “JD.com continued to outperform the industry and contributed to the high-quality expansion of China’s consumption and achieved a healthy profit growth in the quarter, due to improvements in efficiency driven by technology.”
With the rapid growth of its performance in the fourth quarter, JD.com’s user volume continued to increase. The number of active purchasing users, as of December 31, 2021, was around 570 million, a net growth of nearly 100 million in one year, with 70% of the new users have come from China’s lower-tier cities.
“We saw users’ shopping frequency, range of categories purchased, and average revenue per user (ARPU) all meaningfully improved in the fourth quarter. This was driven by our stronger user engagement and omnichannel initiatives,” said Lei Xu. “JD’s goal is not to chase high growth in any single operating or financial metrics; instead, we focus on the healthy and sustainable growth of our business as a whole.”
Additionally, new business Jingxi, which focuses on lower-tier markets, undertook a series of iteration and optimization measures to provide better services to customers in 2021. Since the second half of 2021, Jingxi has led the industry in proactively focusing on selected markets, as well as on efficiency and user experience, to drive local supply chain capabilities. As a result, Net Promotor Scores (NPS) for user experience and merchants’ satisfaction levels further increased.
“Through several economic cycles and COVID-19, JD’s business and investment strategies have always centered on users and business partners. This is the strategic determination and focus of JD.com.” president of JD.com, Lei Xu added.