Sep 12, 2024|
JD Super Celebrates 10th Anniversary with Significant Investment in Brand Growth and New Initiatives
On September 5th, in Beijing, JD Super, the supermarket division of JD.com, marked its tenth anniversary by announcing a significant RMB 10 billion investment to bolster the growth of its brand partners, with a particular focus on agricultural producers and new product launches. The event was attended by nearly 500 executives from leading fast-moving consumer goods (FMCG) companies, including industry giants such as P&G, L’Oréal, Moutai, and Yili Group.
The ceremony highlighted JD Super’s robust performance in the first half of 2024, where it saw a 20% year-over-year increase in new users and a more than 30% rise in order volume, coupled with double-digit revenue growth. As of the end of 2023, over 50 brands had surpassed RMB 1 billion in annual sales, with more than 100 brands achieving sales of RMB 500 million, and over 500 brands reaching sales of RMB 100 million.
Sandy Xu, CEO of JD.com, emphasized the significance of JD Super’s role in the company’s future, stating that its future growth will be driven by JD’s efficient supply chain, omni-channel capabilities, and an open ecosystem that supports sustainable development for all partners.
Yao Yanzhong, Vice President of JD.com and President of JD Retail FMCG, elaborated on JD’s strategy to enhance supply chain efficiency, product competitiveness, and cost-effectiveness to achieve high-quality growth on JD.com. He noted the importance of avoiding “involuntary competition” that can harm consumer interests.
In conjunction with the RMB 10 billion investment, JD Super introduced a new “arm-flinging” operation model aimed at reducing the operational burden on brand partners. This model enables brands to focus solely on product development while JD’s teams handle marketing and sales efforts. The direct procurement approach minimizes product handling, reducing costs and enhancing efficiency. Additionally, JD’s product safety monitoring labs in JD Logistics’ 45 Asia No.1 intelligent warehouses add an extra layer of quality assurance.
JD Super’s brand partners will benefit from access to over 30% of JD’s extensive marketing resources across JD.com and public channels, significantly enhancing their visibility and growth potential.
With these strategic investments and new initiatives, JD Super is poised to further strengthen its position as a leader in the retail sector, driving forward innovation and sustainable growth for its brand partners in the coming years.
(vivian.yang@jd.com)
Sep 7, 2024|
Moody’s Upgrades JD.com to A3 Rating, Citing Resilient E-commerce Business Model Operations and Supply Chain Capabilities
On September 4th, Moody’s Ratings updated JD.com’s issuer and senior unsecured ratings to A3 from Baa1 and revised the outlook to stable. This marks the third time Moody’s has upgraded the company’s rating since 2016.
“The ratings upgrade and stable outlook reflect JD.com’s leading market position in China’s e-commerce market with a unique and resilient business model, supported by deep supply-chain capability and economies of scale as well as its prudent financial policy that underpins low leverage and a solid net cash position,” Shawn Xiong, a Moody’s Ratings Vice President and Senior Analyst.
Moody’s anticipates that JD’s core retail business will experience steady to moderate revenue growth over the next 12-18 months, thanks to its expanding third-party marketplace business (3P) and an increase in the number of 3P merchants, along with a growing revenue share from JD Logistics.
Moreover, the ratings agency expects margins to remain stable during this period, driven by efficient cost control, improved operational efficiency, and ongoing product category optimization. JD’s second-quarter earnings report disclosed that its Non-GAAP net margin reached 5% for the first time, influenced by a gross margin expansion to a record level of 15.8% in the quarter, reflecting enhancements across nearly every category.
(vivian.yang@jd.com)
JD Sold Four Million Ice Cream Products in Seven Days
