Leading Chinese e-retailer JD.com grows web sales 78% in 2015
March 1, 2016 05:31 PM
JD.Com Inc., the top online retailer in China based on sales to consumers, reported a 78% increase in sales in 2015.
The gross merchandise value of goods sold on JD.com, which includes sales of merchandise it owns and sales by other merchants selling on JD.com, increased to 462.7 billion yuan ($71.4 billion) from 260.2 billion yuan in 2014.
For the fourth quarter, JD.com Inc., No. 1 in the Internet Retailer 2015 China 500, reported Tuesday that GMV increased 69% to 145.3 billion yuan ($22.17 billion) from $85.8 billion yuan (13.8 billion) in the fourth quarter of 2014.
Overseas brands and retailers shared in the growth, as JD.com reported that sales of imported goods on its JD Worldwide marketplace account for 1% of 2015 GMV, or about $7 billion. JD.com launched JD Worldwide last spring to compete with the Tmall Global marketplace of chief rival Alibaba Group Holding Ltd., which Alibaba unveiled in 2014.
“JD.com’s momentum continued throughout 2015 and we made excellent progress on our key strategic goals. And our expanding logistics network allowed us to further improve customer experience throughout China.” Richard Liu, founder and CEO of JD.com told analysts, according to a transcript from Seeking Alpha.
JD.com reported gains from its expansion of the selection of goods sold by other merchants on the JD.com marketplace. JD.com reported sales from its marketplace business grew 103% in Q4 year over year and accounted for 45% of gross merchandise value, while at same time its direct-sales revenue grew 54% compared with the same quarter in 2014, led by the food and beverages, cosmetics, mobile and home appliance categories.
JD.com also said consumers placed 61% of orders from mobile devices in the fourth quarter, and storage space in its warehouses around China has topped 4 million square meters (43 million square feet).
JD.com estimated its revenue growth rate for the first quarter of 2016 would be 45%-50% compared with the first quarter of 2015.
For the fourth quarter ending Dec. 31, JD.com reported:
- Net revenue of 54.6 billion yuan ($8.28 billion), an increase of 57% in the fourth quarter of 2014.
- Net loss of 7.6 billion yuan ($1.2 billion), compared to 0.5 billion yuan in the same period last year. This increase was primarily due to the closure of Paipai.com, an online marketplace where consumers and small businesses could sell, aimed at Alibaba’s Taobao. JD.com shut down Paipai.com Dec. 31, 2015.
For the year ending Dec. 31, it reported:
- Net revenue of 181.3 billion yuan (US$28.0 billion), up 58% from 115.0 billion yuan.
- A net loss of 9.4 billion yuan ($1.4 billion), compared to 5.0 billion yuan in 2014.
For more Chinese e-commerce data, please click here for the Internet Retailer 2015 China 500. While Alibaba’s big Taobao and Tmall marketplaces account for about 75% of online retail sales in China, Alibaba is not ranked in the China 500 because it is not the merchant of record for sales on its shipping portals.