JD.com performed better than expected during the first quarter, driven by strong domestic demand. Meanwhile, services such as logistics are becoming increasingly more important for the Chinese e-commerce giant.
In the first three months of the year, JD.com recorded a 39 per cent increase in sales to 203.2 billion yuan (25.7 billion euros). With this, the company exceeded the average estimate of analysts by 1.4 billion euros. The profit was also higher than expected, reports Reuters.
The Beijing-based e-commerce company made new partnership deals with various (luxury) brands during the quarter, including footwear brand John Lobb (Hermès Group), Starbucks and Decathlon. For some brands, the deals also include cooperation in logistics: Italian Marni, for example, opted for a tailor-made one-stop solution covering marketing, technology and logistics. This service allows customers to buy directly from Marni while the products will get delivered by JD Logistics.
500 million active users
“Since its inception, JD.com has distinguished itself by its focus on its customers, and we are proud that today 500 million active users rely on our wide selection of quality products and outstanding customer service. JD.com is now increasingly the partner of choice for millions of businesses who benefit from our advanced logistics infrastructure to reduce costs and increase operational efficiency,” said CEO Richard Liu.
Late last month it was announced that the Chinese retailer is opening an office and distribution centre in Venray, the Netherlands. From there, the company wants to conquer the European market.