Chinese consumption is picking up, according to figures from e-commerce giant JD.com, which had a better-than-expected first quarter. The company appoints a new CEO.
Low costs, low prices
JD.com saw sales rise by 1.4% to 243 billion renminbi (32.1 billion euros) in the first three months of the year. This modest growth is nevertheless better than what analysts had expected. Chinese consumers are quietly spending more money online again now that the corona pandemic is behind them. Thanks to cost savings, net profit actually rose 88.3%, from 6.4 billion renminbi (844 million euro) to 2.4 billion renminbi (317 million euro).
The company attributes the good figures to its open ecosystem that allows it to offer shoppers a wider selection of product categories and price levels. The company is investing in streamlining its supply chain to offer lower prices.
CEO Lei Xu is leaving the company for personal reasons. Finance director Sandy Ran Xu succeeds him.