Chinese JD.com’s first quarter surge, exceeding 40 %, is entirely thanks to Walmart, which owns 11 % of the Chinese eCommerce company.
Net profit for the first time in several years
JD.com is China’s second largest online seller and achieved a 41.2 % turnover growth in the first quarter, up to 76.2 billion yuan (10.1 billion euro). The company’s total sales turnover grew 42 % to 184.1 billion yuan (24.5 billion euro) and for the first time since 2014, it managed a net profit: 239 million yuan (31.8 million euro).
One of the reasons for JD.com’s strong performance is its improved collaboration with American Walmart, which has been a shareholder for two years. The Chinese eCommerce platform recently added British supermarket chain Asda’s products, another Walmart-owned chain, and it also has a deal with several local Walmart stores and Yonghui Superstores to have one-hour delivery options for online orders.
It also revealed it has become the first Chinese company to enter the American Apparel & Footwear Association as a certified member. It so happens that this association already lambasted Alibaba for its counterfeit sales in the past. JD.com’s membership may be because of Walmart’s powerful position in the United States and will help it attract foreign brands that may now be willing to sell their products on the platform.