JD.com: net revenue +29.2% in 2020Q3

Jiong-Jiong Yu
Senior Retail Analyst

Date : 18 November 2020

JD.com reported net revenues of CNY174.2 bn (US$25.7 bn) for the quarter ended 30 September, 2020, an increase of 29.2% year-on-year (YoY).

Significant KPI (key performance indicator) increases

  • Net revenues: CNY174.2 bn (US$25.7 bn), +29.2%YoY
  • Net service revenues: CNY22.8 bn (US$3.4 billion), +42.7%YoY
  • Annual active customer: 441.6m in the twelve months ended 30 September, +32.1%YoY.

Today, as China emerges from the pandemic, we are glad to see that our business partners are recovering rapidly with the support of our online and offline supply chain infrastructure. And our consumer mindshare continues to expand with over 100 million new active users joining our platform compared to a year ago,” Richard Liu, Chairman and Chief Executive Officer of JD.com, adding, “We look forward to continuously leveraging JD’s leading supply chain-based technology and nationwide infrastructure for the benefit of the society.”


Source: JD.com



FMCG Omnichannel business is a key growth area

The Q3 results also highlight the potential of the retailer’s FMCG Omnichannel business, consisting of JD.com online and offline supermarkets and several other business models.  

Going forward, the retailer will concentrate on the following two aspects to capture the growth momentum:

  • Omnichannel as a key theme: Carol Fung, President of JD FMCG Omnichannel said: “… Omnichannel has become a key theme for our business and more brands are joining hands with us on this. We continue to find that our strong supply chain ability and the development of deep and sustainable win-win partnerships with brands are instrumental in meeting the needs of our diversified consumers across countless scenarios…
  • Further embedding in lower-tier cities: customers from lower-tier cities continue to drive growth. JD Super saw transaction volume up by 12 times YoY from these markets during the first five minutes on 11 November, according to JD.com’s report. Sandy Xu, CFO of JD.com, said:” We have demonstrated or proved the business model for our traditional B2C operations. And now… we are also exploring different business models of initiatives in this area, covering top-tier and lower-tier markets”.

Headroom for growth in the fresh food area

JD.com also shared the view that there is huge growth potential in the fresh food category.

Mr Lei Xu, CEO of JD retail, told the press that the top 10 grocery retailers in China are only responsible for 5% of the country's fresh food market, much smaller when compared to the European and US markets. “The Chinese market is more complicated,” he added.

Other business highlights

JD Retail:  subscribers of JD PLUS, JD.com’s paid membership program, exceeded 20 million in October 2020. Membership benefits include exclusive sales discounts, shipping savings and 24 hour dedicated customer services etc.

JD Health: in August, JD Health launched its JD Family Doctor brand. The program offers one-stop services integrating all of JD Health’s online healthcare services and providing Chinese families with various family-oriented health management packages, including dedicated family doctor teams, unlimited specialist consultations, doctor referrals, 24/7 health manager services and more.

JD logistics:

  • As of 30 September 2020, JD Logistics operated over 800 warehouses, covering an area of approximately 20 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform
  • In September, JD Logistics and Nestlé co-launched a large-scale smart storage and distribution center in Tianjin