JD.com sales see growth in Q3 as they focus on European partnerships
JD.com sales saw an increase in Q3 as the marketplace focused on establishing partnerships with European brands.
The marketplace yesterday announced their total net revenues of ¥104.8bn (£11.76bn) in the Q3 ending on September 2018. That’s up by 25.1% on the year-on-year (YoY) rate from the same time last year. At the same time, net product revenues saw a growth of 22.8%, and net service revenues experienced an increase of 49.4% in comparison to the Q3 in 2017.
JD.com sales success is down many collaborations with international brands, says the marketplace, which also helped to improve their reputation as a reliable online channel for accessing the Chinese goods. In the third quarter, JD.com have started working with European brands L’Occitane de Provence, HOUSE 99 and Hera, and fashion brands including Salvatore Ferragamo and Furla, which became a new seller entrant on their marketplace. John Galliano, Buccellati, Shang Xia also have joined JD.com’s platform TOPLIFE. This suggests that the marketplace have received extra consumer traffic from European markets, which converted into sale transactions.
“We are pleased to report solid results for the third quarter, with our core JD Mall business driving consistent growth under its highly experienced management team.JD’s commitment to convenient, reliable service and high-quality, authentic products continues to translate into an increasingly loyal user base. Our ‘Retail as a Service’ strategy is also gaining traction as we provide a wide range of partners with innovative retail infrastructure solutions.”
-Richard Liu, chairman and chief executive officer of JD.com
JD.com are closer to European expansion than other marketplaces
While JD.com’s competitor Alibaba had promised over the course years to establish itself in Europe by introducing a digital ‘Silk Road’route to allow its merchants to sell more easily to the European market, those promises are yet to be seen. JD.com have already introduced freight train to increase the efficiency of shipping European products to China and vice versa.
Looking at JD.com results from their Singles Day, the marketplace recorded its biggest selling 11.11 event, which saw European products soar up in sales. This suggests demand for European products that JD.com is willing to deliver via its newly established partnerships. Etsy have earlier announced their plans to tap into European consumers, and now their manifestation has borne the fruits of additional income in the Q3 as a result of pan-European goods consumption on their marketplace. Now, it is only a matter of time for the marketplace to become more prominent in Europe.