Strategic and Operational Highlights

CEO Sandy Xu emphasized JD.com’s focus on improving user experience, leading to significant growth in active users and engagement. The company continues to provide a superior combination of selection, speed, quality, and price, resonating with consumers nationwide.

AI in Livestreaming

On April 16, 2024, JD.com introduced an AI digital representative of founder Richard Qiangdong Liu for its livestreaming rooms. This innovation attracted over 20 million views within the first hour, marking a significant milestone in AI integration within e-commerce.

Healthcare Expansion

JD Health partnered with pharmaceutical giants like Pfizer and Sanofi to debut new drugs online, enhancing accessibility and upgrading its one-stop medicine retailing and healthcare services through collaborations with Shanghai Pharmaceuticals and Daiichi Sankyo.

Logistics Growth

JD Logistics expanded its support for Chinese brands globally. In Q1 2024, it provided integrated supply chain services to MINISO stores in Australia and Malaysia, showcasing JD’s international warehousing and fulfillment capabilities.

Financial Highlights

• Revenue: Net revenues for Q1 2024 were RMB260.0 billion (US$36.0 billion), a 7.0% increase from Q1 2023.
• Income from Operations: Reached RMB7.7 billion (US$1.1 billion), up 19.8% from Q1 2023.
• Net Income: Net income attributable to ordinary shareholders was RMB7.1 billion (US$1.0 billion), up 13.9% from Q1 2023.
• Earnings per Share: Diluted net income per ADS was RMB4.53 (US$0.63), a 15.3% increase from Q1 2023.

Between January 1 and May 15, 2024, JD.com repurchased 98.3 million Class A ordinary shares (49.2 million ADSs) for US$1.3 billion, representing 3.1% of its outstanding shares as of December 31, 2023.

This innovative approach allows overseas shoppers to make purchases on China’s cross-border e-commerce export platforms by simply entering their foreign bank card information to complete payments.

This significant development in the acceptance of foreign payments marks a major stride in facilitating international consumer spending, simultaneously propelling Chinese export businesses to achieve global sales from their domestic bases, thereby fostering a new development pattern that promotes the mutual reinforcement of domestic and international economic cycles.

The chasm in cross-border e-commerce exports has long been a hurdle. With China’s export e-commerce rapidly evolving and becoming a new engine for high-quality foreign trade development, the sector saw a 19.6% increase in total exports, reaching 1.83 trillion yuan in 2023, according to estimates from customs data.

The Central Economic Work Conference in December 2023 emphasized expanding high-level opening up, accelerating the cultivation of new foreign trade momentum, and expanding trade in intermediate goods, service trade, digital trade, and cross-border e-commerce exports.

The payment aspect of cross-border e-commerce exports, a critical link connecting supply and demand, faces inherent “chasms” due to regulatory requirements for cross-border information and fund transfers, as well as differences in currency types, payment tools, and habits.

This has led to numerous Chinese export enterprises facing penalties on foreign platforms, frozen funds, and extended payment cycles due to a lack of understanding of cross-border payments.

JD Pay has introduced this new model under the guidance of the People’s Bank of China and the State Administration of Foreign Exchange.

Leveraging JD’s comprehensive e-commerce ecosystem, the model was developed in collaboration with clearing organizations and financial institutions, focusing on cross-border payment pain points.

It addresses compliance issues, ensuring smooth funds transfer for merchants on China’s cross-border e-commerce export platforms. Furthermore, it lowers the shopping barriers for overseas consumers, who can now pay with their international bank cards without needing currency conversion or a Chinese bank account.

Currently operational on JD Global, this new model serves Chinese mainland merchants and overseas consumers.

Going forward, JD Pay aims to further refine its cross-border payment services in close collaboration with clearing organizations and financial institutions, enhancing the payment experience and services for more cross-border e-commerce platforms and independent sites, benefiting both international consumers and Chinese export enterprises.

There are some new “situations” in this year’s 618 festival.

On the one hand, 618 has become an important opportunity for online shopping of high value and large commodities; on the other hand, it’s also a good time for families to stock up, including the sales of home appliances, 3C, food, beauty products, and etc, which will reach the peak in the first half of the year during 618.

At the same time, many big brands lead the promotion activities, and the promotion discounts also attract many new consumers.

Smart and high-quality differentiated products have become the hot spots trends in the field of home appliances, driven by promotions from both home appliance brands and major e-commerce platforms.

Get an introduction of 618 Shopping Festival here.

80% of the enterprises, surveyed by Chinese media Yibang, participated in Tmall 618, more than half of them invested more than 30% of the 618 budget in Tmall, and 40% of the enterprises surveyed expected that more than half of the 618 sales would come from Tmall.

50% of the enterprises interviewed said that in the past year, Tmall had the highest conversion among all platforms.

CIW Dossier: 618 Shopping Festival provides a perspective of the merchants regarding the performance, advertising budget, and sales expectations on the top e-commerce platforms for 618 shopping festival.

Update (21 June 2021): During this year’s “618” (June 1-20), the State Post Bureau observed more than 6.59 billion pieces of parcels, a year-on-year increase of 24.24%, and an increase of 84.16% compared with the same period in 2019.

China’s total 618 sales in 2021 reached 578.48 billion yuan, an increase of 26.5% YoY, according to data from Syntun. Top 3 channels by total sales are Tmall, JD, and Pinduoduo. Download CIW Dossier: 618 Shopping Festival to get more sales insights.

Alibaba Tmall 618

Over 67% consider Tmall as the top platform for 618.

Among the enterprises surveyed, 51% invested more than 30% of their budgets in tmall. Among them, 10.6% of enterprises allocate more than 80% of the ad budget on the Tmall platform; most allocate 30% to 50% of their total 618 budget on Tmall.

Tmall is giving away RMB10 billion (US$1.57 billion) in consumer coupons and subsidies to help further stimulate post-Covid consumption during Tmall 618 Festival 2021.

According to the official introduction of Tmall, huge discounts will be launched from June 1 to June 20. The specific activities are as follows:

• 20 yuan off every 300 yuan purchase with a total subsidy of 10 billion yuan
• 88vip members will receive additional 520 yuan
• Beauty products at flagship stores are cheaper than duty-free stores

A total of 250,000 brands participate in this year’s Tmall 618, which is 2.5 times that of last year. A total of 13 million products participate in offering discounts, of which 1.4 million are new products.

Tmall merchants almost all started the official live streaming for this year’s 618 shopping festival. About 100 celebrities have locked in Taobao Live to interact with fans. More than 500 CEOs have already made time for Tmall 618 in the agenda to face consumers and offer more brand discounts.

For more established brands, this year’s 618 festival is all about membership engagement. Shoppers who have signed up their favorite brands’ membership on Tmall can expect more additional benefits.

Tmall 618 sales

Millions of loyalty-program members on Tmall helped drive sales for 25 brands, which had each exceeded RMB100 million in transactions on June 1.

As of June 16, brand merchants have acquired nearly 60 million new members during Tmall 618, and some saw more than 50% of the transactions come from members. On June 1 alone, the first day of Tmall 618, there were 25 brands with a turnover of over 100 million yuan from members.

Since the beginning of this year, Tmall has strengthened its membership operation. The exclusive rights and benefits of brand members will be revealed many times in the search results and commodity display pagse, and various tools such as exclusive rights and benefits of members and member interaction are also provided for merchants.

About 20 brand merchants exceeded 10 million member milestone on Tmall. Alibaba didn’t disclose detailed sales value this year.

Tmall Hey Box: Alibaba’s best seller incubator for top brands

JD.com 618

Jingdong announced it will focus on live streaming, short videos, graphics, and quiz to enrich its content marketing for the ongoing 618 Grand Promotion at a kick-off event on May 20 in Beijing.

JD.com will invite more than 300 celebrities, and executives from nearly 600 brand partners to participate in various promotions through live streaming during the promotion.

The company will also invite KOLs and celebrities to create short videos to assist promotion. More than 1,000 professional buyers or KOLs from different categories will be invited to share their favorite products to drive more traffic to JD.com.

JD will hold two galas through live streaming inviting celebrities to bring consumers the festive atmosphere of 618. Leveraging JD and WeChat’s strength, JD will offer live streaming through 10 WeChat accounts.

Over 30,000 new brands and stores were launched during 618 on JD Super, JD’s online supermarket, with over 2.4 million new products.

Shoppers in Nanjing, Jiangsu province are the most active, taking the crown for the largest order volume.

Group buying is most used in Harbin. The average amount per group buy order in the chilly capital of Heilongjiang province in Northeast China this year exceeds RMB 1,000 yuan.

Other top competitors for 618 include Kuaishou, Douyin (TikTok), Pinduoduo, and Meituan.

JD & Douyin (TikTok)

JD signed a 20 billion yuan collaboration agreement with Douyin (TikTok). And, JD’s products are integrated on Douyin in this year’s 618 festival and users can buy JD products on Douyin directly without being redirected to an external page.

JD 618 Sales

In the first three minutes on Jun. 18, JD Super, JD’s online supermarket, saw sales increase 10 times, and in the first two minutes, packaged foods exceeded RMB 300 million yuan while the maternal and baby category exceeded RMB 200 million yuan.

In the first hour on Jun. 18, JD Fresh saw sales increase 70% YOY. Looking at sub-categories, seafood, meat, eggs and poultry, and fruit and vegetables increased 160%, 105% and 80% respectively. Sales of food which require little effort to prepare increased 160%.

JD.com reported a total transaction of over RMB 343.8 billion yuan for its 18-day 618 shopping festival 2021, representing a growth of 27.7% YoY from the same period in 2020 (RMB 269.2 billion yuan).

The pet category has boomed. Post-90s consumers spent an average of RMB 507 yuan per month on pet products in 2021. During 618, smart pet products increased 47% YOY.

Luxury products. Sales of Ferragamo, TOD’s, and BALLY increased 150%, 232% and 600% respectively. In addition, over 20 designer brands saw sales increase over 15 times YoY on JD platform. Consumers continue to embrace the convenience of buying luxury products online.

Sales of imported gaming phones on JD Worldwide increased by nearly three times. Imported dry cat food increased by 108%.

During the 18-day promotion, sales of JD’s online real estate business increased 230% YOY. Sales of housekeeping and cleaning services increased 6.3 times while the order number of car maintenance increased 285%.

Genetic testing service sales increased 23 times, making it the fastest-growing category of healthcare services on Jingdong. Oral health product sales increased 447%.

The top five international brands are Aptamil from Germany, Estee Lauder from the U.S., A2 from Australia, Nintendo from Japan, and Sulwhasoo from Korea. In the fresh food category, 5 million Zespri kiwis and 260,000 durians from Thailand were sold during the 18-day sale.

Social e-commerce Pinduoduo’s road to brand upgrade

618 Sales performance of other brands and platforms

Xiaomi 618

From June 1 to 18, the total GMV across all Xiaomi’s platforms exceeded 19 billion yuan (US$29.37 bn), with a year-on-year growth of 90%.

Its sales volume of smartphones ranked first among all Android phones, the TV category won first place in the sales volume / sales values. Xiaomi 11 Pro is the best selling model on both JD and Tmall.

Xiaomi’s offline sales channels saw 123% YoY increase in total transaction values. Live streaming delivered 1.34 billion yuan in total sales, an 92% growth YoY.

Douyin (TikTok) 618

Douyin 618 started on June 1st and ended at 8 a.m. on June 19th. The top 5 best-selling brands are:

1. Chuchu (new brand)
2. WHOO
3. China Gold
4. Shepinhui
5. Huawei

Apple ranks sixth overall or second after Huawei under “3C electronics” category.

The top five are expected to have sales of more than 100 million yuan. Unfortunately, Apple, Adidas, Nike, and other international brands are not expected to exceed 100 million yuan in sales on Douyin, according to Chinese media Yibang Dongli.

Douyin saw the largest new user growth of over 392% YoY among post-00s, followed by post-90s (+225.9% YoY).

This is Apple’s second year of participation in 618 and saw a sales increase of 16% YoY, according to data from Counterpoint Research.

You can bookmark this page or sign up for our weekly newsletter for future updates.

Social e-commerce Pinduoduo’s road to brand upgrade

Jingdong (JD.com) total 11-day sales during Double 11 2020 grew by 32% YoY and reached 271.5 billion yuan (US$41.02 bn) in GMV. Tmall’s 11-day Singles’ Day sales reached 498.2 billion yuan (US$75.27 billion) with an increase of 26% YoY.

Tmall Historial Double 11 Sales

CIW Premium subscribers can download this year’s update on Double 11 here.

Double 11 Sales 2020

Lenovo reported total sales of 1.3 billion yuan in the first hour of the first day (1 Nov). Xiaomi received total sales of over 1 billion yuan in less than 20 minutes of the first day.

Tmall Double 11 Sales

In just two minutes, Tmall’s smart home sales exceeded 100 million yuan on the first day. And more than 1 million smart home devices were sold in one hour.

As of 1:00 a.m. on Nov 1, the total sales of Tmall Smart Speaker ranked first in the smarter speaker category. Among them, the total sales of smart screen products increased 14 times year on year.

By 1:51 am on Nov 1, 100 brands, including Apple, L’Oreal, Haier, Estee Lauder, Nike, Huawei, Midea, Lancome, Xiaomi, Adidas had a total sales of more than 100 million yuan (US$14.95 million). The most popular categories are 3C and cosmetics.

Update (11 Nov): According to the data of Taobao Live, the proportion of GMV via live streaming exceeded 60%, and the number of live streaming merchants increased by 220%. Taobao Live promoted more than 4 million employment opportunities.

Alibaba Tmall Double 11 total GMV in 2020 reached 372.3 billion yuan (US$56.46 bn) as of 00:30 am on 11 November.

Update (12 Nov): Tmall’s 11-day Singles’ Day sales reached 498.2 billion yuan (US$75.27 billion).

• 250,000 brands in total participated in Double 11 this year, of which 31,000 are overseas brands. Within these overseas brands, 2,600 participated in 11.11 for the first time.
• 357 emerging brands became top sellers in their respective subcategories. More than 1,800 emerging brands surpassed their GMV from Double 11 last year and, of these, 94 emerging brands enjoyed sales growth of over 1,000%.
• Under Alibaba’s Spring Thunder initiative, 1.2 million merchants and 300,000 factories focused on overseas trade from more than 2,000 industry clusters across China participated in Double 11.
• AI customer chatbot handled over 2.1 billion queries during the 11-day period.
• The United States was the top country selling to China by GMV.
  • Other top-selling countries to China, in alphabetical order, include: Australia, Canada, France, Germany, Italy, Japan, Korea, New Zealand and UK.

JD.com Double 11 Sales

Jingdong (JD) released the first day Double 11 report, and the turnover of the whole day increased by more than 90% year on year.

According to JD big data, FMCG products such as milk and dairy products, shampoo, rice, biscuit cake and paper drawing have become the top five categories in terms of sales, while 3C household appliances such as mobile phones, washing machines, flat-panel TVs, refrigerators, laptops and other household appliances rank first by total sales.

JD Plus, which recently reached 20 million members, saw a lot of activity on Nov 1st. The number of new users on Nov. 1st increased 113% YoY.

JD’s C2M home appliances, which have quickly become popular for their high cost-to-performance ratio also performed well. Twenty products from this line selected as priority quickly exceeded sales of RMB 200 million yuan on the first day.

Personal care home appliances grew 180% on the first day of sales, among which makers of hair dryers, electric razors and more such as Dyson, Philips, Flyco, Panasonic, Braun and Oral B were highest ranked in terms of sales.

Mobile phone sales in half an hour saw 314% growth. JD’s special mobile phone for the elderly saw eight times growth in the first 15 minutes, while users who participated in JD’s trade in program in the first 30 minutes increased 465%.

JD Luxury saw whole day sales on Nov. 1 up 138% YoY. In the first 30 minutes, 127 brands including Ferragamo, Ralph Lauren and Tod’s saw sales up 10 times YOY. International jewelry brands were up six times.

Update (11 Nov): JD Double 11 total GMV in 2020 since 1 November exceeded 200 billion yuan (US$30.33 bn) as of 00:09 am on 11 November. Here are a few quick highlights:

• In 6 seconds sales generated from live-streaming exceeded RMB 100 million yuan
• In the first 11 minutes, JD private label sales exceeded sales of the whole day on Nov. 11^th last year
• Haier, Midea, Gree and other brands sold over RMB 100 million yuan in products in one minute
• Huawei Mate 40 sales in 7 seconds exceeded RMB 100 million yuan
• Over 100,000 computers were sold in 10 minutes
• The turnover of JD Super, JD’s online supermarket increased 10 times YOY in the first five mins of sales
• JD Fresh increased 5 times YOY in the same timeframe
• JD’s international business saw transaction volume increase more than 120% YOY in the first 10 minutes
• JD’s imported goods supermarket saw turnover increase 2.5 times month-on-month
• 93% of first party orders placed during the Singles Day Grand Promotion have been delivered to customers in 24 hours

JD’s Consumer-to-Manufacturer (C2M) home appliances, which quickly became popular in the market because of their high-cost performance and ability to meet consumers’ demands, were highly sought after during the Singles Day period.

Twenty products hand selected by JD as development priorities quickly exceeded RMB 200 million yuan when the official sales period kicked off on Nov. 1^st.

C2M relies heavily on JD’s supply chain abilities. JD helped with sales forecasts for 33,000 brands and 5 million products and automatically deployed them to the locations nearest to users in advance.

Update (12 Nov): Jingdong (JD.com) total sales during Double 11 2020 grew by 32% YoY and reached 271.5 billion yuan (US$41.02 bn) in GMV.

Starbucks saw one-day GMV growth of over 90% YoY on 11 Nov to 200 million yuan.

Other Platforms

Suning reported 5 billion yuan sales across all channels as of 00:19 am on 11 Nov.

Gome GMV increased by 166%. In terms of online platforms, the sales of general merchandise increased by 237% month on month, and that of maternal and infant commodities increased by 314%.

Xiaomi reported total sales of 14.3 billion yuan across all platforms in the 11-day sales.

Come back soon; we’ll update with the latest information on Double 11. You can subscribe to e-newsletter or paid subscription. 

Dossier: Double 11

How JD penetrates lower-tier cities with social e-commerce initiative

Double 11 Introduction

Alibaba Tmall Double 11

Alibaba Taobao kicked off its Double Eleven Global Shopping Festival (“Double 11”), the largest annual shopping festival in China, on 21 October 2020 with new innovations and features to meet rapidly changing consumer trends.

These include the participation of Alipay’s digital lifestyle platform; broader consumer reach and bigger promotions, “double” the number of shopping windows that will spotlight more brands, products and special offers, and the popular live streaming technology creating more fun and engagement for Chinese consumers with the largest international presence to date.

For many brands, Double 11 is the single biggest growth driver every year and this year will be no exception. Check out Double 11 2019 performance.

Read our guide on Double 11 here.

Deepening Engagement to Create “Double” Opportunities

This year the Taobao/Tmall Double 11 Festival expands the concept from “single” to “double,” enabling merchants to double up on promoting their products to consumers across China not just once, but twice, according to Alibaba’s official announcement.

A new sales window will be added from November 1 to 3 on Taobao/Tmall platforms, ahead of the main event on November 11, with the aim of providing merchants, specifically new brands and small businesses, the opportunity to showcase their products and tell their brand stories amid the pandemic.

Double 11 has become one of the most important new product launch events of the year for many brands. This year, more than 2 million new products will be introduced, which is double the amount compared to last year.

Double 11 will be offering more opportunities for merchants both online and offline to engage with consumers as well as provide a better consumer experience overall.

This year’s Taobao Double 11 experience will also be enhanced by Alipay’s digital lifestyle platform, which brings together nearly 2 million local service providers offering special promotions in more than 100 cities.

Offline small- and micro-merchants across China, such as street stalls and neighborhood grocery stores, will be able to participate in the excitement of Double 11 by connecting with consumers through Alipay’s digital lifestyle platform.

Big Growth Driver for Participating Brands

Alibaba launched Spring Thunder Initiative early this year as a continuous effort on merchants empowerment and Double 11 is yet another milestone to help merchants regain growth.

This year’s Taobao Double 11 Festival will feature 14 million value-for-money products from more than 250,000 brands available on Tmall.

Also, to cater for the needs of customers in lower-tier cities, Taobao Deals’ “RMB1 Sales” campaign will enable consumers to purchase goods at huge discounts with free shipping.

To meet Chinese consumers’ increasing demand for international products, Tmall Global will bring more than 2,600 new overseas brands to Chinese consumers for the first time. Alibaba’s cross-border e-commerce platform Kaola will also join Double 11 for the first time, featuring products from 89 countries and regions.

Live streaming and Logistics Core to the Event

Live streaming is expected to take the center stage of this year’s Taobao/Tmall Double 11.

In addition to sessions hosted by top live streamers, about 400 company executives and 300 celebrities will also hold individual live streaming sessions. Taobao Live will offer sessions ranging from cosmetics, electronics, to cars and houses.

New features like online property viewings and virtual vehicle test drives will provide a more realistic and engaging experience to help consumers with their buying decisions. Alibaba’s DAMO Academy will use artificial intelligence technology to create its first virtual live streaming host while Fliggy will host travel-related live streams.

This year’s event will have the largest international presence since it was founded in 2009.

AliExpress now sells to more than 200 countries and regions worldwide. Lazada was the first to bring the shopping festival concept to Southeast Asia across six markets – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Shopping festivals such as Double 11 have also become one of the key industry growth drivers as local small-and-medium businesses participate in this biggest event alongside LazMall, the region’s largest online mall with more than 18,000 local and international brands.

This year Lazada will continue its “shoppertainment” features ranging from live streaming to new consumer games and innovations such as voice search to find items.

Alibaba’s robust technology and logistics infrastructure is the backbone of the Double 11 Shopping Festival. Cainiao will charter approximately 700 flights during Double 11. More than 50% of this year’s cross-border parcels are expected to be delivered twice as fast as its usual speed.

JD Double 11

JD also kicked off its Double 11 2020 campaign on 21 October 2020. JD is expected to be the first choice of consumers buying 3C products (mostly computer, consumer electronics, and communication products) in this year’s Singles Day promotion, according to Nielsen.

Double 11 Pre-sales

Nearly 140 million items were sold during the pre-sales period from October 21st to 28th, an increase of over 42.3% from the same period last year, of which JD.com sales increased by 85.5%, according to O&O Consulting.

Products worth more than RMB 1,000 yuan accounted for 48.3% of JD’s pre-sales. Pre-sales of medicine and health care on JD increased by 378% YoY while home furnishings increased by 79.3%. One of the reasons cited for the increase is people’s yearning for a sense of security and stability after a very tumultuous start to 2020.

During the pre-sales, home appliances, computer and office supplies, maternal and child, medical and health care and other categories saw growth of over 100% YoY, indicating that after the epidemic consumer demand to “settle down” has become more important.

According to JD’s own data, from October 21st-29th advanced orders for health equipment, Chinese and western medicine, and traditional nourishment on JD’s platform increased more than 10 times compared with the same period last year.

Orders for fitness and exercise equipment increased more than three times, while health-conscious small home appliances increased four times YoY.

In terms of key sub-categories such as computers, electrical appliances and home furnishing, JD’s pre-sale volume of mid and high-end goods exceeded peers, especially in the home decoration category.

O&O data finds that consumers have a tendency to turn to JD for purchases in the durable consumer categories such as large household appliances, computers, and household appliances, with the platform making up 62.7%, 82.6% and 82.7% of pre-orders respectively by category.

The acquisition gives JD access to VIPMRO’s over 100,000 offline retail stores.

MRO business covers over 10 million SKUs, many of which are long-tail and non-standard items. Through the strategic investment in VIPMRO, JD is able to speed up its development in the MRO industry while satisfying increasing demands from clients.

VIPMRO will be positioned as a sub-brand of JD MRO and provide its services to offline retail stores. Connecting with manufacturers will help JD build an even more comprehensive and smarter supply chain for MRO products.

In addition, through “Partner Store” plan, JD MRO will provide digital solutions for offline stores in the areas of product selection, transportation and delivery, installation and more, to improve their operation efficiency.

About VIPMRO

Within a few months after its launch in 2014, VIPMRO.com has successively reached strategic cooperation with dozens of well-known enterprises including ABB, Omron, Schneider and other global companies, becoming the first e-commerce platform for several industry-leading brands to cooperate in China, opening up a precedent for B2B e-commerce platform in the electrical field.

China B2B market status 2020; e-commerce revenue up 20%

This year, the total operating revenues of the 500 listed Chinese companies reached 50.5 trillion yuan, an increase of 11% over the previous year; and the net profit reached 4.2 trillion yuan, an increase of more than 16% compared with last year.

The annual revenue threshold of listed Chinese companies on Fortune 500 list this year is close to 17.8 billion yuan, which is nearly 10% higher than that of last year. Last year, China’s GDP exceeded 99 trillion yuan, which means that the total income of the 500 listed companies on the list is still more than half of China’s GDP in that year.

The top three companies in this year’s Fortune 500 list have not changed, with Sinopec, PetroChina and China State Construction Engineering (CSCEC).

Ping An Insurance of China ranks fourth and still ranks first among non-state-owned enterprises. Jingdong (JD.com) and Alibaba, two “Internet service and retail” enterprises, both ranked higher. Among them, JD rose to 13th place and Alibaba ranked 18th.

From the industry point of view, with the gradual profitability of some top Internet service companies, the net profit created by the industry on the list increased by more than 300% year-on-year.

2019 is the first year of “new infrastructure”, but because of its relatively low absolute proportion in fixed assets investment, “old infrastructure” still plays an indispensable role.

The total revenue of infrastructure, construction, power, construction machinery, port and logistics related industries in the Fortune 500 list of China’s “traditional infrastructure” reached 8.6 trillion yuan, 17.7% higher than the previous year’s 7.4 trillion yuan. This industry is still one of the important pillars of stable economic growth.

This year, there are 39 new and re-listed companies on Fortune China 500, of which Pinduoduo is on the list for the first time and ranks 321st with total revenue of 30.1 billion yuan.

Another new company worth mentioning in the Internet field is Joyy. This company, which mainly deals in live game broadcasting, is also on the list for the first time, and ranks 359th on the list with revenue of about 25.6 billion yuan.

In addition, the newly listed companies also include Grandjoy Holdings Group, which is engaged in real estate investment and management, and the “king of smartphones in Africa” Transsion.

In terms of profitability, the situation is the same as the previous year. In addition to several major commercial banks and insurance companies, the top 10 companies by net income are still Alibaba Group Holding Co., Ltd., China Mobile Co., Ltd. and Tencent Holding Co., Ltd.

The total profits of the ten companies last year were about 1.7 trillion yuan, nearly 40% of the total profits of the top 500 companies.

In 2019, 15 listed companies in Fortune 500 failed to make profits, with a total loss of about 80.7 billion yuan. Qinghai Salt Lake Industry Co., Ltd. ranks first in the loss list, with a loss of more than 45.8 billion yuan. iQiyi, the second-largest-loss company, lost 10.3 billion yuan.

Pinduoduo, which competes for users in the first and second-tier cities with low commodity prices, has a loss of more than 6.9 billion yuan in 2019, ranking third in the loss list.

Among all the listed companies, the real estate industry accounts for 4 of the top 10 companies with the highest ROE. Among them, Yanlord Land Group Co., Ltd. has an ROE of 43.5%. Netease was second by ROE. The agriculture, forestry, animal husbandry, and food and beverage industries have three seats in the Top Companies by ROE list, which are:

• Foshan Haitian seasoning Food Co., Ltd.
• Wenshi Food Group Co., Ltd.
• Guizhou Maotai Liquor Co., Ltd.

If you have CIW Premium subscription, visit this page for the full data including Chinese company name, revenues, and net income to copy or download in your preferred format.

Top 500 Companies in China

Total transactions during China’s 618 shopping festival in 2020 reached 16.91 trillion yuan (about US$2.38 trillion), up 42% from last year, according to Chinese online payment clearing house NetsUnion Clearing Corporation (NUCC).

During the “618” online shopping festival from June 1 to June 18, a total of 26.18 billion transactions were made, an increase of 52% year on year, said the NUCC.

Alibaba Taobao/Tmall 618 2020

More than 100,000 brands have signed up for this year’s Tmall 618, double that of last year’s 618. More than 10 million items have been discounted to participate, which is in line with last year’s Double 11.

Tmall 618 generated a total sales of 698.2 billion yuan (US$98.49 bn). SME merchants saw one more billion orders during this year’s Tmall 618.

The import consumption of Tmall Global increased by 43% year on year. The direct purchase transactions of overseas warehouses increased by 199% year-on-year. As of June 18, more than 4,000 overseas brands doubled year-on-year growth.

Over 2 million merchants opened stores on Alibaba’s Taobao e-commerce platform since the pandemic, creating over 40 million jobs. C2M orders have grown by 500% YoY.

Tmall 618 Warming Up

On May 19, Tmall announced that during the period of 618, Tmall will, together with many local governments and brands, issue the largest scale of cash consumption coupons and subsidies this year, with an estimated amount of more than 10 billion yuan.

Chinese cities have been issuing billions worth of e-coupons to stimulate consumption.

Mini Program platform compared: WeChat vs. Alibaba vs. Baidu

According to Tmall, more than 100,000 brands have signed up for this year’s Tmall 618, double the number last year.

In addition, more than 10 million products will offer discounts in this year’s Tmall 618, which is in line with last year’s Tmall Double 11. All these figures have broken the historical record of Tmall 618.

In this year’s Tmall 618, Alibaba took “consumption voucher” as a new way of “festival making”, leading the national consumption recovery, promoting the release of China’s domestic demand potential, and bringing the biggest growth opportunity for the brand in the first half of this year.

Tmall said that the cash consumption coupons and subsidies issued by Tmall 618 will cover the broadest population ever. Besides, the conditions for using cash vouchers and subsidies will also be the most relaxed this year.

Tmall 618 presales started from 0:00 on May 25, with official sales starting on June 1 until June 20, 2020.

The epidemic has affected all aspects of society, and businesses have also suffered from different degrees of damage. They are looking forward to “a key battle”, either to turn the tide or to ensure growth.

Tmall 618 is such an opportunity. According to the analysis of the insiders, the biggest wave of consumption subsidy will come in Tmall 618 after the epidemic enters the stage of normalization prevention and control.

Tmall and over 100 furniture sellers, such as IKEA, Kohler, KUKA, QuanU, and Linshimuye, will launch a 3D shopping feature, allowing customers to “see” how the furniture fits into their homes.

Affected by the epidemic, since February of this year, a large number of offline stores have launched stores on Tmall, including IKEA, Tesla, and etc.

Close to 180 luxury brands are participating this year, nearly double the amount from Double 11 2019 Global Shopping Festival. Burberry, Montblanc, Cartier and Michael Kors are offering customized special edition items co-created with Tmall just for 6.18.

Coach, MCM, and Theory are participating in the campaign for the first time, and all recently launched outlets on Tmall Luxury Soho.

To many merchants in China, previously participating in the 618 promotion was a growth engine; but, now it’s more “life saving”.

Tmall 618 First Day Sales

In the first hour of Tmall 618 pre-sale, the total transactions increased by 515% year on year. Within the first two hours of the pre-sale, the transactions of several brands including Lancome and L’Oreal exceeded 100 million yuan. Subscribe to get more timely insights.

At the opening, an hour and 29 minutes of Tmall 618, the total transactions referred by Taobao Live reached 2 billion yuan (US$280 million), far more than that of the same period last year.

Since the launch of Tmall 618’s pre-sale on May 25, the number of live shows on Taobao has exceeded 1.4 million.

On June 1, Taobao Live delivered total sales of 5.1 billion yuan with over 20 brands and merchants exceeding 10 billion yuan in live streaming.

Jingdong (JD) 618 2020

JD 618 total transactions (1-18 Jun) reached 269.2 billion yuan (US$37.98 bn), up 33.6% YoY.

• Top categories by growth rate: fresh food, medical & health care, kitchenware
• Top categories by sales: mobile phones, home appliances, PC & digital products
• Top categories by the total number of customers: food & beverages, baby & maternal, beauty products

JD’s 7Fresh GMV increased by 100% year on year, and the turnover of more than 1000 fresh brands doubled during JD 618 sales (1-18 Jun).

More than 25,000 live broadcasts of Jingdong home appliances during 618 delivered the more GMV than the first five months’ total.

In addition, during the whole 618 periods, the cumulative turnover of air conditioners doubled over the previous year; the cumulative turnover of refrigerators and washing machines increased by 130% over the previous year; there are 10 third-party stores with a turnover of more than 100 million yuan on JD home appliance platform, and more than 1000 third-party stores with a turnover of more than one million yuan.

This is the 17th year for JD.com to hold its 618 Grand Promotion. JD will provide RMB 10 billion yuan in subsidies, hundreds of billions of discounts, and 10 billion yuan consumption coupons during the JD 618 event this year, announced on 25 May.

JD 618 Planning

This year’s 618 is the sales promotion with the largest amount of discounts ever with most new product launches. Among the many discounts and promotions offered, JD.com provided over 200 million units at a 50% discount and sell over 200 million units of new products.

JD.com would also help more than 150 brands to sell over RMB 100 million in products through innovative empowerment initiatives, subsidy support and other measures, and help more than 100,000 small and medium-sized brands and merchants to double their transactions.

JD would host over 300,000 key live streaming sessions during this year’s 618. It will also work with partners including Kuaishou, Douyin (TikTok), Wesee, Bilibili, Huya, Douyu, and others.

JD would invite top executives from brands such as Huawei, Honor, and Haier to interact with consumers directly, offering big discounts. JD’s executives and sales managers will also join JD Live.

JD Live would invite more than 100 civil servants, such as mayors, county heads, and directors of commerce to act as live streaming anchors to promote local agricultural products to help farmers and industries affected by COVID-19.

Home Appliance

Over 40 brands have created over 200 special production lines to produce over 1,000 exclusive products.

For example, Dyson would offer 70% of its Dyson Airwrap inventory to JD during 618. Some other promotions include a 60-inch 4K TV for less than RMB 2,000 yuan, a 55-inch 4K smart TV for RMB 1399 yuan, a Panasonic dishwasher for RMB 1899 yuan, and a new Midea air circulator for RMB 459 yuan – prices are significantly lower than usual.

JD has upgraded its service during 618 so that customers can enjoy a 30-day price protection policy for home appliances bought on JD’s first-party platform, and the option to replace a new home appliance with a quality problem within 180 days.

JD would also provide integrated delivery and installation service for TVs, and fast installation service for air conditioners.

JD would also offer RMB 300-600 yuan subsidies for people who trade in old air conditioners for new ones. It would provide a pre-sale video service to help guide consumers in the purchase of home appliances.

In addition, offline stores JD’s E-Space would participate in a 24-hour promotion on June 18th, providing customers with subsidies and discounts. JD’s over 12,000 home appliance experience stores would leverage live streaming for marketing promotion, covering Hebei, Henan, Hunan, and Guangdong provinces.

JD 618 First Day Sales

JD 618 started at 0:00 on June 1. According to JD, in the first hour, the transactions of Apple products were three times of that of the same period last year; luxury goods achieved a 400% growth and completing full day sales last year.

June 1st, the first day of JD’s 618 Grand Promotion, saw total transaction growth of 74% YoY. Forty brands individually achieved sales of over RMB 100 million. Check out the 7 consumption trends based on first-day sales data.

Sales of JD Super, JD.com’s online supermarket, increased by 100% compared with the same period last year. Sales of JD.com’s 7FRESH increased by more than 140% compared with the same period last year and JD New Markets grew by more than 100% year on year.

Compare with the same period last year:

• On June 1^st, sales of food categories in JD Super was three times.
• Sales of baby and maternal categories increased by 100%
• Sales of pants-type sanitary pads in the individual care category and female care increased by 12 times.
• Dental patches under the subdivision of oral care increased 19 times
• Sales of smart pet devices increased nearly 7 times
• The two-hour sales of toys exceeded the all-day sales of last year.

JD.com’s customized products also witnessed explosive growth including C2M, exclusive brands, first sales of new products, underwriting of tail goods, exclusive specifications, etc., and in only 4 hours exceeded the all-day sales in the same period last year.

JD Super brand merchants and retailers made efforts to reach the lower tier market. JD Super got off to a good start for 12 hours on June 1st. Sales in the lower tiers market increased by 160% compared with the same period last year, and the number of users from lower-tier markets increased by 83% compared with the same period last year.

JD.com’s outbound e-commerce platform witnessed a 742% growth in transaction volume on June 1st , compare with the same day of last year.  The top five markets are the United States, Hong Kong, Taiwan, Japan and Canada.

The number of customers in Hong Kong grew by 370% year-on-year, while transaction volume by 266% year-on-year.

JD Worldwide (Cross-border e-commerce platform)

On June 18th, sales of JD Worldwide (JD’s cross-border import e-commerce platform) increased 110% y-o-y. Imported pet products increased nearly 400% y-o-y, imported beauty products increased 180% y-o-y, and imported electronics products, maternal and baby products, health care products, fashion products have all increased over 100% y-o-y.

From June 1^st to 18^th, over 30% of countries saw sales of their products more than doubled.

JD Worldwide has introduced over 1,000 new brands as of May 2020, and welcomed over 500 stores on third-party platform, including Abbott, Nestlé, as well as international chains such as South Korean department store AKPLAZA and Japanese drugstore Daikoku Cosmetics. During this 618, sales of the stores increased by over 100%.

This 618, JD Worldwide introduced 30,000 new international products to JD customers. On June 18^th, sales of new products were 15 times that of the average daily sales in May. From June 1^st to 18^th, sales of over half of the new products increased by over 200% compared with the same period of May.

Other Retailer & E-commerce Platforms

Gome’s one day GMV on 18 June increased by 73.8% YoY. 65 inch TV sales increased 186% year-on-year, and OLED TV showed 285% growth. Its 618 sales (1-18 Jun) exceeded May’s total sales.

Xiaomi’s total sales have reached 10 billion yuan across all platforms during the 18-day sales period.

Subscribe to CIW Weekly, our weekly e-newsletter to receive updates:

[do_widget id=enews-ext-2]

Top traffic driver compared: TikTok/Douyin vs. Kuaishou vs. Bilibili vs. RED

The AR function will leverage Sony’s ToF (Time-of-Flight) distance measurement technology so that customers can simply use their mobile phones, equipped with a ToF camera, to measure their foot size by scanning the front and side angles of their feet.

JD launched a new AR feature on JD’s mobile app for online customers earlier this year to virtually try-on shoes. AR Shoes Try-on is now available for over 1,000 sneaker SKUs on JD.

JD are already offering several AR applications such as AR Fitting Room, AR Styling Station, and AR Shopping, which along with the new feature are open to its external partners through a PaaS (Platform-as-a-Service) solution.

JD will further develop its AR offerings in more scenarios such as AR skin evaluation and AR live streaming. JD is among the five Chinese companies on BCG’s Top 50 Most Innovative Companies list in 2020, ranking 31st globally.

China mid-year 618 shopping festival: Taobao vs. JD

BCG research has shown that companies doubling down on innovation during downturns—using the opportunity to invest and position for the recovery—outperform over the long term.

Of the 162 companies that have been on BCG’s top 50 “most innovative companies” list over the past 14 years, nearly 30% appeared just once—and 57% appeared three times or fewer. Only 8 companies have made the list every year: Alphabet, Amazon, Apple, HP, IBM, Microsoft, Samsung, and Toyota.

Only 20 Companies (12%) have made the Top 50 List more than 10 times: Daimler, Dell, Facebook, Siemens, Walmart, 3M, GE, Intel, Nike, P&G, BMW, Cisco, Alphabet, Amazon, Apple, HP, IBM, Microsoft, Samsung, Toyota.

Five Chinese companies made it to the Top 50 Global Most Innovative Companies list, including Huawei (6), Alibaba (7), Tencent (14), Xiaomi (24), and JD (31).

While 60% of companies rank innovation as a top 3 priority, not all walk the talk, according to the BCG survey.

Top Mobile Apps in China

Sales of admission tickets for amusement parks rose by 437% on JD compared with the same period last year. Sales of suburban amusement tours increased by 153%, in which sales were up 300% in several scenic destinations areas in Beijing, Xinjiang, Yunnan, etc.

Hotel sales went up by 106% on JD, and hotel stay &entertainment package sales were 6 times more than the same period last year. Domestic flight tickets sales were up 172% while mobile payment services surpassed 427%.

JD Travel is part of JD’s Life & Services business group. Other services include automotive maintenance, online real estate purchase, online auction and fresh flowers booking.

With over 100,000 products from 30,000 well-known brands offered online which in turn activate over a million offline business, JD Life & Services is providing a variety of promotions during 618, many of which represent more than 50% discounts.

The growth of consumption of daily life services signifies the beginning of an overall economic recovery. JD Life & Services for consumers is playing an active role in integrating online and offline, and retail and services.

Check out 618 Shopping Festival: Taobao vs. JD