Overview
JD.com is an online retailer in China.
JD is based in Beijing and incorporated in the Cayman Islands.
Credit:
Ad Age composite
Business segments and operations
See more: JD’s business and operations
JD described itself this way in a March 2024 earnings release:
“JD.com is a leading supply chain-based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it.
“The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.”
JD is primarily focused on business-to-consumer online retailing. Chinese e-commerce rival Alibaba Group Holding has a heavier focus on business-to-business e-commerce, offering a marketplace for buyers and sellers.
Rankings
JD ranked as the world’s seventh-largest retailer in the Top 250 ranking based on fiscal 2021 sales in Deloitte’s Global Powers of Retailing 2023 report.
Marketing spending
Worldwide ad spending:
Total worldwide ad spending figures shown in the Ad Age World’s Largest Advertisers report are JD’s stated worldwide “advertising expenditures” (also called “advertising costs”) converted to U.S. dollars by Ad Age Datacenter at average exchange rates.
JD disclosed advertising expenditures of 31.761 billion renminbi ($4.494 billion) in 2023.
In its annual filing for the year ended December 2023, JD said advertising costs “consist primarily of online advertising, offline television, movie and outdoor advertising, and incentive programs to attract or retain consumers for the group’s online marketplace.”
JD made its debut in the Ad Age World’s Largest Advertisers ranking in the December 2022 report.
Links to Ad Age’s advertiser rankings
Latest rankings: U.S.
The Ad Age Leading National Advertisers 2024 ranking was released on Oct. 28, 2024.
Past rankings: U.S.
Ad Age Leading National Advertisers 2023
Ad Age Leading National Advertisers 2022
Latest rankings: worldwide
The Ad Age World’s Largest Advertisers 2024 ranking was released on Dec. 9, 2024.
Past rankings: worldwide
Ad Age World’s Largest Advertisers 2023
Ad Age World’s Largest Advertisers 2022
Financial results
The bulk of JD’s revenue comes from online retail sales in China. Net revenue in the company’s JD Retail segment in 2023 was equal to 87% of JD’s total net revenue.
JD does not break out geographical information beyond China since most of its revenue comes from within China.
See more: JD’s quarterly results and SEC filings
Deals and strategic moves
Walmart:
JD in June 2016 entered into a strategic cooperation agreement with Walmart, the world’s biggest retailer.
As of March 2024, Walmart owned a 9.4% stake in JD.
JD’s April 2024 20-F filing said:
“As part of our strategic alliance with Walmart, we acquired ownership of the Yihaodian marketplace platform assets, including the Yihaodian brand, mobile apps and websites.
“We have collaborated with Walmart on e-commerce, including launching Sam’s Club Flagship Store and Walmart Flagship Store on www.jd.com website, as well as Sam’s Club Global Flagship Store, Walmart Global Flagship Store, Asda Flagship Store and several category global stores to sell specific category products (for example Walmart Beauty and Personal Care Global Store) on JD Worldwide and a one-hour delivery service from Walmart Stores and Sam’s Clubs in select cities through the JD Daojia app.
“As part of the strategic alliance, we also entered into an eight-year non-compete arrangement with Walmart, subject to certain conditions and exceptions.”
Asda is Walmart’s former retail business in the U.K. Walmart sold Asda in 2021.
Tencent:
JD in March 2014 acquired some e-commerce businesses and assets from Tencent Holdings, an internet services firm in China. At the same time, JD entered into a strategic cooperation agreement with Tencent.
Tencent in March 2022 distributed a 2.3% stake in JD to Tencent shareholders.
JD’s April 2024 20-F filing said:
“We and Tencent continue to maintain our mutually beneficial business relationship, including our ongoing strategic partnership agreement.”
Management and employees
Sandy Ran Xu is CEO and executive director.
Richard Qiangdong Liu is chairman.
Stock
JD trades as American depositary shares on Nasdaq under ticker JD.
JD had its initial public offering on Nasdaq on May 28, 2014.
History
JD opened its online retail website in January 2004.
JD started by selling computer products online. By 2007, it had added mobile handsets, consumer electronics products and auto parts and accessories.
The company significantly expanded its product offerings in 2008 with home appliances and an array of general merchandise product categories such as home furniture, household goods, luxury goods, sports equipment, and mother and child care products.
JD began to offer clothing, shoes and cosmetics and other personal care items in 2009; food, beverage, nutritional supplements and books in 2010; music, movies and other media products in 2011; e-books and some private label products in 2012; and groceries in 2013.
The company in 2014 changed its legal name from 360buy Jingdong Inc. to JD.com Inc.
