What’s Driving JD.com’s Active Customer Accounts?
JD.com’s active customer accounts jumped by 65%
JD.com (JD), China’s (FXI) second-largest e-commerce player after Alibaba (BABA), has been witnessing astounding growth in its active customer accounts. In 2Q16, the company’s annual active customer accounts (excluding unique customers from Paipai.com) jumped by about 65% YoY (year-over-year) to 188.1 million during the twelve-month period ending June 30, 2016.
JD.com’s average number of purchases by active customer accounts have also been growing rapidly. The company’s vast offerings, its partnership with Tencent (TCEHY), its strategic initiatives aimed at driving the user experience, and the expansion of its partnerships with leading overseas brands have been driving much of this encouraging growth.
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Recent initiatives drive user growth
As the demand for high-quality, authentic imported products remains high among Chinese consumers, the company is leaving no stone unturned to capitalize on this market. Recently, JD.com announced the launch of its British Mall on a worldwide platform. Through this new channel, the company plans offer a vast range of high-quality products from leading UK brands to its Chinese consumers. The company added that Liverpool FC and Zannier Group also launched flagship stores on a worldwide platform.
In 2Q16, many of the world’s major international brands launched their flagship stores on JD.com. Some of the names include Japan’s (EWJ) popular cosmetic brands, Kose’s Sekkisei and Shiseido’s Anessa, and the world’s top cognac brand, Louis XIII.
Now we’ll look at revenue and margin trends, focusing on the key drivers of these e-commerce giants.