JD’s annual shopping event is the summer equivalent of the Singles Day shopping festival that Alibaba hosts in November every year. The promotion, known as 618, runs June 1-18. Nowadays, both e-commerce firms join in on the other platform’s promotions amid rising competition in the country’s online shopping space.
JD.com announced that it had experienced transaction volume on the platform of over 269.2 billion ($37.99 billion), during the sales period, up more than 33.6% year on year. Alibaba said gross merchandise value or GMV stood at 698.2 billion yuan ($98.52 billion).
JD.com in May said it expected net revenue to grow 20% to 30% in the three months to June, after nearly 21% growth in the previous quarter. Both figures are year-over-year.
This represents the first major shopping event in the midst of the global COVID-19 pandemic; JD’s 618 performance has demonstrated the resilience of the Chinese economy and the opportunity that remains for international brands, even under uncertainty.
COVID-19 has certainly accelerated the adoption of e-commerce not just in China but globally. At the same time, considerable uncertainty remains about how long the epidemic will persist. In response to a question about whether JD had “benefitted from the epidemic,” JD Retail CEO Lei Xu told a group of reporters in Beijing that while it may seem like JD has benefitted in the short term, owing to its leadership in digitalization, supply chain, category advantages, etc., the pandemic has impacted the supply chain globally and locally. He said, “There isn’t a single company that won’t be impacted by the epidemic.”
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