China’s crackdown on the tech industry has brought down many companies but not JD.com. The Chinese e-commerce giant has beaten analyst expectations by posting a $39.3m revenue in the second quarter of 2021. This translates to a 26% growth in revenue compared to 12 months ago. The company has also improved the total transaction volumes for its annual shopping festival by 28%.
Part of this growth has to be attributed to JD.com’s recent access to one of luxury’s most sought-after brands — Louis Vuitton. This is the first time LVMH allows one of its brands to be posted on a third-party e-commerce platform in China. Other than the benefits related to an increased number of transactions, having access to a company like LV has improved the status and reputation of the platform.
why it matters
JD.com’s solid results come just weeks after Alibaba missed its second quarter revenue estimates. Performing better than your archenemy in the midst of slower e-commerce growth is a positive sign for a company looking to become the leading e-commerce company in China — way to go, JD!