After Liu Qiangdong returns, he hands over his first annual report card. In 2024, JD.com will continue to promote its "low price" strategy
Ronan62054
发表于 2024-3-7 14:10:23
1318
0
0
2023 has special significance for JD.com. Strategically, this is the entire year that Liu Qiangdong proposed and implemented "JD is the only competitive weapon" after returning to JD; In terms of organizational structure, Xu Ran, the CFO of Zhongyuan, took over as the CEO of the group and also took on the role of CEO of JD Retail in November, launching a new round of cost reduction and efficiency improvement strategies.
On March 6th, JD Group released its Q4 and full year results for 2023, which can be seen as a year-end report of JD's performance in the face of external low price wars and internal organizational changes.
According to the financial report, JD's revenue in the fourth quarter reached 306.1 billion yuan, a year-on-year increase of 3.6%. In 2023, its revenue for the whole year was 1084.7 billion yuan, a year-on-year increase of 3.7%. In terms of operating profit, the operating profit for the fourth quarter was 2 billion yuan, compared to 4.8 billion yuan in the same period last year. However, this part actually confirmed a total of 5.2 billion yuan in goodwill and asset impairment for Dada and JD.com. The operating profit for the full year of 2023 was 26 billion yuan, compared to 19.7 billion yuan in the same period last year, a year-on-year increase of 31%.
Specifically, taking Q4, which includes the 2023 Double 11 shopping festival, as an example, in terms of categories, the revenue from electronic products and household appliances in the fourth quarter was 150.35 billion yuan, and the revenue from daily necessities was 96.14 billion yuan, achieving growth of 6.1% and 0.2% respectively. This proves that 3C products are still the largest competitive category of JD, while daily goods are more vulnerable to the impact of competitors such as Taobao, Pinduoduo and Tiktok E-commerce.
In addition, the fourth quarter service revenue, including platform and advertising, logistics, and other two items, still reached 59.6 billion yuan, a year-on-year increase of 3%. However, the platform and advertising service revenue was 23.6 billion yuan, a year-on-year decrease of 4%. The platform and advertising service revenue mainly relies on the commission and advertising fees of third-party merchants, which means that JD.com has reduced the revenue source for the platform while vigorously attracting third-party merchants to provide low-priced supply.
At the subsequent financial report conference call, the management stated that "the short-term slight fluctuations in platform and advertising service revenue in the fourth quarter were mainly due to the company's strong development of the platform ecosystem in 2023, and the launch of a series of support measures, including providing free commission services for new merchants and actively reducing commission rates in certain categories and marketing scenarios, which led to a slight slowdown in commission revenue growth in the fourth quarter.". And emphasize that there is no pressure to urgently increase the monetization rate.
The "low price" strategy of thriving self operated and third-party merchants coexisting will continue in 2024.
JD CEO Xu Ran said in a conference call, "Looking ahead to 2024, JD will adhere to its existing strategy and optimize its execution without making significant adjustments. At the same time, JD will promote a low price strategy, reduce procurement costs, and provide more low-priced products to improve the efficiency of low price subsidies."
During the financial report conference call, JD.com was asked how it views its overseas expansion and internationalization strategy.
Xu Ran stated that JD.com has always been concerned about internationalization opportunities, but its business model determines that it has significant differences from other platforms in terms of overseas operations, but it is still in its early stages. Previously, JD.com had once cut off its overseas business in Southeast Asia, and its omnichannel retail business Ochama launched in Europe was also in the early stages of incubation. Recently, there have been rumors that JD.com is bidding for British electronics retailer Curries.
In the field of going global, JD is still ahead in logistics business. Since entering the accelerated construction period of overseas warehouses in 2020, JD Logistics currently has nearly 90 overseas warehouses, bonded warehouses, and direct mail warehouses worldwide, with a total cross-border network storage area of over 900000 square meters. This part was still mentioned by CEO Xu Ran during the financial report conference call.
"Our strategic direction will remain relatively stable in 2024," said Xu Ran. There are still industry opportunities in the specific development of the retail industry, and there is still significant room for improvement in online penetration rates in areas such as supermarkets, sports, furniture, home decoration, automobiles, and service industries.
At the same time as releasing its financial report, JD.com Group also announced that the company's board of directors has approved annual cash dividends, with a total dividend amount of approximately $1.2 billion, exceeding the previous year's $1 billion. In addition, the board of directors of JD Group has also approved a new share repurchase plan, which can repurchase shares worth no more than $3 billion within the next 36 months up to March 2027, after the existing share repurchase plan expires and takes effect.
This represents that when Tencent, Alibaba, and Meituan conducted large-scale stock repurchase plans within this year, JD.com also joined this sequence.
Affected by various factors, on the first trading day after the release of JD's financial report, JD. com's US stock market surged by more than 15% before the opening, and the increase once expanded to nearly 20% after the opening.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Can JD's "6.18" low-priced battle attract consumers by shortening the campaign time?
- New Forces May Transcript "Released": Ideal Sales Exceeded 35000 Vehicles per Month This Year, NIO Breaks Monthly Delivery Record
- Who was hurt by the founder of Mo Tie tearing apart JD Book's low price promotion?
- Jike's first report on listing: Q1 loss narrowed to 2.022 billion yuan, new mid to large pure electric SUVs will be released
- Business Headline No.28 | JD Roll Low Price
- Further Evolution of Pinduoduobao Low Price Comparison System
- Normalize low prices! JD.com announces that it will launch a monthly promotion of 18 yuan for wool harvesting
- JD's net profit surged nearly 70% in the second quarter, CEO: continue to implement low price strategy this year
- JD insiders respond to the hearing of the "tiger price" case: low-priced names are generally prepared to respond in the industry
- JD Seven Fresh responds to price war rumors: no one targeted, just offering low prices
-
随着“银十”结束,各家造车新势力都交出了一份亮眼的成绩单。 理想领跑10月新势力交付榜,鸿蒙智行重回4万辆,零跑、深蓝、极氪、小鹏等单月交付量均创新高,岚图、阿维塔、智己等实现破万,但哪吒却消失在 ...
- fanadam
- 3 小时前
- 支持
- 反对
- 回复
- 收藏
-
【科技记者古尔曼:苹果计划于12月第一周发布iOS 18.2系统更新 带来更多人工智能功能】科技记者古尔曼透露,苹果计划于12月第一周发布iOS 18.2系统更新。iOS 18.2将为iPhone 15 Pro机型和所有iPhone 16机型带来更多 ...
- cristianna
- 昨天 17:32
- 支持
- 反对
- 回复
- 收藏
-
为期超七周的大罢工终于落下帷幕。 当地时间11月4日,波音美国西海岸工厂工人们就改进后的合同提案投票。 随后,代表着波音超过33000名西雅图地区机械师的IAM工会经表决,以59%的同意票决定接纳波音提 ...
- cristianna
- 6 小时前
- 支持
- 反对
- 回复
- 收藏
-
近日,爱立信中国区总裁方迎在接受《经济参考报》记者采访时表示,5G技术在全球范围内得到了迅速发展,但面临商业潜力未能充分挖掘、网络运营难度较以往更高两大挑战。因此,运营商在继续5G网络部署的同时,应关 ...
- blueskybb
- 昨天 15:05
- 支持
- 反对
- 回复
- 收藏