(Yicai) Nov. 16 -- Consumers were more rational and concerned about prices and quality during this year’s Double 11 Shopping Festival, according to the chief executive officer of Chinese e-commerce giant JD.Com.
Users have not lowered their requirements on services and are sensitive to prices but want to buy cheap commodities and services that are also of good quality, Sandy Xu said during JD.Com’s third-quarter earnings conference call yesterday.
The transaction value and the number of orders and users on JD.Com during this year’s Double 11 hit new record highs, the Beijing-based company announced earlier. Over 60 brands achieved sales of over CNY1 billion (USD138 million) during the shopping festival, with nearly 2,000 others quadrupling their sales. The number of transactions from new businesses soared more than six times. However, JD.Com did not release the total sales figures.
Core users of JD.Com in first- and second-tier cities still have strong spending power, Xu noted, adding that the number of its Plus members maintained a two-digit growth, and users’ annual consumption amount remained high.
Orders for low-price goods per customer on JD.Com are rising faster than total orders after the e-commerce platform lowered the free-shipping threshold for self-operated commodities, she pointed out.
The adverse impact of the company’s business adjustments this year will weaken next year’s performance, and the positive impact will gradually appear along with the recovery of China’s economy and consumption, as well as improvements in JD.Com’s algorithm and system, Xu said, adding that the firm will achieve high-quality business growth next year.
JD.Com aims to achieve higher growth than the industry average and hike its market share next year, said Chief Financial Officer Shan Su.
JD.Com reported CNY247.7 billion (USD34.1 billion) in revenue and CNY7.9 billion in net profit in the three months ended Sept. 30, up 1.7 percent and 33 percent, respectively, from a year earlier, according to the company’s earnings report released yesterday.
Shares of JD.Com [HKG: 9618] were trading up 1.7 percent at HKD107.70 (USD13.80) as of lunch break in Hong Kong today.
Editor: Futura Costaglione