JD.com, Inc. provides supply chain-based technology and service.
The company has established subsidiaries inside and outside of China and assisted in establishing PRC consolidated variable interest entities to conduct the company’s business operations.
The significant subsidiaries that conduct business operations in China include, among others, the following:
Jingdong Century, established in April 2007, and certain of its subsidiaries in China, which primarily engage in retail business;
Shan...
JD.com, Inc. provides supply chain-based technology and service.
The company has established subsidiaries inside and outside of China and assisted in establishing PRC consolidated variable interest entities to conduct the company’s business operations.
The significant subsidiaries that conduct business operations in China include, among others, the following:
Jingdong Century, established in April 2007, and certain of its subsidiaries in China, which primarily engage in retail business;
Shanghai Shengdayuan Information Technology Co., Ltd., or Shanghai Shengdayuan, which was established in April 2011 and primarily operates the company’s online marketplace business; and
Jiangsu Xinchuan Hailian Supply Chain Management Co., Ltd., or Jiangsu Xinchuan Hailian (previously Xi’an Jingxundi Supply Chain Technology Co., Ltd.), which was established in May 2017 and primarily provides technology and consulting services relating to logistics services.
The significant consolidated variable interest entities and their subsidiaries that conduct the company’s business operations in China include, among others, the following:
Jingdong 360, which was established in April 2007 and holds the company’s ICP license as an internet information provider and operates its www.jd.com website;
Jiangsu Yuanzhou, which was established in September 2010 and primarily engages in the business of selling books, audio, and video products;
Xi’an Jingdong Xincheng, which was established in June 2017 and primarily provides technology and consulting services relating to logistics services;
Jiangsu Jingdong Bangneng, which was established in August 2015 and primarily engages in the business of investment management;
Suqian Juhe, which was established in June 2020 and primarily provides enterprise management services; and
Suqian Hanyu, which was established in December 2024 and primarily provides technology services.
The company also conducts certain of its business operations through other consolidated variable interest entities and their subsidiaries, including Suqian Jingdong Tianning Jiankang Technology Co., Ltd., or Suqian Jingdong Tianning, which was established in June 2019 and primarily provides pharmacy sales and healthcare services in connection with JD Health’s operations.
Strategic Cooperations
Strategic Cooperation with Tencent
On March 10, 2014, the company acquired certain e-commerce businesses and assets from, and entered into a strategic cooperation agreement and formed a strategic partnership with Tencent, a leading internet company serving the largest online community in China. Tencent offers a wide variety of internet services in China, including social communications, online games, and digital content and payment. Under the strategic partnership, Tencent offers the company prominent access points in its mobile apps Weixin and Mobile QQ and provides the company with traffic and other support from other key platforms, which has helped the company generate mobile user traffic from Tencent’s large mobile user base and enhance the company’s customers’ mobile shopping experience. The two parties agree to cooperate in a number of areas, including mobile-related products, social networking services, membership systems, and payment solutions. The strategic cooperation agreement applies within the territory of China. Under the strategic cooperation agreement, the company is Tencent’s preferred partner for all physical goods e-commerce businesses, and Tencent agrees not to engage in any retail or managed marketplace business model in physical goods e-commerce businesses in China and a few selected international markets for a period of eight years, other than through its controlled affiliate, Shanghai Icson E-Commerce Development Company Limited.
On May 10, 2019, the company renewed the strategic cooperation agreement with Tencent for a period of three years starting from May 27, 2019. Tencent continued to offer the company prominent Level I and Level II access points on its Weixin platform to provide traffic support, and the two companies continued to cooperate in a number of areas, including communications, advertising, and membership services, among others.
Strategic Cooperation with Walmart
In June 2016, the company entered into a series of agreements with Walmart Inc., or Walmart, in relation to its strategic alliance, pursuant to which Walmart subscribed for 144,952,250 of its newly issued Class A ordinary shares. As of August 20, 2024, Walmart no longer held its shares. As part of the company’s strategic cooperation with Walmart, the company acquired ownership of the Yihaodian marketplace platform assets, including the Yihaodian brand, mobile apps, and websites. The company has collaborated with Walmart on various e-commerce and logistics businesses.
Developments of the Company’s Subsidiaries
JD Logistics
JD Logistics is a leading technology-driven supply chain solutions and logistics services provider, and its shares are listed on the Main Board of the Hong Kong Stock Exchange. JD Logistics has been operating as an internal logistics department of the company since 2007 and as a stand-alone business segment since April 2017. JD Logistics offers a full spectrum of supply chain solutions and high-quality logistics services enabled by technology, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items.
JD Health
JD Health is one of the largest online healthcare platforms in China, the shares of which are listed on the Main Board of the Hong Kong Stock Exchange. JD Health is also pioneering the digitalization and transformation of the healthcare industry. Over the past few years, JD Health has been building a comprehensive ‘internet + healthcare’ ecosystem, providing pharmaceutical and healthcare products and internet healthcare services to the customers.
JD Property
In 2018, the company established JD Property, the company’s infrastructure asset management and integrated service platform for developing and managing modern infrastructure to support JD Logistics and third parties.
On January 28, 2022, JD Property completed the acquisition of CNLP, upon which JD Property had accumulatively acquired approximately 37.02% of the issued share capital of CNLP. On July 14, 2022, JD Property completed the acquisition and privatization of CNLP, and CNLP became a wholly-owned subsidiary of JD Property. CNLP is principally engaged in the leasing of storage facilities and the related management services in the PRC.
JD Industrials
JD Industrials is the company’s subsidiary, which is the leading industrial supply chain technology and service provider in China.
Dada
Dada is a Nasdaq-listed company and a leading local on-demand retail and delivery platform in China. It operates JD NOW, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories.
In April 2016, the company completed the transaction with Dada, pursuant to which the company’s online-to-offline business, JD Daojia, which was rebranded to JD NOW in 2024, became a subsidiary of Dada.
As of December 31, 2024, the company owned approximately 63.4% of the issued and outstanding shares of Dada.
Major Investments
JD Technology
Since 2017, JD Technology has made remarkable progress in the field of digital technology and is now a leading technology service provider in China, enabling corporates and organizations across industries to achieve digitalization and intelligentization and fueling their growth through accessible financial solutions. In June 2020, the company entered into agreements with JD Technology, pursuant to which the company has, through a consolidated PRC domestic company, acquired an aggregate of 36.8% equity interest in JD Technology by converting the company’s profit-sharing right pursuant to the framework agreement between the company and JD Technology.
Yonghui
Yonghui is a company listed on the Shanghai Stock Exchange and a leading hypermarket and supermarket operator in China. As of December 31, 2024, the company held approximately 11% of Yonghui’s issued and outstanding shares.
Wanda Commercial Properties
In January 2018, the company, along with Tencent, entered into a strategic partnership agreement with Wanda Commercial Properties, a leading developer, owner, and operator of commercial properties in China, and its major shareholder, Dalian Wanda Group Co., Ltd.
Xingsheng
Xingsheng is a leading community group buying e-commerce platform that serves community families with fresh foods and daily necessities.
E-commerce Business
The company’s scale and market leadership are built upon its competitive edge in customer experience and operational efficiency, as well as its commitment to strategically invest in technology and logistics infrastructure for the long term.
Providing superior customer experience is the company’s top priority. The company’s e-commerce business offers customers a wide selection of authentic products at competitive prices. The company has built and operates its own nationwide fulfillment infrastructure that supports its e-commerce business. The company’s speedy, efficient, and reliable fulfillment services ensure a high degree of customer satisfaction. The company offers an enjoyable online shopping experience mainly through its content-rich, user-friendly, and highly personalized mobile apps and website www.jd.com. The company also provides comprehensive customer services and convenient payment options.
The company operates online retail and marketplace e-commerce businesses. In the company’s online retail business, the company purchases products from suppliers and sells them directly to its customers. The company offers a wide range of product categories through its online retail business, including electronics products, home appliances, and a large variety of other general merchandise categories. The company has established strong relationships with its suppliers as its online retail business grows rapidly over time. As of December 31, 2024, the company sourced products from over 60,000 suppliers.
The company delivers a majority of the orders to customers by itself. Since 2020, the company has further improved its efficiency in more cities, especially the less developed areas, as the company continued to expand its same-day and next-day delivery service in these areas. The company’s fulfillment services have been proven to be highly reliable in response to customer needs, and the company offers its customers and consumers a full spectrum of integrated supply chain solutions and high-quality logistics services covering various industries, helping them reduce costs and enhance efficiency.
The company launched its online marketplace in October 2010, and has since then been continually adding third-party merchants and introducing new products and services, including premium international brands, to its customers. Merchants on the company’s online marketplace are held to high standards for transacting with its customers. To this end, the company requires all third-party merchants to meet its strict standards for product authenticity and service reliability, and closely monitors their performance and activities on its online marketplace.
The company provides a variety of digital marketing services to marketers on its e-commerce platform, including suppliers to its online retail business, third-party merchants on its online marketplace, and other partners. Powered by AI technology, the company’s digital marketing platform provides its marketing customers with comprehensive digital branding and performance-based marketing solutions and various effective measurement tools, which help them reach targeted audiences, attract and retain customers, and improve their returns. The company’s digital marketing platform also features marketing tools for online marketing message creation, targeting, bidding, deployment, and budget allocation, which enables marketers to manage their digital marketing strategy and spending in a convenient and efficient manner.
The company is exploring a variety of initiatives to meet its customers’ ever-growing demand. The company collaborates with Walmart on e-commerce by supporting Walmart and Sam’s Club Flagship Stores on its platform and providing fulfillment solutions to them. The company’s majority-owned subsidiary Dada, a leading local on-demand retail and delivery platform in China, cooperates with JD Logistics to provide its customers with on-demand and last-mile delivery services of a wide selection of grocery and other fresh products through JD NOW. The company is also exploring in the offline retail market through 7FRESH, its offline fresh food market.
The company’s proprietary and scalable technology platform enhances user experience, improves operating efficiency, and supports the growth in its e-commerce business. Leveraging machine-learning technology and massive data sets amassed from online purchase behaviors, the company curates personalized product recommendations and pushes targeted promotions. The company utilizes AI technology to refine its merchandise sourcing strategy, allowing the company to efficiently manage its inventory and control costs. With consumer insights generated from big data analytics, the company provides tailor-made products through customer-to-manufacturer production, which increase sales and enhance customer satisfaction.
Supply Chain-based Technologies and Services
The company provides supply chain-based technology and services to other businesses. The company takes a holistic view of the supply chain covering from upstream manufacturing and procurement, logistics, distribution, and retail to end customers.
The company has established strong relationships with numerous suppliers, brands, and partners. The company leverages these relationships and the company’s retail technology capability to provide them with a variety of service solutions. Over the past decade, the company has also built a highly scalable and reliable logistics infrastructure and technology platform for its retail business. The company is opening up logistics infrastructure and technology platform to third parties with comprehensive logistic services and technology solutions.
Technology is crucial to the company’s achievements today and continued success in the future. It enables better customer experience, more customer cost savings, and higher efficiency, while it also serves as a foundation to export its capabilities to enhance productivity and innovation across a multitude of industries in China.
Logistics Services
The company made a strategic decision in 2007 to invest in and build its own nationwide fulfillment infrastructure. As of December 31, 2024, the company’s nationwide fulfillment infrastructure covered almost all counties and districts across China, with a network of over 1,600 warehouses with an aggregate gross floor area of over 32 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform. In addition, the company had a team of 465,626 warehouse and delivery employees as of December 31, 2024. The company’s value proposition is to empower its customers’ supply chains and substantially improve their operational efficiencies, which in turn enhance their own customer experience and stickiness. The company helps its customers reduce redundant distribution layers, improve the agility of their supply chains, and optimize inventory management. The company’s solutions are powered by its proprietary technology, industry know-how, and insights of product merchandising.
The company’s Retail Technology Services and Other Technology Initiatives
Capitalizing on the company’s retail data, infrastructure, and technology, the company commercializes its retail capability into services it offers to brands and partners in the retail industry.
The company has developed robust supply-chain-based technology in three key areas, namely AI, big data analytics, and cloud computing. The company has world-class scientists and a large team of AI engineers. The company’s technology achievements have been well recognized globally. For example, the company built a smart supply-chain platform that includes application-level products supporting many use cases that are applicable to its business as well as its ecosystem.
Business
Since founding the company, the company has focused on developing its online retail business, as well as building its own fulfillment infrastructure, including last-mile delivery capability, all based on its proprietary technology platform to support its operations. As the company’s online retail business grew substantially in size, the company launched its online marketplace to complement it and expand the company’s product offerings, leverage its established fulfillment infrastructure and technology platform, and ensure a superior customer experience. More recently, the company has also begun to offer comprehensive supply chain-based services that complement its core business and create significant value for a wide range of business partners.
JD Retail
Online Retail
In the company’s online retail business, the company acquires products from suppliers and sells them directly to customers. As of December 31, 2024, the company sourced products from over 60,000 suppliers.
Online Marketplace
In the company’s online marketplace business, third-party merchants offer products to customers on its online marketplace and pay the company sales commissions. The company launched its online marketplace in October 2010 and has been adding new products and services, including premium international brands, since then.
The company provides transaction processing and billing services on all orders placed on its online marketplace and requires third-party merchants to meet its strict standards for authenticity and reliability. The company monitors third-party merchants’ performance and activities on its online marketplace closely to ensure that they meet its requirements for authentic products and high-quality customer service. The company tags certain top stores on its platform as ‘Five Star Store’ based on each third-party merchant’s quality of service, user experience, and other operating performance metrics during the entire purchase process. Such certification can help the top third-party merchants improve their conversion efficiency on the platform. Furthermore, it sets a benchmark to encourage other third-party merchants to improve their operations.
Omni-channel Initiatives
The company is exploring a variety of omni-channel integration opportunities and innovative business models. The term ‘omni-channel’ refers to a marketing approach that seeks to provide a consistent customer experience across multiple channels, including websites, apps, and physical offline stores.
Dada has been cooperating with JD Logistics to provide fast on-demand delivery services for merchants and consumers. In 2021, the company and Dada formed a strategic partnership with ASUS, a global technology leader, launching more than 150 ASUS stores on JD Daojia (JDDJ) and ‘Shop Now,’ which were rebranded to JD NOW, the company’s on-demand consumer retail section. Leveraging this partnership, the company will further accelerate the digital transformation of physical stores to improve the offline shopping experience for computer and digital products, including the extension of ‘one-hour delivery’ service to all ASUS offline stores in China.
On February 28, 2022, the company held approximately 52% of Dada’s issued and outstanding shares and began to consolidate the financial results of Dada into it. The company’s investment in Dada facilitates both sides to promote the expansion of on-demand delivery and retail, as well as omni-channel collaboration. This helped to further diversify the company’s retail services, enable business partners to improve their operating efficiency, and deliver better services for its consumers.
In June 2016, the company entered into a series of agreements in connection with its strategic alliance with Walmart. The company has collaborated with Walmart on various e-commerce and logistics businesses. The company has also experimented with other omni-channel opportunities, aimed at offering shoppers across China faster and more convenient access to high-quality products through multiple channels.
To provide customers with a more dynamic and interactive integrated omni-channel shopping experience, the company has enabled some of its offline partners with a variety of the latest technologies, such as facial recognition, product recognition, and a tracking system for customers’ in-store activities, among others. The company has established a closed loop to accumulate a large volume of offline shopping data, and through further analysis of the integrated online and offline dataset, the company can offer differentiated products that best suit potential customer demand in each offline franchise store.
7FRESH, the company’s offline fresh food market brand, is part of its omni-channel strategy. In December 2017, the company opened its first 7FRESH store in Yizhuang Economic and Technological Development Zone in Beijing. The company integrated its advanced supply chain management know-how and cutting-edge storage technologies into 7FRESH stores. The application of the company’s advanced supply chain management solution and technology on 7FRESH is part of its ongoing experiments to deploy its retail and supply chain service capabilities, which is expected to empower its potential offline partners to further expand its 7FRESH presence to pursue an enhanced shopping experience for its consumers.
In September 2021, the company opened its first ‘JD MALL’ offline store in Xi’an, Shaanxi Province, offering consumers an immersive omni-channel shopping experience. In addition to traditional electronic categories offered by JD Super Experience Store, JD MALL provides over 200,000 items from more than 200 brands, in categories including home, furniture, kids, smart healthcare products, and auto accessories. Through its partnership with leading furniture makers, JD MALL meets the demand among younger consumers for bespoke one-stop-shop home design services that incorporate furniture and home appliances categories.
Marketing Services
Leveraging the company’s AI capabilities and its comprehensive dataset accumulated from a wide range of business scenarios along the entire value chain, the company provides a variety of marketing services to suppliers, third-party merchants, and other business partners through its proprietary advertisement technology platform. In 2019, through the company’s greatly expanded development and investment in advanced advertising and marketing technology, the company launched the JD Marketing 360 Platform. This platform employs sophisticated AI and big data technologies to utilize its user behavior insights to provide brand marketers and third-party merchants with a one-stop brand building and sales growth solution. It integrates omni-channel marketing, rich marketing effectiveness measurements, and comprehensive consumer asset growth management to help its marketers effectively acquire new users and increase shopping frequency from existing users. The company provides native search ads and display ads on its main apps, and it also places display ads, search ads, and affiliate ads on China’s mainstream high-traffic apps and video apps. In 2019, the company also invested in automated marketing technologies, launching comprehensive products that automate all aspects of marketing, including automatic bidding, targeting, creative generation of ads, and budget allocation to satisfy a broad range of marketing scenarios.
JD Logistics
JD Logistics is the leading technology-driven supply chain solutions and logistics services provider in China. On May 28, 2021, shares of JD Logistics commenced trading on the Main Board of the Hong Kong Stock Exchange under the stock code ‘2618.’ JD Logistics offers a full spectrum of supply chain solutions and high-quality logistics services enabled by technology, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. JD Logistics’s value proposition is to empower customers’ supply chains and substantially improve their operational efficiencies, which in turn enhance their own customer experience and stickiness. JD Logistics helps customers reduce redundant distribution layers, improve the agility of their supply chains, and optimize inventory management. The solutions are powered by proprietary technology, industry know-how, and insights of product merchandising. As of December 31, 2024, JD Logistics operated over 1,600 warehouses, which covered an aggregate gross floor area of over 32 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.
JD Logistics harnesses the power of technology to enhance the operational efficiency of its warehouse network. A notable example is the Asia No. 1 smart industrial parks, which also demonstrate industry-leading technological innovations and high technology standards. As of December 31, 2024, JD Logistics operated 45 Asia No. 1 smart industrial parks in 30 cities across China. In addition, JD Logistics further expanded the coverage of its smart warehouse network, opening or upgrading Asia No. 1 smart industrial parks in cities, such as Beijing and Shanghai in 2024.
JD Property
JD Property is a leading and the fastest-growing platform for developing and managing logistics parks, business parks, and other similar types of modern infrastructure in China, Asia, and Europe. JD Property aims to develop its logistics asset portfolios while maintaining strong capital discipline. With the expansion of the company’s asset portfolios, the company has adopted a capital recycling strategy. Collaborating with strategic capital partners, the company sets up funds and investment vehicles and recycles capital by disposing of the projects that are on its balance sheet to such funds and investment vehicles. Meanwhile, the company also externally sources high-quality assets from third parties for the funds and investment vehicles. As of December 31, 2024, JD Property owned and managed properties with a total gross floor area of over 26 million square meters.
On March 1, 2022, JD Property was deemed to have gained control of CNLP, and hence CNLP became a consolidated subsidiary of JD Property. On July 14, 2022, JD Property completed the acquisition and privatization of CNLP. As a result, CNLP has become a wholly-owned subsidiary of JD Property.
JD Health
JD Health is one of the largest online healthcare platforms in China. On December 8, 2020, shares of JD Health commenced trading on the Main Board of the Hong Kong Stock Exchange under the stock code ‘6618.’ Its RMB counter on the Hong Kong Stock Exchange was launched and became effective on June 19, 2023, under the stock code ‘86618.’ JD Health continued to earn trust and recognition among users with a solid growth in the number of average daily consultations, which exceeded 490,000 in 2024. As a leading online healthcare platform, JD Health’s mission is to become the go-to health management platform for everyone in China. Its strategic position is to create a technology-driven platform that centers on the supply chain of pharmaceutical and healthcare products and is strengthened by healthcare services, encompassing a user’s full life span for all healthcare needs.
JD Industrials
JD Industrials is the leading industrial supply chain technology and service provider in China. Through transformational end-to-end industrial supply chain digitalization, it helps its customers increase supply chain reliability, reduce costs, and enhance efficiency.
Customer Experience
The company’s operating principle is ‘trust-based, customer-centric value creation,’ and the company is committed to optimizing the customer experience and achieving customer satisfaction. This commitment drives every aspect of its operations, which are focused on six core components: extensive product offerings, compelling online experience, superior customer service, competitive pricing, timely and accurate fulfillment, and convenient payment options.
Products
The company continually seeks to add more products that appeal to its customers. The company offers a wide range of product categories, including home appliances; mobile handsets and other digital products; computers, including desktop, laptop, and other varieties, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics and other personal care items and pet products; women’s shoes, bags, watches, jewelry, and luxury goods; men’s shoes, sports gear, and fitness equipment; automobiles and accessories; maternal and childcare products, toys, and musical instruments; food, beverages, and fresh produce; gifts, flowers, and plants; pharmaceutical and healthcare products, including OTC pharmaceutical products, nutritional supplements, healthcare services, and other healthcare equipment; books, e-books, music, movies, and other media products; virtual goods, including online travel agency, attraction tickets, and prepaid phone cards and game cards; industrial products; and installation and maintenance services.
Each of these categories is further divided into numerous subcategories to facilitate browsing.
Online Experience
The company makes sales primarily through its mobile apps and website www.jd.com. The company’s online channels not only offer a broad selection of authentic products at competitive prices but also provide easy site navigation, basic and advanced search functions, customized product recommendations, comprehensive product information, and a large volume of customer reviews and ratings. These features address customers’ desire to view, understand, and compare products before purchasing. The company offers mobile access through its mobile website m.jd.com and its various iOS and Android mobile apps. As part of the company’s strategic partnership with Tencent, the company launched level 1 access on Tencent’s Weixin and direct access on Tencent’s Mobile QQ, whereby Tencent users can easily access the company’s product offerings and have an enjoyable mobile shopping experience. Over 90% of orders fulfilled were placed through its mobile apps in 2024.
The company’s mobile apps and www.jd.com website contain the following information and features:
Comprehensive product information to support prompt decision-making. Each product page contains pictures, descriptions, and sometimes short videos of the product, the price, a pull-down menu to show whether the product is in stock at the customer’s location, customer reviews and ratings, and whether the product will be delivered by the company or by one of the company’s third-party merchants. When customers are browsing product pages, the company displays product highlights, reliable services available for this product, and the post-discount price on the front page so as to support customers in making purchase decisions more efficiently.
Interactive user community to enhance customer engagement and loyalty. The company’s mobile apps and websites contain a large volume of helpful user-generated and professionally-generated content. For each product, customers can provide reviews and ratings that are featured prominently on the product page. The company encourages participation by granting loyalty points for posting reviews and ratings. The company had the largest online product review database of any online retail company in China, with approximately 14 billion product reviews generated by its customers as of December 31, 2024, which benefits its customers, suppliers, and third-party merchants.
The company also encourages third-party merchants to generate content and promote their products through livestreams and short videos on its platform to better interact with its customers.
Targeted product recommendations to satisfy personalized demands. The company has made progress in personalized recommendations, leveraging its cutting-edge technologies to provide an individualized shopping experience for each of its customers. The company identifies customers’ demands and makes more accurate recommendations based on comprehensive algorithms, which are derived from a large volume of data about customer behavior and preferences.
Smart ordering process to further improve the shopping experience. The company continues to leverage its technology to optimize the ordering process, making the shopping experience more convenient and enjoyable. For example, when customers review their shopping carts, not only does the company display the special offers available at the time for the products in the customers’ shopping carts, but also, the company combines the existing coupons in its customers’ accounts with special offers and calculates the all-in benefits for customers to provide them maximum benefits.
Real-time order tracking and order information revision system to provide a convenient shopping experience. Customers can log into their accounts to check the status of their orders. Each package in the company’s system is given a unique identification number, and its location is updated each time it is handled by one of its warehouse or delivery personnel or by one of its third-party couriers. Each of the company’s delivery personnel carries a mobile personal digital assistant, which allows customers to track their location in real time on an online map. Furthermore, the company provides customers with the option to adjust their order information, such as changing the shipping address or the preferred delivery date or time slot.
Customer Service
Providing satisfactory customer service is a high priority. The company’s commitment to customers is reflected in the high level of service provided by its customer service staff, as well as in its flexible product return and exchange policies. The company continues optimizing its customer service to guarantee the best possible shopping experience.
In 2024, the company further strengthened its brand image of offering hassle-free services to its customers. Combining unique service capabilities from its retail business and its third-party merchants, the company provides its customers with customized services for different product categories. The company’s services cover the entire purchasing process and include various types of services, such as instant refunds, repair by exchange program, home delivery of replacements, and extended price protection services for selected retail products, among other offerings. The service offering aims to facilitate consumers’ purchase decisions by providing trustworthy and guaranteed services. In 2024, the company continued to invest in smart services and leveraged its advanced AI and deep learning technologies to more efficiently resolve the high volume of customer inquiries without sacrificing the customer experience. The company also leveraged its cutting-edge technologies and smart systems to analyze a large volume of customer feedback and alerted third-party merchants in advance regarding potential customer service issues, helping third-party merchants improve their service quality for its customers.
24-7 customer service centers: The company operates 24-7 customer service centers in Suqian, Wuhan, Chengdu, and Datong, handling all kinds of customer queries and complaints regarding the company’s products and services. The company obtained COPC (Customer Operation Performance Center) Certification in November 2014. Customers can make queries and file complaints via various channels, such as phone calls, online written instant messengers, JD official accounts on Weixin and Weibo, and through email. As of December 31, 2024, the company had over 20,000 customer service representatives at the Suqian, Wuhan, Chengdu, and Datong centers.
Returns and exchanges: The company accepts returns or exchanges for any reason within seven days of purchase. For selected categories in the company’s retail business, the company provides an extended 30-day return and 180-day repair by exchange policy to its customers. Defective merchandise can be returned for exchange within 15 days of purchase. For customers with good credit, the company provides an ‘instant refund’ service, where it provides refunds as soon as they submit their return requests. If customers report defects more than 15 days after receipt but are still within the warranty period, the company will have the defective goods repaired, replaced, or take another appropriate action to compensate the customer, depending on the nature of the problem. The company will generally pick up defective items for return or exchange at the customer’s address, provided that the return or exchange is requested within 15 days of receipt of the item and the address is within the area that is serviced by its employees or by one of the third-party couriers that have agreed to provide this service for the company. Alternatively, customers can also mail the merchandise to one of its regional after-sales centers or bring the product to a pickup station nearby.
Membership program: The company has established a membership program to cultivate customer loyalty and encourage its customers to make repeat purchases. The company continued to promote ‘JD Plus,’ a premium paid membership program. JD Plus offers benefits, including extra rebates, coupons, exclusive prices on selected product offerings, free shipping and return services, VIP customer services, PLUS DAY promotion events, online medical consultation, and JD E-book unlimited access designed specifically for JD Plus members. JD Plus also partnered with content and lifestyle service providers, such as Tencent Video, iQiyi, among others, providing JD Plus members with greater benefits. In addition to the company’s JD Plus, the company also has a customer value system, ‘Joy Score,’ which takes into account various indicators, such as consumer behavior, interaction, credit ratings, among others, to determine a comprehensive and dynamic score for each consumer. The customers with different levels of ‘Joy Score’ can enjoy free loyalty programs. For instance, customers with a ‘Joy Score’ beyond a certain threshold could enjoy a rebate for the plus membership fee. The company also provides a variety of free premium services, such as local service, fast refund channel, and VIP after-sale service, to enhance customer experience and engagement.
Merchandise Sourcing
In the company’s online retail business, the company sourced products from over 60,000 suppliers as of December 31, 2024.
Logistics Services
Fulfillment
The company delivers a compelling customer experience by fulfilling orders quickly and accurately. To this end, the company has built its nationwide fulfillment infrastructure for the prompt receipt, storage, and shipment of its products. The company’s fulfillment infrastructure primarily consists of a nationwide warehouse and delivery network that it operates itself, supplemented by third-party couriers to service areas that are not covered by its network. To further enhance inventory accountability and security, the company tracks its inventory at all stages of the receiving and order fulfillment process.
Nationwide Fulfillment Infrastructure
As of December 31, 2024, the company’s warehouse network covered almost all counties and districts across China, consisting of over 1,600 warehouses operated by the company and over 2,000 cloud warehouses operated by third-party warehouse owner-operators under its Open Warehouse Platform. As of December 31, 2024, the company’s warehouse network had an aggregate gross floor area of over 32 million square meters, including the gross floor area of the cloud warehouses under its Open Warehouse Platform. The company delivers a majority of the orders directly to customers itself. The company maintains cooperation arrangements with a number of third-party couriers to deliver its products to its customers during peak seasons to supplement its delivery force. Third-party merchants also use third-party couriers if they do not use the company’s delivery services.
Open Platform of the Company’s Logistics Services
The company also opens up its logistics infrastructure to its third-party merchants and partners beyond its e-commerce business. The company has developed comprehensive logistics services and continuously strengthens its logistics service capability by adding new services, such as on-demand delivery, cold-chain services, and individual parcel delivery solutions. The company provides services relating to almost all aspects of logistics operation, including warehousing management, storage, long-haul transportation, express and on-demand delivery, and cold-chain and cross-border services, among others. The company offers integrated supply chain management solutions to customers in various vertical markets. The company also provides technology solutions for logistics operations to enable customers to transparently and effectively monitor, manage, and optimize their logistic workflows.
Marketing
The company has been able to build an extensive base of loyal customers primarily through providing superior customer experience and conducting marketing and brand promotion activities.
In addition to continuing marketing activities through traditional online and offline channels, the company has also designed innovative programs and promotion activities to further enhance the brand awareness of both it and its partners and to better reach its customers. The company has launched a series of successful joint marketing campaigns, such as ‘Super Brand Days,’ ‘Super Category Days,’ and ‘Super New Product Days.’ The company will continue to leverage its data-driven customer insights to provide customized marketing tools and campaigns for business partners and help them develop brand recognition in China. The company has also made progress in social e-commerce innovations, particularly benefiting from access points within Weixin and QQ channels, both of which have a large mobile internet user base. Through leveraging more targeted, innovative, and interactive marketing tools, the company can help brands on the platform increase exposure, drive traffic, and achieve deeper penetration into lower-tier cities and attract younger generations.
In addition, the company has formed strategic partnerships with a number of major internet companies in China, aiming at leveraging these companies’ massive user bases to strengthen collaboration in targeted marketing, user access points, and content-driven marketing.
Competition
The company’s competitors include major e-commerce companies in China that offer a wide range of general merchandise product categories, such as Alibaba Group, which operates taobao.com and tmall.com, and major traditional retailers in China that are moving into online retailing, such as Suning.com Group Co., Ltd., which operates suning.com.
Seasonality
The company experiences seasonality in its business, reflecting a combination of seasonal fluctuations in customer purchases, promotional events, and traditional retail seasonality patterns. For example, the company generally experiences less user traffic and purchase orders during national holidays in China, particularly during the Chinese New Year holiday season in the first quarter of each year (year ended December 31, 2024). Furthermore, sales in the traditional retail industry are significantly higher in the fourth quarter of each calendar year than in the preceding three quarters.
E-commerce companies in China hold special promotional campaigns on November 11 each year that tend to boost sales in the fourth quarter relative to other quarters, and the company holds a special promotional campaign in the second quarter of each year, on June 18, to celebrate the anniversary of the founding of its e-commerce business.
Intellectual Property
As of December 31, 2024, the company owned over 8,000 computer software copyrights in China relating to various aspects of the company’s operations and maintained over 30,000 trademark registrations inside China and over 5,900 trademark registrations outside China. The company had approximately 40,000 trademark applications inside China and over 7,000 outside China. As of December 31, 2024, the company had approximately 10,000 patents granted in China, over 800 patents granted outside China, approximately 8,000 patent applications pending in China, and approximately 800 patent applications pending outside China. As of December 31, 2024, the company had registered over 9,000 domain names. The company’s registered domain names include jd.com, jdl.cn, and jdhealth.com, among others.
Regulation
The company is subject to the Product Quality Law and the Consumer Protection Law as an online supplier of commodities and a provider of an online marketplace platform, and the company is in compliance with these regulations in all material aspects.
The company is subject to the Pricing Law as an online retailer, as well as a business operator.
As of December 31, 2024, the company had approximately 10,000 patents granted in China, over 800 patents granted outside China, approximately 8,000 patent applications pending in China, and approximately 800 patent applications pending outside China.
As of December 31, 2024, the company had approximately 39,000 registered trademarks in different applicable trademark categories in different jurisdictions, approximately 40,000 trademark applications in China, and over 7,000 outside China.
The company has registered jd.com, jdl.cn, jdhealth.com, 360buy.com, 360buy.cn, 360buy.com.cn, and other domain names.
Research and Development Expenses
The company’s research and development expenses were RMB17,031 million (US$2,333 million) in 2024.
History
The company was incorporated in 2006. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014.
