iUS Stocks: JD.com’s market share and sales growth from 2004 to 2010

From 2004 to 2010, JD.com, founded by Liu Qiangdong, grew from a small store in Zhongguancun to a B2C giant with annual sales exceeding 10.2 billion yuan, with an average annual compound growth rate of 217.27%. Currently, JD.com has 20 million registered users, 1,200 suppliers, and a daily order processing volume of more than 150,000 orders, and the website has an average daily page view of more than 35 million. What is the scale of China's B2C industry? What is the market share of JD.com? What kind of rapid growth has it experienced? Next, let's solve these questions one by one.

1. China's B2C market size will reach 650 billion yuan in 2013

B2C (Business-to-Consumer) is a model of e-commerce, also known as commercial retail. It is a new shopping environment provided by enterprises to consumers through the Internet. Taobao Mall, JD.com, Joyo Amazon, Dangdang and other well-known companies are B2C companies.

2. JD.com’s market share is currently about 10%

According to Analysys International data, the transaction volume of China's online retail B2C market reached 47.07 billion yuan in the first quarter of 2011, of which Taobao Mall and JD Mall accounted for more than 40% of the market. JD Mall's market share was 10.2%, ranking second; Taobao Mall, JD Mall's biggest competitor, saw its sales volume increase by 23% month-on-month, and its share of the overall market remained above 30%, followed by Joyo Amazon (2.3%), Dangdang (1.6%), Newegg (1.3%) and other B2C merchants.

3. JD.com’s Sales Growth

From 2004 to 2010, JD.com's annual sales increased from RMB 10 million to RMB 10.2 billion, with an average annual compound growth rate of 217.27%. During this period, the JD.com team led by founder Liu Qiangdong completed the full-line construction of 3C products, established three major logistics systems in Beijing, Shanghai and Guangzhou, and a sales network covering the whole country based on four major logistics centers in North China, East China, South China and Southwest China. The following is the sales of JD.com from 2004 to 2010:

In January 2004, JD.com began to enter the e-commerce field, officially launched the JD.com Multimedia Network, and pioneered the instant auction system in the country, achieving sales of RMB 10 million that year; in November 2005, the daily order processing volume of the JD.com Multimedia Network exceeded 500, and the annual sales reached RMB 30 million; in 2006, JD.com established a wholly-owned subsidiary in Shanghai, and achieved sales of RMB 80 million that year.

In 2007, JD Multimedia Network was renamed JD Mall, with daily order processing exceeding 3,000, and received tens of millions of dollars in financing from Capital Today. It also built three logistics systems with a total logistics area of ​​more than 50,000 square meters in Beijing, Shanghai and Guangzhou, and launched mobile POS door-to-door card payment service. With the help of capital and a series of service improvement measures, JD's annual sales exceeded 100 million yuan for the first time, reaching 360 million yuan, a year-on-year increase of 350%.

In 2008, JD.com's annual sales exceeded 1 billion, up 261% year-on-year to 1.3 billion yuan. In the same year, JD.com began to sell flat-panel TVs, and in June, it expanded its product lines of air conditioners, refrigerators, washing machines, televisions and other large appliances, completing the full line of 3C products. The so-called "3C products" are the combination of computers, communications and consumer electronics, also known as "information appliances".

In 2009, JD.com achieved great breakthroughs in terms of capital support, monthly sales, and management capacity improvement, with annual sales reaching RMB 4 billion, a year-on-year increase of 208%. In January, JD.com received a joint investment of US$21 million from Capital Today, Bull Capital, and the private company of Mr. Liang Botao, a well-known Asian investment banker. In March, JD.com's monthly sales exceeded RMB 200 million, making it the first and only B2C e-commerce company in China to exceed the RMB 200 million mark in monthly sales. In June, JD.com's monthly sales exceeded RMB 370 million, and its daily order processing capacity exceeded 20,000 orders. In the second quarter, sales reached RMB 840 million, accounting for 28.8% of China's B2C e-commerce market. In October, JD.com's call center was upgraded from distributed management to centralized management, and its headquarters in Beijing was moved to Suqian City, Jiangsu Province. After the upgrade, JD.com's national call center has been comprehensively improved in terms of call answering rate, customer service level, and business process management.

In 2010, JD.com achieved annual sales of 10.2 billion yuan, becoming the first online retail company in China to achieve sales of over 10 billion yuan on its homepage. During this year, Liu Qiangdong led JD.com to do three major things. The first was to establish a Southwest branch in Chengdu, forming a nationwide sales network based on four major logistics centers in North China, East China, South China, and Southwest China; the second was to continue to improve service levels, including "211 delivery within a limited time", "100 points after-sales service", and nationwide door-to-door pickup services; the third was to launch the mobile version of JD.com (m.360buy.com), so that customers can shop at JD.com anytime and anywhere.

On December 23, 2010, JD.com signed procurement agreements with nearly 200 brand manufacturers and suppliers with a total value of more than 20 billion yuan, and its sales are expected to reach 24 billion to 26 billion yuan in 2011.