In This Article:
(Bloomberg) -- JD.com Inc. aims to create seven listed firms with market values of at least $14 billion apiece, outlining aggressive targets spanning two decades as it wrapped its signature 2023 sales gala with another record haul.
Most Read from Bloomberg
-
These Are the World’s Most (and Least) Liveable Cities in 2023
-
Debris Found Near Titanic Wreck in Search for Missing Vessel
-
Modi Meets With Elon Musk and Ray Dalio as Global Money Flocks to India
Sales volume during its “6.18” June online bargains event, which concluded Sunday, reached an all-time high, the company said in a WeChat post Monday. The summer online sales event, in which larger rival Alibaba Group Holding Ltd. also takes part, is an important barometer of Chinese consumer spending that’s often compared with Black Friday and the Alibaba-created Nov. 11 event.
Chinese retail sales grew 12.7% in May but were down from April and less than projected. Along with disappointing data on unemployment and investment, that suggests the world’s second-largest economy is struggling to regain its footing. Still, Beijing is prioritizing economic growth and once again allowing its giant private sector to expand, after a two-year clampdown that obliterated growth in sectors such as online commerce.
JD kicked off a a $1.4 billion discounting program in March — hoping to lock in consumers and fend competitors such as PDD Holdings Inc. and ByteDance Ltd. ahead of a broader recovery later this year. That spending spree in turn signaled to investors that JD may be placing a market share grab before profitability, helping wipe nearly 40% off its value since a January 2023 peak.
But it’s also helping buoy growth at a critical time. Retail chief Xin Lijun told Bloomberg Television last week he expects JD’s core e-commerce business to accelerate this quarter after the company posted its lowest-ever pace of overall revenue expansion during the January to March period.
“Despite intensified competition and restructuring impact, we believe JD’s overall 6.18 performance is likely to have exceeded our initial 2-5% yoy growth estimate,” Citigroup analysts wrote. “We estimate possible 6-8% growth yoy this year. If true, this could translate to upside risks to our conservative 2Q23 JDR forecast.”
Read more: JD Sees Rebound After Plying Shoppers With $1.4 Billion of Deals
Over the weekend, JD also disclosed its longer-term vision for a sprawling business that now spans logistics, health care, e-commerce and online finance.