JD.com does not stop moving as quickly as possible, year after year they have been proving that they will continue to be a strong e-commerce market player as is evidenced by their different strategic moves. Year after year they continue to invest their earnings into their business and use it to grow their business, they keep proving to investors that they are invested for the long-haul. If Jingdong continues on the current path it is certain to add to their cash base and will likely a significant store of value as a long-term asset. Their recent quarterly earnings were quite promising and their announcements don’t seem to slow down on a quarterly basis either. Let us take a look at a few of their recent announcements.
Jingdong and the Farfetch Connection
Jingdong will continue to stick with its specialties and move forward with branching out with partners who are more focused and specialized in a specific business vertical. As most JD.com investors would know, a few of the most valuable aspects of Jd.com is that of their real estate possessions, their platform, their logistics, and their treasure trove of immense data that they have collected over the years. These different components provide them with significant value and have contributed to the rise of the revenues on a regular basis. The value of the JD.com platform is evidenced by the Farfetch connection.
First, in a strategic move, Jingdong invested in Farfetch, it is one of the strongest shareholders in the company, second, Jingdong partnered with Farfetch to launch their brand, Toplife in 2017. They relied on their partnerships with people like Farfetch to enter the luxury market in a more concentrated manner and thwart the creeping of competitors such as Alibaba who has launched their own luxury-focused segment. JD.com is able to provide Farfetch with its platform, and provide the brand with the treasure trove of data JD.com has compiled over the past few years. JD.com and Farfetch seem like they are headed in the right direction as incomes rise and more individuals are able to spend and purchase luxury items. They are laying down the foundation to be powerful consumer-centric brands in the near future.