The time in which Alibaba has dominated the e-commerce market in China may be coming to an end. The facts that have been gathered are showing that more and more consumers are turning to JD.com rather than Alibaba. In fact, there was a survey performed by FT Confidential Research which found that:
45% of 2,000 online shoppers utilize JD.com
This figure is up 15% from last year. Further research also shows that Taobao and Tmall, both of which are owned by Alibaba, declined in popularity last quarter, compared to where they were a year ago.
What has Made JD.com More Popular?
The reason that many consumers are utilizing JD.com in comparison to Alibaba has a great deal to do with their alliance with Tencent. An alliance that has been in place since the middle of 2014. Secondly, the company has put a lot of time and money into ensuring that they can deliver their products within record timing to consumers, even if they live in areas that are not as mainstream.
In fact, JD.com has released their first quarter 2015 shipping information, and they have 3,539 deliver and pick up stations that are located in over 1,900 cities. When compared to 2014, they have opened 300 more stations and increase their presence in approximately 100 more cities.
JD.com Utilizes Social Media Appropriately
Thanks to their relationship with Tencent, JD.com has really been using the WeChat and QQ mobile apps as they were designed to be utilized. They utilize these social media apps as a way to advertise sales, show specials related to holidays throughout the year, and basically gear their goods towards consumers who want to find a good deal.
Despite becoming more popular in the e-commerce market within China, JD.com is still highly unlikely to post any profit at the end of this year. Thanks to their investing into various businesses and ideals to make them more popular, they are still showing a net loss with profits.