LONDON — JD.com’s high-profile partnerships with top brands such as the LVMH Moët Hennessy Louis Vuitton-owned Bulgari and Berluti helped the company to add more than 32 million new users, the largest single-quarter increase in JD.com’s history, the company said Monday as it announced its second-quarter results.
In the three months ended June 30, annual active customer accounts increased by 27.4 percent to 531.9 million.
Net revenue rose 26.2 percent to 253.80 billion renminbi, or $39.31 billion, while net profit in the period fell by 95.5 percent from 16.4 billion renminbi to 794.3 million renminbi, or $123.02 million, but still beat market expectations according to IBES data from Refinitiv.
Net service revenues for the second quarter of 2021 increased by 49.2 percent year-over-year to 34.1 billion, or $5.3 billion. The company said the growth was fueled by its “ongoing strategy to open up its resources to merchants as well as parties beyond the JD ecosystem.”
Following a surprising partnership with Louis Vuitton, that sees JD.com redirect all “LV” search results on the JD.com app to Louis Vuitton’s official WeChat mini-program, the Chinese e-commerce giant expanded the partnership to other LVMH-owned brands such as Bulgari and Berluti in the second quarter.
It leveraged the JD.com mini-app infrastructure for Bulgari to provide a highly curated shopping experience featuring a full suite of products. This is the first time Bulgari has collaborated with a third-party online retailer in its 137-year history.
Riding the luxury wave, JD.com has also attracted LVMH brands Guerlain, Givenchy Beauty and Benefit, as well as Estée Lauder, Clinique, and Origins and Kiehl’s.
The outstanding results of JD.com’s annual 618 shopping festival also contributed to the growth in the quarter. The company reported a total transaction volume of more than 343.8 billion renminbi, or $53.02 billion at current exchange, during the 18-day sale from June 1 to 18. More than 236 brands achieved sales of more than 100 million renminbi.
Sales of Salvatore Ferragamo, Tod’s and Bally increased 150 percent, 232 percent, and 600 percent respectively. In addition, more than 20 designer brands saw sales increases of more than 15 times year-over-year.