JD.com Sold $29.2 Billion in Goods During its '6.18' Anniversary Sale, Stock Jumps 10% This Month
JD.com Inc. (Nasdaq: JD) announced it sold more than $29.2 billion goods during the first 18 days in June, sending its stock up 12 percent to $28.50 per share during the period intraday Wednesday.
China's second-largest online retailer said its total sales transaction volume reached $29.2 billion from June 1 to June 18, representing an increase of 27 percent from the same period in 2018.
The "6.18 Anniversary Sale" played a role as the shopping festival, which is similar to the Alibaba Group's annual "Singles Day." In contrast, Alibaba posted record gross merchandise volume totaling $30.8 billion during its Singles Day sale on Nov.11, 2018.
JD.com said key drivers leading to the breakthrough results were new products as well as Chinese consumers' continued interest in and pursuit of higher quality goods, according to JD.com.
350 million boxes of milk were sold in the 18 days of sales under the category of consumer goods. JD.com reported three-digit increase of more than sevenfold on international hotel room reservation sales and doubled the sales of its mobile phones year-over-year.
Other sales in the 18 days period included consumer goods, fresh food, life services, consumer electronics and home appliances.
JD's efficient logistics and order fulfillment technology fueled its sales. 91 percent of orders were delivered in the same or next day from JD.com's automated warehouse where the number of orders fulfilled increased 99 percent.
JD was reportedly trying to list its logistics unit, but didn't have time to prepare for an initial public offering, according to Reuters in June.
"During this year's 6.18, JD's smart customer service robot fielded more than 32 million inquiries, of which it solved 90 percent of those independently, freeing up human customer service for more complicated inquiries," JD.com said.
The fashion and lifestyle business lines sold by JD.com were bullish.
Sales of Italian luxury fashion designer Emporio Armani jumped more than 4 times in the first 30 minutes of the 6.18 shopping festival.
More recently, Italian designer brand Prada launched an authorized flagship store on JD.com. In addition, Farfetch Limited (NYSE: FTCH) with 1,000 brand and boutique partners launched a flagship store on JD.com.
"I am delighted to be able to offer JD.coms customers direct access to the broadest selection of luxury fashion online, and to be able to offer luxury brands the premier luxury gateway to China for executing on their digital strategy in China," said Judy Liu, managing director of Farfetch China.
Shares of JD.com were trading at $28.50 per American depositary by Wednesday noon, representing an increase of 11 percent from the closing price of $25.76 on May 31.
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