JD.COM, INC. JD.com, Inc.
Financial and Operational Highlights
November 2020
0
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The following presentation has been prepared by JD.com, Inc. ("JD" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities or otherwise.
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1
Fragmented Retail Market & Rapid Shift to Online
Robust Growth | … Yet Highly | … With Increasing | … Leading to Significant |
in China Retail … | Fragmented ... | Online Penetration ... | Online Growth |
China Total Retail | Top 20 Retailers' | China Online Retail | China Online Retail |
Market Size (1) | Market Concentration in 2019 (2) | Penetration (3) | Market Size (4) |
(RMB Trillions) | (RMB Trillions) |
9.8%
China
10%
2012 -19 CAGR
18% | 22.8% | |||
20.7% | ||||
China | 43 | |||
41 | ||||
US | 18.4% | |||
32% | ||||
30 | 15.0% | 2012 -20E |
US | 12.6% | CAGR |
21 | 10.8% | |
48%
6.2% | 1.2 | |||
2012 | 2019 | 2012 2015 2016 2017 2018 2019 | Q3 | 2012A |
2020 | ||||
2020 -23E
CAGR
15.1
11.3
2020E 2023E
(1) | Source: National Bureau of Statistics of China, and U.S. Census Bureau. Total retail consumption includes food services. US consumption is translated into RMB using the year-end foreign exchange | |
rates, which were 6.2301 for 2012, and 6.9618 for 2019, respectively. | ||
(2) | Source: Euromonitor 2019. Concentration for China retail market excludes pure platform operators. | |
2 | (3) | Source: National Bureau of Statistics of China. Online retail penetration is calculated as online physical goods consumption divided by total retail consumption. |
(4) | Source: iResearch, 2019. Market size in terms of GMV. |
Larger Growth Potential and Smaller Competitors (vs. US Market)
Top 10 Listed Retailers in China (1) | Top 10 Listed Retailers in US (2) |
CAGR | |||
(Net Revenue in US$ bn) | 2016-2019 | ||
31% | |||
82.9 | |||
38.7 | 22% | ||
13.7 | (2)% | ||
13.4 | 18% | ||
12.2 | 20% | ||
Alibaba New | 10.7 | - | |
Retail Initiatives | |||
8.5 | (8)% | ||
7.2 | 2% | ||
7.1 | 12% | ||
5.0 | 1% |
CAGR | ||||||
(Net Retail Sales in US$ bn) | 2016-2019 | |||||
3% | ||||||
399.8 | ||||||
170.8 | 29% | |||||
111.8 | 9% | |||||
104.5 | 8% | |||||
101.9 | 0% | |||||
101.3 | 5% | |||||
86.6 | 2% | |||||
77.1 | 4% | |||||
72.1 | 4% | |||||
40.1 | 3% |
Market leadership and operating efficiency allow everyday low price and tremendous margin potential, driven by economies of scale in procurement and cost advantage as an online retailer.
- Source: company filings. Based on total net revenues for top 10 listed Chinese retailers in FY2019, Alibaba New Retail Initiatives primarily include Intime, Tmall Imports and Hema. The conversion of RMB into US$ is based on the year-end exchange rate which was 6.9618. The CAGR growth rates were calculated based on revenues in RMB.
- Source: company filings. Based on retail sales in the United States segments of top 10 listed US retailers, for fiscal year ended Jan 31, 2020 for Walmart and Lowe's, Dec 31, 2019 for Amazon and CVS
3 Caremark, Sept 1, 2019 for Costco, Aug 31, 2019 for Walgreens, Feb 1, 2020 for Kroger, best buy and Target, and Feb 2, 2020 for Home Depot.
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JD.com Inc. published this content on 16 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2020 11:12:04 UTC
