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Tag Archives: JD.com
Jingdong (jd.com) latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)
Bottom line: Baidu’s disposal of its problematic music division looks like a smart move that was long overdue, while its new tie-up with Amazon looks minor but could get much bigger if it expands into the e-commerce sector.
Baidu in Christmas time tie-ups with Amazon, music company
Leading search engine Baidu(Nasdaq: BIDU) is in the headlines with a couple of big strategic moves, led by an intriguing new tie-up with Amazon (Nasdaq: AMZN) that could have broader implications in the e-commerce space. The other news has Baidu merging its problematic music division, which was historically plagued by piracy issues, into a new company headed by an entertainment firm called Taihe Music Culture Development.
Both moves represent incremental strategic tweaks for Baidu, as it tries to expand beyond its core online search business into other areas of the Internet. The Amazon alliance looks relatively superficial, but could hint at a broader future tie-up that might see the companies work together in China’s lucrative but highly competitive e-commerce space dominated by Alibaba (NYSE: BABA) and JD.com (Nasdaq: JD). Read Full Post…
Bottom line: New York has lost its appeal for listings by smaller Chinese Internet companies, but should remain attractive for sector leaders like Didi Kuaidi and Meituan-Dianping.
Chinese NY IPOs shrink sharply in 2015
China’s imminent resumption of IPOs after a 4-month pause seems like a good opportunity to review what’s shaping up as the year of the “reverse IPO” in New York by Chinese companies. Market watchers will know that I’m talking about this year’s record wave of privatization bids by US-listed Chinese firms, which saw around 3 dozen companies announce plans to de-list from New York during the year with an eye to re-listing back in China.
That’s not to say that no Chinese companies listed in New York this year, and I was able to track down at least 4 that made such offers. But those 4 collectively raised a paltry $200 million, or just a tiny fraction of the nearly $30 billion that Chinese companies raised in a record year for New York IPOs in 2014. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 17. To view a full article or story, click on the link next to the headline.
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Tsinghua Unigroup to Invest $47 Bln to Build Chip Empire (English article)
Bottom line: Vipshop’s third-quarter revenue shortfall is the latest signal that China’s e-commmerce sales are set to slow after a period of rapid growth, and could pressure the company’s stock over the next few months.
Warm autumn chills Vipshop sales
Discount e-commerce superstar Vipshop (NYSE: VIPS) has suddenly lost some of its luster, after announcing a revenue shortfall that sparked a 27 percent plunge in its stock. The unusual revenue miss looks even more unusual in China’s broader booming e-commerce sector, where leaders Alibaba(NYSE: BABA) and JD.com (Nasdaq: JD) are still basking in the glow of a record-breaking Singles Day online shopping blitz last week. (previous post)
The bigger question that many will be asking this week is whether there’s any broader significance to Vipshop’s new announcement that it missed its previous third-quarter revenue forecast by 6 percent. (company announcement; Chinese article) Some others have warned of a similar slowdown, and I previously said the big Singles Day sales totals were at least partly manipulated by online merchants trying to meet tough targets set by online mall operators. (previous post) Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 13. To view a full article or story, click on the link next to the headline.
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China’s Postal Savings Bank Nears $8 Bln Stake Sale Ahead of IPO (English article)
Lenovo (HKEx: 992) Posts First Quarterly Loss in 6 Years (English article)
JD.com (Nasdaq: JD) Announces Singles Day Orders Up 130 Pct (GlobeNewswire)
Ele.me Confirms to Receive Investment from Car Services Provider Didi (Chinese article)
MSCI to Include Chinese ADRs in Benchmarks as Xi Focuses on Tech (English article)
Bottom line: Alibaba’s 60 percent sales growth on Singles Day is truly impressive, but was almost certainly boosted by merchants that delayed logging transactions on its network until the 24-hour period to help meet their sales targets.
Alibaba shatters Singles Day sales record
The numbers are in, and e-commerce juggernaut Alibaba (NYSE: BABA) has posted a record performance for this year’s Singles Day online shopping extravaganza that has surprised even me for the margin by which it surpassed last year’s record. I’ll end the suspense right away and reveal that Alibaba posted 91.2 billion yuan ($14.3 billion) worth of sales over its platforms during the 24-hour online shopping binge, up more than 50 percent from last year’s $9.3 billion. (company announcement)
To put that in perspective, Alibaba posted $112 billion in gross merchandise value (GMV) for goods sold over all its platforms in this year’s entire second quarter. That means the Singles Day total is equal to 13 percent of its entire total for the 3 months through September, quite impressive for a single day. Read Full Post…
Bottom line: JD’s decision to shutter its Paipai C2C marketplace looks like a smart move, as China looks set to crack down on online trafficking in fake goods that is often rampant and hard to police on such sites.
JD to shutter Paipai by next April
E-commerce JD.com(Nasdaq: JD) has just announced it is formally shuttering it Paipai C2C site, citing difficulties policing the thousands of small merchants and individuals who sell products on the site. Timing of the move is slightly strange, since JD announced the downbeat decision just a day before the November 11 Singles Day, which has become the world’s biggest day for online shoppers.
On the surface at least, the move looks like a major victory for archrival Alibaba(NYSE: BABA), whose Taobao online marketplace competes directly with Paipai and controls the vast majority of China’s C2C e-commerce market. But the move also represents a major tactical decision for JD, since C2C markets are notoriously difficult to police for fakes, substandard products and fraud due to the huge number of merchants they host. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 11. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Generates $5 Bln GMV in First 90 Minutes of Singles Day Festival (Businesswire)
Bottom line: Alibaba’s Youku Tudou purchase, its investment in a US online grocery store and its spat with JD mark a return to the headlines for the company following a quiet period, as it regains confidence following a piracy scandal early this year.
Alibaba invests in US online grocer
E-commerce leader Alibaba (NYSE: BABA) may have briefly gone into headline hibernation over the summer when its stock was in free-fall, but it’s quickly returning to a more familiar hyperactive mode as its Singles Day shopping extravaganza approaches this week. The company is in at least 2 M&A headlines as we head into the new week, announcing its signing of a formal deal to buy leading online video site Youku Tudou (NYSE: YOKU) and reportedly nearing a deal to make a relatively big investment in a US online grocery site called Boxed.
Meantime, a recent spat between Alibaba and archrival JD.com(Nasdaq: JD) continues to make headlines just 2 days before Singles Day, which falls on November 11 and has rapidly grown to become the world’s busiest online shopping day. That spat burst into headlines last week and revolves around anti-competitive accusations made by JD, which has now also sued Alibaba for allegedly making inflated claims about its delivery service. Read Full Post…
Bottom line: China’s commerce regulator is putting growing pressure on Alibaba to play by its rules governing piracy and fair competition, but is likely to keep dialogue private to avoid public spats like one early this year.
SAIC accepts JD’s Alibaba complaint
E-commerce juggernaut Alibaba (NYSE: BABA) is coming uncomfortably under the microscope just days before its important Singles Day shopping extravaganza, with 2 new developments reflecting growing scrutiny from the nation’s top commerce regulator. The first has the powerful State Administration for Industry and Commerce (SAIC) formally accepting a complaint from rival JD.com (Nasdaq: JD), which accuses Alibaba of strong-arm tactics aimed at stifling competition during Singles Day promotions set for November 11.
The second headline looks a bit more benign, and simply says that SAIC Minister Zhang Mao visited Alibaba’s headquarters in the city of Hangzhou in coastal Zhejiang province this week. Headlines from that meeting look designed to show a facade of harmony, with Zhang praising Alibaba for its innovation in e-commerce. But I do suspect that Zhang is strongly pushing Alibaba behind the scenes to clean up its sites of traffic in pirated and substandard products, and also to avoid abusing its market dominance that led to the JD.com complaint. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 4. To view a full article or story, click on the link next to the headline.
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JD.com (Nasdaq: JD) Says Alibaba Pressuring Merchants Before Singles’ Day (English article)
Over 40 Pct of China’s Online Sales Counterfeit, Shoddy: Xinhua (English article)
