JD.com, China’s second-largest e-commerce firm after Alibaba said its net loss widened in the second quarter, as marketing costs and logistics costs dampened the impact of higher-than-forecast revenue growth.
China’s main rival to Alibaba Group reported a net loss of CNY 287 million (USD 42.3 million) for the second quarter, despite a growth in revenue of 43.6 per cent to CNYv93.2 billion. The group’s marketing expenses increased by 63 per cent to CNY 4.1 billion and fulfillment expenses increased by 39 per cent to CNY 6.4 billion.
The result comes as JD looks to expand overseas with investments in Southeast Asia, as competition at home intensifies and customer growth slows. It is also seeking to boost per-customer spend in China by bringing more overseas brands onto its local platforms through strategic partnerships.
JD in June said it intends to begin direct sales in Thailand before the end of the year and has plans to tap other markets in the region.
Commenting on the results, Richard Liu, chairman and CEO of JD.com, said: “JD’s growing strength as China’s largest retailer continues to position us to capture new and expanding market opportunities.
“As we broaden our range of offerings, including a rapidly growing roster of top international brands, our customer base continues to expand, with female shoppers becoming an increasingly active user base. Looking forward, as JD’s smart technologies and big data help us revolutionise the online shopping experience, our ‘retail as a service’ initiative will further extend the capabilities of our platform to partners throughout China.”