Date
25 September 2017
JD.com says the number of mobile phone users that have activated the e-vendor’s app has grown four times from a year before. Photo: Bloomberg
JD.com says the number of mobile phone users that have activated the e-vendor’s app has grown four times from a year before. Photo: Bloomberg

JD looking very good — but not next to Tmall

This just in from JD.com: the number of mobile phone users that activated the e-vendor’s app has risen four times from the previous year.

That says a lot about its tie-up with Chinese internet giant Tencent which gave it access to millions of Weixin and QQ users.

Exactly how much of this traffic accounted for JD.com’s blowout numbers remains to be seen, but it shows the importance of the nascent relationship.

As a result of that tie-up, JD.com can now be found on the landing page of Weixin with other key functions such as the widely popular “Circle of Friends”.

Previously, users needed to peel off layers before finding JD.

In fairness, JD.com has been doing its share in attracting traffic. It has launched a “red packets’ campaign in which users can take part in a lucky draw for cash coupons that can be redeemed on JD.com

As of June 4, JD.com had sent out more than 200 million yuan (US$32 million) worth of red envelopes through its mobile platform. The group plans to release packets worth 1 billion yuan on June 18 to celebrate its anniversary.

However, with cash coupons ranging from a few yuan to 618 yuan, some netizens have complained the token amount is not enough incentive to spend.

That could partly explain JD.com’s modest 18 percent share of the B2C market. Alibaba’s Tmall is the undisputed champion with 49 percent, according to research analyst Analysys International.

And although JD.com has shown tremendous improvement since its partnership with Tencent, it has a long way to go before it can catch up with the industry leader.

– Contact the writer at [email protected]

RA

EJ Insight writer

EJI Weekly Newsletter

Please click here to unsubscribe