Alibaba Group Holding Ltd. has been a hot topic in the business world lately due to its successful Single’s Day sales. The Chinese e-commerce company broke all previous records and gathered up $25 billion in a period of 24 hours. It seems like the company is leading all other e-commerce sites in China with its exceptional business and revenue. Nevertheless, this does not mean that all other retailers have given up. Recently another e-commerce company JD.com stepped out and showed Alibaba somewhat a competition.
JD.com Inc., established in 2004 is the second largest e-commerce firm in China and Alibaba’s primary competitor. JD.com also celebrated the Chinese biggest shopping holiday (Single’s Day) on 11 November. Though, JD.com’s 11/11 was not as grand as Alibaba’s however, the company managed to hit quite an impressive figure. JD.com productively hit 127.1 billion in RMB which is about $19.14 billion. Unlike Alibaba’s 24-hour long Single’s Day, JD.com’s haul is from November 1st to November 12th.
Although JD.com’s 11/11 figure is no way near Alibaba’s record high163.8 billion RMB ($25.3 billion), the company showed an excellent result and made itself capable of being taken seriously.
Alibaba was established in 1999 and has chiefly grown into China’s largest e-commerce company, whereas JD.com was established in 2004 and still managed to become the second largest retailer in just 13 years.
There is no direct comparison between the two Single’s Day’s figures as Alibaba is obviously very dominant but JD.com’s figure was higher than Alibaba’s 2016 11/11 sales GMV of RMB 120.7 billion. The figure was also higher than JD.com’s 6/18 sales event figure that was $17.6 billion. JD.com’s 6/18 is an event created to memorialize the date of company’s genesis and it lasts for 18 days.
The key difference between both the companies is that Alibaba operates on a marketplace approach with its e-commerce business, whereas JD.com works on an Amazon-like vertical approach.
Apart from their approach, both the companies differ greatly regarding their size and valuation. Alibaba is more of an empire and sits on the New York Stock Exchange with a market capitalization of $477 billion while JD.com, valued at around $57 billion is listed on NASDAQ.
— JD.com (@JD_Corporate) 11 November 2017
Reports claim that Alibaba’s long-time CEO Jack Ma had noticed the potential of the rival long ago.
The Information reported that back in 2011 when JD.com was much smaller and weaker, Jack Ma persuaded Richard Liu (CEO JD.com) to open a store on Alibaba’s platform. Liu rejected his offer and continued establishing his company through a different approach to e-commerce and by embracing robot and drone technology.