JD.com (NASDAQ:JD) continues exploring growth opportunities to expand their revenue base in a competitive business environment. The company is currently focusing on and investing in key Southeast Asian markets amid higher margins and better growth opportunities.
Analysts Applauded Strategic Partnership with Google
Analysts say the company’s latest deal with Google (NASDAQ:GOOGL) is “quite strategic and meaningful” and that the partnership will have long-lasting implications for both Google and JD.com. JD’s stock bounced back sharply following the news regarding Google’s investment.
Google is investing almost $550 million in JD.com in return for 27 million newly issued Class A ordinary shares. As a part of the strategic deal, Google will help JD in building retail infrastructure all around the globe, including Southeast Asia. Google also announced that it would be boosting JD’s items on Google Shopping.
The market pundits are of the opinion that this strategic partnership will let JD expand its market penetration further into key markets such as Thailand, Hong Kong, and Indonesia where it already has a relatively strong presence.
JD’s Strategies Are Boosting Financial Numbers
China’s second-largest e-commerce company has generated a year-over-year revenue growth of 33% in the first quarter of this year. The company’s active customer accounts also grew by 27.6% in the last twelve months to 301.8 million.
JD’s CEO commented, “We are making rapid progress in boundaryless retail innovations while expanding JD’s advanced nationwide fulfillment network to bring value to a wide range of brands and industry players.”
JD.com expects to generate revenue growth in the range of 30% in the second quarter, which is an indication that JD’s business strategies are working. The company, however, foresees its revenue growth to increase at a much better rate in second half of this year and in 2019, thanks to its recent strategic deals with several companies and brands.
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