JD.com, Inc. (JD): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how JD.com, with its reported US$47.5 billion in revenue for the fourth quarter of 2024, has become a leading force in e-commerce? Join us as we delve into the history, ownership structure, and mission of this supply chain-based technology and service provider, exploring how it operates and generates revenue.

From its beginnings to its current status as a key player with over 600 million active customers, what makes JD.com's approach to e-commerce so unique and successful? Keep reading to uncover the strategies and innovations that have propelled JD.com to the forefront of the industry.

JD.com, Inc. (JD) History

JD.com's Founding Timeline

Year established

The company was established in 1998.

Original location

It was originally based in Beijing, China.

Founding team members

The founder and CEO is Richard Liu (also known as Liu Qiangdong).

Initial capital/funding

Richard Liu started the business with CNY 12,000 (approximately $1,700 USD based on historical exchange rates) which he borrowed.

JD.com's Evolution Milestones

JD.com's Transformative Moments

• Transition to E-commerce (2004): The decision to move the business online in 2004 was pivotal. This allowed the company to reach a much broader customer base than its physical stores ever could.
• Building a Logistics Network (2007): Recognizing the importance of reliable delivery, the company invested heavily in building its own logistics network starting in 2007. This move set it apart from competitors and ensured customer satisfaction.
• Strategic Partnerships: Forming strategic alliances with companies like Tencent allowed the company to leverage social media and payment platforms to enhance its reach and customer engagement.
• Expansion into Finance and Technology: Diversifying into finance with JD Finance and investing in cutting-edge technologies like AI and drone delivery has positioned the company as more than just an e-commerce platform but as a technology and services leader.

To gain more insights into the company's guiding principles, read this: Mission Statement, Vision, & Core Values of JD.com, Inc. (JD).

JD.com, Inc. (JD) Ownership Structure

As of April 2025, JD.com features a mixed ownership structure, including institutional, public, and insider stakeholders. Understanding this structure provides insights into the company's governance and strategic direction.

JD.com's Current Status

JD.com is a publicly traded company. It is listed on both the NASDAQ and the Hong Kong Stock Exchange. Being publicly traded means that a portion of the company's shares are available for purchase by the general public, and the company is subject to regulatory oversight and reporting requirements.

JD.com's Ownership Breakdown

The ownership of JD.com is distributed among various shareholders, including institutional investors, company insiders, and the public. Here's a breakdown of the ownership percentages based on the latest available data:

JD.com's Leadership

The leadership team at JD.com is responsible for setting the strategic direction and overseeing the company's operations. Key figures include:

• Lei Xu: Chief Executive Officer
• Sandy Xu: Chief Financial Officer

For more insights into the company's goals, explore Mission Statement, Vision, & Core Values of JD.com, Inc. (JD).

JD.com, Inc. (JD) Mission and Values

JD.com's mission and values reflect its commitment to providing authentic products, superior service, and creating long-term value for its stakeholders, shaping its approach to e-commerce and logistics in China and beyond.

JD.com's Core Purpose

Official mission statement

JD.com's official mission statement is: 'To be the most trusted company in the world.' This reflects a commitment to integrity, reliability, and customer satisfaction in all aspects of its business operations.

Vision statement

JD.com's vision statement is centered around:

• Enhancing the customer experience through technology and innovation.
• Building an efficient and reliable supply chain network.
• Expanding its reach and influence in the global market.

Company slogan/tagline

JD.com has used several slogans and taglines over the years to communicate its brand promise. These include:

• 'Joy East' (京东, Jīngdōng), which is a play on the company's name and conveys a sense of positive shopping experience.
• Focus on 'Quality e-commerce' and 'Genuine products.'

For more in-depth information about JD.com's investors, check out this resource: Exploring JD.com, Inc. (JD) Investor Profile: Who’s Buying and Why?

JD.com, Inc. (JD) How It Works

JD.com operates as an e-commerce and retail company, providing a platform for consumers to purchase a wide array of products, from electronics and apparel to home goods and fresh food, often focusing on quality and speed of delivery.

JD.com's Product/Service Portfolio

JD.com's Operational Framework

JD.com's operational framework is built around providing a seamless e-commerce experience, integrating technology and logistics to ensure efficient service delivery.

• E-commerce Platform: JD.com operates its online marketplace, allowing both direct sales and third-party vendors to offer products.
• Logistics Network: A key component is JD Logistics, which manages warehousing, delivery, and supply chain solutions. This includes a network of warehouses, distribution centers, and delivery personnel.
• Technology Integration: JD.com invests heavily in technology, including AI, big data, and automation, to optimize its operations, enhance customer experience, and drive innovation.
• Customer Service: Focus on customer satisfaction through after-sales services, dispute resolution, and customer feedback mechanisms.

JD.com's Strategic Advantages

• Superior Logistics Network: JD Logistics provides a significant competitive edge with its speed and reliability, especially in a market where delivery times are critical.
• Focus on Authenticity: JD.com has built a reputation for selling authentic, high-quality products, which helps build trust with consumers.
• Technology-Driven Innovation: Investments in AI and automation enhance operational efficiency and customer experience, setting it apart from competitors.
• Strong Brand Reputation: The company has established a strong brand presence in China, recognized for its quality and service.

To gain more insights into the company's financial performance, you might find this resource helpful: Breaking Down JD.com, Inc. (JD) Financial Health: Key Insights for Investors

JD.com, Inc. (JD) How It Makes Money

operates as an e-commerce company and retail company in China. It generates revenue primarily through online direct sales and marketplace services, connecting consumers with various products and merchants.

Revenue Breakdown

Business Economics

operates with a focus on providing a wide array of products and services to consumers through its e-commerce platform. Here's a breakdown of its business economics:

• E-commerce Platform: The company's primary business model revolves around its e-commerce platform, where it offers products directly to consumers and provides a marketplace for third-party sellers.
• Pricing Strategy: uses competitive pricing strategies to attract customers. It also leverages promotional activities, discounts, and loyalty programs to drive sales volume.
• Logistics and Fulfillment: A significant aspect of 's business economics is its extensive logistics and fulfillment network. This network enables efficient delivery and enhances customer satisfaction.
• Technology Investment: The business continually invests in technology to improve its platform, enhance user experience, and optimize operations. This includes investments in AI, big data, and cloud computing.
• Market Position: competes with other major e-commerce players in China. Its ability to maintain and grow its market share influences its profitability and overall financial health.

To gain more insights about shareholders, read this article: Exploring JD.com, Inc. (JD) Investor Profile: Who’s Buying and Why?

Financial Performance

Here are key highlights regarding 's financial performance:

• Total Revenue: In 2024, 's total revenue was CNY 1,084.7 billion, marking a 3.6% increase compared to CNY 1,046.2 billion in 2023.
• Net product revenue: For the year 2024, net product revenue was CNY 835.3 billion, up from CNY 809.3 billion in 2023.
• Net service revenue: In 2024, net service revenue reached CNY 249.5 billion, compared to CNY 236.9 billion in the previous year.

JD.com, Inc. (JD) Market Position & Future Outlook

JD.com is strategically positioned to capitalize on China's e-commerce growth, focusing on technology and logistics. However, it faces intense competition and evolving consumer preferences.

Competitive Landscape

Opportunities & Challenges

Industry Position

JD.com holds a strong position in the Chinese e-commerce market due to its focus on quality and efficient logistics. Its key strategies include:

• Investing heavily in its logistics infrastructure to ensure fast and reliable delivery.
• Focusing on product authenticity and quality to build consumer trust.
• Expanding its presence in lower-tier cities and rural areas.
• Leveraging technology to enhance the customer experience and improve operational efficiency.

For more insights into the company's financial performance, explore: Breaking Down JD.com, Inc. (JD) Financial Health: Key Insights for Investors