However, from panorama network, Zhejiang Network radio and TELEVISION and other media reports said: JINGdong Q3 earnings hidden the history of the lowest GMV growth.

Net profit hits record high, but worries about slowing growth?

According to historical financial reports, JD’S GMV growth rate was 107% in 2014, 84% in 2015 and 47% in 2016. Previously, although its size was lower than That of Tmall, JINGdong was further recognized by the capital market because of its growth rate higher than that of Tmall, and its market value also rose a lot this year.

“Driven by a better user experience, JD group has maintained steady growth in gross transaction value (GMV) in the past three quarters, with a total transaction value (GMV) of nearly 900 billion yuan in the first three quarters,” Tencent Finance reported. Based on this algorithm, JD’s GMV for the quarter was very clear. Jd.com’s GMV was 253.2 billion yuan in the first quarter of this year and 234.8 billion yuan in the second quarter, which gives jd.com’s GMV of 412 billion yuan this quarter, up 159.4% year on year. That’s far faster than rival Tmall’s 49% growth in the quarter, and there’s no reason jd.com shouldn’t show that in its financial results.

However, according to media reports such as Panorama.com, jingdong announced its financial report for the third quarter of 2017 on November 13, without clearly listing the growth rate of GMV for the first time. According to its published QUARTERLY and historical GMV, Q3 growth slowed to 32%, the lowest on record.

In addition, according to the “China online retail B2C Market quarterly Monitoring report” released by Analysys on October 28, the transaction scale of China’s online retail B2C market in the third quarter of 2017 was 985.44 billion YUAN. Among them, tmall transaction volume increased 47% year on year, market share increased to 59.0%. Jd.com’s total transaction volume rose 41 percent year-on-year, while its market share slipped to 26.9 percent.

In other words, jingdong’s growth rate has begun to show signs of continuous decline, which may be the real reason why jingdong did not announce the GROWTH of GMV in its financial report this time.

There are many hidden concerns behind the slowdown

High growth has always been the core factor for JD to attract the capital market, but what are the reasons for the two steep drops in growth?

First of all, jingdong GMV growth slowdown is behind the disappearance of the Internet artificial dividend background. With the gradual penetration of the Internet and mobile Internet, the Internet began to enter the second half, and in the second half, the first problem we faced was the fading of the growth of demographic dividend.

As the demographic dividend fades, the marketing cost increases, and jingdong is a self-operated asset-heavy model, which makes it difficult to take into account the cost weakness and provide growth momentum while opening its ecosystem. In order to maintain growth, JINGdong must invest a large amount of money to achieve profitability by reducing the scale. As a result, jingdong has already faced the problem of “physique” before its size has been expanded.

Moreover, jingdong he is home appliance, office, 3 c digital, such as proprietary trading, but at the moment, even if in the third quarter, 7, 8, 9 three months of the traditional sales season, also did not see improvement, jingdong sales and growth and its power is already claim areas such as clothing, fast and has failed to respond to, this to a certain extent, affected the jingdong growth story.

In addition, JINGdong, which is based on its competitive base of self-operation and logistics, is now facing the catch-up of newbies. However, it has shortcomings in integrity, maturity, capital and technological strength in both financial and rural markets. Although Jingdong aims at the rural and international markets, However, the young people who know how to shop online in rural markets have almost all started to shop on e-commerce platforms, while the middle-aged and elderly people who do not know how to shop online can hardly change their shopping habits. They are still more willing to go to rural markets or towns to consume.

In the international arena, if Jingdong Mall wants to open the international market, it not only needs to face local e-commerce competitors, but also needs to face the influence of policies, local economic environment, laws and regulations, folk consumption habits and many other factors. The expansion of global e-commerce cannot be achieved overnight.

Jd still has a long way to go to enter the retail market

Published in domestic electric dealer market, according to analysys, the China B2C online retail market quarterly monitoring report shows that despite jingdong’s biggest rival Tmall market share has been difficult to win, but now other electric business platform, such as suning, Vipshop, netease strictly selected in plunder and broken China electricity cake, jingdong competitive pressure is not small.

For jingdong, jingdong jingdong in digital 3 c, household electrical appliances, clothing, fresh, home outfit, auto supplies, and other fields have a layout, in finance, fresh and smart technology also dabbled, seemingly ecological flourishing, but due to the ecological stretched too long makes it without too much focus on electric business, the speed of the slow development.

And the jingdong from product purchase to pay distribution logistics are proprietary, as the growth of the size, in terms of product quality assurance and consumer experience difficulty is increased, leading to jingdong and upstream manufacturers game more intense, how in the future on the basis of the profit to maintain rapid growth will be a big challenge of jingdong.

From this point of view, despite the profit growth of JD, it must face a grim reality: the slowdown of GMV growth rate. For JINGdong, if it wants to maintain rapid growth in the future, instead of continuously increasing traffic channels, which cannot solve the general trend of slowing growth of e-commerce, it should focus on new technologies and new retail or take the right path.

Liu Kuang, meditation on the Internet, wechat official account: Liukuang110