As the Chinese market is resuming with the COVID 19 aftermath, we now see the eCommerce giant JD.com to emerge as a technology platform for the US based consumers who are active on the cloud computing market that seems to be dominated by Alibaba. JD is known in the Chinese market and it claims to be a single day delivery service that helps many to drive a year on year boost up. The eCommerce company is a known group in China and it has seen the year on year boost up in the market catering to not less than 362 million annual active customers in 2019 alone. Bernstein analysts were also seen upgrading the stock to “outperform” on March 17, noting to the fact as to how JD’s in-house logistics network was seen functioning in the entire Lunar New Year especially when it is hampered by the corona-virus hit to the economy.
The Chine based e-commerce giant is not trying to build up the delivery along with the retail network that is seen working in alignment with the online business and the technology that is used in covering a wide range of aspects including logistics, cloud computing and advertising. Since the last year, the company has got a clear direction to serve the company, which is based on the foundation of the supply chain development claimed Bowen Zhou, the chairperson of JD’s technology committee along with being the president of JD Cloud & AI, who went on to say about the same in an interview to a known media group.
While looking for the direction of the future operations, the technology along with the services remains the key element to growth, the president. The development of these products along with the services would help the e-commerce giant to achieve the global goals. The president further said the company now aspires to work with Fortune 500 companies, which intend to grow in terms of operation in China along with helping the company in China and Europe in a big way. At least, in the cloud computing one can see the tough road ahead for the e-commerce company that seems very much similar to the share like Alibaba, Baidu and Tencent claims the reports of Canalys as published March 18.
On the other side, China remains the second largest market when it comes to the cloud infrastructure services. To which the company Alibaba Cloud holds a total of 46.4% of total investment which then follows companies like Tencent Cloud at 18% and Baidu AI Cloud reported at 8.8% as reported in the fourth quarter claims the analysis. Since the past few years, the total investment on cloud infrastructure services in China has gone up to 63.7% to top the $10.7 billion claims the reports of Canalys However, with the JD’s growth going up, we see the net revenues from the services increasing up to 43.6 percent as see it happening in the fourth quarter to 20.97 billion yuan that is around $3 billion. This remains much faster than the 24.5% growth as seen in the albeit going far greater at the sum of 149.7 billion yuan in net product revenues.