China'S Second Largest Business Platform Jingdong'S Luxury Dream Aborted

China's second largest

Platform JD.com Inc. (NASDAQ:JD) Jingdong's luxury dream died before the company announced its independence on Thursday.

The Toplife platform will be incorporated into its luxury electronic business platform Farfetch Ltd. (NYSE:FTCH). In exchange, Farfetch will get it.

The first level entrance of APP.

The UK luxury electric provider, which will disclose its quarterly results today, is expected to reveal more details.

In the joint statement of Jingdong and Farfetch, the two sides did not comment on whether the paction was actually cash and equity replacement.

Previously, as a major shareholder of Jingdong, Tencent Holdings (0700.HK) has been involved in similar operations when it entered Jingdong.

According to the world clothing and shoe net, in early 2014, Tencent bought 215 million of the Jingdong 15% stake as a part of the paction. Tencent's poor operation of the electricity supplier business was patrolled into the Jingdong, and it provided a first level access through WeChat and QQ.

As we all know, the end of the pat net is not suspense, and this similar operation was launched in October 2017, and the outcome of Toplife less than one year has also been worrying.

In fact, the electricity and retail industry has always had a negative attitude towards the Jingdong's involvement in the luxury sector. Before the launch of Toplife, the luxury product display of the Jingdong website, JD.com, has triggered a mockery of Chinese social media.

At the beginning of June 2017, the public number "Haruto elder sister" published a net article, satirize the luxury goods sold by Jingdong on the website, and displayed the real person. Most of the real people were not professional models in the fashion industry. They were just ordinary people. The product map was shown by the public number, and 8890 of the famous brand ladies only wanted the highest price of 189 yuan.

In that month, Jingdong invested $397 million to become a major shareholder of Farfetch. In October, Jingdong announced the launch of Toplife.

In addition to investing in luxury business platform, Jingdong has been sponsoring New York, London and Shanghai fashion week in the past three years, trying to establish links with the industry.

However, Jingdong with 3C home appliances and main revenue has always been difficult to make a difference in the industry. The brand cooperation with the group is far less than that of rival Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba's Tmall.com Tmall platform.

In the field of luxury electric business in China, Jingdong and Alibaba are also hard to compare with vertical brand Temple library. Jingdong and L Catterton Asia, a well-known private equity fund, also participated in the strategic financing of Secoo Holding Limited (NASDAQ:SECO) Temple holdings 175 million in July last year.

As of the end of December, in 2018, Jingdong's sales of general merchandise, mainly clothing and household goods, increased by 42.4% to 136 billion 49 million 700 thousand yuan, and 95 billion 555 million 800 thousand yuan in 2017. The Department accounted for 32.7% of Jingdong's 416 billion 108 million 700 thousand yuan sales revenue in 2018.

According to local retail observation and data, in the four quarter of 2015, GMV general merchandise department of Jingdong for the first time exceeded the GMV of 3C appliance department. In the three quarter of 2016, the general merchandise sector GMV for the first time exceeded 100 billion yuan to 106 billion 300 million yuan, and second times more than the 3C appliance department GMV, two in 2017, third degrees surpassed.

However, since the three quarter of 2017, Jingdong has no longer disclosed the two sector independent GMV.

The changes revealed by analysts said that during the "618" Jingdong promotion day and the "double 11" global shopping Carnival launched by Tmall in 2017, Jingdong and Tmall had a drastic "two pick one" war, including a large number of Chinese leisure apparel giants such as Jiangnan Buyi, Taiping bird, JEANSWEST, GXG and so on.

Affected by the withdrawal of brands, Liu Qiangdong, founder and chief executive of Jingdong in 2017, said that the growth of clothing business was almost stagnant. Chief financial officer Huang Xuande added that the growth of Jingdong's clothing business may be maintained for 2 or 3 quarters, but believes that it will return to growth in the future. He said that in the past few quarters, Jingdong has the fastest growth in the category of female users, indicating that Jingdong has a special value for female users.

In the fourth quarter earnings report released today, Jingdong said that the composite revenue growth rate of general merchandise business in the 2015-2018 year group was 60%, much higher than the 28% growth rate of 3C appliances in the same period. However, the company has never disclosed the GMV of its single quarter since the three quarter of 2017.

In 2018, when Liu Qiangdong was studying in the United States, he was arrested by the police for alleged sexual assault on a Chinese female student. Following the progress of the incident, Liu Qiangdong continued to become the focus of attention of Chinese and foreign media, while Jingdong's GMV and revenue growth slowed down.

After today's four quarter results, although the growth rate of 22.4% has continued to hit a new low, the income of 134 billion 832 million 500 thousand yuan is more than 132 billion 420 million yuan expected by Refinitiv, while the current quarter's revenue is expected to be 1180-1220 billion yuan, which is also basically in line with Refinitiv's expected 119 billion 480 million yuan.

The increase in revenue partly benefited from an annual growth rate of 4.4% of active users to 305 million 300 thousand, and the company's revenue grew by 25.1% in the three quarter.

In the four quarter of 2018, Jingdong suffered a huge loss of 4 billion 804 million 700 thousand yuan or a loss of 3.32 yuan per share, a loss of 909 million 200 thousand or a loss of 0.64 yuan per share in the same period in 2017.

During the period, the US ADS -0.48 dollar was adjusted by US $0.07, which is better than the market expected US $-0.05.

Over expected revenue and EPS performance stimulated Jingdong's share price up to more than 15%.

In 10-12 months, Jingdong's GMV increased by 27.5% from 403 billion 400 million yuan to 514 billion 400 million yuan.

In 2018, Jingdong revenue increased by 27.5% to 462 billion 19 million 800 thousand yuan, of which the product sales revenue increased by 27.5%, and the annual loss was 2 billion 491 million 600 thousand yuan. In 2017, the net profit was 116 million 800 thousand yuan. In 2017, net profit fell 30.4% from 4 billion 968 million 400 thousand yuan to 3 billion 459 million 800 thousand yuan in 2018.

As of Wednesday's closing, JD.com Inc. (NASDAQ:JD) Jingdong Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba has rebounded with the US stock market, and has risen 24.08% and 34.66% so far this year. In the past December, Jingdong shares fell 44.92%, while Alibaba also had a slight decline of 0.84%.

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