Well, JD.com is doing interesting things and staying productive. One of the major factors of being on the right track for a company is that they are continuously taking action that matters and moves the needle. These actions are steps that will move the needle in the sense that they will help to maximize shareholder value over the long term. Maximizing shareholder value over the long term is one of the key features of a corporation such as JD.com.
What type of actions is JD.com or Jingdong taking?
The short answer? Quite a few. The most recent interesting story that’s showing the recent moves of JD.com is that of the recent partnership they conducted with farfetch, a luxury online-based clothing retailer. Why is this particular event significant for investors? Well, it shows that JD.com is not resting, it shows that they are staying focused on the principles that they started with and that they will not laggard in looking toward the future and making the correct moves to make the moves which maximize long term shareholder value. So, how does a significant partnership make waves for the investors of JD.com? Let us break it down a bit and find out.
Farfetch is Not a Brand To Sneeze At
As JD.com and farfetch come together to grow their partnership, it indicates the willingness and the realization of both sides to build together and provide customers with a seamless luxury experience. See, this partnership will help JD.com to become a premier luxury gateway to China for luxury brands all around the world. For JD.com or Jingdong, this is another step in moving further into the luxury market. What does this mean exactly? Well, we can take a look at what Jingdong did in the past. Interested individuals would be elated to know that this is not a random move, JD.com launched their luxury e-commerce platform, Toplife in the prior year, their brand, Toplife, was launched in 2018. Toplife was a proper strategic move to take by JD.com as it made certain that they did not fall behind to competitors such as Alibaba in the luxury segment. Alibaba launched Luxury Pavilion prior to Jingdong and if Jingdong didn’t counter this move, they might have lost a portion of their consumer base to Alibaba and Luxury Pavilion. It seems as if there’ll be a fierce fight between several e-commerce giants in the luxury setting.