JD sales rise 7%

JD.com Inc. reported a sharp drop in revenue growth as Chinese shoppers rein in spending.

China’s second-largest online retailer said March 9 that revenue rose 7% from October to December. That’s down from 23% growth a year earlier. It and larger rival Alibaba Group Holding Ltd. have grappled with weak consumption sentiment since the world’s No. 2 economy buckled under the weight of China’s rigid COVID control measures.

China’s exports and imports continued to decline in the first two months of 2023, clouding the outlook for an economy gradually recovering from the COVID years and waves of infection. Economists expect consumption to be the main GDP driver this year. However, the data showed a slowdown in urbanization and a rise in inequality in 2022, two trends that could slow private spending. Alibaba had reported a mere 2.1% rise in quarterly revenue in 2022’s final three months, underscoring the economic uncertainty that’s prevailed even after China abolished COVID restrictions in December.

JD.com is No. 1 is in the Asia Database, Digital Commerce 360’s rankings of the largest online retailers in Asia by web sales. Alibaba also owns Lazada Group, which is No. 2.

Alibaba owns Taobao, No. 1 in the Digital Commerce 360 database of Global Online Marketplaces. It also owns Tmall (No. 2). JD.com is No. 4.