JD.com, Inc. (NASDAQ:JD) Q3 2019 Earnings Conference Call - Final Transcript
Nov 15, 2019 • 07:00 am ET
The question-and-answer session of this conference call will start in a moment. [Operator Instructions] Your first question comes from the line of Ronald Keung from Goldman Sachs. Please ask your question.
Thank you. Thank you, Richard, Zhenhui Wang, Sidney [Indecipherable]. Very strong results and further accelerating of revenue, particularly for the 1P retail and profitably. So would love to hear just your thoughts, particularly as Richard talked about the 2020 strategy. Just what do we see as the positive -- maybe less positive drivers just into the 2020 1P growth? I can think of a larger base, I can think of 5G. So anything that you see are the drivers for next year's 1P growth, particularly for electronics appliances and FMCG? My sense is mostly -- whether we are targeting a similar growth as last year, sort of above 20%. Any color on that would be great. Thank you, management.
Let me -- just to give you two reasons for the positive development of our 1P business. First, JD is a retailing company. Based on the capacities of our very strong supply chain -- no matter in the past, now or in the future, we will continue to improve our ability on the supply chain and working together with our partners to increase our efficiencies and lower the cost on the supply chain side to provide unique advantages to this market.
And secondly, we attach great importance to users' experience, and we believe as a retailer ensuring good experience a must and for this year we have done a lot of work overall across the Company to ensure the enhancement of users' experience. And through our NPS monitoring, we have seen users' experience has very tangible progress. And we are continuing our investments on improving the users' experience not only on the new customers and also our existing customers, we are looking on every front to ensure they have unique experience shopping on our platform.
So in all supply chain and our commitment to our users' experience has ensured our 1P business' fast development.
Your next question comes from the line of Eddie Leung from Bank of America. Please ask your question.
Hi. Good evening, guys. Thank you for taking my questions. Two quick questions about the lower tier city competitions. Number one, about the users. I'm just wondering are we seeing a similar users using different apps but buying different products? Or are we seeing a more unique user segment that coming to JD?
And then secondly, how our cooperation with Jingxi and the offline retail partner network can help us in the competition in the lower tier cities? Thank you.
Since our Jingxi platform, which is mainly the new channel we target the lower tier city customers, has been introduced online by the end of October, it has been less than two weeks since live online, so based on the current results I would just share a few observations.