Chinese e-commerce retailer JD.com (9618.HK) topped market estimates for quarterly revenue on Tuesday, in a sign of steady demand even as U.S. tariffs and prolonged economic weakness weighed on consumer sentiment.
Consumer demand in China has faced a series of hurdles in recent years, with a prolonged property sector crisis and high unemployment rates never allowing for a full recovery from the impact of the COVID-19 pandemic.
But e-commerce players such as JD.com and Alibaba (9988.HK), which reports quarterly results on Friday, have resorted to slapping heavy discounts and cutting product prices to lure shoppers, while also leaning on government subsidies to drive consumption.
That has helped JD.com, a major retailer of home appliances in China, even as consumer sentiment took a hit from U.S.-China trade tensions. China's retail sales growth also quickened in January and February.
JD.com reported total revenue of 301.08 billion yuan ($41.82 billion) for the quarter ended March 31, up 15.8% from a year earlier. Analysts' estimate was 289.22 billion yuan, according to data compiled by LSEG.
The coming shopping festival, dubbed as 618 as it falls on June 18, will be a barometer to gauge to what extent consumer demand in the country has recovered. The online shopping event, initiated by JD.com, is becoming longer and longer. This year, Taobao already started the 618 pre-sale on Tuesday, while JD.com, whose official start date of 618 is May 31, announced an event called the "Heartbeat Shopping Festival" which began on Tuesday.
Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies, said he expects sales growth during this year's 618. "China's consumer confidence has shown greenshoots in 2025, with healthy retail growth the last few months and strong travel numbers on May Day and the Qingming Festival," he said.
JD.com's U.S.-listed shares fell more than 1% in premarket trading, pulling back after rising 6.5% on Monday on news of the U.S.-China trade deal.
