Online Shopping Platform JD is Planning to Enter the Short Video Market, Sources Say

Consumer Staples Author: EqualOcean News, Jiahui Liao Editor: Yiru Qian Apr 10, 2024 05:40 PM (GMT+8)

D is planning to invest 1 billion cash and 1 billion traffic in short video field.  has made big progress in 3Q 2020.

On April 10th, JD officially announced an investment of one billion cash and one billion traffic as rewards to attract more original creators and high-quality content institutions to settle in, providing users with better consumer experiences through high-quality content and assisting brand merchants in finding new growth points.

The person in charge of JD's content ecosystem stated that outstanding video creators are an important force driving the prosperity of the content ecosystem. In order to recruit more outstanding talents and institutions to settle in, JD has allocated one billion cash and one billion traffic as rewards to inspire their creative passion and produce more professional and interesting content.

Earlier reports indicated that JD is investing one billion cash to support its layout in the short video field. According to sources close to JD, the company is currently internally discussing how to layout the short video field. To this end, JD's senior management has organized multiple small-scale discussions and reached a consensus, deciding to focus on substantial investment in the short video track, with cash subsidies at the level of one billion.

Wang Changqing, Director of the Development Research Department of the China Internet Network Information Center (CNNIC), stated during the 53rd "Statistical Report on the Development of China's Internet" that as of December 2023, the scale of China's online video users reached 1.067 billion, an increase of 36.13 million from December 2022, with a usage rate of 97.7%. The development environment for online videos has been continuously optimized. In terms of performance, Tencent's video e-commerce GMV reached 100 billion yuan in 2023, and Douyin e-commerce completed nearly 1 trillion yuan in GMV from January to October 2023.

Moreover, analysts predict that the short video market is still in the incremental stage, with enormous growth potential and substantial revenue. It is for this reason that JD, in a market that is not yet saturated, has chosen to enter the short video field, opening up new avenues for performance growth.