JD.Com Inc (NASDAQ:JD) has reported record sales of $37.98 billion from its 618 shopping festival. The sales figure rose $3.8 billion from the $29.2 billion reported last year. Being the first major national shopping event since the wake of COVID-19 pandemic, it was closely watched. The company stands to even benefit more from consumers staying home in the wake of a second wave of infection in Beijing.

Lockdowns Boosting online sales

With countries still in lockdowns to tame the spread of COVID-19, many consumers are relying on online platforms to do their shopping. The company reported a strong upward surge in revenue during the peak of COVID-19 in China. JD.Com reported better-than-expected sales in the F12020 and a 20.7% increase in net revenue compared to a year ago. Sales from the company’s high-end cosmetics tripled within the first 10 minutes on 618. In addition, the company’s luxury goods went up 500%.

This year’s event happened through a livestream, with sales surpassing $14.1 million within two minutes of stream. In May, JD signed an agreement with Kuaishou, a leading live streaming platform, to allow users shop for JD products without leaving the Kuaishou app. In addition, customers could enjoy quick and fast delivery plus after-sales service provided by JD. The company’s 618 festival is always used to celebrate one June 18, since being founded in 1998. The festival rivals Alibaba Group Holding Ltd (NYSE: BABA)’s Singles’ Day or 11/11 sale.

JD.com’s shares gained 5.7% in their Hong Kong debut

JD’s shares rose 5.7% on its first day on the Hong Kong stock exchange trading at around $30.80. The company had initially set the price at around $29.16. The Chinese e-commerce giant issued a total of 133 million new Class A shares in its secondary offering. The company projects to raise around $3.9 billion from the offer with the money going towards developing its supply chain technology.

The company is also changing its leadership. Xu Lei, the head of retail, has taken over as CEO from Richard Liu, who was arrested two years ago on suspicion of rape.

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