Hello, thank you for standing by for JD.com's Third Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Mr. Sean Zhang, Director of Investor Relations. Please go ahead, sir.
Thank you. Good evening and good morning, everyone. Welcome to our third quarter 2021 earnings conference call. Joining us on the call today are Mr. Lei Xu, President of JD.com, and Ms. Sandy Xu, our CFO. For today's call, Lei will kick off with opening remarks, and Sandy will discuss the financial highlights. After that, we'll open the call to questions from analysts. Before we continue, let me refer you to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call, as we'll make forward-looking statements. Also, during this call, we'll discuss certain non-GAAP financial measures. Please also refer to our earnings release, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this call are in RMB.
Now, I would like to turn the call over to our President, Mr. Lei Xu.
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Hello, everyone. This is Lei Xu. Thank you for joining JD's third quarter earnings call. Starting from this earnings call, it's great pleasure for me to take the position as President of JD.com and communicate with you in my new capacity.
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As we all have observed, in the second half of this year, multiple headwinds have brought notable uncertainties and challenges to the world, to China, and to retail industry, such as the COVID cases, the macroeconomic fluctuations, lacking of goods in a wide range of worldwide due to supply chain disruptions. The planet we live in is undergoing profound changes.
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JD continued to deliver high-quality growth this quarter. When the external environment shifts, JD is able to continue to outperform the industry with more certainty and stronger resilience.
This is due to our stronger control across our supply chain and entire business processes, which allow us to react more agilely to changes and ensure stable business operation and reliable fulfillment, even in the face of extreme weather, COVID, and other special circumstances. Therefore, we're in a unique position to create greater value for our customers, business partners, and the real economy. The core competencies in supply chain and logistics infrastructure, which we have been committed to building for 18 years, have accumulated powerful advantages for us. These advantages have greatly differentiated us, particularly in terms of value creation and business resilience from the platform-based traffic-driven companies.
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First of all, our resilience is reflected by another solid set of results in Q3, despite macro and industry challenges. Our total revenues sustained healthy growth at 26% year-on-year, even on a high comp from last year.
Regarding active users, in addition to the healthy growth rates in Q3, we are more pleased to see that our continuous improvement in user experience has resulted in stronger consumer mindshare and engagement. In the latest Singles Day grand promotion, JD maintained strong growth momentum, even on the basis of last year's accelerated growth. This demonstrates the rising recognition JD gained among customers, suppliers, and brands. It is also a testament to JD's contribution in the recovery of the retail industry and the real economy. In particular, JD has helped millions of online and offline micro and SMEs to gain fair growth opportunities and reasonable profits. Moreover, the healthy growth momentum of our core retail business, combined with further enhanced supply chain capacities and operating efficiency, has put us in a stronger footing to firmly execute our long-term strategy.
下面我将进一步和大家分享京东业务的确定性，如何体现在核心零售业务的发展趋势，以及物流和创新业务的长期战略落地上。
Now let's take a closer look at how JD's resilience is reflected in our core retail business, as well as the execution of JD Logistics and new business long-term strategies.
本季度，京东的POP平台生态建设取得明显的提升。从去年下半年开始，我们努力为商家提供一系列智能化运营工具，降低新商家的进入门槛，并提供一体化供应链解决方案，提升商家运营效率和优化成长路径，目前已初见成效。京东平台生态取得几个方面的改善。一，商家种类和数量环比和同比均实现加速增长。Q3，京东主站上第三方商家的成功入驻数量达到上半年总和的三倍，其中时尚居家的新商家入驻数量增长最多。二，商家的经营效率、成长性、经营满意度在持续提升。三，平台业务的用户体验指标NPS也在不断提升，其中时尚居家类目的NPS创历史最高。未来，我们将把握行业更加公平的竞争环境和良性的发展趋势，不断地丰富和提升商家生态，并探索新模式、新策略，打造适合京东开放生态的策略。京东的目标始终是为消费者提供最好的购物体验和服务，并对商家进行全面的开放和赋能，不断加强京东零售的平台生态能力。
JD's marketplace ecosystem has made solid progress in this quarter. Starting from the second half of last year, we have introduced a series of smart operating tools, lowered the entry barriers for new merchants, and provided integrated supply chain solutions to further optimize merchants' operating efficiency and growth path. Our efforts has generated initial success. I'd like to share a few progress our marketplace business made this quarter. First, growth of both total number and the types of merchants accelerated on both a year-on-year and sequential basis. In Q3, the number of third-party merchants joined JD tripled that of Q1 and Q2 combined, with apparel and home categories leading the growth. Second, merchants' operating efficiency, growth path, and satisfaction level further improved.
Third, the net promoter scores, NPS, of our marketplace business continued to improve, particularly the NPS of apparel and home categories were at their all-time high. Going forward, we will leverage the healthier competition and development environment of the industry to continuously enrich our marketplace ecosystem, explore new models, and formulate our differentiated strategic approaches. Our goal has always been to provide customers with better shopping experience and services, open to and empower merchants, and build up JD's marketplace ecosystem.
全渠道战略布局进一步深化。我们预判零售行业的去中心化趋势将不断地深化。全渠道战略不仅是打开京东零售长期发展天花板的第二条增长曲线，更将深度链接线下实体零售业态，助力零售业数字化转型升级。全渠道的基础是京东所具备的行业最全的供应链能力，尤其体现在我们的三大五种供应链模式，包括B2C模式、产地模式和本地零售模式。现阶段，我们关注全渠道的能力建设，包括结偶我们的供应链能力、数字化运营和整合营销能力，并将其运用到线上、线下多元化的场景里，覆盖快消品、数码家电、通讯、健康、服饰、居家、生活服务、汽车等行业的数百万实体商家。本季度，全渠道业务所贡献的GMV同比增长接近三位数，其中与达达共同搭建的购物到家业务是今年加速增长。我非常建议大家有机会去京东的一些创新的线下业态体验一下，比如上个季度末新开业的西安京东Mall，以及京东超级体验店、七鲜超市、京喜社区生态便利店等。
We made further progress in the implementation of our omnichannel strategy. In our view, the decentralization of the retail industry will continue, and our omnichannel strategy will serve as our second curve for growth to break the ceiling of JD's long-term growth. The strategy is also designed to facilitate further integration and the digital transformation of China's offline retailer. In the industry, JD possesses the most comprehensive supply chain capabilities that underpin the omnichannel model. In particular, the three comprehensive supply chain models, namely the B2C centralized warehouse model, the F2C origin warehouse model, and the local retail model. At this stage, we focus on building our omnichannel capabilities, including decoupling our supply chain capabilities, digital operation, and integrated marketing solutions.
We will then apply these solutions to a wide range of shopping scenarios, both online and offline, and enable millions of brick-and-mortar merchants in a variety of industries, including FMCG, consumer electronics and home appliances, healthcare, apparel, home goods, life services, automobiles, and many more. In Q3, GMV of our omnichannel business grew by nearly triple digits year on year, within which the O2O on-demand retail business that JD jointly built with Dada Group recorded an accelerated growth. I highly recommend and invite you to visit our innovative offline stores, such as JD Mall, that was launched at the end of the quarter in Xi'an, JD Super Experience stores, 7Fresh, and Jingxi community stores. In addition to the steady growth trajectory of our core retail business, our logistics and new businesses also made many robust growth this quarter.
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On JD Logistics, I would like to highlight two positive trends. First, the long-term investments JDL has made in establishing integrated supply chain logistics service capacity started to bear fruit as it serves more external customers and expands its addressable market. For example, JDL has been developing industry-specific solutions and gaining traction with clients in FMCG fresh produce, 3Cs and home appliances, furniture, apparel, and automobiles. Going forward, we expect external revenues of its integrated supply chain solution will be the main growth driver for JDL. Second, JDL received Social Security relief for its employees and other measures from government for its distinguished contribution in containing the COVID outbreak last year. Starting from Q3 last year, JDL invested these financial gains in network capacity expansion at large scale in lower-tier cities, as well as in frontline worker recruitment, which created additional employment opportunities.
The quick expansion of JDL's business and operation optimization this year have gradually mitigated the financial impact from these upfront investments in capacity. As a result, JDL's overall margin performance meaningfully improved in Q3 compared to the first half of the year.
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Our Jingxi business is committed to serving mass consumers and merchants in the lower-tier markets in China, providing cost-effective products and services in support of their pursuits for a better life. The industry today is still characterized by high merchandise circulation costs, low efficiency of supply chain fulfillment, especially for fresh produce, while local small shopkeepers and store owners are left underserved and user experience is far from ideal. JD is better positioned to make breakthroughs on these fronts, where we have been working on our core business logic for many years.
In our view, Jingxi business is in a sector that requires 5-10 years commitment to building up the infrastructure capabilities for short-chain logistics and users' mindshare. It is not the time to prioritize scale expansion at the current stage. Instead, Jingxi business will focus on building the core capabilities at the city level, exploring business models that create real value to local stakeholders while ensuring that we have a sound compliance base. Since July, Jingxi has proactively shifted focus on 10 selected provinces, where we are pleased to see improving supply chain efficiency and cost structure in Q3. In particular, fulfillment cost per order has lowered by nearly 50% compared to that in the early stage of the business, and user experience have largely improved as well.
More importantly, thanks to our focused effort and investment in infrastructure, revenues generated by local group leaders and mom-and-pop stores on Jingxi have been clearly climbing up.
分享到这里，我想大家可以理解，京东是一家兼具实体企业基因和属性，拥有数字技术和能力的新型实体企业，而新型实体企业将在我国新时期的经济建设中发挥更大的作用。从长期的视角看，在新的市场格局和大环境中，即使面对疫情、宏观和行业内外的挑战，我们坚信京东处在更具有战略优势的位置上，将得到更大的发展长期发展机遇。我们对未来充满信心，这主要归因于京东一直坚持做最苦最累但却最有价值的事。我们多年打造的独特核心能力和业务模式所带来的价值创造越发明显。接下来我们还有很多工作要做，感谢大家对京东的信任和支持。以上是我今天的分享。下面我把话筒交给京东集团CFO Sandy。
I hope that my sharing today has showed that JD is a new type of real economy-based enterprise that has the traits of both real economy and digital technology capabilities. Such type of enterprises will play an even greater role in China's economic development in the new era. From a long-term perspective, JD is strategically positioned to generate compelling growth opportunities despite the current complex and evolving macro environment. We remain fully confident in the future as we have been relentlessly working on the most difficult, the hardest, yet the most valuable things for all our shareholders, thanks to our core capabilities and unique business model that we have built over years. That said, we still have a lot to do, and thank you all for your continuous trust and support for us along the way. This concludes my remarks today.
Now I'd like to give the floor to our CFO, Sandy, for more details.
Thank you, Xu Lei. Hello, everyone. We delivered a set of solid operating and financial results while making steady progress on many of our strategic priorities in Q3. This demonstrates our commitment to pursuing sustainable quality growth. We are encouraged by the overall strength and resilience of our unique business model, which continues to put us on a strong footing to navigate the unprecedented complexities in the macro environment. Our total net revenues reached RMB 219 billion in Q3, representing 26% year-over-year growth and 27% two-year CAGR, maintaining a strong growth momentum even on a high comp from last year. Our growth continued to outperform the industry, and we further gained market share in the quarter. Our top-line growth was backed by sustained improvement in our user base and user engagement.
We are very pleased to see a 25% year-on-year growth of our LTM active user base, reaching a total of 552 million in Q3, with the addition of 111 million users from a year ago. We attached greater importance on improving our user experience and user engagement in Q3. Our mobile DAU grew even faster than active users, accelerating to over 30% year-on-year in September, which demonstrates our expanded consumer mindshare. In addition to gaining mindshare, we are also winning users' wallet share. Average order frequency for all our users increased 23% year-on-year, driven by both our new and existing users, while total order volume sustained a year-on-year growth of above 40% in Q3. Within JD Retail, the number of categories users purchased expanded to a historical high, even in the low season.
In particular, users who have stayed with JD for more than a year tend to double the number of categories they purchase. These core JD users love the new products and categories that we introduce and are increasingly spending more on fresh produce, cosmetics, fashion, and luxury goods. The improved user engagement is again driven by our continued focus on customers' experience. Our NPS score has been on a steady growth trajectory, hitting all-time high this quarter as we continued to enrich our product offering and improve shopping experience, after-sales and fulfillment services through technology. Category-wise, we would like to highlight that the growth of our net service revenues was over 43% year-over-year, compared to 23% growth of net product revenues. Net service revenues contributed a historical high of 15% to our net total revenues.
Marketplace and advertising revenues continued a high growth of 35% year-on-year, a notable acceleration from 24% that we achieved in the same period last year. This is a strong testament of our continuous efforts to improve our marketplace ecosystem, which drove an influx and higher engagement with third-party merchants across almost all categories. We expect our marketplace business to continue to gain momentum in the coming quarters. Logistics and other services revenues grew by 53% year-on-year, mainly driven by the hyper growth of JD Logistics external revenue, which I will discuss more shortly. Now let's look at our segment performance. First, our core business JD Retail's revenues reached RMB 198 billion in Q3, with 23% year-on-year growth and a two-year CAGR of 25%. The power of JD's supply chain capability was on a full display against the global supply chain constraint.
Our electronics and home appliance revenues maintained resilient growth of 19% year-on-year, significantly outpacing the industry's low single-digit growth in the same quarter. We are also delighted to see GMV growth of our third-party sales in these categories accelerated to 45% year-on-year, significantly outpacing that of our 1P business. General merchandise revenues grew 29% year-on-year, and 32% two-year CAGR in Q3. This was mainly driven by the 35% two-year CAGR of our supermarket 1P order volume growth in the quarter. I want to share a few observations of our supermarket categories. First, supermarket categories were again the largest contributor of our new users in this quarter. Second, the average number of orders per user for supermarket categories continued to increase and reached its all-time highest level.
Third, users are purchasing more high-frequency supermarket products on JD, including food and beverage, fresh produce, and baby and maternity products. All these have helped drive our daily user engagement meaningfully. Moving on to JD Retail's margin. Its fulfilled gross margin was similar to that of Q3 last year, and operating margin was 4.0%, which retained largely stable compared to its all-time high in Q3 last year. Again, we are successfully shifting our category mix towards high-frequency items that can better engage customers and experimenting new business strategies such as omnichannel and Shop Now without compromising our margin trajectory. We remain confident in healthy category expansion and long-term margin improvement of our core retail business. Our strategic investments also made steady progress in Q3.
JD Logistics, JDL, maintained its growth trajectory in the quarter with revenues growing 43% year-over-year to RMB 25.7 billion, mainly driven by the growth in the number of external integrated supply chain logistics customers and their average revenue per customer. External revenues continued to account for over 50% of JDL's total revenues, while reaching a historic high in this quarter. JD Logistics operating loss ratio was 2.8%, on track to achieve a better margin profile compared to that in the first half of 2021 as JDL continues to ramp up utilization and improve operating efficiency. The number of warehouses operated and managed by JDL has steadily expanded to approximately 1,300, with an aggregated growth floor area of over 23 million sq m. Our New Businesses segment revenues grew 33% year-over-year to RMB 5.7 billion in Q3.
JD Property recorded a gain from sales of logistics facilities of RMB 579 million in the quarter. Growth of our international business continued to accelerate in Q3. For our Jingxi business, we want to highlight that during the quarter, it achieved notable improvement in both user experience and operating efficiency, which are our strategic priorities over scale. We started to proactively focus our Jingxi Pinpin business in selected markets. We are able to better allocate resources to improve our supply chain for fresh produce and short-chain logistics infrastructure capacity, empower the local merchants, and achieve better UE. On the back of our 1P supply chain capacity, we also helped local merchants and farmers to grow quickly on our Jingxi platform.
As a result of these strategic shifts, the operating loss of new businesses was RMB 2.1 billion as compared to RMB 1.2 billion in the same period last year. We remain fully committed to empowering local SMEs, including mom-and-pop stores, by providing supply chain support and creating diverse revenue streams for them, while we expect the operating loss ratio to GMV to gradually narrow down as we continue to optimize the operating efficiency. Moving to the consolidated bottom line. Our non-GAAP net income attributable to ordinary shareholders was RMB 5.0 billion with non-GAAP net margin of 2.3% compared to 3.2% in the same period last year.
The decrease is mainly attributable to normalized marketing expenses as increased investments in logistics and new business segments for our long-term strategic positioning. Notably, since 2012, we have maintained inventory turnover days consistently below 40 days, despite the significant increase in the number of SKUs under our management. By Q3 this year, we further shortened our inventory turnover days by four days to 30 days in the last 12 months, thanks to our continuously improving supply chain management capacity. We then passed on this efficiency gain to further increase our support for our business partners as we also shortened our LTM accounts payable days by four days to 46 days. This is another example of how JD's unique business model and relentless focus on building capacity can really create value for all our business partners in the real economy.
Our LTM free cash flow this quarter came in at RMB 28.5 billion, which remained largely stable year-on-year. As of September thirtieth, 2021, cash equivalents, restricted cash, and short-term investments added up to a total of RMB 196 billion, up from RMB 178 billion at the end of Q2, or RMB 127 billion a year ago. In summary, JD showed remarkable resilience again in face of macro and supply chain headwinds with a solid top line growth and steady profitability in our core business. This showcases our resolute commitment and effective implementation of our strategies, which we are very proud of, and we want to say our greatest appreciation to our hundreds of thousands of employees.
Finally, I want to reiterate that JD's sustainable growth will continue in the new era, where our 18 years of trailblazing efforts in building our core competence and our right way to success business philosophy will continue to be rewarded. With that, let's now move to the Q&A. Thank you.
Operator, we can open the floor for Q&A now. Thank you.
Thank you. The question and answer session of this conference will start in a moment. In order to be fair to all the clients, callers who wish to ask questions, we will take one question at a time from each caller. If you have more questions, please request to join the question queue again after your first question has been addressed. Press star one to ask your question. Thank you. The first question comes from the line of Ronald Keung from Goldman Sachs. Please go ahead.
Thank you.
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Thank you, management. My question is on JD Retail margins. We've seen that the margins were strong in the third quarter despite strong growth in supermarkets. Just wanna hear our strategies in private labels, omnichannel, and a fast-growing marketplace. How would that kinda couple with the category mix that could drive the overall blended margins? Are we on track, reiterating our long-term margin target of mid to high single digits? Thank you.
Thanks, Ronald. Let me take this question. Yeah, your understanding is correct. As we are experimenting various new business models, including omnichannel, including the Shop Now business model, you know, overall our financial model may be affected a little bit. For example, for omnichannel business, we may leverage the warehouse and the inventory of offline business partners. We would share the gross profit with them, but at the same time, we'll also save the fulfillment cost. The fulfillment gross margin remains stable, while you may see a decline in the gross margin because of the growth of this new business model. Our gross margin will also be affected by the category mix shift, as we have been discussing in the past, a couple of years.
However, what we have seen this quarter is, because of the higher growth of 3P business, that kind of offset the impact from the category mix shift towards higher frequency revenue contribution from the supermarket products, which has relatively lower fulfilled gross margin. Overall, for Q3, if you look at the fulfilled gross margin for JD Retail, it was relatively stable compared to same quarter last year. Looking ahead, I'll say our expectation on the margin profile or margin trajectory remain unchanged.
In short term, we may be facing the drag from the category mix shift as well as the change of the business model. As JD has been continuously building our capabilities in the supply chain through you know improve the operating efficiency of inventory management through technology so we can gradually improve the margin, I would say in the long term steadily. Also as I mentioned before, for many of our categories, our current procurement price is still higher compared to the offline channels. As we continue to grow in scale, we can gradually realize the scale benefit as well. In short, our long term margin trajectory remain unchanged for JD Retail.
Thank you, Sandy.
Thank you. Your next question comes from the line of Eddie Leung from Bank of America. Please go ahead.
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Thanks, management, for taking my question. I'm asking on behalf of Eddie. I'm wondering the potential impact from the macro factors such as the lockdown and the weakness of real estate and impact to our categories' growth trend. Thank you.
好，我是徐雷，我来回答一下问题。
This is Xu Lei, let me take your question.
我们确实看到整体的宏观的环境还是充满挑战的，尤其下半年，整个宏观的消费相对疲软，上游的供应链也比较紧张，然后原材料的价格呢，应该开始陆续的上涨。同时呢，国内的多地的疫情呢，包括极端天气，这些对整个，我相信包括整个零售市场都会产生多种挑战，包括有一些特定品类的芯片等元器件的整个供应链的紧张呢，我们预判会延续到明年的上半年。但是呢，因为京东一直是以这个核心能力是以供应链，所以我们在这种动荡的环境当中的时候，我们认为我们更有能力比行业的竞争对手获得更好的保持业务的稳定。
From the macro level, we do see quite a lot of challenges, especially in the second half of the year, especially of relatively weak consumption demands and the tight supply chains from the upstream and also the rising price of raw materials coupled with the COVID cases and extreme weathers and et cetera. This all have posed a lot of challenges for the retail industry, and certain product categories were impacted by the shortage of chips and other component parts. We anticipate we foresee these shortage of supply of the chips and so on, will continue to last into the first half of next year. For JD.com, we have always been holding our strengths with our core capacities in supply chains, which have helped us to deliver more stable performance in this time of uncertainties.
关于消费疲软呢，我想解释一下，就是京东目前的消费的主力人群，消费的主力人群还是以城镇化、家庭消费、目的性、确定性和计划性购物为特征的这个特点。那么这类消费人群目前占我们整体的消费的占比会高一些。所以说呢，京东会受消费疲软的影响相对比同业公司是要小的。当然我们不排除说在消费疲软的态势下呢，可能会对一些随机性购物的，比如说公司可能会有更大的影响。
On the point of a weaker consumption demand, I want to highlight here that for the main consumption group of the customers group with the JD, they feature more like the urban residents and they shop for the families. They have more plans and have more certain shopping plans when they are shopping on JD's platform. This is the main characteristics of our consumer base, and they are taking the majority of the proportion of our platform. In such way, we are getting a smaller or limited impact of this overall trend. However, under these circumstances, I also want to point out that for those kind of random shopping and unplanned shopping for some companies or platforms who are featuring more of this kind of shopping will get a bigger hit or will get a larger, greater hit.
另外呢，因为一些缺货，比如说一些原材料的缺货和接下来的涨价，那么呢，我们估计呢，会在Q4和到明年Q1呢，会逐渐地传导到消费端的。那么由于京东一直是以供应链为核心的，所以说我们发现，我们近期呢，跟合作伙伴的这个沟通会更加紧密，合作伙伴也希望通过京东的优势能力，跟他们一起合作，尽可能地降本增效。我们当然也会尽我们的力量去努力地平抑这种价格的波动性。
Okay
Also, I'm facing these challenges of the shortage of supplies and the rise of the price from the upstream. We can see that in this Q4 and next Q1, the price rise will be transmitted or passed on to the consumer side. As I emphasize that JD will focus on our core strength in supply chain, and this will give us a better position to tighten our cooperation with our partners. Our merchant partners would like to close with us more closely and to use our strengths to help them to improve their cost and efficiencies. We will also take as much efforts as possible to help them and help the customers to offset the fluctuation in the prices.
关于房地产对家电的影响，我想稍微回应一下。其实房地产对家电的影响应该不仅仅是近期大家看到的关于房地产行业的一些新闻，但实际上大家如果观察到的话，我们的家电的整个的增长在今年应该是远远高于整个行业的。那么主要原因是有以下几点。
On the impact of the real estate downturn on the home appliances categories. Actually, this is not an impact only happen now as you see on the news. If you observe the overall one year performance, you can see that the performance of home appliances categories on JD platform is outgrowing the industry average the whole year.
首先，我们的B2C的业务，我们今年家电最重要的就是叫推新卖高，我们把产品的结构在不断地提升，那么用户的需求呢也在往品质方向上去提升。所以说包括以旧换新、无忧换这些服务，实际上呢帮助我们的消费者进行了更新的换代，实现了我们在线的B2C的销售的增长和销售份额的持续增长。
This can be attributed for several reasons. First is our B2C models, our main sites, and we have been introducing more emerging and new brand, new products and high-end products, the home and home appliances products on our platform, and to upgrade our products mix. At the same time, the consumers are looking to buy more high quality and better quality products. At the same time, this is coupled with our premier services, including some worry-free change of the product or some trade-ins. All these have driven up the sales and performance of this category.
另外呢，我们在几年前的时候就已经非常重视下沉的线下市场，所以说我们也做了提前的布局。那么到今天呢，应该在下沉市场的线下呢，我们也有所收获，占了我们整个家电的销售的一定的比例，就帮我们完善了以前我们没有获得的用户和市场空间。
Secondly, actually, a few years ago, we already started to deploy our lower-tier markets. They have also borne some fruits from the offline market. The offline market sales of the home appliances have been gaining an increasing share of our overall categories and helping us to gain more new users and new markets.
最后呢，就是我们比较重视像C2M和差异化产品的跟品牌商的共同的开发，形成了差异化的竞争的优势。我想就是以上的，以上的三点，实际上能够让我们在中国家电行业是一个存量的竞争市场情况下，而我们获得了增量的增长。谢谢。
Thirdly, we also pay lots of attention to work closely with our partners on the production of customer to manufacture products and also differentiated products. All the three points I need to say that these home appliances industry has been quite a saturated market. Under this circumstances, our special efforts and our differentiated strength in these above three points have helped us to achieve continued growth in the home and home appliance industry, home appliance category. Thank you.
Thank you. Very helpful.
Thank you. Your next question comes from the line of Thomas Chong from Jefferies. Please go ahead.
晚上好，谢谢管理层介绍我的提问。恭喜这么强劲的业绩。我的问题主要就是想问一下我们在双十一做到的成绩也是做得非常的好。想问一下我们从这个双十一那边呢，我们会看到从商家或者是从user的beh...
这个行为有什么的改变呢？然后再想问一下Sandy总，就是如果是看到Q3我们都是做得这么好的成绩，虽然说我们看到就是这个macro有比较多的不确定性，可以分享一下我们怎么看这个Q4呢，这个JD Retail的增长的速度，大概可以给一些方向吗？Thanks management for taking my questions, and congratulations on a very strong set of results.
Given that we have done very well in our Double 11 campaign, just want to get a sense from the management, what have we learned from Double 11, in particular from the behavior of the merchants as well as the consumer behavior for this year? Separately, because of the strong Double 11, how should we think about our JD Retail performance in the fourth quarter? Any qualitative color would be grateful. Thank you.
关于双十一的情况，之前已经发了战报，所以关于销售方面的数据就不再做介绍了。
This is Xu Lei. Let me share something about the Singles Day, brand promotions, and we have already released our performance and results and sales details, so I will not elaborate on this part.
首先，今年双十一有一个非常大的变化，是京东主动提出了晚八点消费不熬夜的这个作战的方法。那么实际上，这个应该是在今年六一八期间，我们初步去决定将在今年双十一，所以说用了三到四个月的时间，跟我们的所有的上下游合作伙伴，包括集团内部的多个部门进行了沟通。完了以后，最终在消费者端、品牌商家端和物流合作伙伴端，得到了很大的欢迎，让他们能够购买得更从容，那么包括服务也会，成本上也会，也会相对来说比以前零点的爆发会更低。
One major change we have made in this year's Singles Day is that we kick off all the discount activities at 8:00 P.M., four hours earlier. This decision has actually made during our June 18th shopping festival period. It gave us three to four months time for the preparations. We have done a lot of communications and preparations internally and externally. We think this campaign is very well received by all parties from consumers, brand partners and logistics partners. This has given more convenience for our consumers to shop as well as our partners to prepare and reduce their cost, and they can operate at more ease.
第二，今年的双十一，京东的POP商家的生态和全渠道的布局，得到了更大的推进。因为我们这种提前的布局和准备，所以得到了线上、线下众多商家的积极的参与，并且最终的销售结果是远远超出他们的预期。总体的POP商家表现是非常好的，尤其是我们以前过往非强势、非优势的品类，今年的表现是非常好的。
Secondly, during this year's Singles Day, we have been making big progress in our marketplace ecosystem as well as omnichannel deployment. For this, we have also made a lot of preparations before and which has been very well received and involved a lot of our merchants' participation. Overall, the performance of our marketplace merchants are very surprisingly well and even in those categories that we do not traditionally have the advantage. The less advantaged categories, they also get very good results.
当然这只是我们成功的一次促销活动，证明了我们的模式和我们过往的努力和创新。接下来我们还是有大量的工作去做的。
Of course, this is only one kind campaign, which already proved that validated our models and innovations and the efforts we have made. In the following period, there's still a lot of work for us to do.
Okay. Let me add on to the outlook for Q4. There are a few factors I would love to highlight for JD Retail. One is that the user growth is the growth driver for JD Retail. We expect JD Retail continue to deliver quality growth in terms of total user base, user engagement and stickiness as they continue to reinforce the consumer's mindshare. Second, the supply chain disruptions for certain products remain unchanged and existing as we just discussed. This will affect the growth of our 1P business to a certain extent, in particular the mobile phones and electronics categories.
However, as Xu Lei mentioned, based on the strengths of our supply chain capacity, we expect that we can create even more value and certainties for our business partners in this changing environment and continue to outpace the industry growth for these categories. Third, with the implementation of 3P ecosystem and omnichannel strategy since the beginning of this year, the 3P business is growing well on our platform. The 3P merchants served as a great supplement of our 1P business for the categories that are facing supply chain disruptions. Overall, we expect that the growth of 3P will be faster than 1P in Q4, similar to what you have seen in Q3. Fourth, we see that the seasonality is getting stronger this year.
Similar to the first half year, users' mindshare for big promotions is also getting stronger. They are better educated. There was pent-up demand from October and consumption demand from December being released early during the Double 11 shopping festival. Overall, we expect JD Retail to largely maintain the growth momentum from Q3.
Thank you.
Thank you. Your next question comes from the line of Alicia Yap from Citigroup. Please go ahead.
Hi. Thank you, good evening management, thanks for taking my questions. Congratulations on the strong results. I have a pretty simple question. First is regarding your consumer spending cohort, for those that newly added last two years, what are the typical spending pattern as compared to the older user who are already on JD platform like ten years ago? So if you can give us some color would be helpful. 我自己很快翻译一下，我其实是想，就是对于最近两年新增的这个用户，跟以往十年前开始使用京东平台的这些老用户的对比，他们的这个消费，这个模型，或者是他们的消费的这个金额，或者是这种态度有什么样一个变化吗？谢谢。
我是徐雷，跟大家分享一下。实际上呢，从去年开始呢，我们有一个非常明显的特点，就是以往我们认为互联网的消费的主力人群呢，实际上呢，基本上已经都已经在网购，各个网购平台已经开始消费了。那从去年开始呢，有两类人群是作为我们新增用户的比较有代表性的。除了之前大家比较关注的下沉，因为我们之前也公布了我们的每个季度，基本上我们来自于下沉市场的用户，占了75%。但实际上从年龄上来说呢，是有两头的用户，第一个是45岁及以上的，那这个大家应该可以能够理解，这些人的上网实际上是晚于我们理解中的25到35岁的这些人，但是他们的消费能力本身其实在整个市场里面还是不错的。那他们感谢整个互联网的各个公司，让这些以前可能对互联网不太熟悉热爱的消费者，上网并且开始购物，后来发现了京东是一个让他们更放心的、更有确定性购物的。所以说呢，在我们这的消费实际上得到了释放。另外一类呢，是18岁到25岁的这种偏学生的群体。那么以往我们认为的学生群体呢，可能在网上不消费，或者消费是相对低一些的，但是可能随着Gen Z的到来，那他们的消费能力比以往我们认知的是要高的。但是整体来说呢，这些用户，他们到一个新的平台来，他们的ARPU的提升是需要一定时间的。所以说我们明显能看到就是他们在，比如说半年以后的这种消费的金额，或者说在四次到五次购买以后的那个消费的频率和金额才会得到提升。这点上是比十年前或者是甚至五年前的消费者，这个速度是稍微慢一些的。
This is Xu Lei. Let me share with you some observations on the new users on this platform. Actually since last year we have seen some very remarkable features and in the past, we believe that actually most of people who shop online, they are already online. However, there are two groups of people characterized by ages rising rapidly on the Internet. Besides, as I mentioned before, from the lower tier markets on the regional perspective, over 70% of new users are from the lower tier markets and beyond them, there are two age groups of people. One is the consumers aged 45 years or above. They are going online later than those people from 25 to 35 years old.
However, when they start to shopping online, they have been demonstrating a very strong purchasing power thanks to the education of all kinds of e-commerce platforms they get access to before. After a period of time when they are accustomed to the online shopping habits, they find JD, and they find shopping with JD is more at ease and to give them more guarantees. Their shopping power starts to manifest on JD's platform.
The second group is the Gen Z, people aged between 18 to 25 years old. They have demonstrated also an increasing consumption demand and a strong purchasing power on our platform beyond our imaginations. For those newcomer shoppers on our platform, their ARPU value will need some time to ramp up. It often takes six months time or after they shop for four to five times, they will start to accelerate their online shopping activities in terms of their shopping frequencies versus the money they spend on these platforms. This is a very remarkable trend we have seen very different from four or five years ago.
This is Sandy. I'll add on one point. I think 10 years ago, most users, they came to our platform to make their first purchase on electronic products, mainly computers or mobile phones. As I discussed just now, that in Q3, supermarket categories contributed the most new users to our platform. We can see that the consumers' mindshare on supermarket categories is getting stronger and stronger.
Okay. Thank you, Sandy. Thank you, Xu Lei.
Thank you. Your next question comes from the line of Robin Zhu from Bernstein. Please go ahead.
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So my question is, JD this year likely benefited from both the poor performance of Suning and share gains from peer platforms. I just want management to share some thoughts on how durable these tailwinds are. When do these tailwinds get annualized and become less apparent? Thank you.
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To share a bit about our electronic products; this includes IT, digital products, telecom products and home appliances, which are traditionally advantageous categories on JD's platform. And for these categories, we are not merely a retailer to sell these products. Actually, we have gone a long way to collaborate with the partners on their integrated supply chain, their R&D, and Sichuan products' production, especially during this special time as we face the uncertainties of the global supply chain challenges. This helped us to perform better together with our partners than the overall market performance.
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For this category, maybe at a specific, certain point, we are facing competition from external parties. But more importantly, we focus on the development of this industry. We focus on the consumers' actual needs and try to satisfy them. So this is what we have been oriented on doing ourselves better to meet the demand of our customers and partners.
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And for the apparel and home categories, it's quite a different story. These are not our traditional advantageous categories, and their development in the past has not been as we expected. But there is a huge potential to develop. With the ban of the "pick one from two" policy in the past two years, we have been stepping up our efforts in building the teams, systems and ecosystems in these categories. For this year, we still achieved a stellar performance in the Singles Day Grand Promotion, and we're accelerating our investments and expectations in this category. Thank you.
Thank you.
We are now approaching the end of the conference call. I will now turn the call over to JD.com's Sean Zhang for closing remarks.
Thank you for joining our call today. We look forward to talking with you again next quarter. Thank you.
Thank you for your participation in today's conference, this concludes the presentation. You may now disconnect everybody. Good day, thank you all.