“A lesser-known brand abroad but major competitor of Alibaba in China enters the European market”- Anouck van Rietschoten, Head of Operations at Maze-One.
JD.com. China’s largest retailer, online and overall.
JD.com claims to be China’s leading one-stop e-commerce platform. With nearly 500 million active customers in China, it is helping local and international brands alike tap into China’s vast and fast-growing e-commerce market.
For consumers, JD’s nationwide logistics network is driven by sophisticated data-driven delivery technologies that ensure same- or next-day doorstep delivery, a level of service it believes no other company on Earth can match. For brands from around the world, JD Worldwide offers the opportunity to sell directly to Chinese consumers, even if you don’t have a physical presence in China, and with the same guaranteed delivery times.
From small acorns…
JD Multimedia began life in 1998 as a small shop opened by Richard Liu in Beijing. Some 12 years later, JD launched its online marketplace platform, significantly expanding its product offering. In 2015, JD Worldwide was launched, a cross-border e-commerce platform that gave Chinese consumers greater access to sought-after imported products. Just one year later, JD.com and Walmart announced a strategic alliance. In 2020, JD.com’s net revenues were US$114.3 billion.
How it works
JD.com offers two ways for brands to sell their products: direct to JD.com or with a partner program via the marketplace. The Chinese marketplace is an ideal way for international brands to sell in China via JD.com.
Enter the dragon
JD.com had been trying to enter Europe since 2018, but rising costs, falling stock market valuation and lower profitability put plans on hold. In April 2021, however, the company finally announced its expansion into Europe, with the renting of an 18,000m2 distribution centre in Venray, in the south of the Netherlands, 350m2 of which as offices. Boss Richard Liu wasn’t shy about JD.com’s intentions: to compete with Amazon and Alibaba. “The more competition, the better for consumers and producers.”
An empire built on tech
JD.com is right at the sharp end of innovation within the industry. It has developed a highly efficient retail supply chain, and innovative new technologies and services to enhance the experience of both consumers and partners.
Confused? You may be.
In Europe, the sneaker and sports fashion store JD Sports is a familiar presence on high streets and online. However, the company is not related to JD.com and it will be interesting to see how and if the shared name creates any confusion for customers of JD Sports or JD.com, and how the companies address the issue.