- JD.com is planning to increase investment overseas, one of its top executives told Businesshala, as the Chinese e-commerce giant seeks to tap international users.
- The international expansion of both JD and rival Alibaba could challenge Amazon’s e-commerce dominance in some parts of the world.
- China Singles Day, a shopping event where e-commerce companies offer huge discounts, is underway.
GUANGZHOU, China – JD.com is planning to increase investment overseas, one of its top executives told Businesshala, as the Chinese e-commerce giant seeks to tap international users.
The technology giant has been less aggressive than its rival Alibaba in expanding its presence overseas. But the international expansion of both Chinese firms could challenge Amazon’s e-commerce dominance in some parts of the world.
In the coming years, JD.com “will increase investments in countries that are in line with JD’s strategies, whether on warehousing, logistics or supply chain,” said Shin Lijun, the newly-appointed chief executive of JD’s retail business, in Mandarin. . , according to Businesshala translation.
Shin said JD is conducting “further strategic analysis in Vietnam and Europe” as to potential locations that could expand.
China’s Singles Day is in full swing, so Jin’s interview has come.
The mega shopping festival – which sells more goods than Black Friday and Cyber Monday – offers huge discounts on China’s e-commerce platform, generating billions of dollars in sales.
JD’s international expansion has so far focused on investments and joint ventures.
In 2017, Thai retailer Central Group and JD formed a joint venture and in 2018 launched an e-commerce platform in Thailand. In 2019, JD.com became the largest shareholder of Vietnamese e-commerce service Tiki.
JD also operates Joybuy.com for international customers. It is the rival of Alibaba’s AliExpress.
Shin said JD’s logistics arm is leading the international expansion efforts for the group, which is different from other companies.
“This is the biggest difference in terms of global expansion compared to other companies. What we provide are integrated and closed-loop services. This is what enables us to perform generally well in overseas markets, Shin said.
He said, “I believe that as the pandemic situation eases and as more companies are developing drugs against COVID-19, improving the international environment for business expansion will help JD’s global economy.” The business will get better service.”
This year’s Singles Day, or Double 11, as it is known as it falls on November 11, is a different feeling. It comes as the Chinese technology sector has faced a slew of new regulations over the past year and as President Xi Jinping has pushed the idea of ”common prosperity”.
Both Alibaba and JD have focused this year on ideas of sustainability and inclusivity, which are part of the social responsibility story Beijing has insisted. They also held back from promoting big discounts and big sales like in previous years.
Beijing has brought in new regulations for internet platforms in areas ranging from antitrust to data security. The new rules have alarmed investors and wiped out billions of dollars’ worth of China’s internet sector over the past year.
In April, Alibaba was fined $2.8 billion as part of an antitrust investigation. JD has not received any such harsh punishment so far.
Jin said the JD welcomes the new rules and sees them as “positive.”
“JD can be said to be a good student in the eyes of regulators and partners. Almost all of our services follow strict regulatory standards,” he said. “JD welcomes the rules because they help companies restrict behavior, enable them to better serve consumers, and create a more fair competition environment.”