JD.com launches JD Worldwide cross-border e-commerce platform
China’s JD.com has launched its new cross-border e-commerce platform, JD Worldwide, which market observers have described as a direct challenge to Alibaba Group’s Tmall Global Service. JD.com said that JD Worldwide will enable Chinese consumers to purchase “authentic imported products, including many not previously available in China”, and also allow “international producers and suppliers to sell directly to Chinese consumers without requiring an established presence in China”.
JD Worldwide currently hosts about 450 online shops, which offer more than 150,000 stock keeping units (SKUs) of high-demand imported products from more than 1,200 brands.
As part of the JD Worldwide launch, the company also unveiled the “Best of eBay Deals”, a pilot programme it is running on the new platform in partnership with eBay. According to the company: “eBay’s channel on JD Worldwide will showcase a variety of top categories and popular brands at attractive prices from select, trusted eBay sellers from the US.”
Speaking at the official launch yesterday, Richard Liu, JD.com founder and chief executive officer (CEO), commented: “This new cross-border sales platform marks a major step forward in connecting Chinese consumers with international brands. By combining the advantages of China’s cross-border free trade zones, JD’s warehouses and unparalleled last-mile logistics network, and our experience developing winning marketing campaigns for our partners, JD Worldwide gives international sellers and brands the most comprehensive and effective solution available for reaching Chinese consumers.”
There have been a number of scare-stories regarding the quality and safety of goods available on some Chinese e-commerce sites, prompting JD.com to emphasise the authenticity of its imported goods.
“The current Chinese model of online shopping for foreign goods involves purchasing them from agents. It raises risks for customers that they will buy fake products. We will be able to provide direct sales to customers and make sure products are genuine,” claimed Shen Haoyu, the JD Worldwide CEO.
JD.com is China’s number two e-commerce player, but it has a lot of ground to make up on its bigger rival. In 2014, Hangzhou-based Alibaba’s Tmall was estimated to control more than 55% of China’s booming business to consumer (B2C) online retail market, while Beijing-based JD.com had less than 25%.
