Unilever using JD.com logistics to drive expansion in China

The global consumer goods giant Unilever will be using JD.com’s logistics infrastructure and expertise to drive forward its planned expansion in the Chinese market.

Unilever – whose product line-up include brands such as Lipton, Vaseline, Clear, Lux and OMO  – will use JD.com’s logistics network to move goods between warehouses, and also distribute them to the outlets of its retail partners. Previously, Unilever worked with standalone logistics companies for its distribution in China, so entrusting the operation to JD.com is a significant strategic move.

The move is also a significant one for JD.com because it marks a big expansion for its Retail as a Service (RaaS) offering –  through which the e-commerce player is offering its technology and infrastructure to other companies and organizations outside of its own e-commerce platforms.

In a statement issued today (14 August) by JD.com,  Rohit Jawa, Executive Vice President of Unilever North Asia, said: “After working closely with JD as a retail partner, it’s clear that its logistics network and technology are unmatched.

“By opening that infrastructure to businesses outside of its own platform, JD will now help us bring our most popular products to the most hard-to-reach communities in China, securely and quickly.”

JD.com claims to be “the first large scale e-commerce company in the world to build out and operate a nationwide logistics network”. That network – according to JD.com – is currently comprised of more than 500 warehouses and 7,000 delivery stations.

Commenting on the new logistics partnership with Unilever, Zhenhui Wang, CEO of JD Logistics, said:“We believe in sharing our capabilities, because everyone, including consumers, will benefit from the transparency, speed and efficiency of modernized global commerce.”