Europe’s eCommerce Race Tightens as JD Enters

Howdy !

Chinese online retailer JD.com is set to challenge Amazon and influence Europe’s three largest eCommerce markets: France, United Kingdom and Germany.

Now you know what that means for you and your business. Another sales channel to sell and earn more is going to be made available to you.

Next year the company will first launch its eCommerce platform and logistics services in France, then the UK and Germany.

It is allocating at least €1 billion over the next two years for the construction of its logistics network in France. That’s a small amount in comparison with Amazon’s €15 billion investment in Europe since 2010.

However, the advantage of JD.com is that it doesn’t have to start from scratch as it runs its own logistics arm and hence is more than capable of delivering orders faster than other eCommerce companies.  

“Our efficiency mostly comes from the management technology of our logistics. We built our logistics to be online from day one,” JD.com CEO Richard Liu said. “Companies like DHL built their systems on decades-old technology, it’s very hard for them to overturn their systems overnight.”

Expansion plans in the UK

The nation of shopkeepers may not be first on the list of China’s eCommerce giant, but there’s no doubt it’s going to benefit loads from the company’s ambitious plans.   

Following a meeting with British Prime Minister Theresa May in Beijing earlier this month, Liu signed a memorandum of understanding with the UK government to sell over €2.2 billion worth of British products to JD.com’s Chinese customers in the next two to three years.

He estimates the sales of British goods will increase to £10 billion from £3-£4 billion last year.

That’s not all. The company is also set to open its first European research centre, which will focus on artificial intelligence (A.I.) and big data, in Cambridge in the first half of 2019.

In an interview with the Financial Times, Liu had nothing but praise for the Britons whom he described as:

“UK talent and education is first-class globally.”

Now don’t prove him wrong. Conduct in-depth product research so that you can showcase the best British-made products to your niche market in East Asia.  

As always, to your continued success,

Dave & Matt


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