Jd.com versus Alibaba: How the Two are competing

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JD.com Alibaba

In the world of Chinese online shopping, there is no bigger rival than Jd.com versus Alibaba. Both platforms have numerous users, and seem to be dominating the market. While there are other lesser known platforms, they are all taking notes from JD.com and Alibaba. At one point in time, Alibaba was ahead of JD.com by miles, however, it seems that the two are becoming fierce competitors now.

The Showdown between Alibaba and JD.com

As business rivals, it comes as no surprise that the two companies are looking to showcase the negative side of the other. However, it seems that Alibaba is taking an unusual route to get back at JD.com. A report has been released by an Alibaba spokesman that was anonymously written about JD.com and can be seen on the website Seeking Alpha. Needless to say the report sheds JD.com in a very negative light. However, if Alibaba had hoped that this would work against JD.com, it seems that this tactic backfired.

Similar, JD.com is taking action against Alibaba, focusing on the negative aspects that the online shopping platform offers. In fact, JD.com is suing Alibaba for forcing companies to choose between either shopping platforms during Singles Day. This lawsuit is still ongoing, and neither side is willing to budge on what they are stating. However, if Alibaba did make retailers choose between the two, it could hurt Alibaba in the long run. As this is the sympathy card that JD.com will need in order to get ahead in the online shopping world.

Jd.com versus Alibaba: Performance in the Online Shopping Sector

When the feud between Jd.com versus Alibaba first started, it seemed that this was not a concern for Alibaba. However, this was until JD.com started to perform better in the market. In fact, JD.com’s stock is up 25% this year, while Alibaba is down and continues to drop. Could it be that the claims against Alibaba has affected their business? Or is it just time for Alibaba to start seeing less profit as they have dominated the market for so long?

Though Alibaba and JD.com are not providing online shopping in the same method as one another. It is clear that the two will be going to war against one another soon, if they are not already at war according to the numerous reports and information they are releasing to jeopardize the other company. Whether this feud will affect customers, only time will tell.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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