In an effort to compete with Alibaba’s Tmall, Jingdong has launched their JD Worldwide online shopping platform. This website is going to allow for goods to be imported from Japan, Korea, United States, Australia, and the United Kingdom, among other locations. This is in an effort to open up the Chinese market to even more companies who want to sell in China, yet do not have their license to open individual stores in the area. For consumers, it is a way to get access to even more foreign goods they may be interested in owning.
Currently JD Worldwide has around 150,000 products
These products fall into several categories, including baby care, food, health, clothing, footwear, gifts and so forth. There are two methods companies can utilize with JD Worldwide in order to sell their products to the Chinese market. The first way is through the proprietary model, in which JD can independently procure the products that are being serviced to the area. The other method, the platform model, is where the company can join with JD Worldwide, open their online platform and distribute through the website.
The China General Administration of Customs found there are over 2,000 enterprises in China that are considered cross-border e-commerce businesses. Meaning most of these businesses have joined up with an online platform in order to sell their products or services. Even Chinese brands see the benefit of selling online, and have also joined, enabling a wider audience to be reached.
China is steadily becoming a dominant force in the e-commerce market that is defining across several borders, rather than being restricted to their home county. In fact, Paypal looked at the recent trends for payments via e-commerce, and found China to be the third most popular e-commerce country in the world, behind the United States and the United Kingdom.
This new move by Jingdong is going to open up more choices for Chinese consumers, as well as make the e-commerce market more competitive for Tmall.