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Tag: JD Worldwide

  • Middle class driving Chinese cross-border e-commerce

    Middle class driving Chinese cross-border e-commerce

    A growing middle class in China that likes shopping for foreign brands is helping drive cross-border e-commerce spending, according to a forecast by research company eMarketer.

    However, it warns of a growth slowdown ahead.

    Total cross-border e-commerce sales in China are expected to reach US$100 billion by the end of this year, with the average buyer spend of $882. This average has increased since eMarketer’s previous forecast thanks to a growing awareness in China of overseas brands, as well as improved logistics and the perception that foreign goods are of better quality.

    Also contributing to the growth is the popularity of JD Worldwide, Kaola and Tmall Global, sites that have made it easier for shoppers to access overseas products, says the eMarketer report.

    It also notes that 23 per cent of digital buyers in China will make at least one cross-border purchase, but growth in these purchases will start to slow as preference switches to local brands for some categories, such as fashion. Realising the demand for better-quality goods, Chinese brands are starting to adapt, says the report.

    However, eMarketer senior forecasting analyst Shelleen Shum says that with shopping sites adding more brands and improving cross-border logistics and processing times, foreign brands still have an opportunity to tap into the demand for high-quality products, especially in categories like baby, maternity, health and beauty.

  • Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce (CBEC) is set to skyrocket in China according to a new report from international think tank Fung Global Retail & Technology.

    To capitalise on this, international retailers need to complement their existing expansion strategy with online sales platforms, says Fung Global MD Deborah Weinswig.

    Cross-border eCommerce is the most efficient platform to reach increasingly affluent and sophisticated Chinese shoppers seeking products from overseas, says the report, The International Retailers’ Guide to Cross-Border E-Commerce in China.

    With Chinese authorities relaxing the rules, online purchases of overseas products are expected to increase to US$285 billion in value in 2018, up from US$136 billion last year.

    As well as authenticity being less of a concern, eCommerce purchases attract less taxes so are cheaper for consumers, writes Weinswig. As a result, it is projected that a quarter of the population will shop on foreign sites or through third parties in 2020, up from 15 per cent this year.

    “We expect CBEC will drive the next leg of eCommerce growth as Chinese eCommerce companies and international retailers launch globalised versions of their portals. By selling through CBEC, international retailers can reach Chinese shoppers regardless of whether or not they have a physical presence in China.”

    China is already the largest eCommerce market in the world, with the use of CBEC via such marketplaces as JD Worldwide and Tmall Global being attributed to the continuing rise of the upper middle class with its growing use of the internet and belief that international brands are of higher quality.

    Regulations formalised

    Most shoppers seek items related to wellbeing such as cosmetics and organic foods, expensive or hard to find domestically, says the report. Many foreign eCommerce companies have launched Chinese websites, and since late 2014 authorities have been formalising regulations including tax reforms and expediting customs clearances.

    Japanese companies in particular are targeting Chinese CBEC shoppers, using mobile apps such as Rakuten and China’s Wandou.

    Choosing the right platform is crucial, writes Weinswig. Options include…

    • Online marketplaces such as Alibaba’s Tmall Global, a third-party eCommerce platform that lets brands open a storefront. International distributors using this platform include Macy’s, Metro, Shiseido and Uniqlo.
    • Online direct sales such as Amazon.cn, Jumei Global Store, Kaola.com (for smaller brands) and Vipshop. Distributors buy from the retailers to resell to consumers.
    • Hybrid eCommerce platforms such as JD Worldwide that combine elements of an online marketplace and online direct sales. JD Worldwide partners include eBay, Lotte, Rakuten and Unilever.
    • Overseas shopping platforms.

    “To succeed in the Chinese market, international retailers are advised to have a strategic plan for CBEC that complements their China strategy,” writes Weinswig. “International retailers will need to decide which cross-border channels to sell on, driven by considerations of each platform’s targeted clientele and product category, costs, track record and suite of value-added services.”

    Fung Global Retail & Technology is based in Hong Kong, London and New York.

  • Kao Group partners with Chinese e-tailer

    Kao Group partners with Chinese e-tailer

    Japanese consumer products group Kao Group has formed a strategic partnership with China’s largest online direct sales company, JD.com.

    Included in the deal is the opening of Kao Group’s cross-border flagship store on JD Worldwide in May, which will initially stock maternal and children’s products, with other product lines expected to be introduced later.

    Founded in 1887, Kao Group owns a range of consumer brands including Attack, Biore, Laurier and Merries. JD.com started co-operating with Kao China in 2014 for categories covering baby and maternity products, personal-care items and cleaning products.

    Leveraging JD.com’s bonded warehouse and self-built delivery network, customers of the new flagship store will be offered efficient delivery of Kao products directly from Japan.
    “JD.com is known for its authentic products and efficient logistics network,” says Kao Group senior managing executive officer Toshiaki Takeuchi.

    “The JD Worldwide platform will provide the safest and most reliable channel for Chinese consumers to buy Kao products, while helping group expand its reputation and footprint in the China market,” says JD.com FMCG business unit president Carol Fung.

    Since launching in April last year, JD Worldwide has attracted brands and merchants from more than 40 countries and regions, and features more than 2.5 million SKUs from 2000 international brands.

    With a history of more than 120 years, the Kao Group is engaged in business in Asia, Japan and Europe with bases in 33 countries and regions. It established a subsidiary in Shanghai in 1993.

    JD.com has seven fulfillment centres and 213 warehouses in 50 cities across China, as well as 5367 delivery pick-up stations.

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  • Tom Tailor China opens online

    Tom Tailor China opens online

    German fashion retailer Tom Tailor has opened an online store in China, using JD.com’s JD Worldwideplatform.

    Tom Tailor describes its first online shop in China as “another important milestone in Tom Tailor China’s expansion, following the opening of the first Tom Tailor retail store in Shanghai last November.

    The Tom Tailor online shop features products from across the Tom Tailor, Tom Tailor Denim andTom Tailor Contemporary ranges.

    “In order to expand our online presence with the umbrella brand Tom Tailor in China, JD.com, as China’s largest e-tailer, is an excellent partner,” said Erika Kirsten, Tom Tailor’s manager of corporate communications.

    “JD.com has a high-value user base. With 155 million active consumers across the country who appreciate its versatile product range and superior customer service, JD.com provides the optimal platform for launching Tom Tailor in the Chinese online market.”

    Josh Gartner, JD.com’s senior director of international communications, said apparel is one of the fastest growing categories on the JD.com platform, “because customers know that only JD.com can provide reliable and convenient access to the latest fashions from local and international brands with a 100 per cent guarantee of product quality and authenticity”.

    Tom Tailor China currently has one standalone physical retail store in China and 14 shops-in-shops.

    Tom Tailor targets people aged up to 40, with a focus on high-quality fabrics. Bonita, one of Germany’s leading fashion brand producers and retailers, has been a part of the Tom Tailor Group since August 2012. Bonita sells menswear and womenswear collections for the over 40 age group.

  • Blackmores, Sanger to open stores on JD.com

    Blackmores, Sanger to open stores on JD.com

    JD.com says it has secured partnerships with Australian brands Blackmores, a leading Australian natural health company, and Sanger Australia, the Australian meat sales and marketing business of the Bindaree Beef Group.

    Both brands will open stores on JD.com’s direct sales channel and will use the company’s same-day delivery services. Sanger Australia will also leverage JD.com’s cold chain logistics network to ensure that its meat products are delivered fresh to Chinese customers from Australia.

    The announcements follow the successful launch in late June of a dedicated Australian Mall for authentic imported Australian products on JD.com’s cross-border platform, JD Worldwide. Since its launch, dozens of Australian brands have successfully sold their products to Chinese consumers through Australian Mall. The most popular product categories in the first two months of the program include health  care, baby care products and fresh food.

    “We’re pleased to be working with leading Australian brands to build winning eCommerce strategies for this market and help them take advantage of our large and growing base of upwardly mobile Chinese consumers,” said Carol Fung, VP of JD.comand president of JD.com’s FMCG Business Unit.

    “Blackmores is a long-time partner, and we are very excited to be expanding the range of their outstanding healthcare products available to our rapidly growing user base. With demand for Australian fresh produce growing exponentially, the addition of Sanger Australia’s world-class beef to our platform is an outstanding development for our customers.”

    Blackmores Asia MD Peter Osborne said his company has been working with JD.com since 2013.

    “Our increased engagement is testament to our strong relationship and commitment to growing our China business. Working with JD.com not only ensures we get our products to consumers quickly, but will also enable us to initiate targeted and specialised marketing campaigns leveraging JD’s data analytics capabilities.”

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