When it comes to online shopping services in China, JD.com is the largest online retailer and its biggest overall retailer, which can provide 580 million active customers with direct access to an wide range of authentic, high-quality products.When it comes to online shopping services in China, JD.com is the largest online retailer and its biggest overall retailer, which can provide 580 million active customers with direct access to an wide range of authentic, high-quality products. Founded in 2004 as an e-commerce platform for electronic devices, JD.com can help leading local and international brands tap into China’s fast-growing e-commerce market. 

     During the COVID-19 Pandemic, JD.com, Mobile phones, WiFi became the “three treasures” because of its fast, non-stop amazing supply chain and logistics services. Although some Chinese people had to hunker down at homes, they could get their shopping done through JD.com by ordering things online and getting them delivered to their homes. Compared with the SARS quarantine 17 years ago, the great toilet paper panic of 2020 had not been seen in China. Therefore, now is a good time to share a few thoughts on JD.com.

       First of all, JD.com is the only online retailer in China to offer same day delivery to your doorstep. According to its official statistics, 90% of its products can be delivered in 24 hours. If you live in Beijing, Shanghai, Hangzhou or other top Chinese cities, and you buy something in the morning, you will get it in the afternoon! The reason behind this is that JD.com has one of the largest fulfillment infrastructure of any e-commerce company in the world. As of September 30, 2023, JD Logistics operated over 1,600 warehouses in more than 90 cities, which can serve 99% of China’s 1.4 billion population at same or and next day delivery. 

     Secondly, JD.com now owns smart logistics and automation technologies such as robotics, drones and unmanned sorting centers to increase efficiency. With yearly R&D investments totaling 2.5% of total revenue , JD.com has built a solid competitive moat around itself and it will be hard to impossible to compete with for any new player. JD.com ‘s global R&D efforts are headquartered Silicon Valley R&D Center in Santa Clara, CA. The Silicon Valley R&D Center brings together leading talent in sectors such as machine learning, cloud computing, big data and AI, to develop cutting-edge innovations that enhance the retail experience for customers and brand partners. 

      Thirdly, JD.com has strategic partnerships with Tencent and Walmart. For example, in 2015, JD.com and Tencent announced the launch of the "Jingteng Plan" by linking JD.com’s 170 million E-Commerce platform users and Tencent’s largest Wechat and mobile QQ users in China. As a result, about one 1 of 4 JD users enter the JD’com’s platform from WeChat. For another example, JD also started an e-commerce collaboration with Walmart by launching Walmart and Sam’s Club flagship stores on JD.com. As of today, over 200 Walmart stores are already connected to JD Daojia, JD’s instant delivery service, allowing a one-hour delivery service in selected cities. 

     Fourthly, JD.com developed cost advantages because of economies of scale and adopted an asset-heavy approach with self-owned inventory and self-built logistics. Because JD.com’s bargaining power over suppliers increased, they could purchase products at lower cost. This cost advantage means JD.com is able to price its products lower than its direct competitors which in turn increases sales volumes resulting in again a stronger bargaining power, i.e. lower prices.Walmart, another successful retailer, calls the same strategy EDLP (Everyday Low Pricing).

      To sum up, JD.com is the largest online retailer in China. What’s most important, JD.com has always had a strict “zero-tolerance” policy regarding counterfeit products. Customers trust JD.com because they know the brand is a guarantee of authenticity. All of the products available on JD.com are sourced directly from world-leading global brands and reputable merchants. 

     On the ranking of “The 3rd Daguan·Keweiwei World Brand Value Top 900 ” released on March 18, 2023, JD.com ’s brand value was 123.550 billion RMB, ranking the 211st.

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作者：Byron