JD.com Inc., otherwise known as Jingdong, is brainstorming to enhance investments abroad, one of its elite executives told CNBC, as Chinese e-commerce moguls seek to explore international users.
The tech mogul has been less belligerent than its competitor Alibaba in enhancing its existence overseas. However, international growth from both the Chinese e-commerce goliaths could test the e-commerce dominance of Amazon in particular regions of the globe.
In the coming few years, JD.com will enhance investments in nations that adapt to Jingdong’s strategies in logistics, warehousing, or supply chain, stated Xin Lijun, the newly employed chief executive of Jingdong’s retail enterprise stated in Mandarin, according to a CNBC translated report.
Xin stated that JD.com was facilitating more strategic analysis of Europe and Vietnam as potential locations to enhance their international presence.
Chinese Singles’ Day
Xin Lijun’s interview arrived as China’s Singles’ Day or Double 11 is in full swing.
The shopping festival bonanza – which retails more goods than Cyber Monday and Black Friday together – witnesses humongous discounts throughout Chinese e-commerce portals, which procure income in billions of dollars of sales.
JD.com’s international extension has targeted joint ventures and investments so far.
In 2017, Central Group – a Thai vendor and JD.com initiated a joint venture and released an e-commerce portal in Thailand in the following year. In 2019, JD.com emerged as one of the biggest stakeholders of the Vietnamese e-commerce service Tiki.
JD.com also runs Joybuy.com for international consumers. It is a competitor to Alibaba’s AliExpress.
Xin Lijun also stated that JD.com’s logistics wing has been pioneering the international extension efforts for the Jingdong group, which is unique when compared to other firms. Xin indicated that the firm facilitated an integrated and closed-loop consumer experience. This is what allows the firm to accomplish a satisfactory growth curve in international markets, he said.
Jingdong welcomes regulations
Singles’ Day or Double 11, which falls on November 11th, has a unique characteristic this year. It arrives as the Chinese technology industry has witnessed a flock of renewed regulations over the past year and as Chinese President Xi Jinping motivates the ideology of ‘common prosperity.’
Both Jingdong and Alibaba have targeted ideologies of inclusivity and sustainability in 2021. These ideas are a fraction of the social responsibility theme that was stressed by Beijing. The firms have also retreated from flaunting humongous discounts and large-scale sales, as they did over the last few years.
Beijing has introduced new-fangled regulations in domains ranging from data protection to antitrust for cyberspace platforms. The renewed regulations have wedged investors off guard and facilitated billions of dollars of worth to be eliminated from the Chinese internet sector in the past year.
Xin stated that JD.com greets these new rules and interprets them as positive elements. He said that JD.com can be perceived as a moral student in the viewpoint of partners and regulators alike. The firm stated that it welcomes regulations such as these owing to the restrictions they impose on the behaviours of companies. The regulations will also allow customers to receive improved services and birth a renewed and unbiased competitive ecosystem for firms.