Marketplace Focus: JD.com
Today, as part of Pentagon’s marketplace focus series, we are introducing China’s largest direct sales company, JD.com or Jingdong Mall.
In 2014, China ranked first among all ecommerce markets worldwide, and JD.com is China’s largest online direct sales company, with more than 56% market share.
Although JD.com is mostly popular for its ecommerce dominance, the company excels in a great variety of areas, including logistics, internet finance, cloud computing and smart technology.
After successfully listing on the Nasdaq stock exchange in May 2014, JD.com also became one of the world’s largest online retailers, outstripped only by Amazon and Apple.
JD.com provides authentic products from trusted manufacturers and designers in various categories, including electronics, fashion, home, vehicle parts, books and many others.
Founded back in 2004, JD.com now has over 118 million customer accounts, features more than 76,000 merchants, and ranks first among all online retailers in China, in terms of customer satisfaction.
The Chinese ecommerce Opportunity
With more than 316 million e-shoppers and online retail volumes exceeding $450 billion, China has the world’s largest ecommerce industry, growing at a striking rate of 35% annually.
Characterised by an extremely high internet and mobile penetration, and rising personal disposable income, the ecommerce market in the country is expected to further grow by the end of 2015, reaching $541 billion.
As the Chinese market is dominated by young online shoppers who are increasingly looking for international brands they can’t find at home, purchases from overseas online retailers have doubled annually in the last three years.
Additional support from the Chinese government, through the introduction of relaxed policies on customs and foreign exchange, has meant that cross-border trade is expected to grow even further, reaching $130 billion by the end of the year.
What does JD.com’s offering include?
With its advanced nationwide self-operated logistics system and its global supply chain capabilities present in more than 50 countries, JD.com enables local and foreign businesses to reach China’s vast and growing consumer market more easily than ever.
To further facilitate cross-border trade, JD.com has also developed a new business model aimed at helping foreign companies leverage newly enrolled policies – JD Worldwide.
The company as also obtained the largest mobile internet access in China, through its strategic partnership with Tencent, to support the growing use of mobile devices during online shopping. As a result, the number of orders made from mobile devices accounts for 47% of total orders made so far in 2015, an increase of 270% compared to the same period last year.
How to get started on JD.com
You can of course sign up as a seller directly on JD.com, however you will need to navigate the Chinese legal system and deal with local translations yourself. Alternatively as experts in global online marketplaces, Pentagon can fast track your international growth by setting-up and managing your store directly on JD.com.
Pentagon can provide a technical advisor to manage the integration between your brand and JD.com, an account manger to oversee the day-to-day running of your branded store, optimise product titles and boost sales through platform deals, a translations service to align all product descriptions and titles with local language nuances, and customer services support to ensure the expectations of local shoppers are met.