JD.com to Launch its Own E-Commerce Platform
China’s No. 2 e-commerce platform JD.com launched its JD Worldwide cross border online shopping platform to challenge to Alibaba Group Holdings Tmall global services. JD Worldwide now allows Chinese shoppers to purchase imports from US firms such as Nike, Starbucks, and products from countries such as France, Australia, South Korea, Japan, United Kingdom and New Zealand.
Overseas suppliers will be providing more than 1,200 brands even without merchants requiring its presence in China. The venture will add a host of online retail rivals for Alibaba and Amazon bringing up fears on the quality and safety of Chinese goods after warning coming from the government push to promote e-commerce and relax import restrictions. Although JD.com still trails far behind from Alibaba in Chinese e-commerce paired with its high profile after its record breaking US$ 25 Billion US listing huge lure for brands looking to enter or reveal its presence in China.
China’s ecommerce free trade zones and JD’s own logistics network is capable of offering international brands which a direct channel to Chinese consumers with preferential tax rates to create prices that is highly competitive. Furthermore JD.com is backed by Tencent Holding Alibaba’s nearest rival that is also planning to launch with eBay a program that will allow Chinese shoppers to purchase selected good from US eBay sellers.