Richard Liu, founder and CEO of JD.com, stated JD.com plans to develop the European market as early as 2019 and will challenge Amazon by extending its presence throughout Europe in several years. JD.com will first launch its e-commerce platform and shipping service in France, followed by UK and Germany.
In the next two years, JD.com will invest at least EUR 1 billion in its French logistics network. By contrast, Amazon has invested EUR 15 billion in Europe in the six years since 2010. JD.com also announced plans to develop the US market in the second half of 2018. Richard Liu stated that he will try to generate half of the company’s profits via overseas markets in ten years’ time, but most product sales are still in China.
In addition, Liu said that JD.com plans to open the first European research center in Cambridge, England in 2019. It is JD.com’s second research center outside of China and will focus on artificial intelligence (AI) and big data. “British talent and education are among the best in the world,” Richard Liu stated. He pointed out that the cost of recruiting AI talent in Europe is lower than that of the United States and even lower than that of China.
JD.com also plans to open an office in London in April to expand its local partnership with the UK and has set up an office in Paris to do the same. JD.com will also open a purchasing center in France to handle European exports to China.
As early as June 19 last year, JD.com has officially launched JD Worldwide business, letting users in more than 200 countries and regions buy items on JD’s online platform, joybuy.com. The platform was supposed to include items sold by JD.com as well as third-party merchants, but at present, there are mostly third-party merchants and fewer brands. In light of this, JD Worldwide and JoyBuy may continue to be different initiatives, with the former focusing on sales of brands through JD itself. The platform accepts Chinse cards, international credit cards, and WeChat Pay.
To address the expensive cost of international express shipping, JD.com developed an international unpacking and co-sourcing logistics platform. When customers buy multiple items on JD Global, the logistics platform will automatically merge them into an international package letting users pay less for shipping and receive packages without a signature.