The Chinese company JD.com decided to concentrate his energies on drones delivery and unstaffed store. This decision has made when China’s second largest e-commerce company saw its US-listed shares drop after reporting lower-than-expected quarterly profit on Friday.
JD.com, while it steps up its push into online commerce in the city, is planning to bring technologies such as unstaffed stores and drone delivery services to Hong Kong. Not only. Ben Chuk, senior business development manager at JD.com, said on Tuesday that the company is also targeting Hong Kong’s fashion brands. JD.com t has also already signed up with other big local brands such as food and beverage company Maxim’s and beauty products retailer Sa Sa International.
“As JD.com transforms itself beyond an e-commerce platform, we will start opening our smart retail technologies to Hong Kong clients, especially to bigger corporations and close partners. For instance, unstaffed convenience stores that have already been in operation in the mainland – we are exploring the possibility to partner with Hong Kong brands in setting up such stores” said Chuk.
Now JD plans to be helped also by artificial intelligence and to put its strategy into practice, last month JD signed an agreement with Hong Kong’s Fung Retailing, which oversees over 3,000 stores in Hong Kong.
Industry experts predict that Hong Kong retail sales will continue to rebound in 2018. According to Michael Cheng: “Hong Kong will continue to serve as a platform and window for overseas brands to reach out and get closer to Chinese consumers and for those merchants hoping to expand into the mainland market through Hong Kong. E-commerce platforms may well be their first and easier step to take”.
In February, gold was the most popular product category for Chinese consumers buying from Hong Kong brands on JD.com and Jeweller Chow Sang Sang was the most popular Hong Kong seller on the platform.