China’s largest e-commerce platform, JD.com could shake up the European market, which is dominated by Amazon
JD.com, one of China’s most successful e-commerce platforms, is launching a European site to challenge Amazon.
The retailer was founded by billionaire Richard Liu, and offers a range of products from groceries to electronics, toys, and cosmetics.
The new site, Joybuy, will launch in six new markets; the UK, Germany, Luxembourg, France, Belgium, and the Netherlands as well as offer advertising spaces for brands.
The expansion into the European market is unlike other Chinese brands such as Temu or AliExpress, which ship cheap goods from China directly. Instead, JD.com has developed its own logistics network and local warehouses to streamline delivery.
Automated warehouse technology has been imported from China, with over 60 warehouses, covering 300,000 square metres. These will service over 49,000 lockers across the continent.
Matthew Nobbs, managing director of JD.com’s UK business, told Financial Times: “If you can get everything from a 100-inch TV to water or whatever, and it can be delivered in under 12 hours and you’ve got great price . . . I think that’s shaking things up a little bit and we’re excited for it.”
The company has been incredibly successful in China, with a vast logistical network allowing for super-fast deliveries. European customers are even set to get same-day deliveries for orders placed before 11am – with no extra cost for UK orders over £29.
Joybuy will feature advertising spaces for brand stores such as De’Longhi and L’oréal Paris, with branded space available for companies to showcase their products.
JD.com was previously in talks with Sainsbury to sell merchandise units in Argos, but it was determined by the organisations that it would not be “in the best interests” of shareholders and stakeholders.
Competition is intensified in the European market as huge players look to undercut each other, already contending with the rapidly growing retailers like Temu and Shein.
