Chinese eCommerce giant JD.com is looking beyond its borders in its efforts to add more international customers, a top executive told CNBC, a move that some believe could help the company take a sliver of market share from retail behemoth Amazon in some areas.
JD.com will “increase investment in countries that conform to JD’s strategies, no matter if it is on warehousing, logistics or supply chain” in the next several years, said Xin Lijun, the new chief executive of JD’s retail business, according to a CNBC translation. Specifically, he said JD is exploring “further strategic analysis in Vietnam and Europe.”
So far, JD has used investments and joint ventures for its international expansion, starting with a joint venture with Thai retailer Central Group in 2017 that led to an eCommerce platform in Thailand the next year. JD.com became the largest shareholder of the Vietnamese eCommerce service Tiki in 2019. The company also runs Joybuy.com for international customers.
JD has so far avoided massive fines or punishments related to new regulations levied by Beijing in areas ranging from antitrust for internet platforms to data protection. JD views the regulations as “positive,” said Xin.
“JD can be called a good student in the eyes of regulators and partners. Almost all our services follow the strictest regulatory standards,” he said. “JD welcomes regulations because they help restrict companies’ behaviors, enable consumers to have better services and create a more fair competition environment.”
Related news: JD.com Names New President as Founder Takes Step Back
Xin isn’t the only new high-ranking exec on JD’s team. In September, JD.com announced Lei Xu as president of JD.com, succeeding founder Richard Qiangdong Liu. Xu was formerly the CEO of JD Retail. Liu will remain the company chairman and CEO. Enlin Jin was named CEO of JD Health International Inc. as part of the overhaul.
JD.com reported $39.3 billion (253.8 billion yuan) in net revenue for the second quarter of 2021, up 26.2% from the same time in 2020, and net service revenues of $5.3 billion (34.1 billion yuan), almost 50% higher than a year ago.
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