JD.com Inc, China’s second-largest e-commerce company, plans to open more than 1 million JD convenience stores across the country in the next five years, with half of them located in rural areas, said its CEO Liu Qiangdong…Full Article: ECNS.cn Apr 2017

Key Points

  • China reportedly has approximately 7 million convenience stores.
  • In February 2017, Alibaba Group and Shanghai Bailian Group (SHA:900923; SHA:600827) agreed to form a partnership to establish brick-and-mortar retail stores in China.

ChinaAg Comments

  • In February 2017, JD.com announced they would establish a direct (online) bank.
  • In October 2016, Walmart’s share in JD.com rose from 5.9% to 10.8%. During the same month, select Walmart stores announced they would deliver groceries via JD.com’s new Dada online service. Initially, New Dada’s two-hour delivery service for Walmart stores will be for customers within a 3 km [~1.86 miles] of 20 select stores. Walmart currently has 426 stores located in nearly 170 Chinese cities.
  • In July 2016, it was reported that executives from both Walmart and JD.com meet weekly to discuss their retail strategy in mainland China.
  • In June 2016, Walmart sold Yihaodian (e-commerce grocery website) to JD.com in exchange for a 5% stake in JD.com. As part of the deal, JD.com (backed by Tencent Holdings) will open an online store for Walmart’s Sam Club. Both companies will also cooperate on logistics (supply chain and delivery services).
  • As of early 2016, Alibaba’s Tmall had 58% share of China’s e-commerce market, while JD.com had a 23% market share. At the same time, Walmart had developed three brands in China including its hypermarket series (420 stores), Sam’s Club stores (12), and the e-commerce site Yihaodian (~130 million registered users).
  • In November 2015, JD.com sued Alibaba in a Beijing court over unfair business practices. JD.com accused Alibaba of “forcing merchants” to exclusively sell/distribute products from a single e-commerce site for promotional marketing/activities.
  • In August 2015, JD.com purchased a 10% stake in Yonghui Superstores. Established in 2001 and headquartered in Fuzhou, Fujian Province, Yonghui operates 460 medium-sized supermarkets all over China (as of 2015). During the same month, Pepsi announced it would market a new dairy drink, Quaker High Fiber Oats Dairy, via JD.com, a Chinese e-commerce site. It was Pepsi’s first instance of launching a new product exclusively on an e-commerce site not based in the USA.
  • In June 2015, Agriculture and Agri-Food Canada signed an agreement with the Chinese e-commerce site JD.com in Beijing. As a result, JD.com will launch a page dedicated to selling Canadian agri-food and fish and seafood products within the next year.
  • In March 2014, Tencent Holdings (internet and tech investment company) purchased a 15% stake in JD.com.
  • Founded in 1998 and headquartered in Beijing, Jingdong Mall (aka JD.com) is one of China’s largest e-commerce platforms. In May 2014, the company was listed on New York’s NASDAQ Stock Exchange (NASDAQ:JD). The company’s original focus was electronics.

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