In the face of Temu, Tiktok, Ali Express and other domestic e-commerce giants in the overseas "capture territory", the same giant Jingdong chose to go to sea in another way.
On September 26, Qian Kainan, head of Europe and the Middle East of Jingdong Logistics' international logistics Division, revealed in an interview with media including surging reporters that Jingdong Logistics' supply chain business in Europe is growing at a doubling rate every year.
Jingdong Logistics has just announced that it signed a strategic cooperation agreement with Geopost, an international express company owned by France Post, to carry out in-depth cooperation in the field of international supply chain, which also marks the further increase of Jingdong's business layout in Europe.
"To become an international company and create a new JD.com overseas." In 2020, Liu Qiangdong, founder and chairman of the Board of directors of Jingdong, put forward a slogan internally that overseas business was once the core business of Jingdong, and Jingdong had focused on the layout of cross-border e-commerce, but had not received the desired effect.
Since 2015, Jingdong has successively launched Jingdong International Russia Station, Indonesia station, cross-border e-commerce platform JOYBUY English station, Spanish station, etc., but it has not occupied enough market share, and the management has been adjusted many times.
On January 30 this year, Jingdong's e-commerce official network in Indonesia and Thailand issued an announcement, saying that it will stop accepting orders from February 15, stop its services in Thailand from March 3, and stop its services in Indonesia at the end of the same month. As early as November 2021, JOYBUY announced the closure of the English and Russian stations, and will terminate the cooperation with merchants on the JOYBUY website according to the agreement with merchants, and withdraw from the European e-commerce market.
For the failure of cross-border e-commerce, Jingdong responded at the time that while shrinking the local e-commerce business in Southeast Asia, it has also continued to increase the logistics warehousing layout in Southeast Asia, Europe and North America in recent years, of which 20 smart logistics parks have been operated in Indonesia alone.
In the outside world, this also means that Jingdong has found a second path to the sea: to focus on the logistics and supply chain market.
In September, Xu Ran, CEO of JD, said that in the next 20 years, JD supply chain services will basically cover the world and establish supply chain infrastructure in economies accounting for 80% of the world's volume.
"Jd Logistics was built from scratch in Europe, and in less than three years to date, it has doubled its performance every year, and there is no doubt about the future development opportunities." Qian Kainan told surging news reporters.
However, Qian Kainan also admitted that due to the short development time, has not yet achieved scale effect, Jingdong is still trying to develop its local customers, the current proportion of its customers, European local customers accounted for 50%, most of which are medium-sized enterprises.
"Europe's century-old brands also want to use JD's brand advantage and global network to enter the Southeast Asian and Chinese markets, and we can help them." Qian Kanan frankly, "Europe is not only the giants and big companies, the survival space of small and medium-sized enterprises is very large, many are unique and recognized enterprises, which we have a lot to do."
Compared with other logistics companies, what is the biggest advantage of Jingdong Logistics overseas? Qian Kanan said that compared with local logistics companies in Europe, the biggest advantages of Jingdong Logistics are reflected in the speed of response and execution. Although some European local logistics brands have many years of local precipitation, the specific implementation cycle is very long, generally requiring a cycle of one to two years, and Jingdong Logistics can shorten the time to 3 to 6 months, and achieve a significant improvement in efficiency.
Despite its rapid development, Jingdong Logistics is also facing fierce competition from domestic peers in the logistics market. For example, in the Southeast Asian market, in 2015 in Indonesia, polar rabbit Express has become the industry leader. At present, in addition to Indonesia, Polar Rabbit has taken root in Southeast Asian countries such as Vietnam, Malaysia, the Philippines, Singapore, Cambodia, and Thailand, and also has a layout in the Middle East and Latin America.
Polar Rabbit prospectus shows that as of 2022, Polar Rabbit's express delivery service has reached 22.5% market share in Southeast Asia, ranking first.
Another logistics giant Cainiao is backed by Ali department of e-commerce to sea. Taking Europe as an example, Ali's cross-border e-commerce platform AliExpress currently accounts for 42% of Spain's cross-border e-commerce platform. Last year, Ali launched Miravia, an e-commerce platform focusing on high-end users, in Spain. According to third-party data, Miravia surpassed SHEIN in downloads to become the number one shopping APP in Spain in March.
Qian Kainan told surging news reporters that compared with other domestic logistics companies, the advantages of Jingdong logistics are mainly reflected in the integrated supply chain, covering both To C (consumer side) and To B (enterprise side). "China's local logistics enterprises are based on the ability To C, the coverage of the scene is relatively simple, for the business To B, most domestic enterprises are not in-depth layout." However, for Jingdong, the ability To C is a strong point, but we can still meet in terms of To B. When we meet customers with more complex scenarios, our strengths will be evident."
Public information shows that Jingdong Logistics has nearly 90 bonded warehouses, overseas warehouses and direct mail warehouses in the world, and sea, land and air transport routes are all over the world.
For the planning of future development, Qian Kanan introduced that it will focus on the layout of the advantageous categories of Chinese enterprises going to sea. While continuing to focus on the construction of overseas warehouses, it will focus on the improvement of the overall capacity of the European supply chain, focus on promoting the capacity of the final process, and pay attention to breakthroughs in the tuyere industry such as large pieces, new energy and clothing to achieve rapid growth.