New plans for company founder Richard Liu: The second largest Chinese online retailer JD.com wants to gain a foothold in the European – especially German – market in the future. By the end of the year, the strategy for exploiting the market should already be in place. A threat to the online giants Amazon, Zalando, Otto Group and the like?

In addition to the office to be built in Germany this year, Liu is also considering setting up a logistics center (already existing in France, as well as staff in London and Milan and a research center in Cambridge). “I’m no longer interested in selling products from Germany to China. I would also like to sell products in Europe,” said Richard Liu in an interview with the German newspaper “Handelsblatt”.

What does this mean for German online merchants?

For German online retailers, the expansion means significantly stronger competition. JD.com recorded sales of around $56 billion last year and proactively reinvests its money to grow. With the purchase of a provider like Zalando , JD.com could rapidly secure a large market share, according to speculations of Handelsblatt. However, the market leader in Germany continues to be the US group Amazon with around 8.8 billion euros in the financial year. Second place goes to the Otto Group, which generates around 3.1 billion euros. Despite all expectations in third place: fashion retailer Zalando with around 1.3 billion euros.

Plans for Europe also at Alibaba

Our competitor Alibaba also has big European plans: The Chinese competitor plans to build a new logistics center in Belgium and a dispatch warehouse in the Czech Republic. In contrast to JD.com, however, Alibaba rejects direct competition from German merchants (sales of around 40 billion dollars).

Asian e-commerce trade is growing steadily with JD.com and Alibaba. It remains to be seen to what extent the German market will also affect growth in the future.

 

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Link: www.jd.com

Image: Gettyimages /Lintao Zhang

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