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Brexit to bring cheaper British goods into China, JD director

By Aiko TanakaChina
1 min read
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Chinese e-commerce giant JD.com said on Friday British goods will come into Chinese market at cheaper prices after the country voted to leave the European Union (EU).

“British products will be more competitive,” Tony Qiu, director of JD Worldwide, made the remarks in Paris at a news conference after discussing with French companies about coming out on top in the Chinese market.

Since British people voted to leave the EU last Friday, the pound has dropped almost 8 percent against the dollar, accompanied with plunges in global stock markets.

He said it’s not clear yet whether the Brexit will impact the company’s business.

JD does have the ambition to sell goods to the European people in the long run, he added.

JD.com, China’s second largest e-commerce platform, has already partnered with French brands, such as L’Oreal and Evian, to direct sell French cosmetics and drinks through its on-line channel.

JD.com together with Alibaba Group, the biggest player in the field of e-commerce, account for about 80 percent of online retail sales in China.

In late June, Wal-Mart sold its online retail site Yihaodian to JD.com. The deal will see Wal-Mart become a retailer inside Yihaodian rather than have a separate online store entirely. The partnership with JD.com is seen as a way for the US giant to gain a stronger foothold in the highly competitive Chinese e-commerce market.

Questions & Answers

Q.

How will Brexit make British goods cheaper for Chinese consumers?

A.

The director of JD Worldwide stated that the drop in the pound's value against the dollar, which occurred after the UK voted to leave the EU, will make British products more competitive. This will likely result in cheaper prices for these goods.

Q.

Does JD.com currently have operations or partnerships within the European market?

A.

While JD.com has an ambition to sell goods to European people in the long run, the article does not specify any current operations or partnerships within the European market. It mentions discussions with French companies regarding the Chinese market.

Q.

What is the scale of JD.com's market presence in China's e-commerce sector?

A.

JD.com is China's second-largest e-commerce platform. Together with Alibaba Group, the two companies account for approximately 80 percent of online retail sales in China, indicating a significant market presence.

Q.

How has Wal-Mart's strategy in the Chinese e-commerce market recently changed?

A.

Wal-Mart recently sold its online retail site Yihaodian to JD.com. This deal means Wal-Mart will now operate as a retailer within Yihaodian, rather than maintaining its own separate online store, aiming for a stronger foothold.

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