JD China Will Launch Flagship U.S. Store on Google This Year
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Chinese e-commerce platform JD is preparing to launch a flagship US store on Google. The move will allow JD, the second largest online retailer in China, to sell directly to American consumers by the end of the year, despite the emergence of potential new trade restrictions between the US and China.
Google, which has been making moves to build a strong presence in e-commerce via its planned Google Shopping platform, purchased a US$550 million shareholding in JD this year. JD meanwhile is eyeing global markets as consumption slows in its home market. It is already selling in the US through partner and major investor Walmart.
JD Logistics’s director of strategy Bao Yan said: “When Google Shopping launches, JD will have a flagship store. We are shipping from US fulfillment centers to US end-customers.”
JD operates warehouse and delivery services in Los Angeles and has plans to expand its US-based facilities with several new fulfillment centres, ahead of opening its store on Google.
Google, moving to compete with Amazon, will be responsible for payment and order processing for the enterprise.
Questions & Answers
Q.What is the primary motivation for JD to launch a flagship store in the US?
What is the primary motivation for JD to launch a flagship store in the US?
JD is looking to expand into global markets because consumption is slowing down in its home market of China. Launching a US store on Google is part of this international growth strategy for the e-commerce platform.
Q.How will JD's US operations handle logistics and order fulfilment?
How will JD's US operations handle logistics and order fulfilment?
JD will use US fulfillment centers to ship products directly to American customers. It currently operates warehouses in Los Angeles and plans to add several new fulfillment centers to support its expansion and the launch of its Google store.
Q.What role will Google play in JD's new US store launch?
What role will Google play in JD's new US store launch?
Google will host JD's flagship store on its planned Google Shopping platform and will be responsible for handling payment and order processing for the enterprise. Google also purchased a US$550 million shareholding in JD this year.
Q.Does JD currently have any other sales channels in the US market?
Does JD currently have any other sales channels in the US market?
Yes, JD is already selling in the United States through its partner and major investor, Walmart. The new flagship store on Google will be an additional direct sales channel for American consumers.
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