JD.com Closes Australian branch Store
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Chinese online marketplace JD.com has closed its local branch after only 15 months in the market.
The e-commerce giant launched its Australian office in Melbourne in February 2018, after its competitor Alibaba opened an office in Melbourne in 2017.
At the time, the opening was seen as a way for JD.com to work more closely with the Australian and New Zealand brands on its platform, and to pitch its business to new brands looking to expand into China.
A JD.com spokesperson confirmed that the online marketplace is integrating its Australian office into the business in China. The spokesperson said the move didn’t reflect the business’s performance in Australia, nor the region’s importance.
The retailer’s head of Australian operations Patrick Nestrel is no longer with the business, likely in an effort to ensure management in China is able to fully integrate Australian operations.
The online retailer is set to report its first-quarter sales results on May 10. It has had a difficult few months recently after founder Richard Liu was arrested in September 2018 in the US for sexual misconduct. He was not charged.
In April, the Chinese university student who accused Liu of misconduct filed a civil lawsuit against him.
Questions & Answers
Q.How long had JD.com's Australian branch been operating before it closed?
How long had JD.com's Australian branch been operating before it closed?
JD.com's local branch operated for only 15 months in the Australian market. It launched its Melbourne office in February 2018, competing with Alibaba which opened its office in 2017.
Q.What was the stated reason for JD.com's initial opening of its Australian office?
What was the stated reason for JD.com's initial opening of its Australian office?
The opening was intended to foster closer collaboration with Australian and New Zealand brands already on its platform. It also aimed to attract new brands looking to expand their presence into the Chinese market.
Q.What explanation did JD.com provide for closing its Australian branch?
What explanation did JD.com provide for closing its Australian branch?
A spokesperson stated the online marketplace is integrating its Australian office into the business in China. They confirmed the move does not reflect the business’s performance or the region’s importance.
Q.Why is the head of Australian operations, Patrick Nestrel, no longer with JD.com?
Why is the head of Australian operations, Patrick Nestrel, no longer with JD.com?
Patrick Nestrel is no longer with the business, likely to allow management in China to fully integrate Australian operations. This suggests a restructuring of regional management responsibilities.
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