- Mar 31, 2020
- JD In-Depth
In-Depth Report: Shop, Sell & Deliver Globally with Joybuy.com
by Martin Li
Starting last week, consumers in South Korea have easier access to a variety of premium Chinese products by logging onto joybuy.com, the outbound e-commerce platform of JD.com, the largest retailer in China.
“The cost of entering a foreign market is always high for Chinese brands and efficiency is low because they are not familiar with the market. JD provides them with non-stop service, including warehousing, logistics, marketing, consumer data analysis and customer service,” said Chris Cui, head of JD Global Sales. “Therefore, they can first know whether their products are popular with local consumers and then decide whether to increase investment. They can use JD’s platform to test their popularity in a foreign market and acquire insight on how to tailor-make products for local consumers.”
Chris Cui at headquarters of JD.com in Beijing, China.
JD Global Sales, the outbound business operator of JD.com which runs Joybuy.com, started trial operation of the Korean platform on March 23rd. The platform combines direct-to-consumer retail and a third-party marketplace.
With a user-friendly interface, the website is in Korean language and offers quality products from China at a competitive price. Currently the main categories covered include 3C products (computer, consumer electronics, and communication), home products and apparel.
The website provides medical supplies like face masks, disposable gloves, thermometers and goggles to meet the growing demand for these products during the current COVID-19 pandemic.
South Korea is the third largest e-commerce market in Asia Pacific, following China and Japan. Its e-commerce market is predicted to reach annual revenue of US$100billion in 2020, ranking fifth in the world, according to data from JD Global Sales.
“However, the country started witnessing a slowing economy in 2019, prompting local consumers to quality and cheaper products,” explains Cui. “Equipped with strong supply chain capabilities, which have earned JD trust from merchants and consumers in China, it’s the right time for us to enter South Korea.”
At the peak of the COVID-19 outbreak in China, JD.com was one of the few e-commerce players which maintained supply and delivery of daily necessities.
Consumers in South Korea will be able to receive orders from China, where JD stores products in its own warehouses, within three to five days, according to Cui.
In China, 90 percent of orders on JD can be delivered same- or next-day. “We will also cooperate with local e-commerce players in the near future to bring more quality products to consumers.”
The opening of the Korean website is one of JD’s latest efforts to bring quality Chinese products and logistics services to more overseas consumers. It’s also an effort to help Chinese brands reach a foreign market by making use of JD’s supply chain capabilities.
Overseas gateway for Chinese brands
There are around 1,000 Chinese brands on joybuy.com, including Huawei, Xiaomi, OPPO, VIVO and Midea. The platform reaches consumers in 23 countries and regions, including the United States, UK, Japan, Australia, South Korea, Russia, Israel, and Hong Kong.
Global Sales team
“When people visit joybuy.com in their country, they will see an interface in their own language and a rich diversity of Chinese products,” said Cui.
The average time for consumers to receive their orders is between five to ten days globally, faster than average cross-border delivery, according to Cui.
“We put popular products as close as possible to customers, “he added.
Growing consumer trust from outside China
While Chinese brands are using JD’s outbound platform to reach foreign consumers, overseas Chinese stick to jd.com, the main e-commerce site of JD, for beloved home-grown brands and products in short supply where they are living.
Customer service staff
During the epidemic period, JD’s overseas customer service team has replied to almost 100,000 queries from 49 countries and regions. Many of them placed orders on jd.com.
A Chinese man living in Australia recently visited Coles and Woolworth in the country several times for paper products including toilet paper but found all stores were out of stock.
He then turned to jd.com and everything he wanted. Plus, he was given coupons for delivery.
The COVID-19 pandemic has led to a sharp increase in demand for daily necessities including food and beverages from overseas buyers on jd.com. Sales volume of the food and beverages category has increased 12-fold compared recently.
Sales of home cleaning products and paper products grew 19-fold, compared with the same period last year.
A Chinese woman living in Minnesota, couldn’t buy face masks in early March, and placed orders on jd.com. However, when the virus situation got worse in the U.S., she started worry about whether the orders could still be delivered across the border.
Her worry disappeared when she received the masks from China eight days after she placed her order.
“I want to thank JD for delivering my orders to the U.S. during this period,” she told the customer service staff online.
Millions of overseas Chinese make regular purchases on jd.com, most of whom are from Asia Pacific and North America.
Among the popular products are 3C products, home appliances, food and books. This year has seen a growth in demand for home products, kitchen products and toys, according to a survey by JD Global Sales. The top 3 most popular brands with overseas Chinese are Huawei, Xiaomi and OnePlus.
During the ongoing COVID-19 pandemic, JD Global Sales has offered discounts on delivery fees. JD Logistics has also cooperated with related customs departments to ensure fast delivery. Currently, it takes five to seven workdays for buyers in Hong Kong, Macau and Taiwan to receive their orders, faster than the average cross-border delivery time, according to Cui. Delivery time is around 14 workdays for buyers in other overseas markets.
Extend reach via partnership
JD.com has been extending its reach to overseas consumers via establishing partnership with big players including Google and Walmart.
JD.com inked a strategic partnership with Google in 2018, which was aimed at exploring the creation of next generation retail infrastructure solutions by applying JD’s supply chain and logistics expertise and Google’s technology strengths.
JD.com has been making a selection of high-quality Chinese products available for sale through Google Shopping in the U.S..
Global Sales team visits Walmart.
In cooperation with Walmart, JD has been providing quality Chinese products to Walmart’s online store in the United Sates, enriching supply for local consumers.
“It also broadens the channel for Chinese brands to enter the United States,” said Cui.
When speaking about the vision of JD’s outbound business, Cui said it is to “shop globally, sell globally and deliver globally.”