- Oct 13, 2020
- Business Update
JD Central: An Enabler For Chinese Brands Seeking Online Expansion In Thailand
by Martin Li
JD Central (JDC), the e-commerce joint venture of JD.com in Thailand, has been enabling Chinese brands to seek online expansion in the country with its integrated solutions.
Among the well-known Chinese brands in partnership with JDC are Huawei, Oppo, Vivo, OnePlus, Xiaomi, Hisense, Haier and TCL.
“Last year we offered reservations for our first phone in Thailand via JDC’s e-commerce platform. We sold 200 phones within the first hour of sales – impressive for a smartphone which sells for around RMB 4,300 yuan. We received almost 5,000 reservations,” said Zhang Fei, country manager of smartphone maker OnePlus, in a recent online interview with Chinese media.
OnePlus chose to cooperate with JDC in its effort to reach people with strong purchasing power, according to Zhang.
Its online revenue accounted for almost 40% percent of the total sales in Thailand in 2019.
Similarly, Chinese home appliance brand Haier started cooperating with JDC in March. Since then, its monthly sales volume has increased five times.
Electronics brand TCL achieved a 10-time growth in monthly sales since its cooperation with JDC in March.
While helping boost online sales of Chinese brands, JDC seeks to enable them with a comprehensive e-commerce solution.
Vincent Yang (C), JDC CEO, joined by Chinese brands’ country managers at gathering in September.
“JDC is an atypical e-commerce player. The e-commerce platform is only part of the whole infrastructure and supply chain. JD provides services in retail, advertisement, fulfillment and finance. In the future, we hope to complete these four networks in Thailand, providing one-stop service for brands which seek development in Thailand,” said Vincent Yang, CEO of JDC.
Zhao Ping, deputy head of Academy of China Council for the Promotion of International Trade, said that Chinese enterprise seeking overseas development are facing both opportunities and challenges.
“Online digitalization is driving growth. Cross-border e-commerce is leading the growth of China’s foreign trade. During the current pandemic, online expansion could be a good chance for Chinese brands,” said Zhao. “Meanwhile, supply chain is undergoing digitalization.”
“It is the top priority to enhance digitalization of the supply chain. Competition in international markets has shifted from price, quality and service to supply chain strength. E-commerce has become an important choice,” added Zhao.
Speaking of the pandemic’s impact on JDC, Yang said, “JDC achieved robust growth during the pandemic not because of lavish marketing, but because of its supply chain advantage and customer experience.”
JDC has built eight warehouses across Thailand. More than 95% of its direct-to-consumer orders can be delivered the same or next day.