Sep 20, 2018|
JD.com Enters South Korea with Opening of Seoul Office
JD.com, China’s largest retailer, is expanding its international footprint with a new office in the center of Seoul’s central business district.
The new office will help JD with outreach to South Korean brands that are highly sought-after in China. It will significantly increase the company’s procurement power in the region, reducing the threshold for Korean brands to enter the Chinese market and tap JD’s more than 300 million customers.
South Korea is one of the most popular countries for cross-border shopping among JD shoppers, particularly for categories like skincare and cosmetics, baby and maternity, food and beverage and health supplements. Order volume for brands including Orion, one of the three largest food companies in South Korea, and beauty and health brands Ryo, AHC and Cheong Kwan Jang, doubled in the first half of 2018 from the same period a year earlier, according to JD.com data.
“More and more Chinese consumers are demanding high-quality products from Korea. Establishing an office in South Korea is a strategic step toward meeting the demand,” said Xiaosong Wang, President of JD.com’s fast-moving consumer goods and foods division. “The office will be an easier point of contact for Korean brands and retailers, and will help local companies leverage the trust JD has built in China to tap this massive market.”
“I am very pleased that JD.com, the largest retailer in China, now has a solid presence in Korea,” said Mr. Heo Duck Jin, Executive Managing Director of Korea International Trade Association (KITA). “KITA will continue to promote the business cooperation between Kmall24, our online shopping mall, and JD.com to further assist Korean companies to develop their business in China.”
As the first step of expanding its presence in Korea, JD.com organized the largest ever brand recruitment fair in Korea at COEX this week. Over 500 participants from all parts of the local business community participated, while JD.com signed MoUs with Cheong Kwan Jang, 11 Street and Orion to continue building on the scope of their partnerships.
The opening of the Seoul office is the latest step in JD.com’s international expansion. The company has established a presence in regions including New York, Silicon Valley, Paris, Melbourne, and Tokyo.