Jul 28, 2022|

JD Worldwide Upgrades Duty-free Business to Unleash Demand for Imported Goods


by Doris Liu

JD Worldwide, JD’s cross-border e-commerce arm, upgraded its collaboration with Hainan Tourism Investment Duty Free (HTDF) and China National Service Corporation (CNSC) to jointly lead the duty-free industry’s growth. The announcement was made on July 26 at the second China International Consumer Products Expo (CICPE) in Haikou, capital of Hainan province.

JD Worldwide is working closely with HTDF, an affiliate of Hainan Tourism Investment Development, and CNSC, a subsidiary of Sinopharm; both are among China’s dominant duty-free license holders. As a result, JD Worldwide continues to promote a global duty-free supply chain system with low cost, high efficiency and an excellent experience. The upgrade further assists the traditional companies to transform digitally around strengthening omni-channel capabilities, fostering a duty-free business ecosystem and marketing operation plans supported by digital intelligence.

After kicking off the duty-free business in 2021, JD Worldwide has partnered with several license holders to launch online duty-free stores, as well as Lagardere Travel Retail, the Joy City shopping mall in Xi’an and local governments to open physical duty-free stores and experience centers.

So far, JD Worldwide has been authorized for duty-free business by 72 international brands, ranging from baby care, cosmetics, food and beverage, home appliances, pets to other categories.

On the Super Day of JD Worldwide during the 618 Grand Promotion last month, the sales volume of duty-free products went up by 10 times year-on-year. The two mini programs of HTDF saw an increase of 95.9 percent in the average transaction value in the first quarter of 2022, compared with that of the fourth quarter in 2021.

The average volume per order in the first quarter of 2022 increased by a significant 95.9 percent sequentially compared to the fourth quarter of 2021.

The duty-free business layout is in line with the master plan of the Hainan Free Trade Port. Based on JD’s “responsible supply chain”, the duty-free retail integrated with cross-border and general trade models can be complementary to each other, bringing more growth momentum for overseas brands.

JD Worldwide also reached cooperation agreements with a series of brands such as French fashion house Balmain and emerging backpack brand Dr.Wilds at the expo in Haikou. In addition, the National Pavilion of Australia was announced, and will be available on JD.com soon to introduce a wide swathe of Aussie products.