- Nov 23, 2020
- Business Update
JD’s Logistics to Empower Shantou’s Undergarment Manufacturers
by Yuchuan Wang
JD signed a partnership with Maoxing E-commerce Industrial Park in Shantou, Guangdong province on November 20th. According to the agreement, JD will launch a warehouse in the park that specifically handles undergarment manufacturers’ goods, with an aim to help local manufacturers further improve logistics efficiency and reduce costs.
According to iiMedia Research, 43.2% of transactions of undergarments in China in 2019 happened online and Shantou is the largest manufacturing base for undergarments in China. For quite some time, manufacturers in Shantou needed to transport their products to Guangzhou, or Jiangsu and Zhejiang provinces, where China’s largest wholesale markets and the largest number of online merchants are located. The long journey of transportation has previously been a burden for manufacturers in Shantou, but thanks to JD, the situation will be changed.
With the launch of JD’s warehouse, local manufacturers can finally stock their inventory locally in Shantou. JD Logistics will be fully responsible for the transportation from that point forward, and even last-mile delivery to end customers. At the same time, JD will provide operation, traffic and market insights to both manufacturers and merchants, enabling them to not only tap into JD’s advanced supply chain network, but also digital marketing support to better understand the changing demands of Chinese consumers.
“JD’s enormous customer base and logistics network help us accurately grasp market demands and increase the efficiency of logistics transportation,” said Zefeng Zhang, chairman of the Maoxing industrial park. “The collaboration with JD will build a bridge between manufacturers with customers. We look forward to jointly helping Shantou’s undergarments industry explore new sales channels, raise brand awareness, and accelerate the upgrade of the industry.”