JD.com has been a major retailer in China since it began. The Wall Street Journal has published an article entitled “Chinese Online Retailer JD.com Turning Its Logistics Network Into Broader Delivery Service”. The reason that this article is so important is that it signals a change in the package delivery system that is been implemented with JD.com. While most of their packages are delivered by a JD.com uniform driver, they are looking at a new methods of distribution that will allow faster response times. The reason they’re looking at better distribution times is that they themselves want to go into the package delivery service. One of their biggest competitors in this arena will be Alibaba. The thing is, JD.com are ready has a very integrated network that will allow them to become king when it comes to package delivery in mainland China.
JD.com does not just have Alibaba to contend with when it comes to breaking into the package delivery market. They will also receive some pushback from SF express and did their competitor ZTO express. Both of these delivery systems are well established in China and fully prepared to offer up quite a fight to JD.com. JD.com is not coming into this fight empty-handed. They are prepared to do whatever is necessary to solidify their position in this market. They have a fleet of more than two or 50,000 delivery vehicles that connect with upwards of 7000 delivery hubs. This works in tandem with their 500 different warehouses evenly throughout China. They have already proven that they can deliver most of their packages in less than 24 hours to almost any part of China.
This step in JD.com’s history seems to be a reasonable one. Since they have the distribution centers the desire to expand their operation seems commonplace. In fact, the location of many of their vision centers will make them very competitive on mainland China. The article talks about how this delivery business will make it possible for them to support this vast structure while still being able to offer the quality service that JD.com customers have come to expect from the large online retailer.
Sources of the article: https://www.linkedin.com/company/jd.com/