JD.com is ready to take on Amazon in the European market. That’s what founder and CEO Richard Liu had to tell the Financial Times earlier this week. The Chinese online retail giant wants to be everywhere in Europe within a few years. It is starting its European travels in France, the UK and Germany.
A Billion Dollars In France
All of this is according to ecommercenews.eu, who tell us JD.com’s first port of call in Europe is France. Planning to build up their logistics network there, JD will spend at least €1 billion over the next two years. Their main competitor, Amazon stated they had invested €15 billion in Europe over the last 6 years.
A research centre is also planned. The plan is to open the centre in Cambridge, UK in the first half of next year. The second research centre for JD outside of China, it will focus mainly on artificial intelligence and big data. Earlier this year, Liu met with Theresa May, the UK Prime Minister. The entrepreneur said his company will sell over €2.2 billion worth of UK goods to Chinese consumers over the next two to three years.
What makes JD different from their competitors Alibaba and Amazon? JD owns and operates its own logistics network, which it says is the reason for the quick deliveries. “Our efficiency mostly comes from the management technology of our logistics. We built our logistics to be online from day one”, Liu tells us. “Companies like DHL built their systems on decades-old technology, it’s very hard for them to overturn their systems overnight.”
That being said, JD is considering working with local partners for the last-mile delivery in Europe. They do, however, plan to own their own network of warehouses across the continent.
According to The Financial Times, JD will also open an office in London in April to expand its local partnerships in the UK as well as having already set up an office in Paris to do the same in France. A procurement centre in France is to handle exports of European goods to China.