Chinese e-commerce giant JD.com’s recent announcement of a strategic partnership with Evri, the UK’s largest dedicated parcel delivery company, is poised to reshape the landscape of cross-continental commerce. The partnership leverages JD.com’s robust e-commerce capabilities in China, with Evri’s extensive delivery network across Europe. The services provided under this collaboration will encompass local pick-up, warehousing, international transportation, access to Ch
to Chinese bonded warehouses, customs clearance, and comprehensive delivery services across China. Evri’s partners will gain valuable insights into the Chinese market, including consumer behaviour, marketing and pricing strategies, product selection advice, and online operational strategies tailored to the unique demands of the Chinese market. This partnership not only solidifies JD.com’s commitment to building a robust global logistics network but also underlines its dedication to the success of international brands. The state of affairs According to Qun Xue, vice president of JD.com and head of JD Logistics International, the company brings to the table its extensive experience in helping overseas brands succeed in China, backed by its state-of-the-art supply chain technology and expansive logistics network. “This foundation makes it easier for European brands to launch and navigate the Chinese market. Evri’s contribution lies in its vast delivery network across Europe, which complements our logistics capabilities,” he told Inside Retail. He said that the key objective is to create a seamless, efficient gateway for European businesses to access JD.com’s nearly 600 million active customers, ensuring their products resonate with and meet the demands of this vast market. Xue stated that JD Logistics already operates several self-operated warehouses across key European locations, including the UK, France, Germany and more. “This collaboration results in an enriched suite of logistics and supply chain services, encompassing not just warehousing and inventory management, but also comprehensive transportation and last-mile delivery solutions,” he added. By combining Evri’s local delivery expertise with JD’s omnichannel fulfilment capabilities, brands and merchants will be able to send their inventory to JD’s warehouses. “JD then manages the entire fulfilment process – whether for e-commerce orders, offline stores, or direct-to-consumer deliveries. This integration not only streamlines operations for businesses but also leverages our combined strengths in logistics and distribution,” he noted. Focusing on beauty and apparel Initially, the partnership will focus on the beauty and apparel segments. Xue explained that European beauty and fashion brands have gained significant popularity among Chinese consumers, presenting immense market potential for both established and emerging brands. “These sectors are not only trending but also align well with JD.com’s deep understanding of Chinese consumer preferences. For example, in 2023, beauty and skincare products from France accounted for 58 per cent of all French goods ordered on JD’s cross-border e-commerce platform,” he pointed out. Additionally, the fashion industry often encounters supply chain challenges such as inventory management and high return rates. With over a decade of experience in fashion logistics and supply chain management, Xue reiterated that JD Logistics is uniquely positioned to assist fashion brands in navigating these challenges. “For example, Hunkemöller, a brand served by JD Logistics in Europe, benefits from a self-operated automated warehouse solution that enables them to fulfil the demands of tens of thousands of SKUs across multiple countries and sales channels, greatly improving inventory turnover,” he stressed. Potential challenges According to Xue, the growth of the Chinese market and its increasing consumer purchasing power present both opportunities and challenges for overseas brands, especially emerging and unique local brands. “The challenges are multifaceted, involving navigating policies, regulations, and understanding the intricate business environment, user behaviour, and purchasing preferences in China,” he said. Recognising these challenges, the partnership with Evri is designed to offer a comprehensive support system for these brands. “Cross-border e-commerce, in general, presents a more accessible entry point with lower regulatory barriers, offering a quicker and less risky avenue for international brands to enter the Chinese market,” he added. The big picture This partnership with Evri, as Xue puts it, aligns perfectly with JD.com’s broader vision of becoming a leading technology and service enterprise with a focus on supply chain innovation. “As the demand among Chinese consumers for international products continues to soar, this partnership presents a monumental opportunity. JD.com envisions this collaboration with Evri as a significant step forward in reshaping the e-commerce landscape,” he elaborated. He went on to say that the joint efforts in supply chain logistics and e-commerce are not just about facilitating European brands’ entry into China; they are about setting new standards in technological innovation and operational efficiency. Ultimately, he reiterated that JD.com is deeply committed to fostering the success of international brands, and its approach centres on developing a robust global digital supply chain network. “Our goal is to provide these brands with seamless access to markets around the world. We focus on streamlining their operations through advanced logistics and technology solutions, thereby enhancing their global competitiveness,” he concluded.