Senior Director - International Communications JD.com
Superior service is what will win the Chinese market
JD.com is the one of the largest online retailers in China, and one of the biggest rivals of Alibaba in that country. It is often in news, and one of the biggest news items revolving around the company was Alibaba CEO Jack Ma having reportedly said that the company was not going in the right direction, and there was nothing anybody could do about it. Jack Ma clarified the controversy, and also congratulated JD.com's progress. In an exclusive interview with Fibre2Fashion, Josh Gartner, a senior director with the company, reveals the strategies employed by JD.com, its success so far, and its future plans.
What differentiates JD.com from the globally acclaimed Alibaba? How do you see your future in the country?
JD.com's success is based on a zero tolerance policy for counterfeits and a delivery network that provides same and next day delivery standards. When Chinese consumers want authentic products and superior service, they come to us-and the same goes for international brands that want to avoid sites which tolerate knock-offs.
Suffering losses to capture market share is a common strategy used by ecommerce companies all over the world. Do you suppose it is as effective as projected to be?
Superior service is what will win the Chinese market. JD.com is investing to further strengthen our advantages by expanding our same and next day standard delivery, which is already available in most cities. This strategy to capture the mid-to-high end of the market is working extremely well, as evidenced by our active customer base doubling on an annual basis.
How do you find the demand for ecommerce in rural areas of China?
China's traditional brick and mortar sector is massively underdeveloped. So, the potential in rural areas is huge. If rural consumers want authentic imported goods, they will go to JD.com.
You seem to follow the thought that having your own resources is better than tying up with vendors for resources. Kindly elaborate on this.
China's third party courier system has been a mess for years. We thought, how can you build a superior service and rely on sub-par partners? We decided to build our own network, and it's been a great success. We deliver to 130 districts and counties across China on the same day, standard. There's no way we could do that if we had to rely on someone else's network.
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