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Employees check packages at JD Logistics in Beijing. Photo: Reuters

China e-commerce giant JD.com adds express delivery service to North America and Europe as domestic woes stack up

  • The consumer-oriented and one-way international delivery service is now available in the southern cities of Shenzhen and Guangzhou
  • JD Logistics has been gradually expanding its delivery networks globally, and increasing coverage of Chinese cities
E-commerce

JD.com’s logistics unit has launched a new cross-border express delivery service for consumers to North American and European markets, as the Chinese e-commerce giant seeks overseas growth to offset weak demand at home.

The consumer-oriented and one-way international delivery service by JD Logistics (JDL) is now available in the southern cities of Shenzhen and Guangzhou, according to a company statement on Friday.

Individuals residing in the two cities can now ship parcels to an initial group of 23 countries across, including the US, Canada and Mexico as well as the UK, France, Germany, Italy and Spain among other major European economies, many of which are already home to JDL warehouses.

The company also wants to expand the service’s network at home to cover more major Chinese cities, it said in the statement.

JDL has been gradually expanding its delivery networks globally. In October, the firm launched speedy delivery services in Hong Kong and Macau in heightened competition with Cainiao, the logistics arm of Alibaba Group Holding that has been exploring Greater Bay Area (GBA) markets. Alibaba owns the South China Morning Post.

JDL said at the time it would offer free door-to-door delivery in the two cities, with 4-hour express deliveries in Hong Kong, in addition to the launch of express delivery between Hong Kong, Macau and mainland China.

JDL’s improved GBA services follows a move in September to complete a maiden international cargo flight between mainland China and Vietnam, enabling JDL to ferry e-commerce parcels and agricultural produce between the two countries.

JD.com’s steady development of its overseas delivery market comes at a time as it and rival Alibaba seek to offset a faltering domestic economic recovery. Chinese consumers have been cutting back on big-ticket and discretionary spending, hurting sales growth at JD.com, which is traditionally known for its premium offering.

The company’s founder and chairman Richard Liu Qiangdong has urged staff to up their game to fight off increased competition.

“So many issues have emerged, certainly because I mismanaged,” Liu wrote in a recent internal memo. “I blame myself for it.” He added that he would not “lie flat”, although it would take time to make changes at a company that was “large, unwieldy and inefficient”.
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