The domestic e-commerce industry has seen rising customer acquisition costs and slowing growth, and going overseas has become a way for e-commerce giants to find new growth curves. Ali, Pinduoduo, and Joybuy have laid out overseas markets, while Jingdong, led by Liu Qiangdong, has launched an online shopping platform, Joybuy, with a heavy-asset, long-cycle layout to create another Jingdong overseas.

Part.01  Joybuy, Jingdong's European platform

Jingdong has officially launched in EuropeJoybuy Shopping Platform
Jingdong this time to go to sea in Europe, is not a simple cross-border e-commerce model replica, but chose a heavier, more difficult, but also more competitive road -- the Localization and deep plowingJoybuy has taken the lead in six European countries, including the UK, Germany and France, and has taken the route of supply chain localization and full chain operation, from commodity supply to logistics and distribution to service experience, all of which are deeply adapted to the needs of local consumers.

This is not a simple cross-border e-commerce, but Jingdong's brand new strategy of going to sea-“Supply Chain Capabilities Going Overseas”.. The traditional cross-border e-commerce model is outdated. Jingdong directly in Europe to build a local supply chain, so that Chinese brands really rooted in overseas markets. This is like moving Jingdong's ”logistics black technology” directly to the doorstep of Europe.

Part.02 Localized Operation Strategy

Jingdong is not coming to Europe to ”make a buck” and leave. They useddeep localizations operational strategy, including partnering with local brands and building its own logistics network.

merchandise sideJoybuy cooperates with global high-quality brands, Liu Qiangdong revealed that the initial stage of internationalization is limited to 1,000 Chinese brands stationed on the Joybuy platform. Covering the full range of electronic products, household appliances, home life, beauty care, etc., insisting on selling only branded goods, completely abandoned the common cross-border e-commerce “bargain” route. This is precisely the internationalization strategy that Liu Qiangdong has been emphasizing, and he believes that the cross-border e-commerce model of selling cheap goods will affect the country's image, and what Jingdong wants to do is to let overseas consumers see the strength of Chinese brands.

logisticIn continuation of the successful experience of domestic self-built logistics, Jingdong has built up a perfect self-built logistics network in Europe, and its courier brand JoyExpress has landed more than 60 warehouses and courier sites, and also replicated the domestic classic “211 time limit” to Europe. Ordered before 11:00 a.m. delivery the same night, ordered before 11:00 p.m. delivery the next afternoon, the delivery speed in the European market is amazing, to know that local consumers often need to weigh the price and speed of delivery, and even pay extra to speed up the delivery. This service now covers more than 30 major cities in Europe, making same-day delivery a standard delivery service for European consumers rather than a luxury option.

Part.03 Comparative Advantages

Joybuy has two core advantages over Amazon:Value for money:Amazon focuses on the mid-to-high end of the market, where membership costs are high, but Joybuy's JoyPlus membership is only £3.99 per month, far less than Amazon Prime's £8.99, and saves consumers an average of £206 per yearLogistics ExperienceAmazon Europe's mainstream delivery time is next day, Joybuy's “211 time delivery” realizes the time to exceed, and orders over 29 pounds can also enjoy free same day delivery. Coupled with a full range of branded products and 24/7 customer support, Joybuy is building a unique competitive barrier in the European market.
Jingdong's European layout, not on a whim, but a long-planned protracted war. Liu Qiangdong has revealed that Jingdong in Europe has been plowing three years, the logistics foundation is basically built until this year to officially open the operation, counting the preparations for a full four years. This asset-heavy model, slow, bitter, tired, need long-term investment in technology and resources, but also allows Jingdong firmly grasp the initiative of the whole chain of shopping, better control of the quality of goods and services, which is a pure platform model can not be compared to the advantages.

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Part.04 New Path to the Sea

Jingdong's mode of going to sea this time represents a new path for Chinese e-commerce to go to sea: ”supply chain ability to go to sea”. This is no longer simply ”selling goods”, but the core competitiveness of Chinese e-commerce - supply chain capabilities, directly exported to overseas markets.

Before Jingdong, China's e-commerce overseas mostly relied on the traffic aggregation model, taking the extreme cost-effective route, essentially still doing “intermediary”, less involved in localized operations. The Jingdong this time to go to sea, is a real “supply chain ability to go to sea”, to copy a complete set of retail infrastructure overseas, to create a business closed loop from brand supply to fulfillment and distribution, which is a reconstruction of the path of e-commerce to go to sea.

Of course, this road is destined to be full of challenges, heavy asset investment, long cycle construction, Jingdong is still in the European market “infrastructure laying period”, there is still a distance from the scale of profitability. But Liu Qiangdong's vision to look farther, he believes that Jingdong's business model has never been three or five years can be made, but need ten years, twenty years of persistence.

The launch of Joybuy is not only a new breakthrough in Jingdong's internationalization business, but also carries the mission of verifying the feasibility of China's retail model going overseas. When the Jingdong model of “efficient supply chain + high certainty service” takes root in Europe, a mature e-commerce market, it will not only enable Jingdong to gain a firm foothold in the global market, but also provide a brand-new way of thinking and a model for Chinese enterprises to go overseas.

This model is far more sustainable and impactful than just selling goods.

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