Ecommerce

Fitch Downgrades Meituan to ‘BBB-‘ from ‘BBB’; Outlook Remains Negative
Ecommerce

Fitch Downgrades Meituan to ‘BBB-‘ from ‘BBB’; Outlook Remains Negative

Fitch Ratings has downgraded Chinese e-commerce platform Meituan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BBB'. The Outlook remains Negative. Fitch has also downgraded Meituan's senior unsecured rating and ratings on its bonds to 'BBB-' from 'BBB'. The downgrade reflects the greater regulatory uncertainty facing Meituan, which increases volatility in its profitability and investments. Fitch expects regulations enforcing delivery-rider benefits to pressure the operational efficiency and margin of Meituan's food-delivery operation. In addition, the company's new initiatives could evolve based on market opportunities and regulations, which reduces visibility on execution and the investment amount. As a result, we expect visibility on cash flow generation to...
JD.com Takes Equity Stake Duty-Free Retailer Lagardère
Ecommerce, Retail

JD.com Takes Equity Stake Duty-Free Retailer Lagardère

Chinese e-commerce giant, JD.com is expanding in the travel-retail channel by taking a shareholding in the North Asia business of Paris-based global duty-free operator Lagardère Travel Retail. The Company is part of France’s Lagardère Group. JD.com and state-owned fund China Jianyin Investment (JIC) are jointly investing $112 million to take respective shares of 18.6% and 3.7% in the North Asia division. The Company generated revenue of $176 million in 2020 from travel shopping and duty-free activities in Mainland China, Hong Kong and Japan. The deal is expected to close next month. Late last year, JD.com’s rival Alibaba Group took a stake in the world’s biggest airport retailer Dufry, with plans to jointly target the travel-retail business in China which is booming. Now it was JD’s...
Victoria’s Secret Opens Flagship Store on Chinese e-commerce Site JD.com
Ecommerce

Victoria’s Secret Opens Flagship Store on Chinese e-commerce Site JD.com

Victoria’s Secret, famous for its intimate apparel, announced the launch of an official flagship store on JD.com on Aug 8. The company is planning to bring its classic bras, panties, lingerie and T-shirts to JD.com’s consumers. With the coming of Chinese Valentine’s Day (“Qixi”, which falls on August 14, 2021), many Chinese consumers would like to select gifts for their loved ones. JD.com has become an important platform for Chinese consumers to buy gifts because of its guarantee of authenticity, fast delivery and premium services. Victoria’s Secret launched the store before the annual Chinese Valentine’s Day, as the brand placed great value on JD’s platform advantages during festivals, its suitability for gifting and its vast base of consumers with strong consumption power. Meanwhi...
Volvo and JD signed deal to work together on supply chains
Ecommerce

Volvo and JD signed deal to work together on supply chains

JD Logistics and Volvo Cars signed a partnership on Aug. 10 to collaborate in building the supply chain service of the middle and high-end auto aftermarket. The two parties will jointly sort out the warehousing and transportation networks of Volvo’s auto spare parts supply in China and carry out dynamic adjustment to enable the agile operation that meets dealers’ demands to the largest extent. Smart replenishment based on big data will be enabled for the streamlining of inventory management. Volvo’s auto spare parts warehouses will be extended from 4 to 8 after the upgrade, with an expected improvement of the delivery lead time to over 50% of its dealers. Volvo will also provide a doorstep delivery service for its car owners who purchase auto accessories and related products at t...
Alibaba Group Boosts Share Buyback to US$15B
Ecommerce, Tech

Alibaba Group Boosts Share Buyback to US$15B

Alibaba Group said on Tuesday it has upsized its share repurchase program to US$15 billion from US$10 billion through 2022, the largest in the tech giant’s history demonstrating confidence in its long-term sustainable development and value creation. The Hangzhou-headquartered company also said that it had repurchased about US$3.7 billion worth of its American depositary shares (ADSs) since April. The company’s revenue jumped 34% in the quarter ended June 30, propelled by strong momentum at businesses across its digital ecosystem.  Revenue surged to RMB205.7 billion (US$31.9 billion), up from the RMB153.8 billion posted in an exceptionally robust quarter a year earlier as the coronavirus pandemic in China drove a massive shift online across society.  Annual activ...
Luxury Brand BVLGARI Launches a new cooperative model with JD.com
Ecommerce, Tech

Luxury Brand BVLGARI Launches a new cooperative model with JD.com

JD.com and LVMH’s luxury brand BVLGARI have launched an innovative cooperation model. This was announced on August 2. Through the model customized by JD for BVLGARI, consumers can type in “BVLGARI” or the brand’s related products in the search bar in the JD app, and then enter BVLGARI’s official JD mini program to enjoy the brand’s full range of products. It’s the first time the Italian luxury brand has ever worked with an online third-party platform. “JD Luxury has rich experience in providing tailored solutions for luxury brands,” said Kevin Jiang, president of International Fashion and Lifestyle. “The cooperation between BVLGARI and JD through a customized and innovative model is a brand new exploration for both of us, and both sides will explore in-depth cooperation in the future t...
JD.com and Geely Form Partnership in Smart Logistics
Ecommerce, Tech

JD.com and Geely Form Partnership in Smart Logistics

JD.com and Geely signed a partnership agreement on Jul. 26 stating that the automotive company will leverage JD.com’s integrated supply chain abilities for its business and cooperate in supply chain consulting, intelligent forecasting, omni-channel warehousing, internal logistics, smart warehousing, commercial vehicle technology opening-up and more. Based on the partnership, the two parties will fully leverage each other’s advantages in terms of supply chain, smart logistics, technology research and development. JD says that it will explore how its service capabilities will contribute to helping Geely lower procurement cost and improve operations efficiency in the areas of omni-channel sales, digital procurement and more. Geely says that with the rapid development of electric and...
JD.com is expanding private brands
Ecommerce

JD.com is expanding private brands

JD.com has tapped a supply chain solutions company to assist with a collection of private brands. The retailer is working with Hong Kong-based Li & Fung Limited to create a multi-category collection that includes homeware under the brands Made by JD and Best Home, as well as a pet line under Jingmeng which means Cute Pet. The private brand rollout is an extension of JD.com’s work with Li & Fung and its digital supply chain capabilities.  Focusing on private brands, the joint venture’s newest initiative will leverage the emerging C2M (consumer-to-manufacturer) business model that is rapidly gaining momentum in Mainland China, Li & Fung said. C2M enables manufacturers to dramatically shorten the time from design to shipping products to consumers from the industry averag...
JD.com to increase employee pay by 14 % over next 24 months
Ecommerce, Tech

JD.com to increase employee pay by 14 % over next 24 months

Chinese e-commerce giant JD.com said it will increase employee salaries by an average of 14 % over the next 24 months. This appears to be a show of financial strength at a time when many of its Chinese tech companies are facing regulatory issues. In a brief notice published on its public social media account on WeChat on Tuesday JDcom said it will increase average employee annual salaries to the equivalent of 16-months pay by July 2023 from the current 14-months, representing a 14 % increase on average. The Beijing-based company counted about 370,000 total employees as of March. They added 100,000 more during 2020 The move appears to be intended to boost staff morale. The proposed salary increase has attracted a lot of attention on Chinese social media at a time when broad-based ...
JD.com establishes ‘first-in-ASEAN’ cross-border trade with Thailand
Ecommerce, Tech

JD.com establishes ‘first-in-ASEAN’ cross-border trade with Thailand

Chinese online retail giant JD.com recently launched its first self-operated charter flight in the Asia Pacific (APAC) region. The largest online retailer in China has begun chartering cargo flights connecting its home country to Thailand. With this the Company is trying to mark the company’s strong effort in promoting cross-border trade. The Company will operate three round-trip flights weekly between Shenzhen’s Bao’an International Airport and Suvarnabhumi Airport in Bangkok. The plan is to fulfill online orders involving shipments between the two countries within 48 hours. In Thailand JD has partnered with Central Group to run the online shopping platform JD Central. “We see enormous potential in Southeast Asia, and this is just the first step,” Stard Huang, who heads JD’s intern...