Chinese e-commerce is transforming the country
Chinese e-commerce giant JD.com, or Jingdong, is already the third-largest tech company in the world in terms of revenue. It tails only Amazon and Google’s parent company, Alphabet, Inc. Unlike Amazon, JD hasn’t saturated the online retail market. In fact, it has barely scratched the surface.
The Sky’s the Limit for Chinese E-Commerce
China is the world’s most populous country. It has the most internet users of any country on earth. The Chinese e-commerce market is also the largest in the world, despite the fact that hundreds of millions of Chinese citizens have yet to migrate online.
JD and other Chinese e-commerce companies like Alibaba are currently doing for China what the Sears, Roebuck mail-order catalogue did for America in the early twentieth century. They’re making the world much smaller for millions of people living in remote areas, providing them with both jobs and goods from around the world.
Connecting Rural China with the World
Ironically, many rural Chinese citizens who left small villages and towns seeking the wider world are now finding themselves going back where they came from, and bringing the wider world with them.
JD’s policy is to recruit local representatives who bring JD’s service to their friends and family back home. Exploiting the strong social ties of traditional communities is part and parcel to JD’s plans to drum up business in rural regions.
The CEO of JD, the forty-four-year-old Liu Qiangdong, says what makes JD different from others in Chinese e-commerce is their much publicized “no-fakes” guarantee. For a marketplace that sells billions of dollars in goods, shockingly few counterfeit goods make it onto the platform. Qiangdong credits his guarantee with overcoming “a fundamental lack of trust in Chinese society” one delivery at a time.
Their efforts are paying off. Analysts expect China’s online retail market to double in size in just the next two years.
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