JD.com, Yamato Holdings in Chinese e-commerce partnership

The companies are aiming to expand the already rapidly growing demand for Japanese products among Chinese consumers and the new partnership will cut the time for Chinese consumers to receive Japanese products from eight to four days.


Alibaba Cross-Border E-commerce Pilot Zones JD.com Yamato Holdings


China’s second largest online retailer JD.com is partnering with Japanese logistics company, Yamato Holdings for quicker, cheaper delivery of products from Japan to China as early as May, according to a report in the Nikkei Asian Review.

The companies are aiming to expand the already rapidly growing demand for Japanese products among Chinese consumers and the new partnership will cut the time for Chinese consumers to receive Japanese products from eight to four days.

The tie-up, the first between a major Chinese online retailer and a large Japanese logistics company, comes amid increasing competition among Chinese e-commerce services – particularly JD.com’s main competitor, the number one Chinese e-commerce company, Alibaba and its Tmall.com platform – as well as increasing competition from foreign players like Amazon.

ecommerc market share china Source: Nikkei Asian Review

China’s e-retailers see increasing demand for Japanese products including cosmetics and electronics, often from tourists ordering products after returning to China from Japan. Orders shipped from Japan to China are estimated at 800 billion yen (US$7.24 billion) for 2015, similar to the amount that Chinese tourists spent in Japan. Some see the market reaching 1.4 trillion yen in 2018,  reported.
Nikkei

“We know that China’s demand for Japanese products, among the most trusted in the world, will continue to expand,” said Haoyu Shen, CEO of JD Mall in the report.