It has been widely accepted and public knowledge for many years now that JD.com has a remarkably thorough logistics network throughout China. They are now staking out a claim within China’s fierce package delivery service. How are they doing this? Simple. By expressing the same strategies utilized in their company logistic service and applying them to the immense amount of parcels that are shipped by both businesses and individuals alike, they expect they will be able to carve out a significant portion in this market.
They recently announced the move the last Thursday and it will be rolled out first of all for commercial and independent consumers in the urban markets of Beijing, Shanghai and Guangzhou, and it will enable consumers to send items through their app or through the social messaging application WeChat. Of course, the company is a natural rival to Alibaba Group Holdings. They expect they will compete with this service to make deliveries between any two points within Mainland China.Jingdong definitely already has the infrastructure in place to handle this. They have a fleet that consists of trucks and vans and a humongous network of warehouses that are constantly loading and unloading at all hours of the night.
This infrastructure could easily be converted to compete with more well known shipping companies throughout China.The company’s network is now so large that they are confident they can handle deliveries to 99% of the Chinese population and can deliver more than 90% of these orders and less than one day.One of the main reasons why they are so well equipped to handle these huge amount of orders is because they have 15 logistics parks, 500 warehouses, and around 7000 delivery and pickup stations, and several other organizational points along the way. Simply put, they are ready to kill it in this online retail market.