Chinese e-commerce website JD.com plans move into Europe, states CEO Richard Liu

JD.com is investing heavily in logistics and offline retail to expand beyond its base in China.

Chinese e-commerce company JD.com plans to expand in Europe and aims to have finalised its strategy for entering the market by the end of the year, its chief executive told a German newspaper.

China’s second largest e-commerce business also wants to open an office in Germany by the end of 2018, the Handelsblatt daily cited Richard Liu as saying.

“For me it’s no longer just about selling products from Germany in China. I would also like to sell products in Europe,” Liu told the paper. “We have just got to clarify the details.”

An employee works at a JD.com logistic centre in Langfang, Hebei province, November 10, 2015. On China's giant Singles Day internet shopping festival, the country's delivery firms are stretched so thin that they are looking for tie-ups, listings and new investors to husband their resources. E-commerce has been a huge boon to the logistics industry, but the ever-bigger Singles Day, run by leading online market company Alibaba Group Holding Ltd on Nov. 11 every year, exacerbates the industry's twin dilemmas of cut-throat competition and rising labor costs. With low barriers to entry, express couriers proliferated rapidly over the past decade to more than 8,000 firms, squeezing profit margins to about 5 percent, down from 30 percent 10 years ago, according to analysts. To match CHINA-SINGLES DAY/LOGISTICS REUTERS/Jason Lee - GF20000053038

An employee works at a JD.com logistic centre in Langfang, Hebei province. Image: Reuters

JD.com is investing heavily in logistics and offline retail to expand beyond its base in China and Southeast Asia and establish a meaningful presence in US and European markets.

Handelsblatt said Liu would also consider takeovers to help its foray into the European market. “If we see a good opportunity then we will seize it,” he said.

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