Zara and H&M’s ‘China headache’ in Europe may now become Amazon’s too in the region |
China’s e-commerce giant JD.com has launched its online shopping platform called Joybuy in Europe. As reported by CNBC, the company aims to rival Amazon along with other domestic rivals in the country. The platform promises fast deliveries and high-quality products to get an edge on rivals. Joybuy, the report says, is live in six new markets, including the UK and Germany. JD.com along with Shein and Temu are causing significant competitive pressure for Zara and H&M, particularly in terms of fast fashion and low-cost alternatives.
JD.com launches Joybuy in Europe
JD.com said its international platform Joybuy is now live in six European markets. The platform will sell products directly from brands and also operate brand stores where companies can display official products. As per the CNBC report, brands such as L’Oréal Paris and De’Longhi will have dedicated brand spaces on the platform.Unlike some rivals that ship products directly from China, JD.com runs its own warehouses and logistics network. This allows the company to reduce delivery times. In the U.K., JD.com said customers can receive same-day delivery for orders placed before 11 a.m. Orders above £29 will be delivered without additional cost.The company is also introducing a monthly membership service called JoyPlus, which costs £3.99 and offers unlimited free delivery. For comparison, Amazon’s Prime membership in the U.K. costs £8.99 per month.
How Joybuy launch may be a headache for Amazon
JD.com believes its logistics network could help it compete with Amazon and other platforms in Europe. Matthew Nobbs, UK managing director of Joybuy, said the company’s strength lies in its supply chain. “Supply chain is the strength of the core of everything that we do,” Nobbs said as quoted by CNBC.JD.com operates as a first-party retailer, meaning it often owns the inventory it sells instead of only acting as a marketplace for third-party sellers.“We’re a retailer, first, and foremost for brands, and that’s our core,” Nobbs said.
Fashion brands already rely on JD’s logistics in China
JD.com’s logistics capabilities have already made it a key partner for global fashion brands operating in China. Companies such as Zara and H&M have used JD’s delivery and warehousing networks to improve supply chains and speed up deliveries to Chinese customers.That partnership has helped JD build experience working with large global brands. The company now hopes to attract similar partnerships in Europe as it grows its Joybuy platform.
