Market Overview

The Brewing Battle Between Alibaba And JD.com

Share:
Related JD
Watch These 7 Huge Call Purchases In Thursday Trade
Benzinga's Option Alert Recap From February 15
The Vetr community has upgraded $JD to 3.5-Stars. (Vetr)
Related BABA
The Best Way For Retail Investors To Get A Piece Of Snap Before Its IPO
Groupon Pops 20% After Q4 Beat, Alibaba Stake
Wall Street Breakfast: Is Kraft Done With Unilever? (Seeking Alpha)

Familiar with JD.Com Inc (ADR) (NASDAQ: JD)?

JD.com is the second-largest e-commerce company in China, only trailing –- from far behind -- Alibaba Group Holding Ltd (NYSE: BABA). 

The Brewing Battle

On Wednesday, JD.com launched a new cross-border online sales platform, JD Worldwide, which allows Chinese users to acquire imported goods, even from companies with no presence in China. The company intends to take on Alibaba’s Tmall Global, which offers a similar service.

Related Link: Pacific Crest Just Slashed Its Alibaba Price Target By 15%

According to a Reuters article, “overseas suppliers will provide more than 1,200 brands,” including Nike Inc (NYSE: NKE), Starbucks Corporation (NASDAQ: SBUX) and Ocean Spray Cranberries Inc, among other U.S., Australian, French, German, Japanese, South Korean, New Zealander and U.K. brands.

Leo Li, who is in charge of JD Worldwide, told Reuters in an e-mail that “using China's e-commerce free trade zones and the firm's own logistics network, JD.com can ‘offer international brands a direct channel to Chinese consumers with preferential tax rates to make prices highly competitive.'"

The new JD Worldwide service also brings a partnership with eBay Inc (NASDAQ: EBAY).

A section in JD’s site, “Best of eBay Deals,” will allow users to purchase select goods directly from –- some -- U.S. eBay sellers.

Posted-In: China JD Worldwide Ocean Spray Cranberries TmallNews Rumors Tech

 

Related Articles (EBAY + BABA)

View Comments and Join the Discussion!