The largest e-commerce retailer in China market is investing in aggressive retail network growth over the next three years.
JD.com, the largest retailer in China, is investing in the retail network's aggressive growth to increase it to 5 million physical retail objects within three years.
The company's plans reflect a strategy to combat the growing e-commerce segment. Leading players are looking to get as many new customers as possible in small cities.
Xu Lei, General Manager of JD Retail, noted that the company would develop offline stores independently and with partners in the regions, as the "retail market in China is huge." The retailer's business model may be limited. The company recognizes that the existing online channels can serve only a certain number of consumers, so the time comes to use logistics, merchandising, and technology "in a broader context."
"In addition to our centralized online application, we also have many retail channels that are very important to the business," Lei said at the East Tech West conference in Guangzhou.
The retailer opened its largest physical store in Chongqing in November 2019 as part of a strategy to develop retail channels. Today, the company operates, according to its data, 2.5 million retail outlets, including partners. By 2025, the retailer expects to reach the mark of 5 million, writes CNBC. This year, the company has already invested $ 100 million in one of the largest electronics retailers in Gome Retail Holding, creating a joint venture of 2600 stores.
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