As a domestic e-commerce giant, JD.com's overseas expansion is far less vigorous than Alibaba, and is even less popular than ByteDance and Pinduoduo, which came late.
If Alibaba, as the first to try out the new technology, grabbed the early dividends, then ByteDance and Pinduoduo have been catching up with the advantages of their respective models. In contrast, JD.com, which is caught in the middle, has experienced many twists and turns in its overseas business. Today, JD.com’s cross-border platform JOYBUY has once again reached the point of closure after years of going overseas. Cross-border navigation , like 13 ▲ Video account focuses on cross-border navigation JOYBUY is shut down again, and JD.com's overseas business has failed again In November last year, JOYBUY, a cross-border platform under JD.com, announced that in order to help more Chinese companies and Chinese brands expand their cross-border business overseas, JOYBUY will be upgraded to a cross-border B2B transaction and service platform. In addition, due to the needs of strategic development, JOYBUY stated that it will cease the operation of the existing business of the English site www.joybuy.com and the Russian site www.jd.ru on December 9, 2021, and will terminate cooperation with merchants on the JOYBUY website in accordance with the agreement with the merchants. At the beginning of this year, JOYBUY officially issued a product removal notice, stating that due to internal reasons of the supplier, all products will be removed from the shelves before February 3, 2022. After many twists and turns in suspending its B2C business, JD.com re-launched JD Global Trade - JOYBUY on June 8 this year, making a comeback in the B2B model. However, less than half a year later, JOYBUY issued another announcement, announcing that the platform will be upgraded and the online trading function will be suspended. It is reported that 30 days after the announcement, JOYBUY will terminate the "JOYBUY Seller Settlement Agreement" with the contracted merchants. According to the notice on JOYBUY’s official website, if the order status is “unshipped”, the supplier will strive to ship the order within 3 days. If the merchant cancels the unshipped order on November 11, a full refund will be received. According to data from Similar Web, the number of visits to JOYBUY in October was 147,400, a decrease of 23.63% from the previous month. It is currently ranked only 255,473rd among similar platforms in the world. Now that JOYBUY has shut down again, it is still unknown what its next move will be. JD.com's overseas business has experienced twists and turns, and a large number of employees have left JD.com's overseas business has always been somewhat lukewarm. Compared with Alibaba's high-profile operations, JD.com seems to be a marginal figure in the cross-border arena. JD.com began to develop cross-border business in 2015, and chose the Southeast Asian market as its first stop . JD.ID, a cross-border e-commerce platform jointly built with local enterprises, was first launched in Indonesia. In 2018, JD.com participated in the C round of financing of the Vietnamese e-commerce platform Tiki, and increased its investment again in 2019, becoming Tiki's largest shareholder. In September 2018, JD.com teamed up with CentralGroup, the largest retail group in Thailand, to establish an e-commerce joint venture, JD Central. In the field of cross-border business, JD.com did not follow Alibaba's path of establishing a third-party platform, but instead followed the self-operated e-commerce model that it is best at. Currently, JD.com has its own stores on platforms such as Walmart and eBay. Domestic merchants can supply goods to JD.com's overseas stores as suppliers and entrust JD.com with operation and management. JOYBUY, as an important branch of its cross-border business, is not a traditional third-party e-commerce platform. It also implements the model of merchants supplying goods to JD.com's overseas stores. Merchants only need to send goods to domestic warehouses, and JD.com will be responsible for the entire process of listing, payment, logistics fulfillment, etc. In recent years, JD.com has continuously increased its investment in overseas business. On the one hand, it has recruited talents with international retail and logistics backgrounds from companies such as Amazon, Sinotrans, Maersk, and Huawei; on the other hand, it has continued to explore different sub-sectors, including building an overseas offline local retail system, vigorously developing overseas supply chain infrastructure, and jointly with Shopify to enter the independent station SaaS business. However, JD.com's overseas business has also experienced many twists and turns along the way. Between 2015 and 2016, JD.com's international business management changed frequently, and the resignation of the president and some key personnel led to a stagnation of its overseas business. After the Liu Qiangdong incident in 2018, JD.com was hit by turmoil again, and its overseas business was suspended again. Now, JD.com, whose overseas business performance has not met expectations, seems to be facing another management change. According to foreign media reports, JD.com's international department may lay off employees and undergo major adjustments. The European department is very likely to be laid off, while the Southeast Asian department will be reduced, and the business in Thailand and Indonesia may be directly closed. It is reported that Mao Dun, vice president of JD.com International, and some of his subordinate managers have resigned. The reason for this is mainly due to the low overall profitability of JD.com’s international business. According to the financial report released by JD.com at the end of August, its second quarter revenue only grew by 5.4%. CEO Xu Lei bluntly said: “The company is facing the biggest challenge since its listing.” Now with JOYBUY shutting down again, the future direction of JD.com’s overseas business will become even more confusing.
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