JD.com continues its investment into fresh food business, aiming to initiate its global fresh food business strategy. On 16th August, JD.com signed strategic cooperation agreement with more than a dozen countries’ embassies. In future, those countries’s characteristic fresh foods will be available on the self-run platform of JD.com.
In the beginning of this year, JD.com set up its own independent fresh food business department to develop the business. And this month, it initiate “Bian Xun Tian Xia Xian” activity (completely search for fresh food in the world) and build up professional purchasing group, visiting the origin of places to check and inspect the fresh foods. JD.com’s aim is clear that it manages to directly supply the featured fresh foods from origin of places.
More than a dozen countries, including France, Canada, Spain, South Africa and Southeast Asian countries, signed the agreement with JD.com this time. In the future, South African red grapefruit (Citrus paradisi Macf.), Vietnamese dragon fruit, other countries’ fruits, Chilean salmon and other countries or regions’ special seafood and aquatic products will be directly sold on JD.com.
In recent two years, e-commerce platform focusing on fresh foods surges in large amount. However, statistics show that only 1% of 4000 fresh food e-commerce platforms can obtain profits, 4% break even and as many as 88% are money-losers. Incomplete supply chain is one of the main reasons that constrain the fresh food e-commerce development. To solve the cold chain logistics problem, Liu Qiangdong, CEO of JD.com, stated that JD would invest 10 billion yuan within 3 years to set up an integrated network involving cold storage, freezing, distributing and so on of fresh foods.
