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JD.com to support SMEs

Released at: 19:48, 22/01/2019

JD.com to support SMEs

Photo: JD.com

Chinese internet company to provide support to local SMEs exporting to global markets.

by Do Huong

Major Chinese internet company JD.com will support small and medium-sized enterprises (SMEs) in Vietnam to access global markets through its different language platforms, Ms. Christine Wong, Vice President of International Government Relations at JD.com, told VET on January 17.

The Chinese retailer has supported the export of Vietnamese products to over 300 million customers in China over the years, with the most popular categories being agriculture, fresh products, and fast-moving consumer goods (FMCG). Notably, sales of watermelon and basa fish jumped 445 per cent and 129 per cent year-on-year in 2018, with good sales also seen in giant tiger prawns, pitaya, mangoes, coffee, cashew nuts, and rice.

According to Ms. Wong, middle-class consumers in China and other countries demand good products from reliable brands in Vietnam. “We recommend Vietnamese companies export more high value-added commodities to international markets, as we are a good partner to access consumers,” she said. “The government also supports Vietnamese companies to build world-famous brands.”

The criteria to determine which Vietnamese SMEs to support is that they are well-known local brands with good value-added products. JD will provide know-how and technology to SMEs in Vietnam conducting general trade or cross-border trade. “They should conduct research before deciding which model to choose,” she explained. “The Chinese Government has recently given great support to the e-commerce business model, not only in terms of taxes but also logistics.”

With a strict “zero-tolerance” policy regarding counterfeit products, customers trust JD as brand with guaranteed authenticity. It leverages its advanced technology and logistics expertise to provide smart supply chain and logistics services to businesses across a wide range of industries. Over 90 per cent of orders can be delivered the same or next day.

The retailer sees Southeast Asia as its focus market and Vietnamese e-commerce platform Tiki is part of JD’s strategy in Vietnam and in which it is now one of the largest shareholders. The Chinese retailer will continue to improve the process of completing orders at Tiki this year and doesn’t have any plans for a mobile payment project in the future, Ms. Wong said.

She added that JD aims to be a provider integrating technology and retail, not just being a retailer. “This is a special model and unlike Amazon or Alibaba,” she said. “We expect to work more with the Vietnamese Government and training facilities in the upcoming time.”

JD is a well-known business-to-consumer (B2C) platform, with two business models: direct sales and marketplace.

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