JD.com, Inc. (NASDAQ:JD), China’s largest online direct sales company, today announced the opening of an office in Hong Kong and the signing of a strategic agreement with COSCO Logistics to address growing customer demand for imported goods from leading brands from Asia and around the world. The company also announced that Sa Sa,Asia’s leading cosmetics retailer, will launch a flagship store on JD Worldwide.
The strategic initiatives announced today are intended to enhance engagement with brands and retailers across Asia, and to make it easier, and quicker for international merchants to ship directly to consumers in China. Leveraging JD’s local market presence and warehousing capabilities, merchants with a presence in Hong Kong will be able to manage sales, warehousing, shipping and fulfillment to customers in Mainland China directly from Hong Kong.
Hong Kong Office Expands JD.com’s Asian Reach
JD.com’s new Hong Kong office was officially opened yesterday at a launch event attended by Rain Long, JD.com’s Chief Human Resources Officer and General Counsel, and Simon Galpin, Director of Invest Hong Kong, among others. The office will enableJD.com to better engage with brands and retailers across Asia, including in Hong Kong itself, Singapore, and major Southeast Asian markets, who are looking to tap JD.com’s 118 million active users in Mainland China. JD.com will build a team in Hong Kong that will focus on targeting and attracting new retail partners from around the region, and on engaging with the company’s other stakeholders in Asia.
“We have seen rapid growth in demand from our customers for Asian brands and products, and from leading brands and retailers across the region who want to reach our huge base of upwardly mobile customers,” said Ms. Long. “This new office will expand our ability to attract and service brands from around the region, and ultimately to ensure that we continue to bring our customers the most exciting and diverse selection of international products.”
Partnership with COSCO Logistics Shortens Cross-Border Shipping Times
The company today also signed a memorandum of understanding with COSCO Logistics, a leading logistics provider, to launch a strategic partnership under which COSCO Logistics will provide JD.com with warehousing, customs clearance and shipping services from Hong Kong to Mainland China. The cooperation will help JD.com’s brand partners in the region get their products to customers more quickly.
COSCO Logistics will operate a dedicated Hong Kong-based warehousing facility for JD.com, which will be fully integrated withJD.com’s industry leading Warehouse Management System. COSCO Logistics will also manage the cross-border shipping process, including customs clearance, from the Hong Kong warehouse to JD.com’s fulfillment facilities in Mainland China, and will cater to both direct sales and third-party merchants. The partnership is expected to reduce average shipping times from Hong Kong to customers in Mainland China by three to four days.
“This partnership gives our customers easy access to more of the best Asian and international products, and allows more regional and global retailers to target our unrivalled base of Chinese consumers directly from Hong Kong,” said Carol Fung, Vice President ofJD.com and President of JD Mall’s FMCG (fast-moving consumer goods) business unit. “COSCO Logistics is one of the most skilled and experienced providers of cross-border logistics services in Asia, and is a natural partner for JD.com as we expand our ability to service our partners across Asia.”
Sa Sa, Asia’s Leading Cosmetics Retailing Group, Sa Sa, to Launch Flagship Store
As part of its efforts in the city, JD.com today also announced that Sa Sa, a leading cosmetics retailing group in Asia and ecommerce provider, will launch a flagship store on JD Worldwide. The store will feature the most extensive selection of Sa Sa’s range of international cosmetics brands and products available online in China. It will be synchronized with Sa Sa’s global ecommerce portal, Sasa.com, to ensure that JD.com’s customers have easy and immediate access to the full range of products available on Sa Sa’sglobal site.
“Sa Sa has been dedicated to continuously enhancing customers’ shopping experience and we established Sasa.com in 2000 to offer round-the-clock e-tailing with a comprehensive range of products,” said Dr. Guy Look, Chief Financial Officer and Executive Director of Sa Sa. “We’re excited to partner with JD.com and to give Chinese consumers more extensive access than ever before toSa Sa’s huge selection of globally renowned cosmetics brands. JD.com has an unmatched reputation for guaranteeing quality, convenience, and service, and we’re looking forward to working with them to deliver a premium online shopping experience to consumers throughout China.” (Original Source)
Shares of JD.com Inc closed yesterday at $24.38. JD has a 1-year high of $38 and a 1-year low of $21.55. The stock’s 50-day moving average is $26.41 and its 200-day moving average is $31.36.
On the ratings front, JD.com has been the subject of a number of recent research reports. In a report issued on August 10, Morgan Stanley analyst Robert Lin downgraded JD to Hold, with a price target of $35, which represents a potential upside of 43.6% from where the stock is currently trading. Separately, on August 4, Tiger Hill Capital’s Tian Hou assigned a Buy rating to the stock and has a price target of $39.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Robert Lin and Tian Hou have a total average return of -20.8% and -11.1% respectively. Lin has a success rate of 16.7% and is ranked #3452 out of 3766 analysts, while Hou has a success rate of 30.8% and is ranked #3529.
JD.com Inc is an online direct sales company in China. The Company acquires products from suppliers and sell them directly to its customers through its website and mobile applications.