JD.com Inc, China's largest online direct sales company, on Monday launched U.S. Mall, a new channel on its JD Worldwide cross-border platform dedicated to selling U.S. products to Chinese consumers.
JD.com founder and CEO Richard Liu was joined by about 400 representatives from U.S. companies interested in reaching China's markets, at a launch event at The Plaza hotel in New York.
A video of American pop star Taylor Swift, who announced on Monday that JD.com would be the exclusive outlet for her fashion line in China, was played at the event.
Throughout Liu's talk, Power Point presentation and panel discussion, "authenticity" and "protection of suppliers" were common catch phrases heard.
"As American companies increasingly understand our core advantages of zero tolerance towards counterfeits and unparalleled same-day delivery capabilities, we are gaining excellent momentum attracting U.S. brands to our site," Liu said in an earlier statement.
The U.S. Mall further positions JD.com as a competitor to giant Alibaba Group Holdings Ltd, as both companies have recently started stores that sell imported goods from Japan, France, South Korea and Australia.
So far, U.S. brands Converse, Samsonite, Ocean Spray and several major apparel labels that are part of the Global Brands Group, including Nautica Kids and Jeep Apparel, have signed with JD.com.
Many brand representatives at the event expressed an interest in partnering with JD.com.
LAT Apparel, a clothing manufacturer in Georgia, was represented by Rebecca Clements, chief marketing officer; and Mindy Anastos, vice-president of production planning, who learned about the event from the Georgia Department of Economic Development.
LAT Apparel has some B2B business in China, but "this is an opportunity to go direct to the consumers", Anastos said.
It's "a mass distribution opportunity", added Clements.
Tim Miller, sales manager of SwettieBeans!, a maker of gluten-free vegan-products, said JD.com's "logistics system is really impressive". Miller said he also was trying to determine if there is a market for his products in China.
JD.com also announced a partnership with DHL Global Forwarding to help the American brands reach Chinese consumers reliably and quickly.
"Don't trust the coverage saying that Chinese consumption is slowing down," Liu said. "Go to the shops on Fifth Avenue to see for yourself. And if one day you see that Chinese shoppers disappeared from Fifth Avenue, again it's not a problem with the consumption power of Chinese. It means JD.com has made it," Liu said to audience laughter.
"JD.com's implementation of a U.S.-based delivery model is a useful step ahead for both Chinese consumers and U.S. merchants, making it that much easier for merchants and consumers to meet," said Frank Lavin, chairman and CEO of Export Now, which provides consulting services for businesses accessing China's e-commerce platforms.
