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JD.Com and Alibaba Clash Over Selling U.S. Labels in China

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Published on : Jul 22, 2015

JD.com and Alibaba are treading to step up the battle to merchandise U.S. brand-name products in China.
The two companies that are biggest online retailers in China have been rivals for many years. In a changed situation, the fight of the two companies to lure Chinese consumers is herded west.

On Monday, JD made an announcement of its U.S. mall, which is an online portal for Chinese consumers to find American made products. This is a copy of Alibaba’s efforts to attract more U.S. labels on its site.

Neither of the two companies is equipped to tackle the U.S consumer yet, but both see the potential to merchandise authentic U.S products for the imitation-ridden Chinese market.

About both the retailers, it is safe to say that both of them aim to feed the appetite of Chinese consumers for big western labels, as commented by Wedbush analyst Gil Luria.

The founder and chairman of Alibaba Jack Ma visited the U.S. recently to attract more American merchandisers for the company’s platform. As commented by the chairman at a gathering of the New York Economic Club at Waldorf Astoria, the company aspires to sell more American products to be available in China.

A month later, the founder and CEO of JD.com visited New York city to invite American merchandisers to be a part of his company’s newly launched U.S mall. The aim for both the companies is to merchandise U.S .made products on their portals.

When enquired about JD’s cross border initiatives in the U.S., a Alibaba spokesman commented that JD was late in the game.

He further said, that imitation was the easiest form of flattery. He also said that JD attempted to copy Alibaba’s strategy, but being a small electronics platform, JD is not equipped to imitate the scale, size, and the diverse user base.