Logistics give JD.com a leg up in China's e-commerce battle

Reliable delivery won over customers during lockdown but will loyalty last?

20200525 JD.com

Delivery workers for JD.com set up a parcel collection point in Beijing in February. The company's strengths in logistics have helped it during the coronavirus pandemic. © AP

COCO LIU, Nikkei staff writer

HONG KONG -- When Huang Zhou was stuck at home in February due to the Covid-19 outbreak, Chinese e-commerce platform JD.com served a lifeline for her and her family in Guangzhou. Whenever she wanted to restock her cupboard or just have a bit of fruit, she placed an order with the online retailer without even checking anywhere else. Huang, after all, had little choice.

"All the e-commerce platforms in China suspended their delivery service during the lockdown, and JD.com was the only exception," Huang said. Lured by its ability to move goods around despite disrupted transportation, the 37-year-old shopped on JD.com at least twice a week during the outbreak. Previously, she said, she was a loyal customer of Taobao.com, an online marketplace run by Alibaba Group Holding, and only used JD.com occasionally.

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