The trade war between China and the US continues with a consistent velocity, which may sabotage various American brands. The statement was released by Richard Liu, the founder & CEO of JD.com, the giant Chinese e-commerce firm.
The reason behind the speculated destiny of the trade war is the perception grown in the minds of the Chinese people. They prefer imported brands and items over the national products. Liu also stated that in the major cities, the trend of buying most of the items from the imported brands will continue for the next 5 to 10 years.
Another contender of the Chinese market is Alibaba, owned by Jack Ma. Both the e-commerce giants have implemented the latest technologies, logistics, and retail in order to gain maximum clients. Some of the endeavors are, implementing drone in order to deliver the items to the rural citizens and introducing high-tech supermarkets.
- A Davidson & Co.’s director of research, Gil Luria had stated that both the giants need proper watching. He had declared JD.com as a pure retailer while Alibaba is putting its step forward in the genre of cloud business and media category in order to give the growth a further boost.
Tencent, a major technology firm in China, includes the platform of WeChat, also known as Weixin. It is an extensively used messaging platform of China with one billion monthly users. JD.com is focusing only on retailing and also has logistics associated with the business. It is also aligned with Tencent and offers items with top-notch quality. This gives JD.com an advantage of selling the items directly to the clients as it is related to WeChat.
This association has also targeted to loosen the stronghold of Alibaba in the Chinese e-commerce market. In the previous year, both the organizations had decided to pay $863 million in order to get 12.5% stake in the Vipshop Holdings that primarily deals with the selling of fashion items at a discounted rate from the global market.