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JD opens its first U.S facility

Update On :14 October 2015

JD opens its first U.S facility

JD which is one of the largest E-commerce companies in China has opened its first office in the Silicon Valley, U.S. It has 118 million active users however it doesn’t have market share and profile in U.S as Alibaba. As JD.com grows its cross-border retail business, it not only has a research and development lab based in Santa Clara but will also have connection with American companies. The Santa Clara office is still hiring but JD.com expects it to have about 100 employees.

The new branch will be a research and development centre, focusing on cloud computing, mobile applications and big-data infrastructure. The company hopes the new location will allow it to attract more engineers and give greater flexibility to its employees. Richard Liu, founder and chief executive of JD said “Given the scope and strength of American brands, products and capabilities, the U.S. was the obvious choice as we sought a location for our first office outside of Asia. We are excited to increase our US presence by establishing an operation in the heart of Silicon Valley.

The sale of imported goods which have a reputation for better quality and safety standards to affluent Chinese consumers remains an important vertical for e-commerce companies even as the country’s economy slows. JD.com launched a platform for U.S. brands in July. The company hasn’t disclosed exact figures yet, but spokesman Josh Gartner says the number of brands on it is expanding rapidly and that North American products are the most popular imported items among its customers.

He also added that having an office in Silicon Valley will allow JD.com to attract more engineers and give its employees flexibility about where they are based. It also brings JD.com closer to potential partners in Silicon Valley as it builds its big data technology which will help its predictive algorithms not only deliver more accurate recommendations to shoppers but also figure out what users in different neighborhoods are likely to order. Since JD.com operates its own logistics network, this helps it improve delivery times and warehouse operation.

Comments

Merryl
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"As U.S has become a best place for business many have started their branches there. JD has now taken its initial step in U.S by opening research and development center with the note of expanding its cross border retailing."

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