Jingdong Mall needs large amount of cash and time to build an adequate logistics system.ģ) Jingdong Mall’s business layout is uncertain. Although an initial nationwide layout is completed, the company’s warehousing and logistics are relatively poor, and are seriously impeding stable development of business and improvement consumers’ experience. In addition, Jingdong Mall has no ability to provide cloud services.Ģ) Jingdong Mall’s logistics system needs upgrades. Its IT system is facing severe challenges. Now Jingdong Mall has a daily order record of 260,000. The system’s handling capacity is capped at 100,000 orders every day. It is reported that Jingdong’s information management system was developed by the company itself in 2008. It is still unclear whether it will follow Amazon’s track.ġ) Jingdong Mall’s IT system faces severe challenges. Making a comparison between the two, you will find that even though Jingdong Mall sells different things at the start from Amazon (one sold books and the other sold 3C products), it stepped on a very similar track to Amazon in the early stage-continuously expanding its own product lines, investing in establishing logistics systems and opening its own platforms to third parties.īut investors also need to be aware that Jingdong Mall is much less in business scale than Amazon and is currently faced with severe challenges. If there is an equivalent for the “Amazon of China”, Jingdong Mall is the best candidate. Earlier this month, the company was reported to plan the largest-ever IPO financing for an Internet firm, in which it hopes to raise US$4-5 billion. Jingdong said it will separate its logistics business in January next year and let it run completely independently, meaning that Jingdong will open its logistics system. By July 2011, there have been over 3,500 brands on Jingdong Mall’s brand open platform, with monthly sales revenue of RMB 150 million. By the end of 2010, Jingdong Mall started to introduce a third-party open platform (a combined business model with B2C). Unlike Alibaba, Jingdong spent huge amount of money building the logistics system from the very beginning. In 2010, it started selling books on its websites. Since 2008, Jingdong gradually added household items to its shelves. Jingdong Mall-Most potential to Become the Amazon of Chinaīackground : Jingdong Mall, also knowns as, positions itself as B2C platform after entering the e-commerce field and has been focusing on 3C and home electric appliances. 3) Amazon has made impressive achievement in services like electronic reader (Kindle), music shop and stream media, but Alibaba is still focusing on e-commerce.Ģ. 2) Amazon has a super logistics system and IT cloud computing capability, whereas Alibaba is still planning on its logistics system and its cloud computing service is very limited. But Alibaba only run the platform and does not sell products of its own. Their differences are: 1) Amazon sells products made by itself. Similarities between Alibaba Group and Amazon are: Both have introduced B2C open platforms and third-party ISV (independent software vendor) platforms, and offered services in cloud computing, payment tools and group purchasing. So it enter any markets as long as there is a user demand. It does not limited its business solely to the e-commerce field. In comparison, Amazon is an IT company that is client-oriented. Its ambition can be seen in the acquisition of Koubei, the launch of etao, the establishment of Alibaba Finance and its huge investment in establish warehousings. the company focuses on e-commerce and tries to become China’s most popular e-commerce service provider. In the past 11 years, Alibaba Group has been in the e-commerce field and managed to construct a full e-commerce industry chain, which covers B2B, B2C, C2C, payment processing, cloud computing, group-buying and even finance.Īs the biggest Chinese e-commerce giant, Alibaba looks in no way like Amazon. In 2011, was separated into three different companies, Taobao C2C, Taobao Mall and Etao. One year later, Alibaba Cloud Computing Company was established. In 2008, it introduced Taobao Mall, a B2C online shop. In 2005, it merged with Yahoo China and entered the online search business. In 2003, it introduced C2C store Taobao and Alipay, a online payment tool like Paypal. Alibaba Group-Looks in No Way Like Amazonīackground : Founded in 1999, Alibaba starting from cross-border B2B business. Account icon An icon in the shape of a person's head and shoulders.
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