Chinese e-commerce giant JD.com pursues budget-minded consumers in slow economy

JD.com is said to be taking full control over the operation, logistics and after-sales services of its Jingxi low-price shopping platform

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JD.com is doubling down on its focus on budget-conscious consumers. Photo: Reuters

Published: 5:00pm, 2 Jul 2024

China’s e-commerce giant JD.com is said to be doubling down on its budget shopping platform Jingxi in its latest move to win consumers in the “sink” market, made up mostly of small towns where shoppers have limited spending power, amid fierce competition with rivals such as PDD Holdings.

Borrowing a page from PDD’s playbook, JD.com is taking full control over Jingxi’s operation, logistics and after-sales services in what is known as a “whole custodian” model, hoping to better serve price-sensitive consumers, according to a report from Chinese media outlet 36kr.

After the restructuring, the head of Jingxi would report directly to JD.com CEO Xu Ran, the report said.

JD.com did not immediately reply to a request for comment on Tuesday.

Major Chinese e-commerce platforms are engaged in an intense price war amid an economic slowdown and sluggish domestic consumer spending.

PDD’s Pinduoduo platform, in particular, has found success with cut-to-the-bone pricing, prompting others such as Alibaba Group Holding’s online marketplace Taobao to focus more on grass-roots consumers. Alibaba owns the South China Morning Post.