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JD.com to build direct online retailing system for manufacturers

Chinese online retail giant JD.com has launched a new initiative in which it will build a direct online retailing system for manufacturers. The initiative is expected… View Article

GENERAL MERCHANDISE

JD.com to build direct online retailing system for manufacturers

Chinese online retail giant JD.com has launched a new initiative in which it will build a direct online retailing system for manufacturers.

The initiative is expected to help more than 100,000 manufacturing enterprises in China to better connect their production capacity with consumer needs.

Han Rui, vice president of JD.com, said: “The new system will offer a visibly reduced time of company inspection and a low entry cost for qualified manufacturers to become online retailers on platforms of JD.com like JD Pingou. With the existing platforms of JD.com, manufacturers can get free access to innovative marketing tools such as online games and social media marketing, rapidly reaching target customers in especially third- and fourth-tier cities.”

Prior to 31 December, manufacturers in the categories of clothing and underwear, outdoor equipment, shoes and baggage, and daily household goods will be exempted from platform usage fees.

Zhao Ping, director of the Department of International Trade Research at the Academy of China Council for the Promotion of International Trade, said the new initiative will also lead to lower prices for consumers as the circulation cost on the supply side can be significantly reduced.

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