Big E Commerce Operation Quits OZ After Trying To Take On Local Retailers
Amazon is still ploughing ahead but Chinese eCommerce operator JD.com who was trying to flog Chinese made products to Australians, has pulled the pin on their local operation.
Arriving to a lot of huff and puff and an intent to blow away Australian retailers the Chinese operator has quit after just 15 months and millions in losses which is an embarrassment to the Victorian Labor Government who was backing the Chinese Company after they set up in Melbourne.
The Beijing-based company has confirmed that they quietly closed its Melbourne office, which had opened with great fanfare and back slapping from Victorian pollies.
A spokesperson for JD.com, which reports quarterly financial results on Friday, said: “We are integrating the Australia office into the business in China”.
Analysts said the retreat was the latest evidence that the arrival of foreign e-commerce giants such as Amazon, China’s Alibaba and JD.com, were not as big a threat to Australian retailers as previously expected.
Last year as Amazon and Costco expanded their warehouse operations JD.com which only employed a handful of staff in Melbourne issued a press. release claiming that they were set to invest in a distribution network, including warehouses, in Australia, this plan has now bitten the dust claim observers.
“They are clearly going through some challenging times at the moment. Growth in e-commerce is slowing so they are under pressure to start making money,” Mark Tanner, the managing director of Shanghai-based marketing firm China Skinny told the Financial Review.