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The Trend Reverses As JD.Com Inc (ADR) (JD) Plans To Sell US Imported Goods In China

JD.Com Inc (ADR) (NASDAQ:JD) isn’t giving archrival Alibaba Group Holding Ltd (NYSE:BABA) any space to breathe. In the latest move, JD said it plans to start selling U.S. merchandise in China, a cross-border e-commerce strategy that Alibaba has also been pushing. JD has already opened what it calls “U.S. Mall” on its websites, a marketplace dedicated to selling U.S. products to Chinese customers. Previously, the focus was more on getting Chinese goods to the global market.

China is already a key target for many e-commerce providers, but natives JD.Com Inc (ADR) (NASDAQ:JD) and Alibaba are pushing the boundaries of the e-commerce industry in the country faster. Already, the two companies offer Chinese customers products from countries like Australia, South Korea, Japan and France through their online marketplaces.

Both JD and Alibaba have identified potentially huge opportunity in promoting online export and import trade. Besides expanding their product range, partnering with major international brands also comes as a profile boost, which can lead to more sales because of customer trust.

Exclusive Taylor Swift brands for JD customers

As JD.Com Inc (ADR) (NASDAQ:JD) launches the U.S. Mall marketplace, the company said that it would be the exclusive seller of Taylor Swift branded merchandise, which includes clothes and more.

Additionally, JD’s U.S. Mall will also include items from American brands like Samsonite, Nautica Kids, Jeep apparel and Converse.

Credibility boost

JD will be looking to attract more major global brands as the company also seeks to prove its credibility among Chinese consumers. In a market where there is a huge proliferation of counterfeit goods, Chinese e-commerce companies naturally have many wars to fight. Besides the war to grab the largest share of the market, there is also the battle for customer trust.

After years of criticism and workout by some customers, Alibaba recently tapped an Israeli technology company to help fight counterfeiting on its platform. Alibaba hopes to keep off fake goods by assigning digital marks of authenticity to products.

JD.Com Inc (ADR) (NASDAQ:JD) is also struggling to fight counterfeiting to enhance its credibility, and it might have to do more as it opens its platform for cross-border trade.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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