Lessons from Jd.com on Partnerships and Doubling Down on Growth
One of the most important things about growing a company is to stay competitive within any particular business climate, this includes being able to weather and possibly even being able to weather the different storms present within the sector by being proactive. Jingdong is aware of the need to do so and it continues to take actions that ensure the fact that they will stay ahead of the competition or at least on par with the competition. This was evidenced with their roll-out of Toplife in 2017 to counteract another powerful foe, Alibaba, who launched the Luxury Pavilion. If individuals didn’t dig deeper, they would have thought that Toplife was launched by JD.com with no advice or relationships with prominent luxury oriented companies.
JD.com would not be doing anything extra with their Toplife offering, it would still act as the intermediary and allow prominent luxury brands to offer their wares on the site. But as the saying goes, “if a tree falls in the forest, and no one hears it, did it really fall?”, this is true for all brands but even more so for, platforms, they need both, consumers and sellers to come to the platform and find value. Jingdong made a wise move by partnering with and making relations with Farfetch China to see how to navigate in different ways and take the right steps. Of course, Jd.com had the data on their broad audience, yet, the right relationships with industry players certainly make a large difference.
One year later JD.com merges Toplife with Farfetch China. Farfetch was able to benefit from the early stages of the partnership as well. See, Jd.com has the infrastructure, the personnel, the experience, and the overall platform, in addition to the audience, to provide a real value add to smaller niche brands across the board. Not to mention, Jingdong has the logistics, a crucial component in a world that is becoming more reliant on logistics in every single industry. If individuals were to look further, they would also realize that JD.com is a significant shareholder of the luxury retailer, Farfetch. Jd.com continues to specialize in the sectors and verticals that it understands while making the right partnerships to make a positive difference.
Source of the article : https://www.cnbc.com/quotes/?symbol=JD