Costco has named JD.com as its sole official ecommerce partner in China, a move that broadens the warehouse club’s online reach well beyond the city-by-city delivery model it had previously relied on.
According to JD.com, the partnership gives Costco a flagship store on the platform with around 700 products spanning snacks, oils, seasonings, household cleaning goods and personal care items. The store is available to non-members as well, although JD.com said prices for them ar...
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e roughly 20% higher than the member rates.
JD.com said the shop attracted more than 30 million visits during a month of trial operations, underlining the scale of consumer interest in a brand that has built a strong following in China despite its relatively small physical footprint. Recent reporting by NBD said the arrangement is also intended to deepen supply-chain integration and support more localised retail operations in the mainland market.
The partnership comes as Costco faces intensifying competition from Sam’s Club, which NBD said now operates more than 70 stores in China, compared with Costco’s seven. By tying up with JD.com, Costco gains a larger digital distribution channel and access to JD’s logistics network, which could help it serve customers beyond its existing same-day delivery zones.
JD.com itself remains one of China’s biggest commerce players, with the company saying on its corporate website that it serves more than 700 million annual active customers and ranks 44th on the Fortune Global 500. The retailer has also continued to expand into other business lines, including logistics, health and international operations.
The Costco deal also reflects a broader shift in China’s instant-retail market. Around the same time, users in cities including Beijing, Shanghai and Sichuan reportedly saw Freshippo, Alibaba’s grocery chain, move from Taobao’s Flash Purchase section to a more prominent home-page placement in some regions. Analysts said the near-simultaneous moves suggest competition is no longer just about speed of delivery, but also about exclusive supply and tighter integration with major apps.
Source: Noah Wire Services
