Indonesian Unit of China's eCommerce Giant Seeks Footprint Expansion

JD.id president director Zhang Li, second from left, at a press gathering on Thursday (09/03). (Photo courtesy of JD.id)

By : Ratri M. Siniwi | on 11:14 AM March 10, 2017
Category : Business, Corporate News

Jakarta. JD.id, a local unit of China's second-largest e-commerce firm JD.com, seeks to expand its business in Indonesia by strengthening its logistics network and diversifying its products, executives at JD.id said on Thursday (09/03).

JD.id started from scratch in Indonesia more than a year ago, but now has more than 300 employees supporting its "business-to-consumer" online shopping services via a website and a smartphone app.

JD.id president director Zhang Li told reporters that most of its orders come from the Greater Jakarta area, but as the company will soon build five or six new warehouses, it also hopes to grow its consumer base.

Selling goods in 14 categories, including fashion, mother and baby care, home appliances, lifestyle and sports to personal care and health, JD.id already has three warehouses in Jakarta, Surabaya (East Java) and Pontianak (West Kalimantan).

JD.id provides stiff competition to China's Alibaba and owns its own logistics company in Indonesia called Jaya Ekspres Transindo.

"Most of our orders in Jabodetabek are received by customers within a day. When we have more warehouses in different cities and areas, more customers will be able to enjoy the same quality service," Zhang Li said at a press gathering in Jakarta.

One of the new warehouses will be built in Medan, North Sumatra, later this year.

Li declined to elaborate the company's plan, but said market conditions will determine the location and size of investment for each new warehouse.

According to the company's data, web and mobile traffic on its site and app largely comes from Jabodetabek, then Surabaya, Medan, urban areas in Central Java and Bandung.

Within a year of opening up services in Indonesia, the online marketplace claims it now attracts up to 1 million-3 million visitors per month.

JD.id corporate communications head Teddy Arifianto said the average basket size of its customers range between Rp 3.5 million to Rp 4.5 million on average.

"Gadgets are our biggest sell, followed by baby products, home appliances and household goods," Teddy added.

The Indonesian market is attracting many investors from China since they believe the country's internet industry is on the cusp of a big boom.

The world's biggest e-commerce firm Alibaba entered Southeast Asia's biggest economy by acquiring regional e-commerce player Lazada. JD.com is challenging Alibaba's strategy by setting up its own brand in the market.

JD.id's parent Jingdong Mall, or JD.com, reported a $37.5 billion revenue in 2016. The Fortune Global 500 company was founded by Richard Liu Qiangdong in 1998, and went online in 2004.

As of Dec. 31 last year, the company has over 250 warehouses of approximately 5.6 million square meters and hires 120,622 full-time employees.

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