Patrick Fresne

Hi Nathan, interesting read. I have a question about this topic: Do you think that selling through JD.com is a viable way for listed Australian companies to gain exposure to the Chinese market?. My reason for asking this is because the 'China strategy' of one company I follow seems to largely consist of selling their products using the JD.com website. I have been wondering if this should be just dismissed as spin or alternatively perhaps should be viewed as a strategy that might have some merit?.

Nathan Bell

Hi Patrick. In contrast to Alibaba, JD.com is known for selling authentic goods. I've noticed a number of Australian and US businesses favouring JD to protect the value of their brands. In short, the strategy definitely has merit, but Alibaba has been playing hard ball with sellers by insisting that they choose either Alibaba or JD, and Alibaba is still the big kahuna of the industry with the most customers. I don't expect that will change, but JD can certainly gain market share (in a growing market) as research has shown that wealthier Chinese prefer JD due to the authenticity of its products. It's hard to show off your wealth with counterfeits. Australian companies may also prefer targeting wealthier Chinese customers,, in addition to feeling their brands are being protected by a trusted retailer in JD. Cheers Patrick.

Patrick Fresne

Thanks for your time Nathan, much appreciated.