JD.Com Will Admit Unilever into Its Warehousing, Logistics Networks

Chinese e-commerce colossus JD.com has struck a partnership deal with international consumer goods giant Unilever, saying that it will open its nationwide warehousing and logistics network to the latter, which seeks to enhance its presence in China’s rural and remote areas.

UK and Netherlands-based transnational consumer-goods conglomerate Unilever has cultivated mature and stable markets in Beijing, Shanghai, Guangzhou and other first- and second-tier cities,but deficient logistics have hampered its brand influence and reach into small and medium cities and remote areas. The consumer goods giant has thus decided to join with JD.Com to tap into emerging markets as the buying power of China’s rural consumers is on the rise.

JD.Com’s logistics network has achieved 100% coverage of administrative regions and counties in mainland China, with more than 250,000 logistics service vehicles, over 5 million personnel, and 300,000-plus terminal service outlets. The e-commerce giant also boasts resource superiority in big data,marketing, supply chain management, and in other areas.

The pair can integrate their budget planning, smart goods restocking, inventory distribution and full supply chain visualization services per the cooperation, said Unilever North Asia executive vice president Rohit Jawa. With JD.Com’s logistics network and capacity,Unilever will be able to extend the reach of its products to more Chinese consumers.

JD.Com and Unilever have already embarked on previous cooperation in green logistics. The companies plan to adopt conveyor belt loading in some regions, which can replace traditional bulk container loading and thus save greatly on cargo vehicles, waiting time and manpower.