JD.com, China's largest online direct sales company, and Otto Group, the Hermes Logistics parent company, are setting up a joint venture to provide cross-border B2C e-commerce services, including logistics, for international brands on the JD.com platform.
Based in Germany, the new JV, Zitra, will serve as an accelerator for international brands looking to expand their sales on JD.com’s leading e-commerce marketplace by providing services including third party operation, marketing strategies, IT system handling, logistics and post-sale services.
Zitra has the objective to develop technology and infrastructure for the future of the fashion and lifestyle industry. Utilizing the infrastructure and know-how of the Otto Group and Hermes Europe, Zitra provides IT, Management and Fulfillment services as one-stop solution.
For all cross-border logistics between Europe and China, Zitra will utilize the infrastructure of the Hermes Group, the Otto Group’s services segment. This comprises full customs-clearance service, real-time duty and tax quotes, and full track and trace. By leaving these tasks to Zitra, brands will be provided with a full service. The fulfillment service covers international order management, B2B and B2C inbound and outbound logistics, efficient returns handling, and cash-flow-optimization services.
China has established itself as the biggest e-commerce market in the world and is expected to generate €522 billion in sales in 2015, and so this partnership represents a coup within international online trading. By entering into this partnership with JD.com, the Otto Group gains direct access to the Chinese market and, in turn, sets the stage for JD.com’s success within the European market.
By partnering up with Zitra, JD.com invests a two-digit million euro amount and will benefit from having an established European-based partner and access to the Otto Group’s vast client portfolio. As an independent full-service provider, Zitra will connect brands not only with JD.com but also with other marketplaces worldwide and implement the on-boarding processes by providing all IT, management and fulfillment services.
Hanjo Schneider, Member of the Executive Board of Otto Group said: “We are thrilled to enter into this partnership with JD.com to help foreign brands take advantage of the enormous demand for high-quality international products in China’s e-commerce market. By providing an integrated e-commerce marketing solution, we look forward to helping international brands gain traction and accelerate their sales in China.”
Haoyu Shen, CEO of JD Mall, said, “As a leading global online retailer, Otto Group is the ideal partner to help more international brands reach consumers through marketing on the JD.com marketplace platform. We are seeing tremendous demand for imported products and this new venture will help further expand our range of products for Chinese consumers.”
JD.com said it has significantly ramped up its imported products in 2015, opening JD Worldwide and six virtual malls, each devoted to authentic goods from one country, including Australia, France, Germany, Japan, Korea and the U.S.
The Otto Group is the largest online retailer for fashion and lifestyle in Europe and the second-largest online retailer in the world with end-consumers (B2C).
