JD.com launches Joybuy in Europe, targeting Amazon

By James Davey and Helen Reid

LONDON, March ‌16 (Reuters) - Chinese e-commerce ​giant JD.com ​on Monday launched its Joybuy online marketplace in the UK, Germany, France, the Netherlands, Belgium and Luxembourg, stepping up its push beyond its home market and taking aim at market leader Amazon.

JD.com ‌wants to internationalise its business and last year agreed to buy German electronics retailer Ceconomy, owner ⁠of the MediaMarkt and Saturn brands, for 2.2 billion euros ($2.52 billion).

The launch comes as Chinese retailers and brands have been expanding abroad in ‌the U.S. and Europe, looking for ‌new growth drivers away from the cut-throat competition and weak consumer demand they face at home.

JD.com's arrival will intensify pressure on Amazon, which is already contending with the rapid rise of rivals Temu and Shein.

Clive Black, head ​of consumer research at UK investment bank Shore Capital, said Joybuy's success would depend on whether it can offer a differentiated product assortment at attractive prices with compelling fulfilment.

"If they bring something new, different and better, ⁠then Amazon's got something to think about," he said.

"But Amazon isn't passive, it does have the capability to respond."

Joybuy's website and app will sell over 100,000 ​products across technology, appliances, beauty, homeware, and grocery. Brands will include Apple, Samsung, Sony and Philips.

Its platform will also feature dedicated brand stores including L'Oreal, Braun, DeLonghi, BRITA, and ​Bodum.

JD.com said prices will be "competitive".

FAST DELIVERY IS KEY SELLING POINT

Fast delivery ‌to shoppers in major cities will be a key selling point, said Matthew Nobbs, Joybuy UK managing director, with orders placed by 11 a.m. arriving the same day, and orders ⁠placed before 11 p.m. arriving the next day.

More than 15 million households in Europe and the UK overall would be covered by same-day delivery from launch.

Delivery is free on orders over 29 euros ($33.21) or 29 pounds ($38.52), and Joybuy is also targeting Amazon Prime ⁠with its "JoyPlus" unlimited free delivery subscription at an introductory price of 3.99 euros or 3.99 pounds a month.

Nobbs declined to say how ​much JD.com has invested in the project, which includes 60 warehouses and depots across Europe and its own last-mile delivery service.

He said lessons had been learnt from its first foray into Europe in 2022 - a trial in the Netherlands called Ochama - that failed ‌to make an impact.

Ed Sander, tech analyst at Tech Buzz China, said the acquisition of Ceconomy was a much bigger deal for JD.com's Europe business: "It comes with an already ‌existing customer base, which is something that Joybuy would have to build from scratch."

In 2024, JD.com explored a takeover of UK ⁠consumer electricals retailer Currys , but ultimately walked away. ‌It also held talks last year ​to acquire Argos from supermarket group Sainsbury’s , though those discussions also fell through.

($1 = 0.7528 pounds)

($1 = 0.8731 euros)

(Reporting by James Davey and Helen Reid, additional reporting by Casey Hall in Shanghai; Editing by ‌Chris Reese)

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