Chinese e-commerce giant JD.com opens first 'robotic shops' in Europe
Chinese e-commerce giant JD.com has opened two retail stores in the Netherlands, which the company says will be staffed by robots that collect and deliver parcels.
This is the first time the Beijing-based tech giant, founded by billionaire Richard Liu Qiangdong, has opened a physical retail store in Europe.
The "robotic shops" under the Ochama brand are located in the cities of Leiden and Rotterdam and mark JD.com's first foray into the European market. This underscores the Chinese giant's drive to expand beyond China.
JD.com said customers can use the Ochama app to order products ranging from food to cosmetics and household goods. They can then go to the store, where automated vehicles and robotic arms will collect and sort orders.
When a customer arrives at the store, they can scan a barcode in their app, and their orders will be delivered via conveyor belt. In addition, people can visit the pickup point's showroom to explore the Ochama product range, or they can choose next-day home delivery without visiting the pickup point.
According to Ochama Chief Operating Officer Mark den Butter, by fully leveraging logistics and supply chain technology, the new stores can cut product prices by another 10% for the benefit of customers.
“Drawing on the company's extensive retail experience and advanced logistics technology developed over the years, we aim to create an unprecedented shopping format for customers in Europe, with the best prices and service”
JD.com's entry into Europe marks the start of a potential challenge to Amazon. The American e-commerce giant has launched its own cashierless grocery stores called Amazon Go in the US and Amazon Fresh in the UK.
The Chinese e-commerce company said it plans to open two more stores in the cities of Amsterdam and Utrecht in the Netherlands.
"The automated warehouse is part of a futuristic store where people can see a fleet of robots, including AGVs (automated guided vehicles), robotic arms and many other robots that take part in picking, sorting and moving goods. Simply by scanning the app's QR code at the checkout, customers will see their orders delivered to them via conveyor belt, which is part of a cashierless and seamless shopping experience," the company said.
Ochama stores combine JD.com's focus on logistics and e-commerce. In China, the company has its own logistics division and plans to expand internationally. JD.com also runs a huge e-commerce business in the world's second-largest economy.
JD.com still earns most of its revenue from China, but in recent years it has expanded its presence abroad. The company operates the online shopping site Joybuy.com for international customers. It has an e-commerce joint venture in Thailand and is the largest shareholder of Vietnamese trading platform Tiki.
In November, Xin Lijun, recently appointed chief executive of JD's retail business, told CNBC that the company was conducting "further strategic analysis in Vietnam and Europe" as potential expansion locations.
While JD.com has remained largely unscathed by the central government's crackdown on the tech sector over the past year, it is still under pressure, along with rivals such as Alibaba Group Holding, to find new markets and offset slower consumer spending growth at home.
Last month, Tencent Holdings sold most of its stake in JD.com, saying the e-commerce firm had grown to the point where it no longer needed Tencent's financial support. Martin Lau, Tencent's president, who had been a JD.com board member since 2014, also stepped down.
The Netherlands is one of the most urbanized countries in Europe. World Bank data shows that as of 2020, 92% of the Dutch population lived in cities with a polycentric urban structure, which led the company to open stores in four cities.
“The Dutch are passionate about innovation and a green environment, and the Ochama retail format is designed to promote both. There will be no queues and fewer traffic jams, as people can get convenience, benefits and everything else in one stop at Ochama”
However, JD is not the only retailer opening automated stores in Europe, nor is it the only operating concept. Wundermart, which opened its first UK store in October 2021, plans to open 10,000 cashierless stores in partnership with contactless checkout company AiFi. Unlike Amazon or JD.com, Wundermarket focuses on tiny stores with a targeted product selection that can fit into various business centers, hotels and offices.
