Joybuy – the soon-to-be-launched UK full category e-commerce site and app owned by China’s biggest retailer by revenue, JD.com – has been working to set up direct supply relationships with several major brands, The Grocer can reveal.
Several suppliers said they had already discussed or were currently negotiating with the company to establish the direct supply of goods into its network of UK warehouses, ahead of Joybuy’s full launch next month.
In April last year, JD.com test-launched a beta version of Joybuy in the UK, offering an extensive range of ambient and frozen foods, household, baby, beverages, personal care, beauty, health, pet, and nicotine products from both major brands and Morrisons own label.
It is understood the majority of grocery products listed by the online retailer are supplied by Morrisons wholesale and other wholesalers. Joybuy confirmed the direct supply strategy to The Grocer.
“We are always seeking new, innovative and established brands across all categories. It has always been the JD.com strategy to build long-term and trusted relationships with brands and partners,” a spokesperson for Joybuy told The Grocer.
“Joybuy gives them the reassurance that if a customer searches for their products, that’s what they will be offered, and with us, brands and partners do not need to pay for search and placement,” they added. “We will be announcing new partnerships in the coming weeks.”
The online retailer has already established “dedicated brand pages” on its site and app for brands, among them water filter firm Brita.
The ‘supermarket’ section of website currently displays brand pages for Diddly Squat Farm and Delphis Eco, though these have not been announced as official partnerships.
Unlike other Chinese e-commerce giants that have arrived in the west, like Temu and Alibaba, Joybuy operates as a retailer, holding stock in its own warehouses, rather than with a marketplace model where goods are shipped directly from brands and manufacturers to consumers.
In recent years, JD.com has been growing its presence outside China, establishing warehouses in the Netherlands, Poland and France, and “active assets” in the UK, Germany, Vietnam, Hong Kong and Indonesia, with “plans to enter other overseas markets”.
In January last year, Jingdong Retail (UK), a subsidiary of JD.com, began leasing a 278,000 sq ft former UPS warehouse in Dunstable. Its property arm, Jingdong Property, operates warehouses in Milton Keynes, Coventry and Preston.
Earlier this week, JD.com launched its express delivery service – JoyExpress – in the UK. The service allowed Joybuy to offer customers same-day and next-day delivery in major cities, the company said.
Unlike orders made on rivals such as Amazon – which uses a pool of self-employed drivers to courier packages to customers’ doors – JoyExpress will deliver in branded uniforms and vehicles, “reflecting the company’s commitment to professionalism and customer-first excellence” the company said.
At full launch next month Joybuy will bring “more than 100,000 products from leading household brands to UK shoppers” JD.com said.
No comments yet