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JD.com invested US$800 million in a community group buying company. What is JD.com planning for this move?

Community group buying has now become an area where Internet platforms are investing in community group buying. When major platforms begin to make efforts in community group buying, JD.com, as a giant of the Internet platform, is of course not to be far behind. JD.com has subscribed to China’s strategically located shares, the two parties will jointly build a fresh food supply chain system in the future.

In fact, JD.com’s move is to build up its product advantages in the fresh food supply chain through investment and increase community group buying. JD.com has long established a business unit on community group buying, and has now launched the community group buying mini-program Jingxi Pinpin. Compared with other platforms, JD.com's greater advantages as a community group buying platform mainly lie in the convenience and speed of self-operated logistics and its highly sticky user group. But JD.com’s disadvantage is also very obvious: the lack of supply of fresh products.

The key core of community group buying is fresh food products. Whether the community group buying platform can maintain sustainable development depends on the construction of the fresh food supply chain system. In the short term, major community e-commerce platforms are now relying on price subsidies to gain market share. However, in addition to price, many users are more concerned about the question: What is the quality of the product I bought? Can I get the goods quickly? Therefore, for community group buying platforms, the key to whether the community group buying platform can win the favor of users is to achieve perfect connection and coordination between the upstream and downstream of the supply chain to ensure the quality of fresh products.

China Dili is a very large-scale fresh food chain enterprise with many community chain stores in China. It has more than 400 chain stores in China, and has agricultural products in seven major cities across the country. Large-scale wholesale markets, especially in Hangzhou, have formed a fresh commodity logistics and transportation hub in the Yangtze River Delta. Therefore, China’s geographical location has very large supply chain and market advantages in the fresh food market.

After JD.com acquires a stake in China’s strategic location, it can rely on its strategic location to establish its own advantages in fresh food supply and develop long-term in the community group buying track.