JD.com seeks to lead Europe's online electronics retail with Ceconomy deal

Detailed summary

Chinese e-commerce group JD.com (9618) will use the acquisition of Germany's Ceconomy to become the leading online retail platform for electronics in Europe, an international…

Chinese e-commerce group JD.com (9618) will use the acquisition of Germany's Ceconomy to become the leading online retail platform for electronics in Europe, an international executive told Reuters.

The US$2.5 billion (HK$19.5 billion) deal, which was closed on Thursday, will help JD, one of China's largest retailers, to expand outside its home market via Ceconomy-owned consumer electronics retailers MediaMarkt and Saturn.

"Together, we want to forge the leading retail platform for electronic goods in Europe," said Jack Li, head of JD.com's cross-border e-commerce platform JD Worldwide.

Ceconomy CEO Remko Rijnders said that, with JD.com's help, the company aims to offer next-day delivery across Europe, 90-minute delivery via Uber and 30-minute in-store pickup.

"No competitor can match that", Rijnders said. "This will change the market in Europe."

In the future, customers of JD.com's online platform in Europe, Joybuy, would be able to use the chain's branches, Rijnders said. Media Markt and Saturn have over 1,000 branches in eleven European countries.

JD.com wants to expand its logistics network in the region, Li added, which currently consists of more than 60 centres.

Li said Rijnders and his team will continue running the business under the new owner.

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