Staff reporter
JD.com (9618) is in the process of choosing a place to open a JD Mall in Hong Hong featuring home appliances, marking the arrival of another Chinese e-commerce giant in the city, according to local media reports.
The company has been offering high salaries to poach talent from retail rivals in preparation for the launch of the brick-and-mortar store.
Earlier, Chinese e-commerce titan Alibaba (9988) partnered with local handyman services company Papabo for its first store in Hong Kong, which opened last month in Tsim Sha Tsui.
Economist Simon Lee Siu-Po said that the entry of mainland giants like JD.com and Alibaba into Hong Kong's retail market increases choices for consumers but negatively impacts local businesses.
Lee also said that as online platforms offer lower prices than brick-and-mortar stores, retailers who offer after-sales and delivery services will likely attract more customers.
This, in turn, reduces profit margins for local merchants.
In addition, JD.com has applied to register its instant delivery brand in Hong Kong but has no plans to launch food delivery services for now, the reports said.
London-based food delivery platform Deliveroo has just exited Hong Kong, leaving the market with two main rivals - Foodpanda and Meituan's (3690) Keeta.
The first JD Mall opened in Xian in 2021. JD.COM
