# JD.com Sets Up “Innovative Retail” Division to Focus on Groceries and Group Buying
Chinese e-commerce giant JD.com has announced the establishment of an “Innovative Retail” division, housing its grocery store business, 7Fresh, and group buying unit, Pinpin. The move comes as part of a larger management reshuffle within the company. Yan Xiaobing, a company veteran who retired from JD.com in 2021 after leading the international business, will return to head up the new division.
# JD Logistics CEO Steps Down, Succeeded by Hu Wei
In addition to the management reshuffle, JD Logistics, the logistics arm of JD.com, has announced that CEO Yu Rui will be stepping down from his position due to health reasons. He will be succeeded by Hu Wei. This change in leadership comes as JD.com faces challenging market conditions amidst fierce competition in the e-commerce industry.
# Chinese Technology Giants Undergo Sweeping Changes
The management reshuffle within JD.com is part of a larger trend of sweeping changes taking place across Chinese technology giants. Alibaba, JD’s biggest e-commerce rival in China, recently underwent its biggest restructuring in history, splitting the company into six separate business units. Alibaba co-founder Eddie Wu has taken over as CEO, while Joe Tsai has become chairman. One of the business units created in the restructuring is focused on “local services,” including food delivery and grocery businesses.
# JD.com and Alibaba Face Challenges in a Weaker Economic Environment
Both JD.com and Alibaba are contending with a weaker economic backdrop in China and have been engaged in a price war to attract users. This comes in the wake of their annual sales promotion campaign, known as “6.18,” which centers around the date of June 18. To navigate these challenging market conditions, both companies are expanding their grocery businesses as part of a broader strategy to go beyond traditional e-commerce and become more deeply embedded in Chinese consumers’ shopping habits.
# JD.com’s Reshuffle Continues with CEO Change
This recent management reshuffle follows JD.com’s appointment of a new CEO earlier this month. Sandy Ran Xu, formerly the company’s finance chief, has taken over the position from Xu Lei. The latter held the role for only a year before stepping down due to personal reasons. These changes in leadership reflect JD.com’s ongoing effort to adapt and thrive in a rapidly evolving industry.
In summary, JD.com’s establishment of the “Innovative Retail” division, led by Yan Xiaobing, signals its focus on expanding its grocery store business and group buying unit. Additionally, JD Logistics has undergone leadership changes, with Hu Wei now leading the company. These moves come in the midst of sweeping changes across Chinese technology giants, such as Alibaba, who recently split into separate business units. Both JD.com and Alibaba are confronting economic challenges and engaging in price wars to attract customers. JD.com’s CEO reshuffle, with Sandy Ran Xu taking over the position, highlights the company’s commitment to adapt and succeed in the ever-changing e-commerce industry.