JD.com invests in the acquisition of a German retail giant, taking another step in its overseas expansion

Author | Wang Xiaojun

Editor | Huang Yu

This year, the industry believes that JD.com is the biggest variable in the entire internet circle. Now, JD.com is proving this viewpoint with its actions.

On July 31, JD.com made a global retail shockwave with an announcement: it spent over 18 billion RMB to fully acquire Ceconomy, the European consumer electronics leader (the parent company of MediaMarkt). If the acquisition is completed, it will set a record for the highest amount of Chinese e-commerce going overseas to Europe.

Behind this heavy blow is Liu Qiangdong's declaration that "going overseas must be localized"—in June, he announced the "abandonment of the cross-border light model, shifting to a local heavy asset approach, and establishing local e-commerce teams." Just a month later, he invested real money to buy 1,000 European stores.

For the industry, this does not seem to be an ordinary acquisition, but rather a strategic paradigm revolution. Currently, Temu and SHEIN are using a light asset model to thrive overseas, while JD.com has chosen a different path, practicing a heavy asset model in channels and supply chains overseas, attempting to initiate an efficiency revolution.

In fact, JD.com's determination for internationalization has long been evident.

Liu Qiangdong stated as early as 2014 that "whether to internationalize directly determines JD.com's future survival." Moreover, the acquired Ceconomy is the largest physical retail network in Europe, and JD.com had considered this acquisition plan by the end of 2023, but it was not realized at that time.

As the acquired party, Ceconomy, with its main brands MediaMarkt and Saturn, has over 1,000 stores in 11 countries in Europe. After the acquisition, these stores can directly transform into JD.com's offline channels and front warehouses.

This also means that, combined with JD.com's current operational experience in instant retail, it is expected to compress the delivery time in the European market from 2-3 days to hours, reshaping the e-commerce experience for European users.

Additionally, Ceconomy holds over 30% market share in the German electronic retail market, with more than 3,000 partner brands (including Apple and Samsung), and its supply chain capabilities can also be utilized by JD.com in its localization efforts. There is also significant overlap in the categories both companies excel in, making it easier for JD.com to replicate its domestic operational experience.

Furthermore, JD.com's capabilities can provide Ceconomy with more opportunities. According to the first quarter of 2025, Ceconomy's sales are approximately 5.2 billion euros, with online sales nearing 1.3 billion euros, accounting for a quarter of total sales, indicating substantial growth potential. This means that JD.com's online operational capabilities can further increase Ceconomy's online market share. Therefore, this acquisition can be seen as a strong alliance to some extent.

The market has also reacted. On the Frankfurt Stock Exchange, Ceconomy's stock price rose by 6.8% on the day of the announcement, soaring by 16% at one point during the trading session.

As a mainstream e-commerce platform, JD.com has been eager to expand overseas in recent years amid the wave of e-commerce going global, and Liu Qiangdong has always been obsessed with going overseas.

However, JD.com's previous attempts in overseas markets have mostly ended in failure. In 2019, JD.com stumbled in Indonesia, and in 2021, it retreated from Thailand. The core reason for these failures was the "cross-border model not being suitable"—the lack of local warehouses led to slow deliveries, and the lack of purchasing power resulted in high prices Looking to the future, Liu Qiangdong believes that e-commerce going overseas should still adopt a heavy asset model. In June, Liu Qiangdong introduced that JD.com has been operating in Europe for three years, and the infrastructure has basically been established. In summary, "Our international business strategy is local e-commerce, building local teams. We already have over 2,000 employees, local procurement, local shipping, and we only sell branded goods." In the future, JD.com plans to bring 1,000 brands overseas.

It is precisely because Liu Qiangdong has made international business a key focus for the future that, in addition to directly acquiring the aforementioned companies, stablecoins have also become an important direction for JD.com's layout. Liu Qiangdong stated, "We hope to apply for stablecoin licenses in major currency countries around the world. Through stablecoin licenses, we can achieve foreign exchange between global enterprises, reducing cross-border payment costs by 90% and increasing efficiency to within 10 seconds."

However, amid increasing uncertainty in the global situation, JD.com's acquisition also faces some uncertainties.

As part of the strategic plan, Ceconomy will maintain independent operations in Europe, with a local independent technical framework, and has no plans to adjust personnel, employee agreements, or office locations. There are differences in work intensity and culture between the two parties, and whether JD.com can achieve the efficiency it desires will depend on the actual situation.

Additionally, regarding future cooperation matters, the bidding party and Ceconomy's largest shareholders, including Convergenta Invest GmbH and related shareholders, have signed a shareholder agreement, which will take effect upon the completion of the acquisition offer. Therefore, after the acquisition offer is completed, Convergenta will still hold 25.35% of Ceconomy shares. This also means that under multiple controls, it is difficult to predict whether JD.com's actions will be constrained.

This time, JD.com is betting 18 billion to acquire a European leader, aiming to reshape competitive rules by "rooting the supply chain." Whether JD.com can create a new paradigm for Chinese e-commerce going overseas—exchanging heavy assets for time and localization for space—remains to be seen by the market