JD.com Billionaire's Viral Stunt Reignites China's Food-Delivery Feud
One unusually warm evening in April, Richard Liu revved his scooter through Beijing's traffic-snarled streets alongside other delivery workers, and then personally handed food orders to surprised customers. Later that night, over spicy hotpot and ice-cold beer, the JD.com Inc. founder welcomed a pair of riders from two rival delivery firms to his company.
The publicity stunt, broadcast on viral online videos, reignited a fight for China's $80 billion-plus food delivery market. In just a few months, JD, China's largest online retailer by revenue, amassed 25 million daily takeout orders across 350 cities, capturing more than half the volume of Alibaba Group Holding Ltd. 's Ele.me, the runner-up to market leader Meituan. Neither saw Liu coming.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
32 minutes ago
- Wall Street Journal
U.S. Prepares Action Targeting Allies' Chip Plants in China
A U.S. official told top global semiconductor makers he wanted to revoke waivers they have used to access American technology in China, people familiar with the matter said, a move that could inflame trade tensions. Currently, South Korea's Samsung Electronics 005930 0.51%increase; green up pointing triangle and SK Hynix 000660 4.47%increase; green up pointing triangle as well as Taiwan Semiconductor Manufacturing 2330 1.93%increase; green up pointing triangle enjoy blanket waivers that allow them to ship American chip-making equipment to their factories in China without applying for a separate license each time.
Yahoo
33 minutes ago
- Yahoo
Labubu Envy: Fluffy Collectibles Steal the Show During China's 618 Online Shopping Festival
SHANGHAI —This year's 618, China's largest midyear online shopping festival, had a noticeably subdued tone as shoppers continued to sober up from splurging and stockpiling due to an uncertain economic outlook and a softer growth prospect following April's tariff agreements with the U.S. However, that sentiment was offset by a wave of Labubu frenzy that pushed limited-edition collectibles to sell out within minutes. More from WWD Alibaba Shares Dip Despite E-commerce, AI growth in Q4 Taobao and Tmall Deepen Ties With Xiaohongshu Via Cross-platform Shopping Function Alibaba Makes AI-driven Comeback, Revenue Jumps 8% On June 18, Labubu's parent company, Popmart, launched its first livestream on the Alibaba-owned cross-border e-commerce platform AliExpress, which attracted over 220,000 viewers. All 500 items, including the company's most recognizable fluffy creatures — Labubu, Cry Baby, Baby Molly, and Skullpanda — sold out in a flash. According to Tmall, the 'toys and trendy collectibles' category saw six brands — including Paper Presented, Popmart, MiHoYo, Disney Store, Jellycat, and Lego — exceed the 600 million renminbi, or $83.4 million, sales mark. Dubbed 'sneakers for the Gen-Z generation,' the broader 'fandom goods' category has created 17 stock keeping units that exceeded 10 million renminbi, or $1.39 million, during the 618 period. According to data from Statista, China's trendy toys market is expected to reach 110 billion yuan, or over $15 billion, by 2026. A recent report by Zhongtai Securities revealed that homegrown character-based toys — fueled by a booming subculture — have already outsold Japanese anime toys during this year's 618 shopping festival. 'Over 60 Chinese and foreign films are set to hit theaters this summer, which is bound to create fresh momentum for IP-related merchandise,' the report added. 'It's over-the-top, 'proclaimed Tmall's star livestreamer Austin Li during a recent broadcast, urging shoppers to steer clear of the hype. 'It's overpriced, it's a no, the prices will come down,' he added. Still, it was up to Li and the platform he lives on to revive enthusiasm around 618 amid waning consumer confidence. This year, major e-commerce players such as and Tmall simply canceled complicated sales mechanisms and began offering straightforward discounts and a wide array of coupons. According to data from Syntun, this year's 618 sales totaled 855.6 billion renminbi, or $119 billion, an increase of 15.2 percent year-on-year. However, the data took into account a week's extension compared to 2024. Two years ago, Chinese e-commerce players stopped unveiling official 618 sales results. Instead, touted the 'explosive increase' in the number of purchasing users, which more than doubled year-over-year. At Taobao and Tmall, sales 'remained resilient,' with 453 brands surpassing the 100 million renminbi, or $13.9 million, mark in terms of gross merchandise value. 'The unusually early campaign start on May 13 caught many consumers off guard, leading to a first wave that some missed entirely, which may have temporarily dampened engagement. That may contribute to a feeling that this year's 618 felt more subdued, but we're still expecting solid GMV growth for the festival,' said Jacob Cooke, chief executive officer and founder at WPIC, a Beijing-based e-commerce consulting agency. Cooke expects this year's Singles' Day to follow a similar path as 618, with an extended timeline and consistent discount mechanisms. 'We're seeing a shift away from flash sales and gimmicks toward simplified pricing, loyalty-driven engagement, and full-funnel marketing strategies,' said Cooke. 'Tmall's emphasis on its 88VIP program, for example, shows a clear pivot toward retaining high-value consumers,' said Cooke of its membership program that also spans other platforms within the Alibaba ecosystem, such as the food delivery app Eleme, the travel booking site Fliggy, and the video streaming platform Youku. With governmental subsidies that cover categories such as home appliances and digital products, sales of these categories rose 283 percent year-over-year during the the first leg of the promotional period, which ran from early May to May 30, according to data from Moojing Market Intelligence. The apparel segment, which contributed around 50 percent of total 618 sales, rose 7.2 percent during the May period, trailing by 6.8 percent year-over-year growth in the beauty category, according to Moojing. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
USA Today
an hour ago
- USA Today
Ford's leadership team studies China's auto industry for competitive edge
In late May, Ford Motor Co.'s executive leadership team went to China with an agenda: To study every aspect of how Chinese auto companies operate, then apply those learnings across Ford in its other markets. The Dearborn, Michigan-based automaker has been studying China's car companies for years now; that's not new. But in recent years, Ford's leaders have intensified their examination of its Chinese rivals, viewing Chinese automakers as the top competition to learn from — and beat. Ford CEO Jim Farley started taking his leadership team to Shanghai and other big markets in China a couple times a year starting about two years ago. The sojourns last about a week, said Mark Truby, Ford's chief communications officer who has been on a couple of the trips. Truby said the team drives China-made vehicles, talks to the experts in China, studies the technology and the customer service all with the purpose of learning "with a humble approach" and to ensure Ford has the right partnerships and strategy to succeed. Auto sales in 2025: Ford sales surge 16.3% in May amid employee pricing and tariff concerns "It's not just a copy and paste because the markets are so different," Andrew Frick, Ford's president of Ford Blue and Model-e divisions, told investors on June 11. "China is different from the U.S., different from Europe, et cetera. What we're trying to do is really replicate the intellectual approach, the speed that they do business on, and learn from our (joint venture) partners and then transfer that knowledge to the company." Ford's ultimate goal is to lead in every global market Ford is in, knowing that one day the Chinese will bring their cars to the United States. When they do, Ford has to be competitive if the 121-year-old automaker is to survive another century. Consider what Ford Vice Chair John Lawler recently told Wall Street analysts about the Chinese automakers. "They're going to continue to be a force to be reckoned with, given their speed, their cost structure, their nimbleness and their ability to iterate very quickly," Lawler said at the Bernstein 41st Annual Strategic Decisions Conference in New York on May 28. "When they've established themselves, they'll be looking to come to the U.S. So is that five years? Ten years down the road? I don't know. But eventually, they'll come, just like the Japanese did and the Koreans did." When China's automakers do enter this market, Lawler said, consumers will gravitate to the lowest cost, highest quality products, not caring if those products are made by a foreign rival. "That's eventually going to happen," Lawler said. China's growth to world dominance Dan Ives, managing director of Wedbush Securities, applauds Ford's strategy to study China car companies. "This is a smart move as the innovation and supply chain from BYD and other China automakers is stunning," Ives told the Detroit Free Press, part of the USA TODAY Network. "(CEO) Jim Farley and team using this as rebirth of Ford to expand globally is a smart pivot." But Morningstar's autos analyst David Whiston warns that "everyone is a formidable competitor these days." "The Chinese have come on strong and I suspect executives feel it's a matter of time before they are selling in the U.S.," Whiston said. "The Koreans are no longer the cheap bargain substitute brand they were 15-20 years ago. Then there's EV startups like Rivian and Lucid floating out there and continued premium competition from the German three and Porsche." But China is now the largest new vehicle sales market in the world. A total of 31.4 million vehicles, including buses and trucks, were sold last year there, a 4.5% jump compared with a year earlier, the China Association of Automobile Manufacturers reported. Growth in sales outpaced production, which rose 3.7%. By comparison, about 16 million new vehicles were sold in the United States last year, up 2.7% from the previous year. China has expanded in other markets, too. Exports of Chinese-made passenger cars soared nearly 20% in 2024, to about 5 million vehicles, according to an Associated Press report. Exports of what China calls 'new energy vehicles," which are battery electric vehicles, fuel-cell cars and plug-in hybrids, reached 1.28 million in 2024, a 6.7% increase from 2023. Trump tariff turmoil: How Ford is navigating rare earth mineral supply chain disruptions, tariffs and more The U.S. government has a 100% tariff on China-made electric cars and the European Union also hit China-based EV makers with high tariffs, saying the Chinese automakers have benefited from unfair government subsidies. The tariffs have kept all Chinese-made cars from being sold in the States so far. But to say American automakers are not alarmed by the rapid expansion of the Chinese automakers around the world, would be an understatement. "I would say it is pretty serious," Mike Wall, executive director of Automotive Analysis at S&P Global Mobility, said of the Chinese threat to U.S. car companies. "While the Chinese are not directly competing in the U.S. yet, I think there is an expectation that they eventually will be and for a global automaker like Ford (and others), the threat the Chinese present in other markets is already there." Ford's use of China as an export hub Ford and General Motors have both faced an increasingly tough market in China in recent years as Chinese automakers, including the giant BYD, and EV-leader Tesla, have dominated domestic sales there. Both automakers have worked to reverse slumping sales in China. GM shut down facilities last year as it spent $5 billion to restructure there. Ford shifted focus to use the country as an export hub. Last year, Ford made $900 million in earnings before interest and taxes in China for the year and much of that was based on exports, Frick said. "Take a vehicle like Territory with our JV partner. We are now exporting Territory all around the world," Frick said of the compact SUV Ford makes with Jiangling Motors Corp. "It's doing quite well in Mexico. Actually, in Mexico, Territory is now our best-selling vehicle. We sell more Territorys than we do F-150s in Mexico, where there's a big Chinese influence." China automakers comprise about a third of all new vehicle sales in Mexico, he said. Frick, who made the comments at Deutsche Bank Global Auto Industry Conference 2025, said Ford's business in China is "very profitable business" and "it's capital light" because of Ford's joint ventures. Ford has partnerships with Changan Automobile, Jiangling Motors Corp. Group and Changan Ford New Energy. "It's a really good, investable business there," Frick said. The only vehicle Ford assembles in China and sells in the United States is the Lincoln Nautilus. It sold 36,544 Nautilus SUVs in the United States last year, a 50% increase from the prior year. Ford is still exporting the Nautilus to the States despite a new 25% U.S. tariff on all imported vehicles, Truby said. Ford's learnings out of China so far Frick noted that Ford has an edge on Chinese automakers with its Ford Pro business, its commercial vehicle division. Frick called it a "long-term advantage" for Ford because the Chinese are not investing in commercial vehicles and the subscription services to the extent Ford has. In April, Ford reported its Ford Pro Intelligence software platform has nearly 674,000 active subscriptions, based on end of first quarter estimates, up 20% year-over-year. As to Ford's executive team's learnings out of its most recent visit to China, Frick provided a high-level outline to investors. "Speed, the way they're integrating AI into their vehicles and into their customer experience and their digital experience is really impressive," Frick said. "How we leverage the learnings out of there, not only from the actual customer experience that they're going through, but the development plans, the processes, we're taking a lot of that knowledge and trying to transfer it." He said Ford is also learning a lot from Chinese automakers' new energy vehicles, which he believes could help Ford best determine its future electrification strategy such as where the natural consumer demands for electric vehicles and other electrification technology will land. "That will likely inform, plus or minus government subsidies and incentives, that will inform where natural customer demand may be in other parts of the world," Frick said. "So there's a lot to learn in China.' Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
