JD.com has established an “Innovative Retail” division, which is based in the 7Fresh grocery store. This is due to the fact that the company has undergone a change of management.
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Chinese e-commerce giant JD.com said on Monday that it had launched a new food business and brought back a veteran company to lead the unit.
The “Innovative Retail” unit will house JD’s 7Fresh grocery store and group-buying unit Pinpin, a spokesperson confirmed to CNBC.
Yan Xiaobing, who left JD in 2021 after leading the company’s international business, will return to head the Innovative Retail group, the spokesman said.
Meanwhile, JD Logistics, the logistics arm of JD.com, announced that CEO Yu Rui is stepping down as CEO due to health reasons and is being replaced by Hu Wei.
JD’s leadership change comes amid sweeping changes at the Chinese tech giants.
AlibabaJD’s biggest e-commerce rival in China, split your company into six separate business units this year, the biggest restructuring in its history.
Last week, Daniel Zhang, the current CEO and chairman of Alibaba, announced plans to step down and lead the company’s cloud computing unit.
Alibaba co-founder Eddie Wu will take over as CEO Joe Tsai, another veteran at the firm will take over as chairman.
One of the business units Alibaba spun off as part of its restructuring is the “local services” group, which covers its food delivery and grocery stores.
Alibaba plans to raise outside capital and take some of these units public as spin-offs.
Both JD and Alibaba are facing a weaker economic backdrop in China and have engaged in a price war to attract users. Both are based on an annual sales promotion campaign called “6.18” that centers around the date of June 18.
The grocery stores for both companies are part of a strategy to expand beyond traditional e-commerce and further integrate into the shopping habits of Chinese consumers.
JD’s final change comes after him changed its CEO this month. Sandy Ran Xu, who was the company’s financial chief, took over as CEO from Xu Lei. Xu had only been on the job for a year and resigned for personal reasons.