JD steps up overseas expansion with ochama robotic retail shops

Chinese e-commerce giant JD announced it has opened two robotic shops named "ochama" in Leiden and Rotterdam in the Netherlands as part of its efforts to further expand its presence overseas and strengthen supply chain infrastructure.

It is the first time that JD has opened brick-and-mortar stores in Europe, featuring a new shopping model that merges online ordering and pickup shops where parcels are fully arranged by just robots. JD said it plans to open two more such stores in Amsterdam and Utrecht in the near future.

"With rich experience in retail and cutting-edge logistics technologies that the company has accumulated over the years, we aspire to create an unprecedented shopping format for customers in Europe with better price and service," said Pass Lei, general manager of ochama at JD Worldwide, the company's cross-border commerce unit.

The company said the omni-channel model allows shoppers to enjoy the convenience of ordering products online through ochama's app, where a full range of commodities such as fresh and packaged food, household appliances, beauty, maternal and infant products, fashion and home furnishings have been offered.

The automated warehouse is part of the pickup shop, where people can witness a fleet of robots including automated ground vehicles and robotic arms responsible for picking, sorting and transferring the merchandise. By simply scanning the app's QR code at the check-out, shoppers will watch as their ordered goods are carried to them by the conveyer belt.

In addition, people can visit the pickup shop's showroom to experience ochama's product assortments, or they can also choose the next-day home delivery service without going to the pickup shop, JD said.

Ochama, which combines "omnichannel" and "amazing", marks the first omni-channel retailer in the Netherlands that offers not only food, but also other consumer goods in one shopping app.

By fully tapping the technologies in logistics and supply chain management, the shops can bring down the product price by an extra 10 percent to benefit the chain's member customers, said Mark den Butter, chief operation officer of ochama.

"Dutch people are passionate for innovation and a green environment, and ochama's shopping format is designed to contribute to both aspects," he said. "There will be no queue and fewer traffic jams to do the chores as they can go for convenience, benefits and everything in one stop at ochama."

The Netherlands is one of the most urbanized countries in Europe. Data from the World Bank showed that as of 2020, 92 percent of the people in the Netherlands live in cities with a polycentric urban structure, which has led ochama to plan shops across four cities.

Lu Zhenwang, CEO of Wanqing Consultancy in Shanghai, said JD is exploring a new retail model integrating the online and offline shopping experience in Europe, where it can leverage its advantages in supply chains, logistics and smart technologies that range from automated sorting to unmanned warehousing and robots in operation.

"As the labor costs in Europe are high, the omni-channel model and cutting-edge technologies will help JD enhance logistics efficiency, lower delivery costs and gain an edge in the fiercely competitive marketplace," Lu said.

In addition to the Netherlands, JD also opened warehouses in the United Kingdom, Germany, the Middle East and Australia last year, and more than half are automated ones. The company is operating 80 bonded warehouses and overseas warehouses worldwide. In Southeast Asia, JD opened its first overseas e-space store in Indonesia last year.

The e-commerce giant entered Thailand by forming a joint venture with a local conglomerate Central Group in 2017. In 2018, it made a strategic investment in Tiki.vn, Vietnam's leading business-to-consumer e-commerce platform.