ChinaVirtuoso

Chinese cosmetics B2C e-commerce website Jumei.com has formed a strategic partnership with Beijing Daily Group for logistics, distribution, e-commerce, and big data analysis.

Financial terms of the deal were not announced.

A representative from Beijing Daily Group said that by integrating duplicated third-party logistics resources, Jumei.com realizes a self-built distribution system with light assets, which is the first of its kind for its type of business. Jumei.com will make Beijing its pilot city for its innovative distribution system and its preparation in cities like Shanghai, Tianjin, Xi'an and Chengdu are almost complete. Soon the company will be able to serve its customers in those cities.

In the future, Jumei.com may open its distribution system to more partners.

There are normally two models in e-commerce distribution for Chinese firms: third-party and self-built. Third-party distribution is completed via express delivery companies; while self-built distribution is established and operated by the e-commerce providers themselves and the goods are delivered by the employees of the e-commerce companies.

However, Jumei.com developed a new self-built distribution model. Under this model, Jumei.com provides a stable amount of orders and its third-party delivery partners serve the company with self-built standards by using Jumei.com's self-developed distribution system and POS terminals. In addition, those delivery companies will share related logistics resources, including transportation lines, site stores, and delivery staff, with Jumei.com.


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