Is JD.com eyeing up European electricals dominance after its latest acquisition?

Already a dominating presence as the largest retailer by revenue in its native China, JD.com’s new investment in Ceconomy raises questions about its plans in the European market.

This is not JD.com’s first foray into Europe, however. Its logistics arm operates warehouses in countries such as the UK, France, Germany and Poland.

In 2022, it launched a Netherlands-based omnichannel retail brand named Ochama, offering a “one-stop shopping experience” on essentials, groceries, household items and electronics.

More recently in April, it began a test-run of its UK online marketplace Joybuy to offer ambient and frozen foods, hundreds of Morrisons own-label products, and as well as other essentials.

A source close to the situation said JD.com plans to invest and grow internationally, with the venture with Ceconomy forming part of that strategy.

As it continues to sink its teeth into an international market, Retail Week looks at what this acquisition means not only for JD.com’s growth, but the impact it could have on other players in the European electronics market.

European ambition

While a formal offer is yet to be made and a deal unlikely to be complete until the first half of 2026, according to Ceconomy chief executive Kai-Ulrich Deissner, the Chinese giant has already laid out its plans for the Germany retailer.

Ceconomy said JD.com will mainly support it in three ways: excelling in-store digitalisation and advancing its tech stack, enhancing its logistics networks and supply chain management, and accelerating digital growth.

JD.com chief executive Sandy Xu added that the partnership with Ceconomy will “build Europe’s leading next-generation consumer electronics platform” with a goal to “further grow Ceconomy’s platform across Europe”.

The retailer has recently spoken of its steps into an international growth strategy. In June, founder and chairman Richard Liu said while it is still “not enough”, it has been “working hard in Europe for three years and the logistics infrastructure there is now basically in place”.

Looking to Europe may be a smart move, as GlobalData forecasts that of the 10 countries likely to see the fastest growth in the electricals sector by 2029, four of them are in Europe. 

Five countries including Hungary and Romania are also set to outpace the growth in the Chinese electricals market.

While JD.com did see revenues grow nearly 16% to ¥301bn (£31.4bn) in the first quarter of 2025, analyst and China digital tech researcher Ed Sander wrote on LinkedIn that the limited growth in China has prompted ambitions for JD.com to look for growth globally.

“This includes selling Chinese goods to the rest of the world and selling Western brands in China on the JD Worldwide platform,” he said.

GlobalData retail analyst Oliver Maddison echoed Sander in that the Chinese economy is beginning to “reach maturity”, and investing in a major European trusted brand could help with its growth.

“Ceconomy is a central player in European electrical retail, and possesses both strong retail infrastructure as well as a series of trusted brands, which could help JD.com overcome potential consumer concerns over a Chinese presence in the market,” he told Retail Week.

“JD.com would be able to utilise its existing supply chains to supply Chinese electricals at a lower cost, giving it an edge on price competition within the European countries that Ceconomy operates.”

More to come?

The combination of a leading European electrical retailer and a huge Chinese tech, logistics and retail business is likely to have other retailers worried.

Sander said the development is “particularly concerning” if you’re a Western brand.

As Joybuy is still in a pilot phase and Ochama is merely three years old, Sander said Ceconomy is likely to have a higher success rate with JD.com due to its “existing infrastructure and customer base”.

He added: “I expect JD to add more Chinese brands (to Ceconomy), so Western brands should expect more competition.”

While European retailers may be concerned, what does it mean for UK retailers?

JD.com did dip its toe into the UK market last year with a preliminary offer to buy Currys, although it refrained from making a formal offer after Currys felt that the offers it had been receiving from firms were “undervalued”.

Maddison said the acquisition of Ceconomy will have “limited impact” on the UK electricals market – due to the fact that Ceconomy is not present in the UK, but did note that the UK could be attractive.

“The integration of Ceconomy’s supply chains with JD.com would make entry into the UK market a more competitive proposition, but with JD.com having previously failed to acquire Currys, such a project would be starting from zero.”

UK retailers may have nothing to fear yet, but with JD.com speaking more of international ambitions, this could very well be a market next on its list.