Chinese online store JD.com plans to build a gaming business. However, the company is not going to create its own video games like Tencent and NetEase. Instead, it wants to become the main marketplace for all game-related goods. To do this, JD.com organizes its own eSports team and collaborates with device manufacturers. The new direction will help the company develop other areas of business as well.
JD’s gaming business includes several areas. First, millions of shoppers purchase products and leave reviews on her online store. JD may share these reviews with partners to help them improve their products.
Last year, the retailer announced plans to partner with the likes of Chinese computer maker Lenovo and gaming giant Tencent. Together with them, JD plans to develop smartphones for mobile games and then distribute them through its platform to attract players.
The second strategy area covers esports and competitive video games. In 2017, JD launched their own esports team, JD Gaming. And last year – the JD Esports mobile gaming team.
According to Newzoo forecasts, in 2021, global esports revenues will surpass $1 billion for the first time – a 14.5% increase over last year.
This is only a small fraction of the global gaming market, but it is expected to continue to grow. And JD wants to cover her share.
With the help of esports, the company plans to increase its connection with the gaming industry. According to Daniel Tan, President of JD Mobile Devices, esports has helped “penetrate the mindset of consumers.” He adds that the company aims to create a player profile in order to “promote products.”
JD does not make its own video games like Tencent and NetEase. In particular, Tencent has been able to expand globally by acquiring and investing in game studios. Tan said that JD has no plans to do this. However, he does not exclude the possibility of investing in gaming companies together with a partner.
According to Tan, the development of JD’s gaming business is in its early stages and the company has not yet decided on a business model. He believes that the industry itself is still developing. “Therefore, from our point of view, this is an investment. But we see great potential, ”he says. Tan adds that JD is committed to creating value and attracting more young people to the site.