JD.com Reveals Big Partnerships With 4 U.S. Tech Companies
JD.com (NASDAQ: JD), the biggest direct retailer in China, recently announced new partnerships with four American tech companies: PC maker HP (NYSE: HPQ), software giant Microsoft (NASDAQ: MSFT), DRAM module maker Kingston, and hard drive maker Western Digital (NASDAQ: WDC). Let's see how working with JD could help these four companies.
HP was one of the first brands to partner with JD in C2M (consumer to manufacturer) sales. In a C2M model, a consumer pre-orders a certain product, and the manufacturer only produces the product when a certain number of orders are reached.
This approach lets a manufacturer produce a set number of products for a niche market without being burdened with excess inventory. HP has used this C2M approach to sell its OMEN gaming PCs on JD.com since 2015, and it recently named JD as its "best worldwide partner" for the OMEN brand. That slow-and-steady approach is working, and HP plans to sell 100 new C2M products on JD.com within the next two years.
Source Fool.com
