Executive Summary

• In China, online shopping mall JD.com is embracing a brick-and-mortar strategy to expand beyond its roots as a pure play.
• The company has opened brick-and-mortar service and distribution centers to tap into the home appliance market in rural China market.
• JD.com is also opening a pharmacy in Qingdao as an experimental step in its online-to-offline (O2O) strategy for pharmaceutical products, and is cooperating with third-party pharmacies to sell pharmaceutical products on its online platform.