How E-Commerce Is Transforming Rural China | The New Yorker

Then, eighteen months in, an unexpected opportunity arose. Xia had been making deliveries for JD.com, the second-biggest e-commerce company in China, and he heard that the business was expanding into rural Hunan. A regional station manager would be needed in Xinhuang.

JD.com, or Jingdong, as the company is known in Chinese, is the third-largest tech company in the world in terms of revenue, behind only Amazon and Google’s parent company, Alphabet, Inc. In the Western press, JD is often referred to as the Chinese Amazon, but unlike Amazon, which has all but saturated the American e-commerce market and therefore has to expand by moving into new sectors, such as entertainment, JD still has ample room to extend its customer base—thanks to places like Cenmang and Xinhuang. Although China has the most Internet users of any country and the largest e-commerce market in the world—more than twice the size of America’s—there are still hundreds of millions of Chinese whose lives have yet to migrate online. Analysts predict that China’s online retail market will double in size in the next two years, and that the growth will come disproportionately from third- and fourth-tier cities and from the country’s vast rural hinterland. At a time when the Chinese government has instituted monumental infrastructure programs to develop these regions, companies like JD are providing a market-driven counterpart, which is likely to do for China what the Sears, Roebuck catalogue did for America in the early twentieth century.

via How E-Commerce Is Transforming Rural China | The New Yorker