As domestic e-commerce growth slows in China, JD.com is turning to Europe for expansion, announcing plans to acquire German retail giant Ceconomy in a deal valued at approximately €2.2 billion ($2.4 billion).
The proposed acquisition, announced in late July, would see JD.com pay €4.60 per share for Ceconomy, which operates MediaMarkt and Saturn stores across 12 European countries. The transaction, expected to close by early 2026, would give the Chinese e-commerce leader immediate access to over 1,000 physical retail locations across Europe.
A Strategic Footprint in Europe
Ceconomy, spun off from Metro AG in 2017, represents one of Europe's largest consumer electronics retailers, specializing in IT products, mobile devices, and home appliances. The acquisition would significantly accelerate JD.com's European expansion strategy, providing direct access to millions of European consumers through established retail channels.
The deal carries additional strategic value through Ceconomy's 21.95% stake in Fnac Darty, making JD.com the second-largest shareholder in the French retail leader. Fnac Darty dominates France's cultural goods and electronics market while maintaining strong positions across Southern Europe, North Africa, and the Middle East.
Localization Over Globalization
This acquisition marks a strategic pivot for JD.com, which previously struggled with overseas expansion attempts in Southeast Asia and a failed partnership with Google in the U.S. market. The company appears to be abandoning the low-cost cross-border model employed by competitors like Temu and SHEIN, instead adopting a "local-first" approach emphasizing regional infrastructure, workforces, and supply chains.
Under the agreement, Ceconomy will maintain independent operations while accelerating its transformation into a pan-European omnichannel electronics platform. JD.com plans to contribute its technological expertise, logistics capabilities, and omnichannel retail experience to strengthen Ceconomy's market position.
Creating Pathways for Chinese Brands
The transaction arrives as Fnac Darty actively recruits Chinese sellers, offering dedicated Chinese-language account managers to facilitate market entry. JD.com's investment could significantly streamline European market access for Chinese brands through established local distribution networks.
Analysts view the acquisition as more than a financial transaction—it represents a comprehensive market entry strategy. By leveraging Ceconomy's physical footprint, supply chains, and brand recognition, JD.com mitigates the risks and costs typically associated with European expansion while gaining a platform to deploy its technological solutions.
The deal positions JD.com to compete more effectively in Europe's mature retail markets while providing Chinese manufacturers with enhanced access to European consumers through localized distribution channels.