Japan's e-commerce giant Rakuten Inc. recently revealed that it will set up an online store on JD.com as it aims to reach out to Chinese consumers.
According to a Wall Street Journal article, the Japanese firm is currently facing limited growth prospects as well as fierce competition in its home country.
Rakuten said that its Chinese outlet will be put up on JD.com's cross-border platform, JD Worldwide. Its initial focus will be on cosmetics, health-food products and snacks that are popular in the Chinese market.
Analysts claim that this agreement, which gives Rakuten greater access to China's lucrative e-commerce market, could sharpen its rivalry with Japan's Internet and telecom giant, SoftBank Group Corp.
Additionally, it could fuel competition between JD.com and the leading e-commerce firm in China, Alibaba Group Holding Ltd., where Softbank is the biggest shareholder.
Helmed by billionaire Hiroshi Mikitani, Rakuten operates Japan's biggest e-commerce business and offers wide-ranging services from banking to travel.
Recently, the firm has also been aggressive in its overseas expansion as it acquired e-commerce sites like Ebates Inc. and the messaging app Viber. It has also poured in investments in the U.S. ride-hailing app Lyft.
Meanwhile, JD.com sees this deal with Rakuten as a fresh opportunity to introduce to its Chinese consumers popular Japanese goods and items after it lost an important Japanese stakeholder.
Back in July this year, clothing brand Uniqlo moved out of JD.com after Alibaba founder Jack Ma made a personal pitch to the head of Uniqlo's parent firm Fast Retailing Co., Tadashi Yanai.