Richard Liu Qiangdong And The Success Of JD.com After Being Forced To Switch To Online Retailing

Richard Liu Qiangdong talked about his company, JD.com at this year’s edition of the World Economic Forum Annual Meeting, bringing up the early beginning of his business, the current state of it, and future plans for expansion. Liu is the founder and Chief Executive Officer of one of China’s largest e-commerce platforms, JD.com, a business worth $60 billion. Liu’s success in the world of retail made him a billionaire, having a net worth of $11 billion according to Forbes.

 

Liu graduated from the Renmin University of China with a degree in sociology, and also earned an EMBA from the China Europe International Business School. Richard Liu Qiangdong opened his own store in 1998, due o the fact that his family’s business was not going well and they needed to pay for medical care for his grandmother, and he did not have the necessary money to set up a business abroad. His 4 square meter store sold computer accessories and proved to be a successful business. By 2003 he expanded his operations to 12 stores, but because of the SARS outbreak that forced his staff and customers to remain house-bound, he had to close all his stores by the end of 2004.

 

Out of necessity, Richard Liu started retailing online, and recognized that the logistics costs were lower and that e-commerce was trend for the future. Initially, the platform sold IT products and mobile phones, due to the limited amount of cash, but every year they kept adding new products. Nowadays, the company has 500 logistics centers and 167,000 employees, the platform’s most popular products being consumer goods, foods, and fashion-related items. Go To This Page to learn more.

 

Regarding the expansion of JD.com outside of China, Liu considers that it will take several steps, the first of which is bringing the best products to China, and then expanding to Southeast Asia, followed by the Middle East, Europe, and with American being the final goal. He brings up the fact that in the past it was thought that American companies have a difficult time breaking into the Chinese market, but he believes that nowadays the roles have reversed, and that it is more difficult for Chinese companies to break into the United States market.

 

See Also: https://www.crunchbase.com/person/richard-liu-e9b4

JD.com’s Effect To China’s Retail Industry

JD continues to diligently serve its over 300 million customers who seek both online and offline retailing services. One can’t fail to mention JD.com when talking about online retailers in China. The e-commerce companies also referred to as “Jingdong”, is the best stop for online shopping as customers order and get their products swiftly.

 

The online retailer recently introduced an eco-friendly packaging program, which allows customers to use reusable packaging during the delivery of the products ordered. Clients who purchase both small and medium-sized parcels can use the eco-friendly packages. JD.com is conscious about the environment and aims to minimize the costs.

 

Their recent step in the article “JD.com Launches New Reusable Package Initiative” is a big one. It signifies that the company has put their full force behind making the company a truly environmental company.

 

Use of the packaging by just 10% of the clients will lead to saving 32.5 million RMB. the best thing is that this is optional for JD.Com clients. Those who wish to use the packaging need to return the green box after every delivery. The environment-friendly packaging can be used about 10 times. There is a bonus for clients who choose the reusable packaging; one gets awarded with Jingdong loyalty points, that can be redeemed for JD.Com products. Visit This Page for related information.

 

The company has also partnered with SMEs, in a quest to improve active warehouse management systems. JD.com set up JD Cloud Warehouse Management Solution, a cloud-based supply chain management solution that helps businesses get more customers and orders. It is a remarkable solution as businesses are able to easily and effectively supply commodities and have prompt and successful operations. Jingdong blockchain tracing program has made it easy for clients to trace the origin and development of the goods and food they order.

 

JD’s commitment to its customers is one of the reasons it remains at the top in the e-commerce industry in China. The company is planning on launching an advanced research center in Xiongan with the aim of focusing on futuristic automation technology for urban logistics. Jingdong is a force to reckon with and its contribution to China’s economy can’t be ignored.

 

Watch them on https://www.youtube.com/channel/UCj1O__aZW_05RdTCL8E3kUA