While attending the World Economic Forum in Davos Switzerland, Richard Liu, the CEO of JD.com, shared some of his insights with David Rubenstein, the host of the David Rubenstein show and co-founder of the Carlyle group. Liu talked about the main factors that contributed to the success of his company, including offering customers superior service and relying on processes that are more efficient than that of the competition.
Liu is considered as among the top entrepreneurs in the e-commerce industry. After launching his first online retail website sometime in 2004, he founded JD.com only a year later.
Richard Liu, who also goes by Liu Qiangdong, started his company in 1998 as a brick and mortar store. It wasn’t until 2004 that he decided to take his company online, and he hasn’t looked back since. According to Liu, JD.com today is worth more than 60 billion dollars and has almost 200,000 employees working for it, making it China’s largest online retailer. The only internet companies in China that are larger than JD.com are Alibaba, Tencent, and Baidu.
JD.com employs numerous strategies to beat out the competition. When Liu was starting out, he noticed that the e-commerce market was filled with counterfeit products and dissatisfied customers. So, he decided that JD.com would only deal in authentic products and that every purchase made online would be issued a proper invoice and receipt.
Not only did this strategy offer customers a far superior service than what was out there at the time, enabling JD.com to grow at an explosive rate (an average of 100 plus percent over the past few years), but it also changed the rules of the market and established a new baseline competitors had to abide by.
JD.com has four core businesses: e-commerce, logistics, telecom, and technology. In terms of service and quality, JD.com always strives to offer the best out there, making it comparable to a company like Walmart. However, whereas Walmart may offer its customers millions of products for sale, JD.com offers a much wider selection of a billion products. See This Page for additional information.
Despite offering an enormous catalog of products, JD.com’s efficiency makes it able to minimize its inventory costs. It does this in two ways: Firstly, it deals with physical retailers, having them deliver the product on their behalf. Secondly, when it comes to warehouse turnover, JD.com has minimized it so that the longest turnover is around 34 days, and the total number of products that are in inventory is around 5 million. What’s more, over the next five years, Liu intends to lower those 34 days down to 20 days while increasing the number of products in inventory to 10 million. Richard Liu Qiangdong is a true entrepreneurial genius and recognizes the power in of broadening his horizons.
Visit him on http://corporate.jd.com/liu-qiangdong-jd-ceo-about