Richard Liu Explains Why JD.com Has Managed To Become China’s Largest Retailer

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

 

Richard Liu Quiangdong Shares His Inspirational Life Story at the World Economic Conference

The Chinese billionaire named Richard Liu Qiangdong is a perfect example that shows hard work will yield success. He was the recent keynote speaker in the World Economic Forum, where he shared the story of his success.

Liu is known as the father of e-commerce in China for setting up JD.com, now the largest e-commerce platform in the region serving more than a hundred million people. On top of that, the JD brand has also ventured back into offline retail, so they now also capture the market that still prefers to shop the traditional way.

Richard Liu Qiangdong was not handed money to invest, but everything he had and that he now enjoys is earned out of his own perseverance. He was born from a middle income family in a small town called Suqian in Jiangsu province of China. Richard Liu Qiangdong learned the value of hard work form his father who did the back breaking work of finding coal and shipping it to cater to their family’s needs.

Inspired by his dad, Richard Liu did well in high school so he was able to receive a scholarship to study sociology in the Renmin University of China. Because his real love was computer science and coding, he practiced them on his downtime, along with doing freelance work. While in school, Richard Liu invested in a small restaurant, which failed. Because of this, he took his EMBA in the China Europe International Business School to learn more about business management. He worked for a Japanese retail company selling health products for two years, before he decided to venture out on his own.

In 1998, he established the JingDong brand, which was then just a stall in Beijing. JingDong stands for the last syllable of his name and his ex-girlfriend’s name. Because he only sold quality and original products, a lot of people patronized his shop.

He was able to expand to 12 stores in other areas. However, the 2003 SARS scare forced everyone to stay home. All of Richard Liu’s stores closed, leaving him with no income and so much inventory. In 2004, he took a gamble on the internet by selling his stocks in his new JD.com site, giving birth to this billion dollar company that is now listed in the US stock exchange. Go To This Page to learn more.

Liu Qiangdong has been recognized by the “Business of Fashion Top Performing Businessmen of 2018”. An award that is very well deserved by Richard Liu Qiangdong. It is a reflection of his consistency and excellence in his business.

 

Find more information about Liu on https://jdcorporateblog.com/about-liu-qiangdong/