Richard Liu Qiangdong is the founder and the Chief Executive Officer of one of the largest e-commerce platforms in China, JD.com. Liu attended Renmin University of China, earning a degree in sociology, and later a degree from the China Europe International Business School. What started as a retail venture born out of necessity, JD.com is currently worth $60 billion, with Liu having a net worth of $11 million according to Forbes. He attended this year’s World Economic Forum Annual Meeting and talked about what started JD.com and certain aspects of the industry.
Liu Qiangdong first venture in the world of retail came in 1998, when Liu opened a 4 square meter store selling computer accessories. The business grew however, and he managed to open a total of 12 stores. Due to the SARS outbreak in China, and the fact that the staff and customers were forced to remain at home, Liu had to close all his stores and decided to step into the world of online retail. All his physical stores were closed by the end of 2004, and JD.com was born.
Right from the start, Richard Liu recognized that the logistics costs were lower and that e-commerce was the trend for the future. With this information clear in his mind, he decided to make his company a serious business, despite the fact that he considered the online market to be chaotic back when he started retailing in 1998. He decided not to sell any counterfeit products on his platform and to provide receipts for the items, as well as good customer experience. Read This Article for additional information.
Initially, the company had a limited amount of money, and sold IT products and mobile phones, but every year they kept adding new products on the platform. From humble beginnings, JD.com now has 167,000 employees, and 500 logistics centers. JD.com is able to offer fast delivery, 57% of orders getting delivered within 6 hours, and 97% of orders getting delivered in 10 hours. The company also delivers worldwide, taking 10 to 15 days to deliver to Washington, and as little as 3 hours to deliver domestically in Beijing.