Journey From Selling To E-Commerce Platform

 

A failed restaurant business in mid-twenties would have been a setback for many, but for Richard Liu Qiangdong, the founder and CEO of JD.com. it was a stepping stone for his next initiative. After a short time of selling healthcare products, Richard Liu stepped into retail, setting up his own ‘Jingdong’ store that sold computer accessories in Beijing, China.

The retail expanded to about twelve stores when Richard faced the next big challenge in 2004, in the form of SARS epidemic that broke out and made face to face interactions with customers who could possibly infected a risky proposition for his employees. The downside was not meeting customers meant drop in revenues and that was a serious challenge.

One of his managers proposed selling to customers online, thus mitigating the risk and still maintaining revenues. Richard Liu quickly pounced on the idea and swiftly observed that online sales were cost effective and spotted the future in e-commerce. Over the next few years, JD.com grew quickly into a online retail giant, taking on big names like Baidu, Tencent and Alibaba in China. Read This Article for additional information.

Growth did not come easily, though. When JD.com started out, the online retail market was plagued with counterfeit products, price mismatches and delayed shipments. The company was short on cash and had to use its resources efficiently. JD.com established policies that won trust among customers and sold only genuine products and delivered shipments to match the price. Delivering on commitments built trust and grew the company fast in the crowded online retail market. Today, in urban china, JD.com could deliver a product order in as little as 6 hours and it could just 3 hours in Beijing !! Customers know exactly when they will get their product. Richard Liu wants to pilot JD.com to the coveted number one spot in the next few years.

Richard Liu, the founder of JD.com holds a graduate degree in Sociology from Renmin University of China and also has an Executive MBA from the China Europe International Business School. Richard Liu Qiangdong views wealth more as a responsibility than as a burden or a blessing. JD.Com is committed to bringing high quality products to China, though JD.com does have a global business and delivery model.

 

More about Richard Liu Qiangdong on https://vivo.brown.edu/display/rl11

Richard Liu Qiangdong On His Long Walk To Entrepreneurial Success

 

Richard Liu Qiangdong has humble beginnings although today he is the founder and Chief Executive Officer of JD.com. In an interview during the World Economic Forum entitled “An Insight, An Idea with Richard Liu”, he opens up about growing up and his path to entrepreneurial success. Richard Liu’s parents ran the transport business but it was not very successful so they were poor. When he was studying in Beijing he started a restaurant business which unfortunately did not do well. After graduating with a degree in sociology he could not like other graduates travel abroad for further studies due to lack of money.

 

His grandmother who had brought him up was ill and needed medicine which his parents could not afford to provide. Richard Liu needed to make money in order to help her. University graduates in China at the time were going for civil service jobs but he did not want to work for the government and so he decided to go into business for himself. He opened retail stores where people could buy computer accessories and the business was successful as he had 12 stores. See Related Link for additional information.

 

In 2002 Richard Liu Qiangdong was faced with a new problem when the SARS epidemic struck. SARS is an airborne disease and therefore one can get infected when talking to someone who has the illness. This was not good for offline retail business and since Richard Liu Qiangdong wanted to protect his workers he closed down the shops and held a meeting with managers to come with a way to keep the business afloat. It was during one of the meetings that one of the managers suggested online retail and JD.com was born.

 

JD.com or Jingdong has the best logistics network in China covering even the remote parts of China. The company only sells genuine products as Richard Liu emphasized that when they started out he wanted to change the Chinese online business which was flooded with counterfeits. The company also has made a commitment to deliver products on the day they are ordered on the day after depending on location.

 

About Richard Liu Qiangdong

Richard Liu is the CEO and the founder of JD.com. He was born in 1973 and is married with two children.

 

More on: https://www.scripps.org/physicians/18780-richard-liu?tab=overview

JD.com Has Successfully Revived The Traditional Books Stores In China

Traditional book stores are experiencing challenges including fierce competition and declining sales and traffic. A revival is occurring in China due to JD.com. or Jingdong. This is the biggest retailer in the country and includes an online book business. The company provides 49 offline book stores with book procurement, technology and logistics. The company also provides services to retailers including restaurants and consumer goods manufacturers.

 

Jingdong developed technology for their eCommerce business, increased sales for offline stores and modernized their supply chains. Jingdong is working with a book store in Guangzhou called Tangning Books. The store managed in excess of sixty book suppliers prior to their partnership in 2017 with JD.com. The inventory was replenished through JD.com each week to decrease delivery delays and labor costs. During this period, profits increased seventeen percent and sales grew thirty percent.

 

The partnership between Jingdoong and Tangning Books, enable the latter to decrease their turnover from more than a year to 220 days. Jingdong provided analysis capabilities regarding customer behaviors and books tailored for their customers. This resulted in an increase in sales. The founder of Tangning is Ningxin Lu. Ningxin stated the business would not have a competitive edge without the supply chain expertise and technology of JD.com. Another issue was the inability to stock all the requested books in a limited space.

 

Due to the inventory of JD.com, Tangning Books customers can scan the QR codes for books not available in the store and receive delivery within 24 hours. This enables the two businesses to work as a team and share the profits for the sales. The General Manager for JD Logistics value supply chain is Haifeng Yang. Haifeng stated the expertise in inventory and supply chain management, technology and big data provided by the Jingdong platform could benefit numerous additional businesses. Read This Article for related information.

 

A lot of companies beyond retail have benefited from the solutions offered by Jingdong. One of the most famous restaurant chains in China is called Wang Shun Ge. Jingdong Mall made it possible for them to reduce the delivery costs for their restaurants by half while increasing the speed of their shipments. This became possible when the restaurant chain started using JD.com for logistics and procuring kitchen ingredients in 2017.

 

See Also: https://cn.nytimes.com/technology/20180619/google-china-jd-com/