In the World Economic Forum in Davos in 2018, David Rubenstein, co-founder of the Carlyle Group, had a conversation with Richard Liu, the founder and chairman of JD.com, China’s largest online retailer. During the interview, Richard Liu, also known as Liu Qiangdong, talked about his company’s history: How it started? And, how it got to be the behemoth it is today?
After finishing college, Liu set out to start his own business: a retail company that sold computer accessories out of a physical location. He named the company JD after both his first name and the last name of his girlfriend at the time, who was his first love. The business did well, and the company expanded to 12 physical stores.
However, when the SARS outbreak happened around 2004, this had a major impact on Liu’s business. To protect his employees, Liu Qiangdong had them close up most of his physical stores and decided to give online sales a try. For one year, he had his business operate both online and offline, and by the end of the year, Liu compared the results, only to find that the online avenue was much more successful. Attributing this success to lower logistical costs, more efficient operations, and a better overall experience for customers, Liu concluded that e-commerce was the future and took his entire business online, completely shutting down his offline business.
At the time of JD.com going online, the largest Chinese online retailer was Dangdang. The company first started by specializing in IT products; they didn’t have enough capital to work in everything, so they chose to specialize in a niche they already had ample experience in. Later, they included digital technology into their catalog, followed by mobile phones. They kept adding a new product every year, and it wasn’t until 2010 that they had a comprehensive catalog that almost covered everything. See This Article to learn more.
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.
Through a relentless focus on cost and efficiency, JD.com has experienced phenomenal growth over the past decade and a half: For a period of time, JD.com grew by about 100 percent annually. Today, the company is worth more than 60 billion dollars and employs near 200,000 individuals. It offers a wide selection of products: more than one billion.
Find more information about Liu on https://jdcorporateblog.com/about-liu-qiangdong/