One of China’s largest online retailers, JD.com, is now set to take over the world. Richard Liu, with the Chinese name if Liu Quingdong, is the founder and CEO of JingDong.com. This is a billion dollar worth e-commerce platform in Beijing. Currently, it is now a part of the word’s Fortune 500 list of companies.
History of JD
Liu Quingdong built this global company with his bare hands from the ground up. It is a product of his blood, sweat, and tears. Coming from a humble village in a small province of China, he credits his education to the entire village who pitched into send him to the University. Back then, they donated produce and money that sent him on this life-changing path of education. He made them proud by successfully finishing sociology and an MBA.
In 1998, he opened a small four square meter shop selling computer accessories in Beijing. He was able to expand to 12 retail stores because of his attention to product quality and customer service. Unfortunately, in 2003, the SARS epidemic hit his region and he was forced to close his shops because no one wanted to go out for fear of catching the deadly virus.
He set up and online shop out of necessity, in order to sell his inventory. That was the true birth of JD.com, which may have evolved out of an emergency but thrived due to Richard Liu’s guts, grit, and gumption to make things happen. It was then that this visionary realized that the logistics of an e-site was cheaper and e-commerce is the true way of the future.
JDs Recipe for Success
Liu Quingdong was dedicated to making his new project a success that he started with packing and delivering goods ordered online by himself. Later on, he was able to set up a system of operations that was able to cater to the entire Chinese population that’s close to a billion people. His foresight to tap this huge market by leveraging technology has brought him immense success. On top of that, he credits high quality products and an extensive range of products have kept their loyal client base.
JD.com was one of the first companies that promised same day delivery. Outside China’s boarders, they are proud to announce that they still have lead delivery time. Once an order is placed, the central warehouse in Beijing can fulfill it within three hours. Almost sixty percent of orders are dispatched within six hours and ninety-seven percent is done by the ten hour mark.
To date, Richard Liu noted that they have 550 warehouses covering around twelve million square meters. The purpose of this vast network is fast fulfillment of orders. They are currently number one in China, and the move now is to expand into Southeast Asia. They are currently in the process of dealing with exclusive local partners.
Liu said the expansion, just as his company’s initial birthing pains, will require several steps as he intends to also capture the Middle East, Europe, and the United States. The vision is to expand their supply chain and connect any of their brands to customers around the world. JD has now teamed up with Walmart, with Liu purchasing Walmart’s online operations. On top of that, JD is negotiating with Google as this platform’s services are blocked or unavailable in China.
In addition, Liu has opened up more warehouses and offices in Western Europe, as they are currently ironing out marketing strategies to tap the market later this year. Although his global expansion plans are fraught with the usual worries, he is determined to let his JD brand change the global retail landscape by making Chinese brands known to the world.