Richard Liu Qiangdong is one of the most respected entrepreneurs in the world. He runs JD.com, a leading e-commerce platform serving China and other parts of Asia. At present, Richard Liu’s e-commerce has an estimated worth of $ 57.6 billion.
How did he grow the e-commerce platform from a mere start-up to the established platform it is today? Following is a comprehensive picture of Liu’s business journey derived from his past interview with the World Economic Forum.
Richard Liu started his start-up in 1998 as a small shop selling Magneto-optical products. According to the interview posted on weforum, Liu Qiangdong branded the shop as Jingdong, a combination of his ex-girlfriend’s name, and the last characters of his name “Qiangdong.”By 2003, Richard Liu opened over 12 stores in different strategic locations around Beijing. In 2005, Mr. Liu decided to transform his business from a mortar and brick store to an e-commerce store that would serve the entire Chinese market.
The transformation led to the birth of the present day JD.com, an e-commerce store that sells an array of quality consumer products. It sells foodstuffs, apparel, electronics, home appliances, and furnishings. Besides offering fast moving consumer goods, JD has also come up with a unique service called White Grove, which deals in the sale of luxury products. The service is differently tailored to give consumers a unique experience. To enhance the White Grove services, JD has partnered with Farfetch, a renowned provider of luxury products, especially in fashion. Farfetch uses JD’s platform to market its products.
What trick did he use to outwit his e-commerce competitors? According to the interview posted on the World Economic Platform, JD.com won the hearts of its consumers by selling quality consumer goods at an affordable price. Most of JD.com’s competitors sold counterfeits at an exaggerated price.
Besides selling authentic products, Richard Liu Qiangdong’s e-commerce store employed fast logistics as a scheme to gain and defend the industry’s top position. Its customers would receive their goods for as short as one day after placing their orders. At present, Richard Liu says that customers can receive their products on the same day they place their orders. The e-commerce store is looking to speed-up its logistics using smart technology.