It took a SARS outbreak threat to the staff of Richard Liu’s business establishment for an online business giant to be born. Initially selling computer spare parts from a physical location, the possibility of subsequent closure of the stores guided the shift in the routine conduct of business. The managements way of solving the SARS threat giving rise to an idea that would become the cornerstone of the modern online shop.
The decision to move away from physical stores to online platforms is today hailed as the difference maker, with JD.com moving to become an e-commerce venture with sales worldwide. Currently, JD.com is the largest e-commerce company in China with a $57.6 billion net worth. It has consequently been able to attract investors, with other related businesses like Walmart and Tencent buying shares in the company.
Richard Liu credits the growth of e-commerce as the precursor for logistical efficiencies and unrivaled customer service practices. He states superior quality and variety of products as the greatest plus JD.com has over competitors, and this makes it better placed than other companies in the same industry. Further noting the widespread price cheating by competitors in the industry as a source of concern for customers, leading them to make JD.com a standout company of choice.
JD.com under Richard Liu has continued to make gains in the market, best illustrated by the variety of products and outreach range of the online shop. In recent years, more investments have been made to expand. Coupled with logistical and technological adoptions aiming at making JD.com a multinational global leader in e-commerce. Among the fastest moving products, that are contributing substantial interests in e-commerce are consumer goods, food, and fashion items.
With over 1 billion products available to choose from on the JD.com online store, the customer is well covered. Richard Liu has prioritized shortening holding time of goods, leading to efficiencies in overhead costs. Projected plans in the coming five years show JD.com seeks to improve on the holding time efficiencies steadily. This proficiency will lead to a holding time of goods of less than 20 days, while at the same time enable the e-commerce platform to add to the range of products available to the customers.