Richard Liu Qiangdong was recently interviewed at the World Economic Forum Annual Meeting. He is the founder and CEO of JD.com, one of the largest e-commerce businesses in China. During the interview he explained how he got his business started.
In an effort to help his sick grandmother with medical bills, he decided to start a retail business selling computer accessories. Liu Qiangdong eventually built his retail business to approximately twelve brick and mortar stores. When the SARS epidemic hit, he was worried his employees might get sick and sent them home with water and instant noodles.
He held a meeting with his managers to decide what to do. One manager suggested using e-commerce to sell products online. This way employee’s will not need to talk to customers in person and will not get sick. It will also be more cost effective for the company. Richard Liu Qiangdong agreed and closed all stores in 2004. The manager who made that suggestion is now a billionaire.
Richard Liu Qiangdong noticed there was many counterfeit products being sold on the internet, and there were a lot of dishonest businesses cheating customers. Liu wanted to change the market by not selling any low quality or counterfeit products. He wanted to use proper invoices and effective communication. With a limited supply of money it took around six years to get up to speed with a full line of internet technology devices.
JD.com has an impressive delivery time in China. With 500 warehouses, 57% of products will be delivered in six hours or less. In rural areas customers will have their products in less than twenty hours. People living in Beijing might have their products in three hours.
Richard Liu Qiangdong graduated with a sociology degree from Renmin University of China. He has grown JD.com to a $60 billion company and has donated a lot of money to charity. He enjoys fast walking, swimming, and traveling the deserts of China. Go Here for related Information.