Richard Liu Qiang Dong Gives His Insight On JD.com Growth Potential
Richard Liu Qiang Dong is a very successful Chinese businessman and entrepreneur. He is the founder and chief executive officer of one of the biggest Chinese e-commerce platforms by the name of JD.com. This platform evolved out of 12 brick and mortar stores that he opened and called JingDong. The country of China experienced a severe SARS outbreak and many people got sick including the employees of Richard Liu Qiang Dongs brick and mortar store. This is when he and his team decided to open an e-commerce store in 2005 JD.com was formed. The company JD.com is estimated to be worth 57.6 billion by Forbes and Richard Liu Qiang Dong is said to have a personal net worth of 7.3 billion dollars. Richard Liu utilized his sociology degree when it comes to his unique approach to marketing. He attended the Renmin University and graduated in 1996.
JD.com has formed many different partnerships and they have major players that they are partnered with. A few of these players are as follows Farfetch, Walmart, and Tencent. The partnership Farfetch puts two of the top e-commerce companies in China on the same team and their partnership will focus on luxury fashion. Walmart increased its stake in the company in 2017 and now has a 12% stake. Tencent purchased a 15% stake in JD.com for 215 million dollars. Richard Liu is consistently working on becoming the number one ecommerce business in China. He is currently working toward his main goal but the three key aspects to make this happen is that he has to bring the customer value, improve on logistics globally, and improve on technology.
The company sells high quality products globally but the global delivery system is not as good as the local Chinese delivery system so this is an area that the company must improve in. The three best places where the delivery is best on a global spectrum is only New York, London, and Paris. If you order something from JD.com in the United States and you are not in the city of New York your purchase will definitely be delayed for up to 10 to 15 days. So this is definitely something that they are looking to improve on because when delivering products in China it only takes 6 hours. The company is doing what they have to do to close the gap on this issue. They are leaving a lot of business on the table that they could be capitalizing on if they had a better global logistics process.