When Richard Liu Qiangdong established Jingdong in 2003, he never thought that it could grow to become the largest online retailer in China. Liu opened a computer accessories shop in 2003 after working as a director for business and computers in a Japanese firm for two years. He named the company Jingdong by combining his girlfriend’s last name and his first name.
Initially, Jingdong was one shop that later grew to twelve stores by the end of 2003. When SARS broke out in 2003, it forced Richard Liu to abandon his brick and mortar business model and started selling his products online. By the end of 2004, Richard Liu realized that the e-commerce business model was more profitable than selling from the physical stores.
What products did JD.com start with?
Initially, Richard Liu focused on selling genuine electronic products and computer accessories. By selling genuine products and improving on customer service, jingdong won the trust of the thousands of customers who were lost in the Chinese counterfeit market at the time. In a recent interview during the world economic forum, Richard Liu revealed that it took his company six years to list all the products that they have today. In recent, consumer goods are some of the products that are in highest demand.
Where do they ship their products?
JD.com delivers their products around the globe. In China, JD.com has more than five hundred logistic centers that enable them to deliver products to customers within a short time. However, the company is streamlining their global logistics system to ensure that international customers receive their products within a few days.
Currently, it takes 10-15 days to deliver products to Washington D.C. On the other hand, it takes an average of six hours to deliver products to customers in China. If a customer is in Beijing, they can receive their items in less than three hours.
JD.com’s plans to go global
Liu Qiangdong revealed that his company is eyeing the global e-commerce market. He, however, noted that he is focusing on bringing original products from around the world to China. Then Liu will focus on the South Asian market, before moving to the Middle East, the U.S and Europe.
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