Fortune magazine’s Chinese edition recently published its annual Fortune China 500 list by 2020. Based on last year’s revenue from all Chinese indexed companies, JD.com ranked 13.4 more than last year. Thanks to high-quality retail expansion and immediate expansion in the service delivery business, JD.com achieved a net revenue stream of $83 billion, a year-on-year expansion of 24.9% and, in particular, above the average expansion of 11%. 500 companies.
In particular, his facility company’s net source of revenue increased by 44.1% year-on-year, while CEO and founder Richard Liu continues to make sure that the company is at all times at the forefront of generation and well located not only for today’s markets. , but also for the future. In 2020, the company not only updated its project to “empower the generation of a more productive and sustainable world”, but also updated its strategic positioning to identify it as more than just an e-commerce company, still.” a supply company founded on generation and facilities.”
For Richard Liu and through the extension JD.com, his conviction is that, to the extent that technologies such as cloud computing, synthetic intelligence and 5G are the beginning of a new “intelligence era” that will lead to lower business operating costs, a power point and new opportunities on the source side. For Liu, boldly confronting and adapting to global adjustments has been a component not only of his business strategy, but also of how he has evolved throughout his life. Next, we explore the story of the illustrious founder of JD.com, how the company has progressed in 17 years and where it intends to go.
The Tale of Richard Liu
Liu descended from wealthy Chinese merchants carrying goods along the Yangtze River in the early 1900s, but when communism seized the country, they lost everything and were forcibly resettled twice before settling in Chang’an, a small village in northern Jiangsu. Province. When Liu was born in 1973, his parents were rice farmers and he grew up in poverty in a village that had no running water, roads or electricity. They fed on corn-based foods such as porridge, corn pancakes and cornbread in the summer and boiled sweet potatoes, crushed in pancakes and dried in winter. Liu said that with all the corn and sweet potato he ate developing, he hopes he’ll never eat again.
Liu’s parents would leave him and his maternal grandmother while they were in their rice fields, and he would help her in space and accompany her wherever she went. Once or twice a year, at very special events such as the Chinese New Year, she and Liu went to the farmers’ cooperative to buy red meat, and he watched and was informed as she bribed the peanut trader to provide him with one. of the fattest. cuts of meat. Once at home, he carefully stored the fats while cooking so that they could be stored and used to flavor and cook food for the rest of the year. In one of his first examples of innovation, little Liu advised that they also fill their pans with hot water and keep the liquid and fat floating to the surface for use in soups. Vacuuming from his youth, Liu saw the many red meat shelves hanging from the village chief’s space and once dreamed of taking up the post, not to be able to eat as much red meat as he wanted, but to make sure everyone in the village can have theirs.
As Liu grew and became more informed about the world around him, his aspirations grew beyond the small town where he lived. He was constantly seeking to be more informed about the larger world, starting at primary school when he was informed that a government construction in the area near the city of Lailong had begun to run on electricity. He arranged for him and his classmates a vacation after school in construction, and they all looked in amazement at a soft light bulb for the first time. Again, at school during the school holidays, Liu took his seven dollars saved and drove first to Xuzhou and then through the exercise to Nanjing, the largest city he had ever visited. Before this stopover, Liu had no idea that cities and buildings of this length could exist, and looking at his first skyscraper, he knew he was looking to live and stop in cities even larger than this.
The learning came naturally to Liu, who excelled at school and scored the best score on the national school’s frontal exam. Hoping to further expand his horizons, he implemented only at the universities of Shanghai and Beijing and accepted at Renmin University, also known as the People’s University of China. While it’s possible that his circle of relatives simply didn’t find the $75 he was looking for the exercise price ticket to Beijing, the village he grew up in knew it meant more, and members piled up to find money. For those who couldn’t bring funds, they gave him eggs to eat, and Liu remembers thankfully that he didn’t want to buy food for more than a week once he got to college.
While attending Renmin University, Liu discovered that even with his courses, studies and paintings in a small business, he was handwrittenly writing copies of letters and documents, and still had a lot of free time looking to use wisely. In one of the first cases in which he recognized and monetized a technological trend, he began learning to program on his own, a skill that was gaining popularity in the early 1990s. With capitalist reforms underway in the Chinese economy at the time, many new businesses were opened at the time that required his experience, and Liu was able to temporarily not only buy a computer and cell phone for him, but even build a new home for his parents.
Wanting to feed the spark of entrepreneurship that had given him PC programming, Liu used some of his savings to open a place to eat near the front of his school while continuing his studies at the university. However, he considers it one of his first and greatest life experiences of learning, as his lack of control and naivety have made his workers look at him. They stole coins from the coin register and also forged refund receipts, leading to the restaurant’s bankruptcy in less than a year. However, it was a blessing in disguise, as a few years later he rented a small position in an electronics bazaar in Zhongguancun, promoting magneto-optical readers and calling it JD Multimedia.
The pioneering model of JD.com
On June 18, 1998 (the sameonny name for the annual promotional bombing of JD.com), Liu opened his booth in the “Chinese Silicon Valley”, Beijing’s generation center. Its first advertising precept that it has implemented, making sure the authenticity and quality of its products, remains at the center of the corporate to this day. In the most sensible of that, Liu resisted the trend of posts around him and refused to haggle, believing in his valuation of all his products. Instead of deterring shoppers, this commercial style allowed him to expand his business, first in a giant retail store and then into a chain of 12 outlets in Beijing, Shanghai and Shenyang in five years. By expanding its stock beyond magneto-optical units, Liu has made plans to continue expanding its retail business in stores and it is quite possible that it has been a giant distribution company to this day without the 2003 SARS outbreak.
Like this year’s events, the epidemic has spread to China, and corporations like Liu have suffered while others remain at home to prevent it from spreading the virus. Unable to generate enough business to keep its outlets open, she was forced to temporarily close its 12 outlets and ran out of a steady flow of revenue for an indefinite period. Liu, who has never faced an unfortunate prolonged situation, began displaying his electronic products on online newsletter forums to continue to source revenue and move products. He learned temporarily that his company’s reputation had preceded him even online and that he was able to keep his business afloat thanks to its high-quality products and the corresponding price.
With the end of the epidemic, Liu reopened his stores, but took the decision to devote a full-time worker to continue to promote his products online. After a year of in-store and online sales, it compared the numbers and it was transparent that moving to the Internet was the address their business should take. It took the decision to move the company exclusively to the Internet and, in 2004, introduced jdlaser.com and closed all its stores. By writing the code of the online page himself, Liu noticed learning as much as possible about the wishes and desires of his clients, and for the first 4 years he was the company’s only visitor service representative.
In 2005, Liu won an offer to buy his company for $2.5 million, however, he had broader plans for the company that sought to come true and turned it down. By 2007, the company had grown skillfully and operated effectively in the e-commerce electronics sector, but Liu’s preference for a more controlled company led him to begin expanding its logistics network, assuming business facets such as warehouse storage, shipping. Matrix and even exclusively internal visit service. By managing each and every step of the home chain, from the warehouse to the visiting gate, JD.com has not only been able to improve the experience of its visitors in particular, but has also expanded its success in third- and fourth-tier cities such as those in which Liu grew up.
JD.com has benefited greatly from these innovations, and has adapted to a reliable online source for consumers as they expanded beyond electronics across all facets of retail. In March 2013, the company officially JD.com and in May 2014, the company made its debut on the U.S. stock market, with an emerging value percentage of 15% on the day of its initial public offering. In addition to Liu’s business principles for quality products and a forged logistics base, the company has invested heavily in technologies such as drones and artificial intelligence, adding cutting-edge responses to its fundamental principles.
To the future
Today, JD.com has annual sales of $82.9 billion, more than 360 million active consumers in line with the year, and more than 700 warehouses in China. The company is constantly evolving and increasingly locating the generation and facilities that has evolved in the AI frame and the great knowledge as demands. Moving from an exclusive retail business to a source chain-based generation and facility company, they began opening their source chain and logistics functions to third parties. By allowing merchants to use their facilities, they help them maximize their power by leveraging Big Data to do things like they should be: waiting for stock wishes or setting up their warehouse. Expanding beyond retail, JD now consists of many subsets, such as JD Health for Prescription Drugs and JD Fresh for New Foods. Joining the corporate retail platform (JD Retail), virtual generation (JD Digits) and logistics (JD Logistics), JD Cloud and AI has been officially designated as one of the company’s 4 leading JD.com companies.
JD Digits is a generation company that covers big data, synthetic intelligence, the Internet of Things and blockchain to help the finance and genuine economy sectors reduce prices, power, optimize user fun and advance business models. It serves 400 million users, more than 700 monetary institutions, more than 30 municipalities and several public service institutions. JD Logistics focuses on building the Global Intelligent Supply Chain (GSSC) with partners around the world. JD Cloud and AI have noticed the scale of their business construction by more than 500% in 2019, and JD Retail remains the power each of these other corporations serve. Technology remains at the heart of JD’s growth and, through the integration of complex technologies into its retail platform, each branch pursues the common purpose of reducing industry prices and expanding power for the entire enterprise.
During this year’s pandemic period, JD.com mobilized to help classical industries, SMEs and spouse brands by shortening the cycles of agreements and providing a large amount of advance payments, while strengthening their virtual transformation with generation to succeed over the difficult obstacles presented by Covid-19. Where other e-commerce giants in the industry, such as Alibaba and Amazon, have struggled to adapt to the pandemic conversion landscape, thanks to technological advances and the infrastructure in which JD.com has invested from the beginning, they have been able to maintain their daily delivery history for more than 90% of their orders.
Using his generation of synthetic intelligence, JD.com also helped ensure that the applicable data on coronavirus spread well to the public. They have worked with several cities, adding Beijing, Jiangxi, Anhui, Shandong, Jiangsu, Sichuan and Wuhan to integrate their generation of intelligent artificial intelligence assistants into the WeChat account of the mayor’s workplace in each city, allowing citizens to obtain data and facilities on coronavirus. through an intuitive and competent chatbot. Through this account, they were able to temporarily get answers to questions such as how to use and throw a mask well, how to do so if they started to revel in symptoms, as well as provide data about the location of the nearest fever clinic. and how to find out if a recent flight or exercise through the applicant had an inflamed patient.
“JD Lightning” is another synthetic intelligence service and great knowledge that the company recently launched. The program is based on its artificial intelligence writing robot Li Bai and Shakespeare, and uses a set of rules to allow content merchants and marketers to automatically generate text and symbol content as well as videos. Using your e-commerce site as a large resource of knowledge in conjunction with synthetic intelligence to increase operational efficiency, it has been shown that content created through JD Lightening attracts 6.6% more traffic and increases the average order length by 24.37% compared to manually created content.
This year, JD allocated $2.6 billion to progression studies, an increase of 47.8% over the past year. To keep them investing in their country and in the long term of the company, JD has introduced a program to recruit progression skills and studies before graduating. Nearly 1,000 academics specialized in generation for elegance 2021 have already won a special offer of JD.com, joining the more than 18,000 workers who are already studying and progressively of the company. 80% of these workers have a master’s degree or more, and several scientists have been chosen as IEEE fellows.
As CEO of JD.com, Richard Liu has ensured that his company is never in a state of stagnation. From its humble beginnings as a child of rice growers, to the initial good fortune of JD.com as an electronic channel, to its evolution to become one of the largest Internet corporations in the world and, despite everything, its latest iteration as a pioneer of the long. where artificial intelligence and great knowledge allow everyone to be more effective and simple. Liu’s private values of quality, innovation and power have driven JD.com. With thousands of new technologies constantly being driven through the attractiveness of the company’s prowess, Liu has placed JD.com to be in a position for anywhere this new technological era takes us.