In 2003, Richard Liu opened up an online platform for his brick and mortar store, Jingdong, which had found lots of success distributing magneto-optical CD ROMs and other products. The store had 12 outlets spread in Shenyang, Beijing, and Shangai and was amercing annual revenues of about $9 million. The launch of an e-commerce platform for the store was motivated by the SARS outbreak. In 2004, Liu started shutting down the Qiangdong physical store, and they were all gone by 2005. Now, he was running only an e-commerce enterprise in the years that have followed he has led it to great success. Not so long ago, this internet entrepreneur explored JD.com’s expansion and other achievements.
An unprecedented expansion
In 2007, Richard Liu led his company to embark on an astronomical expansion by developing a national logistics system that would cater to its growing clientele across China. From early on, he knew that he could not outsource the logistics to another company as the operation would be too massive for them to handle excellently. His desire to capture the rural Chinese market motivated this expansion move as people living in remote regions had to travel to towns around them to purchase what they needed. The expansion program was completed in 2014, and JD.com had more than 3210 pick-ups and delivery stations in 1862 counties in the county. Richard Liu said that this provided the e-commerce giant with the ability to cover two-thirds of the Chinese market, primarily those in rural areas.
Richard Liu said that this expansion opened up the company to lots of successes. JD.com launched its IPO in 2014 on the NASDAQ, and by 2016, it had become the first internet company from China to enter the Fortune 500 list. Richard Liu revealed that it became the largest retailer in China and the third-largest internet company worldwide.
Follow Liu via Twitter: http://Twitter.com/liu_qiangdong