A lot of people want to learn more about the success of Richard Liu Qiangdong. The reason for this is because Liu Quiangdong has proven to be quite the businessman when it comes to e-commerce. In fact, he has done so well in his field that he recently sat down for an interview with the Weforum.org team and to David Rubenstein. Rubenstein wanted to understand the choices that go into the daily operation of JD.com. JD.com used to be known as Jingdong Mall. Richard Liu had started the company back in 1998 as a way to bring in money for his family. Jingdong Mall did well as an electronics-based hub, but it was not until it went online in 2004 that it really took off as a business.
One of the most interesting things that David Rubenstein wants to know about Richard Liu Qiangdong is why he chose to move JD.com online. Richard Liu explains that at the time, SARS was running rampant throughout the Chinese population and he feared for his employees. He did not want to needlessly expose them to the virus and customers were reluctant to come out and shop for their goods. He believed that moving Jingdong Mall to an online entity would provide a sense of safety for both parties. It took about a year to set up after the 2003 crisis but it proved to be worth it. People instantly began buying products from his website. Click Here for more information.
Richard Liu Qiangdong tells David Rubenstein in one of the reasons why he believes that JD.com did so well in those early days was because they offered their customers a little bit of peace of mind when it comes to their products. Richard Liu had always been very discerning about the products that he offered in his store and this did not change when he went to an online-only business style. Liu Quiangdong took e-commerce very seriously and he wanted his customers to know that the products they were getting were official and as advertised. He explains to Mr. Rubenstein that this is a major part of their business practices today as well.
The recent article “JD.com Launches New Reusable Package Initiative” talks about a change in the way that Jingdong Mall is going to conduct their shipping in the future. Per this post on their corporate blog, the company has already started this reusable package initiative in four major cities throughout China. Cities like Shanghai and Beijing will begin receiving an option to use the corporate branded “green box”. Many customers may be feeling uneasy about the change, but JD.com shores them that this change in shipping will not result in a change in price. Customers will pay the same prices that they always paid, this reusable package initiative is free.
Jingdong Mall is simply looking for a way to reduce their substantial carbon footprint and this is one of the best opportunities they have seen thus far.
The novel new boxes are currently only available for medium and small package items. Customers will also be interested to learn that this is not going to be an option available to them when it comes to the shipment of fresh food. Unfortunately, Jingdong Mall has made the decision to forgo its usage with fresh food to protect the public from any foodborne illnesses. The packaging will work for items such as jewelry, small electronics, beauty items, and other medium-sized household products. The company hopes to expand the coverage of this program to 20 Chinese cities by the end of 2018. They have hopes for future implementation of this program in a companywide capacity. Currently, these boxes can withstand up to 10 shipping instances until they are no longer usable. Go Here for additional information.
While these boxes signify an interesting change in the way that Jingdong Mall conducts their business, it is not a pattern that is uncommon for the company. They recently decided to change the packaging for their items as well. In fact, it is the company’s hope that soon more than 80% of the packaging that they have will be easily recycled by the general public. At this stage, it appears that Jingdong is taking significant steps to become one of the eco-friendlier retailers on the market. Only time will tell how successful this initiative will be for the company.
See also: https://www.gizmochina.com/2018/06/22/googles-550-million-investment-in-jingdong-could-see-its-hardware-products-selling-on-jd-com/