Entrepreneur Richard Liu Qiangdong founded his company JD.com in 2004. In the 15 years since then, JD.com has become the second largest e-commerce retailer in China with a market capitalization of $57.6 billion and approximately 167,000 employees. In June 2018, Google made a $550 million investment in JD.com. The company’s other strategic partners include Baidu, Tencent and Walmart.
At the 2018 World Economic Forum in Davos-Klosters, Switzerland, an interviewer asked Mr. Liu how his initial value proposition had caused the phenomenal growth of his company. Mr. Liu replied that he owed his company’s success to two simple guidelines: from the start, Mr. Liu determined that JD.com would never sell any counterfeit product or service, and he also decided that his company would go out of its way to deliver purchased products as quickly as possible.
A Commitment to Authenticity
JD.com uses a B2C business model in which consumers buy products and services solely from companies. JD.com vets these participating companies rigorously to ensure that that all items offered for sale are authentic.
JD.com has no tolerance for counterfeit items. Any company discovered selling counterfeits is immediately banned for good from the website. The offending company also faces fines. Richard Liu Qiangdong notes that by exercising this kind of control over its supply chain, JD.com is able to cut the risk of counterfeiting to zero.
JD.com’s next-day delivery guarantee is a promise the website’s customers know they can trust. The company operates the largest fleet of delivery drones in the world. Recently, JD.com began collaborating with Chinese automobile manufacturer NIO so that customers can now have their purchases dropped off into the trunks of their cars. Richard Liu Qiangdong’s dedication to integrity and customer satisfaction has helped JD.com deliver high-quality service that few other companies can match.
Liu Qiangdong’s: Twitter.