The business of e-commerce can be quite harsh if one does not understand the ins and outs of the process. In fact, many new businesses in this portion of the economy do not do as well as their traditional physical counterparts. The reason for this is because they are often faced with a huge amount of competition in their early days and they need something to set themselves apart from the rest.
Richard Liu Qiangdong managed to beat the odds with his company JD.com, originally known as Jingdong Mall. Richard Liu sits down with Weforum.org to discuss the change in structure that may JD.com what it is today. His interviewer, David Rubenstein wanted to discuss a previous restaurant venture that he believes helped shape the future for Richard Liu Qiangdong.
Richard Liu tells Mr. Rubenstein that the restaurant that he previously owned went under. What he learned from that experience is that he should not divide his time. He was a student when he opened it and he was looking for a way to quickly earn money. He learned that if he wants his businesses to succeed, he needs to be present. When he opened Jingdong Mall he took this under advisement. His constant involvement in the growth of the business is one of the reasons why it spread to 12 locations. The electronics company was doing really well up until the SARS outbreak in China in 2003. This was when Richard Liu Qiangdong needed to think about other ways to make money. See Related Link to learn more.
JD.com did so well because they started offering a wide array of products. Richard Liu tells Mr. Rubenstein that he did not add categories on a whim. He went through and systematically added them after thoroughly reviewing the product choices. It was a painstaking process it took him nearly 6 years to complete but it was worth it. His customers felt secure with their purchases and it led them to recommend his company to their close family and friends. Liu hinges his success on being a reputable company. This is also something he tells his interviewer that he hopes to take global.