China is a vast country home to 1.4 billion people, and despite its huge area, one company invested a lot of money to be able to reach most of its territory and population. Richard Liu Qiangdong, the founder of JD.com, announced that his company decided to create a logistics department that would allow them to reach 99% of China’s territory, making it easier for those living in remote areas to place an order with their online retail business and have their items delivered faster. JD.com is one of the largest online retail businesses in China today, and Richard Liu Qiangdong wanted to change the company for the better, and the solution he considered was the creation of an extensive network of warehouses and vehicles that will be delivered items bought at the website right in front of the homes of their customers. This improvement in the services offered by JD.com is seen by experts to boost the company’s value, allowing more investors to work with them.
Richard Liu Qiangdong has ordered different departments under his company to execute a trial for the new services that they offered, and he was delighted after learning that customers who placed an order within JD.com received their packages a few hours after buying. This is applicable for those living in big cities like Shanghai and Beijing, as their headquarters and main warehouses are located within these cities. Richard Liu Qiangdong stated that the formation of JD.com’s own logistics department would also cut the time required for the people to wait for their items, and it would encourage them to buy more and spend more money within his website.
JD.com was established in 2004, as an answer to the government’s closure of physical businesses due to the outbreak of SARS. Richard Liu Qiangdong was a computer parts trader back then, and he shifted 100% of his operations online, creating his website and uploading it for others to see. His website became financially successful, and it gave him the idea to expand his market and add more products to his inventory. His idea of an online retail business made him a billionaire, and he is currently worth $7 billion.
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