Liu Qiangdong, famously known as Richard Liu, is among influential internet entrepreneurs in china. In his career life, he has won various awards since establishing jd.com – the largest retail platform.
Mr. Liu Qiangdong was born in 1973 in Jiangsu province, China. Both his parents used to run a shipping coal business where they could source from northern china and take to southern regions. That affected his growth because his parents could travel for months. He used to be left with his grandmother when the parents were away.
Most of his young age, Liu spent growing in a rural village. During that time, he could not access the modern amenities many people enjoy today; electricity, running water, and even better roads. He lived a poor life, only because his parents didn’t afford better living standards. But the conditions didn’t prevent him achieve the success he has today.
His company, JD.com, in the second quarter of the year 2020, announced revenue of $28.5 billion. The sales increased by 33.3% compared with the same quarter last year. However, the company recorded a healthy increase from active customers’ which was a dramatic growth by 29.9% from the previous record in 2019.
The company had numerous opportunities during the pandemic. Since there were shopping constraints for the consumers, they played a vital role in helping suppliers and users. It didn’t have disruptions from the pandemic.
Here is the oversight of what was reported in the second quarter of 2020:
General merchandise sales increased by 45%, and the leading sectors were healthcare and supermarket sales. The volume was experienced because people were forced to stay at home in the country and worldwide. So, many Chinese consumers had to shop for food online. Since the outbreak, JD.com has been the largest supermarket resulting in a tremendous increase in sales.
It was also noted that JD Health, an online medical consultation, increased by 400% within the pandemic period. The growth is attributed to the fact that people needed low-contact medical advice from the pandemic. Also, JD cites user engagement, especially in lower-tier cities, which led to growth and revenue growth.
JD.com reported having received a double increase in income from operations. It received $730 million in revenue from operations by the second quarter. Previously, it had reported earning $336 million.
Liu Qiangdong claimed that his company helped consumers during the thriving period of the pandemic. Since the outbreak, the company has leveraged its unique technology capabilities and supply chain by contributing to society. Also, it has ensured a steady supply of daily necessities without disruption to the consumers. That well said, it has tried to create more job opportunities by supporting business partners and the ecosystem.
The company has been using different marketing techniques that have helped reach its consumers during the pandemic. Some methods included live-stream events, instant delivery to some products such as smartphones, and the introduction of new high-end products. Many consumers prefer instant delivery. Some new product lines introduced include shoe trying service, skin evaluation service to sell cosmetics, and skincare products.
JD.com proactively launched COVID-19 protective procedures. The company started to carry virus screening procedures on fresh produce. Also, it had to introduce contact-less delivery options. The workers – drivers, delivery staff, and warehouse workers – were regularly tested for the virus.
It recorded an increase in marketing expenditure by 21% during the second quarter of 2020 from previous results in 2019. The cost of general and administrative and research and development remained static.
Summing up, JD.com continues to look for more opportunities to meet consumers’ demands through innovation and creative ways. Luckily, the need for consumer goods in China continues to grow. The chance is high that JD.com will experience tremendous growth second quarter of 2021.