Not all business ventures start out the way that we want them to. Richard Liu Qiangdong is no difference. His original business venture was a restaurant as a sociology student for Renmin University in China. He had saved up a lot of money from his tutoring jobs and various other business endeavors. He believed that he could use that money to fund a restaurant. Unfortunately, while he did have the startup funds, he was not able to put in the amount of time that is necessary to grow a business like this. Restaurants are notoriously difficult to get up off of the ground. The amount of money that they make is very thin on the margins and it takes an involved manager to make a profit.
This is one of the stories that Richard Liu Qiangdong tells Weforum in a recent interview with David Rubenstein entitled “An Insight, An Idea”. He looks back at this time with thought, believing that it set him up to be successful with JD.com in the future. Some years later after he had graduated from college, Richard Liu decided to try again.
Over the years he had worked for a variety of companies that taught him a lot about what he wanted out of his own business. In 1998 he opened Jingdong Mall. Jingdong Mall would eventually be the online retail company JD.com. In 2005 he was forced to move the small electronics business online because of low sales due to a recent outbreak in SARS. Moving the store online would prove to be the smartest decision he could make.
Currently, JD.com is regarded as a massive retailer for China. Chinese citizens go on to the website every single day to order necessities and trust them to deliver those items very quickly. In fact, during the interview Richard Liu explains that JD.com has a very quick turnaround when it comes to their delivery. See This Page for more information.
In a lot of cases, they can get items to customers in as little as two hours. It is staggering how quickly they have streamlined the process and Richard Liu Qiangdong believes he can go on a global scale. Only time will tell how successful he will be in this new arena.