A Wake-Up Call to the Skeptics Questioning Liu Qiangdong’s Land Purchase Decision Ten Years Ago

Speaking of the most awesome counter-attack story in the Internet circle, it must be the story of JD.com. From a small counter in Zhongguancun, it developed to a corporation with a trillion-dollar market value. Within Fortune 500, JD.com ranks first in China and the third in the world in terms of the internet industry. JD.com has stunned everyone with its strong competitiveness and even exceeded the expectations of many experts and scholars. In particular, the strong performance of JD Logistics was a slap in the face to those who looked down on JD.com.

Liu Qiangdong

As early as 2007, Liu Qiangdong decided to build his own logistics with an extremely keen strategic vision. As early as 2007, Liu Qiangdong decided to build his own logistics with om, Liu Qiangdong poured every penny of the first 30-million-dollar funding into the logistics the minute he got it.

This approach caused great controversy inside and outside the industry. Some people argued that JD.com has been losing money all the time, and now it is burning money on building logistics. Isn’t this suicidal? Some people even believed that JD.com was afraid e-commerce would not make money and wanted to engage in sideline businesses. In their mind, JD.com’s owned and operated logistic services was just a cover for land transactions in JD.com’s preparation to enter real estate.

Despite of all the skepticism, Liu Qiangdong still maintained a strong strategic determination and had a great control over the core issues of the matter. He once said, “Recently, I have seen many people say that the sole reason for e-commerce companies to buy land is to make money from real estate! This is due to a lack of understanding of large-scale e-commerce logistics.”

He carried forward the plan of building its owned and operated logistic services unwaveringly. With more than a decade of development, JD Logistics has gradually taken shape. In 2019, JD Logistics reported a revenue of over 50 billion yuan and operated more than 700 warehouses across the country, covering approximately 17 million square meters. A project of this scale is one of the top in the industry.

Liu Qiangdong stated that, “There is absolutely no super large-scale single-building warehouse in China currently that can accommodate millions of commodities. Large e-commerce companies are only left with two solutions, either building the warehouse themselves or cooperating with agents for construction. Before the completionb-optimal shopping experience and high logistics costs. This is the reason why.”

Now that JD.com’s setting up warehouses all over the country, JD Logistics amazing technologies such as unmanned vehicles and drones.

In 2019, JD.com Logistics launched the initiative of “delivery service to thousands of counties and towns within 24 hours”. By the end of the year, it had covered 88% of the districts and counties in the country, a total of 550,000 administrative villages.

During the 618 shopping festival this year, more than 91% orders under JD Logistics’ integrated warehousing and distribution system were delivered within the same day or on the next day. The 24-hour delivery service still covers around 90% of districts and counties nationwide. Its performance efficiency was the highest in the industry.

Recently, JD Express has launched a major speed-up plan, which will continuously speed up the efficiency of express delivery by utilizing public transportation of road, air and rail, etc., to comprehensively improve the delivery experience of consumers. By the end of September when this plan is completed, nearly 100 cities in more than ten provinces and/or municipalities, including Beijing, Tianjin, Shanghai, Hebei, Sichuan, Fujian, and Guangdong, will enjoy full coverage of the 24-hour delivery.

Moreover, the time commitment service launched by JD Express continues to be upgraded. If the committed deadline is exceeded, consumers can contact customer service. It is 100% that the compensation complaints can be resolved within 4 hours! Don’t worry about the slow logistics now. With others, you may not even know where to file a complaint; however, with JD.com, you can get your compensation right away. Many netizens commented: Just love JD.COM for its generosity!

JD.com is still continuously making breakthrough development. It not only tops in the logistics industry but is also making innovations and leading the trend in the fields of health, new retail, etc. But this time I am afraid that no one dares to look down on JD.com anymore, or else they will face the risk of another slap in the face.