JD Founder Acknowledges: In a candid internal forum, JD.com’s founder, Richard Liu, addressed concerns raised by an employee about the e-commerce giant’s inefficiencies and challenges in the face of intensifying competition. Responding to a lengthy post by an unidentified staff member criticizing JD’s complex promotion mechanism and haphazard low-price strategy, Liu admitted to shortcomings, attributing them to “poor management.” He acknowledged the company’s size, stating it is “huge, bloated, and inefficient,” emphasizing the need for change.
Liu’s response underscores a commitment to addressing internal issues and fostering collaboration within the company. He urged employees to join him in the process of transforming JD.com, acknowledging that change will take time. A JD spokesperson described the exchange as a routine demonstration of management’s confidence and the team’s commitment to overcoming challenges.
This development comes on the heels of a similar incident at Alibaba, where co-founder Jack Ma responded to an employee post urging the company to reform amid heightened competition. Both JD.com and Alibaba have faced increased rivalry from lower-priced competitors like Pinduoduo and Douyin, impacting their market positions.
JD.com has been particularly affected, with its share price declining by 50% this year, in contrast to Pinduoduo’s 75% gain. Alibaba, undergoing a significant restructuring, has experienced a 70% loss in share value since a regulatory crackdown in late 2020. The responses from both Liu and Ma reflect a recognition of the evolving dynamics in the Chinese e-commerce landscape and a commitment to adapt to changing market conditions.
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Our Reader’s Queries
Who is the owner of Jingdong?
Meet Liu Qiangdong, a Chinese Internet entrepreneur who founded Jingdong in 1998 as a retail store for magneto-optical products. In 2004, he transformed the business into an e-commerce website known as JD.com. With his visionary leadership, JD.com has become a leading online retailer in China, offering a wide range of products and services to millions of customers. Liu’s entrepreneurial spirit and commitment to innovation have earned him numerous accolades and recognition in the industry.
What does JD stand for in JD com?
Jingdong, or JD.com, made its debut in the e-commerce industry back in 2004. It was a significant milestone for China as JD.com became the first major e-commerce company from the country to be listed on NASDAQ in May 2014. Recently, in June 2020, JD.com accomplished yet another feat by completing its secondary listing on the Hong Kong Stock Exchange (HKEx).
What is JD com’s net worth?
As of January 5, 2024, JD.com’s net worth or market cap stands at $36.36 billion. However, it’s worth noting that the company’s market cap has taken a hit, decreasing by -58.64% over the course of a year.
When was JD com founded?
Based in Beijing, JD.com is the second largest e-commerce company in China, trailing only the Alibaba Group Holding. Established in 1998, JD.com has been a major player in the Chinese market for over two decades.