As the founder and CEO of e-commerce giant JD.com, Richard Liu has shared a wealth of knowledge and insights into his business philosophy and personal journey. His words offer valuable lessons on entrepreneurship, leadership, and the unwavering pursuit of success.
On Vision and Long-Term Strategy
- "If you truly want to succeed, do not fear, do not be confused. All you need is to keep moving forward and upward every day, never stopping." - From a speech at the Saïd Business School, University of Oxford.[1]
- "We should always have 'high aims and dreams.' If we keep this motto in our hearts, we won't be bothered by trivial matters." - As quoted in Pandaily.[2]
- "When faced with the uncertainty of the future, we retain a sense of awe — but we will always think and act as though we are experiencing day one." - From JD.com's 2021 Environmental, Social, and Governance Report.[2]
- "My whole life has revolved around the supply chain." - Emphasizing his consistent focus on logistics and supply chain as the core of his business.[3]
- "It's critical to know 'who we are'. Only by knowing it can our company locate the anchor of value..." - From a statement on JD.com's Employee Appreciation Day.[2]
- A key learning from Liu's career is the importance of a long-term vision over short-term profits. This is demonstrated by his significant and early investment in building JD.com's in-house logistics network, a move that was initially costly but became a major competitive advantage.[4]
- "The company no longer belongs to any one person." - Highlighting the importance of building a sustainable and independent organization.[3]
- Liu's global expansion strategy for JD.com involves a three-step process: first, bringing international products to China; second, expanding to Southeast Asia; and third, entering the European and American markets.[5]
On Customer Experience
- A foundational principle for Liu is an unwavering focus on the customer. He believes in not just meeting but anticipating customer needs to foster loyalty and drive growth.[4]
- "Delivering to consumers with experiences that delight and amaze continues to be a primary focus throughout the company." - A core tenet of JD.com's customer-centric approach.[6]
- One of Liu's key strategies was to guarantee the authenticity of products, which helped build consumer trust in an online market where counterfeit goods were a significant concern.[4]
- To ensure the best user experience, Liu believes you have to be very strict with every part of the system and every employee.[7]
- Liu's decision to bring logistics in-house was driven by a desire to improve the customer experience, as a majority of early customer complaints were related to delivery services.
On Business Strategy and Innovation
- "Opportunities for success come from observing the industry; the more problems an industry has, the more opportunities there are for success, and the more one should courageously invest in it." - From his speech at the University of Oxford.[1]
- "E-business and traditional retailers cater to different consumer groups. Our customers are mainly young people familiar with the Internet and open to online commerce..." - Highlighting his understanding of market segmentation.[8]
- A crucial lesson from Liu's journey is the ability to turn crises into opportunities. The SARS outbreak in 2003, which devastated his physical stores, became the catalyst for his successful pivot to e-commerce.[9][10]
- Vertical integration is a key component of JD.com's strategy. By controlling its own logistics and supply chain, the company has created a significant competitive advantage.[11]
- Liu's "35-Cents Theory" dictates that for every $1 of profit, 30 cents should go to business partners, 35 cents to employees, and 35 cents to the company's future growth.[6]
- Innovation at JD.com, according to Liu, means rebuilding the supply chain.[3]
- Liu believes in deepening the company's presence along the supply chain as the core logic for expansion into new business areas.[3]
- He has emphasized getting back to the basics of low prices and quality service to win over consumers.[12]
On Leadership and Management
- A valuable lesson from his father and grandfather: "If you have the opportunity to make a profit of 1 yuan, don't do it. Keep 30 cents for your partners or employees. This will bring you even more chances and you can make money in the long run." - A principle of sharing wealth to ensure long-term success.[7][13]
- "I want to make everything simple. So I'm a very simple boss." He also notes that "simple is also very demanding."[7]
- Liu maintains a flat organizational structure at JD.com, with a rule of having only five layers of management for up to two million employees.[3]
- "Being an entrepreneur is very lonely." - Acknowledging the personal challenges of entrepreneurship.[14]
- He believes in leading by example, famously working as a delivery man once a year to stay connected to customers and the frontline of his business.[7]
- "When you start a company, what you do is not only about personal satisfaction and wealth. More importantly, you are able to help countless people." - Highlighting the social responsibility of entrepreneurship.[1]
- He has taken a strong stance against underperformance, stating that the company "will not tolerate" employees who underperform and don't work hard.[15]
- At the same time, he has assured that average performers who work hard will not be fired.[15]
- Liu has expressed that profit has never been the top priority for JD.com, emphasizing the importance of paying employees well and providing social benefits.[3]
On Perseverance and Learning from Failure
- Liu's first entrepreneurial venture, a restaurant, failed due to mismanagement and employee theft. This taught him a crucial lesson: the failure was his own fault for not establishing proper management structures and financial systems.[9][16]
- He believes in learning from mistakes and not getting discouraged.[13]
- His journey from a poor village to becoming a top CEO is a testament to his ambition and resilience.[11]
- Liu's willingness to take calculated risks, even when it meant going against the advice of investors, was crucial to JD.com's growth.
- The SARS crisis, which could have ended his business, demonstrated his ability to adapt and find new paths to success.[9]
On Technology and Logistics
- Liu's early fascination with technology and his decision to teach himself computer programming in college were instrumental to his later success in e-commerce.[10][11]
- He recognized early on that a robust and reliable logistics network would be a key differentiator in the e-commerce market.[4]
- JD.com has heavily invested in technologies like artificial intelligence, big data, and autonomous delivery drones to enhance its operations and customer experience.[4]
- The company's focus on a smart supply chain includes leveraging the Internet of Things, data science, and robotics.[6]
- By building its own logistics, JD.com was able to offer faster and more reliable delivery, which became a significant competitive advantage.[4]
On Personal Work Ethic and Values
- "I want to achieve my target by integrity." Liu has emphasized his desire to make money in a legal and transparent way, setting an example for the younger generation of entrepreneurs.[7]
- He is known for his hardworking nature, stating, "for me hardworking is a fun is I'm very enjoy it." He has mentioned working 16-hour days.[7]
- Social responsibility is a key aspect of his business leadership. This is reflected in his philanthropic efforts and the establishment of the Liu Qiangdong Charity Foundation.[4]
- His upbringing in a poor village instilled in him a strong work ethic and the determination to succeed.[17]
- He emphasizes the importance of staying true to one's principles in serving the consumer as a key to success.[13]
On Entrepreneurship
- "Don't worry about failure; you only have to be right once." - A motivational quote for aspiring entrepreneurs.[8]
- He advises entrepreneurs to build a knowledge base of the market to identify future trends.[14]
- He believes that timing is a critical factor in the success of a venture.[14]
- For Liu, the most important factor for success is people – betting on the right entrepreneurs who are great leaders.[14]
- He encourages entrepreneurs to get their hands dirty and not lose touch with the reality of their business operations.[13]
- "Our entry into food delivery is not diversification for its own sake. Every single business we operate is designed to support the supply chain." - Illustrating his focused approach to business expansion.[3]
- Liu's story underscores the importance of being adaptable and willing to pivot your business model in response to changing market conditions.[10]
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