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Factors behind the growth and expansion of JD.com

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Chinese ecommerce industry is taking the world by storm. The Asian country is known for its large population, which stands as the highest in the world. China, with such a large population presents a perfect consumer market for companies selling various products and services. Moreover, most of the people in the country are literate and prefer to buy various products on their mobile devices and personal computers. One of the leading retail outlets in the industry is JD.com. The company is currently competing with other entities using the same platform to sell various products and services. However, there are several factors that have helped Jingdong to penetrate the market.

Corporate partnerships

Apparently, the Richard Liu ecommerce entity has been leveraging on the partnerships formed with other global brands to market itself as the leading retail outlet in China. The company has a partnership with Walmart that saw the American-based entity pay $500 million to the Chinese company with the sole aim of revamping JD-Diojia, which is a branch that specialises in selling groceries through the online platform.

The second partnership sees the Chinese ecommerce company collaborate with Google for technical support and strategic investment purposes. Google invested $550 million in JD.com operations as a strategic investment decision. On the other hand, the Asian based entity will be able to use Google as a service platform to market its products to the American market. This is a strategic decision that sees the two companies benefit from their collaboration.

Customer-centered services

Richard Liu has specifically specialised on ensuring that the company provides quality services to its customers. Most of the online companies have previously been accused of poor quality services and counterfeit products. Richard Liu changed this perception by ensuring that all the customers can access quality products, which has significantly played a key role in eliminating counterfeit electronic devices in the Chinese market.

Quality services have also been incorporated into the company’s long term decisions of improving the perception of the customers towards the company and the online retail industry. Liu had realised that most of the customers in the third and fourth tier cities were not being served by the ecommerce companies. This enabled JD.com to change its operations and channel them to all the individuals regardless of their social status and income capability.

Technology incorporation

Technology incorporation is another feature that is essential for the success of the company operating through the online platform. Jingdong has been using technology as one of the key foundational factors that will help it to overcome the competition. One of the strategies and technology that has been incorporated by the company is the use of drone technology in delivery of orders. This technology has enabled the company to be able to deliver some of its orders on the same day while others are delivered on the next-day guaranteed policy. This has reduced the wait time and frustrations that most of the customers had to suffer while waiting for their orders to be delivered.

Corporate social responsibility

Every company needs to play a critical role in enhancing the welfare of the community. JD.com has been playing a vital role in eliminating environmental pollution. The company is using specialised automobiles that don’t release harmful gases into the atmosphere. At a time when environmental pollution is an issue of concern to many governments, the company is incorporating one of the most strategic and important policies that should be adopted by other companies. The use of drones to deliver orders in various parts of the country has also played a vital role in minimising traffic on the roads, which is one of the most concerning aspects in China.




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