The Story Of Liu Qiangdong Who Transformed An Electronics Retail Shop Into A Multi-billion Dollar E-commerce Empire

Richard Liu Giangdong is among the most popular names in the world of e-commerce. He is popularly known as the founder and former CEO of JD.com, the second-largest e-commerce player in China after Alibaba.

Often referred to as the “Jeff Bezos of China,” Liu managed to create a company that provides local and global product brands to consumers in China through the internet.

Many compare JD.com to the Amazon of China. Behind all the success of Liu Qiangdong lies a story of sacrifice and resilience.

From his impoverished background, no one would have thought that Liu would be among the Chinese billionaires of this century. Luckily, he did not let the hardships he experienced squash his dreams.

Keep reading to learn more about Liu Qangdong’s story and what inspired him to rise above the ashes to become as successful as he is today.

He Came From Humble Beginnings

Born in 1973, in a small arid coal village south of Beijing, Richard Liu Qiangdong was raised in poverty by coal-shipping parents.

During one of his interviews, he describes how he only ate sweet potatoes and corn throughout the year and only tasted pork twice every year after his grandmother visited the local co-op and gave the seller peanuts in exchange for the fattest cut available.

It is important to note that Liu’s family was not always poor. They were ship owners who transported products throughout China. They lost everything and were forcefully resettled within the country at least twice.

Despite all these hardships, Liu’s parents and grandmother never failed to teach him how to treat and act around others. They also taught him that everything could change within a short period, and setbacks are inevitable in life.

Recognizing the Value of Education at a Young Age

Because of his low-income family background, Liu Qiangdong always believed that education would save him and his family and put them in a better societal position. He believed education would help him broaden his horizons and provide him with credible opportunities to advance in life.

Even though his family was poor, he completed his school years and went to one of the best universities, People’s University, in China.

It is documented that although transport to the capital was very expensive ($75), especially for those who survived farming, his family and friends from their hometown made contributions in the form of money and eggs to ensure he could achieve his education goals.

The Onset of an Innovative Idea: JD.com

While studying Sociology at the University, Liu was always looking for opportunities to challenge and develop himself. Despite the rigorous curriculum in the school, he managed to get a job to sustain himself while studying. His first job was writing letters by hand for companies that did not have the financial capacity to buy a photocopy machine.

He also learned coding, computer programming, and other internet-related topics when e-commerce was developing. At the time, numerous market reforms in China promoted capitalism. Thus, as one of the few computer engineers on the market then, he made a lot of money to sustain himself and his family.

He bought himself a computer and mobile phone and built his family a new home. He even tried to launch a restaurant near his University, but the venture eventually failed due to a lack of management experience and dishonest employees.

Liu graduated from the University with a BA in Sociology and started working at Japan Life, a giant herbal supplement brand. He proceeded with his education by acquiring an Executive Master of Business

Administration (EMBA) at China Europe International Business School within two years.

During this time, he also rose in ranks at his job to become the director of computers and service.

He was still intrigued about starting his own business. In 1998, he purchased a booth at the spacious technological bazaars in Zhongguancun, where he sold genuine magneto-optical products, which were rare in that market. He immediately stood out as a reputable vendor, increasing his client base.

Within five years of operating his stall, he developed it into a network of 12 brick-and-mortar outlets carrying a wide range of gadgets. Qiangdong’s business was extremely profitable and would have probably remained on this conventional retail business plan if not for what occurred afterward.

The SARS pandemic struck China in the early months of 2003, and the streets of Beijing were quickly empty as people sought refuge in their houses to avoid contracting the infection.

Qiangdong, like many other companies at the time, shut all of its storefronts but had a few trusted employees who started putting their products on internet bulletin boards. Once the epidemic passed and he restarted business operations in his shop, he began recognizing the expanding market share of e-commerce.

Consequently, he decided to retain one of his employees to continue posting products on the internet bulletin boards. By the close of that year, he had crunched the figures and decided to close his retail outlets and begin online operations indefinitely. Thus, the birth of JD.com, originally known as 360buy.com, was in 2004.

He Made Sacrifices to Ensure the Business was Successful