Jingdong Liu Qiangdong: If You Want To Succeed In Business, You Must Find The Way Of Differentiation.

According to the world clothing and shoe net, recently, the "2018 World retail conference" was held in Madrid, Spain. This year, the theme of "innovation winning" attracted more than 1400 people from around the world. Retail industry Executives and hundreds of media came from 70% of the top executives of the retail industry from Europe, of whom more than 300 were the world's largest. brand CEO of retailers and retailers.

This year's first participation in the world retail conference. JD.COM Liu Qiangdong, chairman and chief executive officer of the group's board of directors, is also considered by the global retail industry to be the most aware of China's retail market and the most innovative person in the retail industry. Therefore, Liu Qiangdong was also invited by the general assembly to accept the first dialogue at the opening ceremony.

　　 The following is a transcript of the live dialogue:

　　 Host: I am very glad to have a dialogue with you. This is the opening dialogue at the world retail conference this year. People say you are a very independent person. We want to know what the power of your embrace innovation is. Where did you get the power to innovate and challenge conventional rules?

　　 Liu Qiangdong: Actually, the purpose of my business at the beginning is not to change anything. I just bought drugs for my grandmother who was ill at that time. 20 years ago, the Chinese people were very poor. Our family had no money to buy medicine for her. When I graduated from college two years later, I felt deeply responsible for making more money to help my family.

Of course, without innovation, there is no way out. If you want to be very successful in business, you must find the way of differentiation. When I founded Jingdong, I only had 2000 dollars. I rented a 4 square meter counter in Zhongguancun, and spent nearly a month to observe what was happening in Zhongguancun in Beijing.

　　 Host: Jingdong has clearly made the difference. I can share some data. Last year, 292 million middle-class customers bought goods in Jingdong. In logistics, Jingdong can provide services for the 90% day orders and the next day. Jingdong's logistics network covers 99% of the Chinese population. Through innovation Jingdong did these things. What I want to ask is, how did you achieve success through differentiation?

　　 Liu Qiangdong: When we started to do business in 2004, I knew nothing about the Internet world. I had never used Internet related services before. I didn't even know what Amazon was. In 2003, SARS broke out in Beijing. In order to protect employees, I had to close all the stores. At that time, I was in my office every day trying to find a way out. One day, I suddenly thought that if we could not deal with customers face to face, then we could sell products on the Internet, so that our e-commerce business was born.

At that time, I spent a lot of time observing the Internet world, and found that the electricity supplier market was very chaotic, too many fake goods and prices were fraudulent, and the service was poor. I hope to change this situation. I think it is necessary for us to set up our own logistics system in China. Because the logistics conditions were too bad at that time, I could share a figure: at the end of 2007, we found that nearly 72% of the complaints came from the logistics service.

　　 Host: So you saw the failure and improved the customer complaint.

　　 Qiang Dong Liu Yes.

　　 Host When you embrace technology, what do you think is the biggest mistake a retailer has made now? Where is it missing?

　　 Qiang Dong Liu I think every retailer is changing now, because the whole world is changing rapidly. Every generation must be different from their parents. As long as you are stagnant, even if it is only a year, you will lose the game and you will be out. So every day we must consider tomorrow, every day must be innovative, and never stop.

　　 Host There are so many changes happening every day. It's hard to stay focused and formulate strategies. When you see so many changes, how do you keep the company focused?

　　 Qiang Dong Liu I think it's very simple to pay attention to consumers and to your customers. We have been doing this for more than a decade and will continue to do so in the future. We are experimenting with new technologies to bring more suppliers and higher user satisfaction to consumers, from unmanned warehouses to intelligent distribution robots, even to UAVs, driverless lorries and unmanned distribution stations. We are working hard to reduce costs and enhance user experience.

　　 Host In the retail industry, everyone is trying to reduce costs and enhance user experience. So what's the difference between you and Western retailers?

　　 Qiang Dong Liu I think China is changing so fast now. As long as you find any pain in what industry, it means opportunity. For example, the reason why we want to build our own logistics system is that there are too many industry problems. Finance, express and so on. China is very large, and what you have to do is to meet the needs of different consumer groups in different regions and cities.

　　 Host What can Western retailers learn from the rapid change of Chinese retailers now?

　　 Qiang Dong Liu When I was watching some movies or visiting small towns in Europe, I found that people there did not find much change in comparison with Chinese people. For example, I found a shop in a small town where shopkeepers worked there for decades, where everyone knew each other, everyone knew the shopkeeper, and for decades, people kept patronizing that store. But the Chinese do not like this model. They like the freshness. For example, a shop has been very successful now. Suddenly a new store opens, and the consumer will go to the new store instead of the old one.

　　 Naga Is the loyalty of users different?

　　 Qiang Dong Liu I think it's quite different. Chinese consumers have strict requirements for service experience such as delivery time limitation. About four years ago, I shoped on the Amazon website of the United States for two days. They called it two days' fast delivery service. If it is in China, I believe every consumer will be dissatisfied with it. They hope to get their own packages within 6 hours, not 2 days, and 2 days will be too long for them.

　　 Naga I think consumer feedback and interaction with you are also important to you. You must always listen to consumers' voice and respond to consumer feedback.

　　 Qiang Dong Liu Yes.

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