Online retailers often perform better than
brick-and-mortar competitors. Not every online retailer, however, delivers the
necessary sales figure to generate profits. Massive competition exists for
online shoppers. JD.com recently proved the company connects strongly with
global consumers. The company gave a great Q1 earnings forecast. The numbers
shattered previous estimates revealing a stable foreseeable future.
Another positive development comes out of the
incredible forecast. The retailer and Tencent reached a contractual agreement
to renew the former's platform. With a reliable platform, JD can continue to
provide customers the expected quality service. Tencent finds the deal
lucrative. JD agrees to pay Tencent $800 million over three years.
JD.com also gains the benefit of backing from
Walmart and Alphabet. Walmart, of course, is a retail giant dominating sales in
many parts of the globe. In the United States, Walmart remains a popular
fixture among loyal customers. Alphabet is the parent company of Google.
Backing from Alphabet increases the chances JD maintains a robust online
presence.
JD's growth allows the e-commerce platform to tap
into the lucrative Chinese market. The company's increase in stock price
reveals consumers appear enthusiastic about ordering from the platform. At one
point, the rise in share value topped 52%.
The volume of people who visit the e-commerce
site is incredible. Roughly 1.1 billion people land on the site each month. If
only a small fraction of the number makes a purchase, the company sees
tremendous cash flow. So far, indicators suggest the e-commerce site is doing
better than anyone anticipated.
Richard Liu, also known as Liu Quingdong, founded the company and serves as its Chief Executive Officer. His
comments about the entity's success suggest he believes customer service plays
a significant role in its success. Liu Quingdong stated that the "customer
experience" delivered by the company supports continued patronage.
Ultimately, the success or failure of a retail
business comes down to how happy customers are. If they feel the retailer
provides reasonable prices, fast shipping, and quality products, the customers
continue to return. At JD, there's an understanding not to shy away from these
basics. Overall, the company's commitment to offering the perfect customer
experience allowed it to grow.
Since JD.com exists as an
online retailer, a reliance on cutting-edge technology exists. Richard Liu made
sure to point out the company invests heavily in operations-supporting
technology. Liu noted substantial investments in "key technology" support
the platform's reliable services. Aged, outdated technology undermines customer
experience. The e-commerce giant can't afford to harm its goodwill with
customers by not integrating the best technology in its platform.
Liu also points out that personnel plays a vital
role in the company's achievements. The company intends to continue hiring the
top talent capable of driving further success. Thanks to billions of dollars in
revenue and increased stock valuation, JD won't likely have difficulty paying the
salaries demanded of the best of the best.
The JD company under the leadership of Richard
Liu should continue to experience growth. In time, the company may set
standards for global leadership in e-commerce.
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