Liu Qiangdong established JD.com as a small enterprise in 1998 before expanding over the years, becoming a giant online store company. In June 1998, after unsuccessfully trying several hands-on ventures, Liu Qiangdong opened Jingdong stores to sell magneto-optical products. The business picked successfully and in five years. Liu opened twelve branches for the store, expanding the company’s activities to other regions, including Beijing, Shanghai, and Sheyang by 2003. The enterprise posted a significant increase in sales with its annual revenues totaling $9 million.
In 2004 Liu Oiangdong embraced the latest technologies of the day to create JD.com as an online company that facilitated the provision of goods and services. The business took the steps in response to the increasing need for e-commerce. One of the company’s most significant recognitions is making it to the NASDAQ list of public companies in 2014. Since its establishment, Qiangdong has served as the company’s chairperson and chief executive officer. His approach of emphasizing the essence of customer care services has seen the company amassing several clients to its portfolio. His commitment and the services that the company offers influence clients positively giving them a reason to bank on its services.
E-Space is the future of tier cities.
In recent times, JD.com made clear its plans to launch E-space experience stories in the first-tier cities by the year 2025. While making an official statement on 12th August about the anticipated technology, the company’s senior vice president and JD Electronics and Home Appliances president said the technology would be a reality by 2025. During the announcement, JD.com was holding a press conference to celebrate its official acquisition of 5Star, a chain store dealing in-home appliance. Liu Qiangdong’s company sealed the deal by acquiring 5Star’s 54% equity to add to its previous stake of 46%. The move saw 5Star becoming JD.com’s subsidiary business.
Yan Xiaobing, JD’s vice president, said that the company is planning to open at least 300 hundred flagship stores dealing in home appliances within the prefectural-level cities following a one-city-one-store basis. Yan also added that JD anticipates opening at least 5000 stores in across other towns and villages by 2025. JD’s 20 E-space stores will occupy varying sizes ranging from 50,000 to 100,000sq feet. The E-space idea which made its debuts in November 2019 allows consumers to try many virtually in the stores and provide experiences such as driving-go karts, and taking cooking classes or spinning washing machines using real clothes.
JD’s move to acquire 5Star will play a crucial role in the optimizing, and improving the company’s supply of electronic and home appliances. 5Star will operate independently after being rebranded JD 5STAR Group. The subsidiary brand will undergo a gradual digital upgrade and function as a service center for customer experience and product demonstration.
5Star was founded in 1998, and it has grown over the years to become China’s third-largest supplier of home appliances with annual revenues of over 18 billion Yuan. The leading enterprises in the supply of home appliances are Gome and Suning. 5Star has over 1000 stores across China. 5Star stores have integrated offline and online products to give clients a choice variety. The new company’s president Pan Yiqing noted that 40% of 5Star’s sales come from online traffic, making it a significant factor in realizing Liu Qiangdong’s E-space quest.
The Covid-19 has immensely impacted the electronic and home appliance industry. JD’s move to acquire 5Star will help the company to boost its supply of electronics and transform its serves in the industry. Technology is an integral part of E-commerce, and JD.com is keen on utilizing tools of technology to ensure that it dominates the market.