The founder of JD.com, Liu Qiangdong is stepping back from his role as head of day-to-day operations for the Chinese e-commerce giant. However, he will remain extremely active with JD and retain the titles of CEO and Board Chairman.
Xu Lei is taking over for Liu Qiangdong as the principal administrator of JD’s daily operations and collaborative business unit development. JD has created a new President position for Mr. Lei, who previously served the company as CEO of JD Retail.
After leading JD to its role as one of the largest e-commerce companies in China, Liu Qiangdong is pleased to leave its day-to-day operations in the capable hands of Xu Lei. This will allow Mr. Qiangdong to spend more time formulating and implementing JDs long-term e-commerce growth strategies. According to an official statement from JD, he will also focus on mentoring younger members of the management team and “contributing to the revitalization of rural areas.”
Making a statement of his own, Liu Qiangdong said “Looking to the future, the correct long-term strategic design, the growth and development of young talents, and the healthy and coordinated development of various business units will continue to be the driving force for JD in doing the hardest and most challenging, but right and most valuable things for the industry.”
Born into a family of peasant farmers in the tiny village of Chang’an, Liu Qiangdong endured great poverty as a young child. He was able to taste meat only once or twice a year and would often dream of being wealthy enough to buy pork for everyone in Chang’an.
A dedicated student, Liu Qiangdong ultimately passed the arduous entrance exams for the People’s University of China in Beijing but had to rely on funds collected from his family, friends, and neighbors in order to raise the roughly $75 he needed to travel there by train.
While completing sociology coursework at the People’s University of China, he participated in significant extracurricular technology studies and training in areas that ranged from computer coding to general internet development with a focus on the e-commerce landscape. After securing his Bachelor of Arts in sociology, he attended the China Europe International Business School to earn his Master of Business Administration.
Liu Qiangdong subsequently found employment with the herbal supplement giant Japan Life, rising quickly through its ranks to become its Director of Computers and Service. Bolstered by this success with Japan Life, he decided to enter the retail sector with a modest entrepreneurial venture.
Unfortunately, Liu Qiangdong’s first foray into the retail space fell prey to China’s widespread SARS epidemic and his small tech goods shop struggled to stay in business. However, this experience showed him the way to a better business model, one that would allow his client to buy his products from the safety and comfort of their own homes.
Liu Qiangdong closed his brick-and-mortar retail space and switched to an e-commerce sales platform that would ultimately evolve into JD.com. Under his leadership, JD refined and optimized this platform using advanced technology, concentrating on providing a seamless customer experience and building lasting consumer relationships. Among its other innovative offerings, JD was among the first to ensure same-day or next-day delivery.
Expanding rapidly into areas that range from health and logistics, JD has become the third-largest internet company in the world in terms of overall revenue. Today, it serves a customer base that exceeds a billion people. Over the course of its exceptional journey, JD has benefited immensely from Liu Qiangdong’s commitment to outstanding customer service and positive business impact.
Liu Qiangdong’s recent decision to step back from the oversight of JD’s daily operations comes on the heels of similar moves by the founders of other Chinese technology giants, such as Alibaba and ByteDance, who have transitioned to assume long-term strategic roles.
Offering further insight into his recent administrative shift, Liu Qiangdong expressed extreme confidence in JD’s new president and other senior executives. “JD has a sound management structure with a large number of excellent business leaders, who, represented by Mr. Lei Xu, have a strong belief in JD’s long-term business philosophy, proven leadership capability, and extensive industry experience,” he said.
Liu Qiangdong’s choice to step back precipitated two other significant changes in JD leadership. Former JD Health CEO Xin Lijun is becoming CEO of JD Retail, the position that new president Lei Xu left behind. JD marketplace business leader Jin Enlin will replace Xin Lijun as CEO of JD Health.
In addition to retaining his titles as CEO and Board Chairman, Liu Qiangdong still owns approximately 80 percent of JD’s voting rights.