JD.com's boss urges employees to buckle up after facing hardships
JD.com boss, Liu Qiangdong, of the major Chinese online shopping platform, warned his workers that the company is grappling with major issues and must work hard to overcome them or face dire consequences. "It can be said that each pain point of the company is a real problem that needs to be changed," Liu stated.
Liu's remarks come weeks after Alibaba's co-founder Jack Ma called for changes at Alibaba due to Pinduoduo's (PDD) outperformance, the online retail giant behind Pinduoduo and Temu, the US-based subsidiary of the Temu group. This has stirred up emotions.
In a post on JD.com's internal forum on Saturday, Liu responded to a worker's comment highlighting various problems facing the company, such as inefficient marketing efforts and poor support for merchants on the platform.
LatePost, a Chinese news agency, reported the comments. A JD.com representative confirmed to CNN the authenticity of the report, including Liu's comments, and requested anonymity due to the private nature of the information.
"Every pain point of the company is a real problem that needs to be changed," Liu stated.
"Certainly, many problems were caused by my poor management, and I blame myself heavily for it," Liu wrote, expressing self-criticism.
He urged employees to "not lay flat," a colloquial Chinese term for refusing to work hard and embracing a laid-back lifestyle, instead emphasizing the importance of staying active and driving change.
"The organization is large, bloated, and inefficient, and change takes time," Liu wrote, emphasizing that the company's foundation remains solid.
Liu thanked the worker he calls "brother" for his comments.
"I believe we will pull ourselves out of the deep. Individuals and companies go through many ups and downs to achieve great things. Let's work together to make it happen!" Liu concluded.
"This is a routine exchange that reflects the trust of our management and the cooperative spirit of the entire team in solving problems and overcoming challenges," a JD.com spokesperson said in a statement on Tuesday.
Competition intensifies
Just last month, Jack Ma in a post on Alibaba's internal forum responded to worker comments about Pinduoduo's soaring stock price.
In the post, Ma expressed his gratitude to PDD for its success and encouraged workers to share constructive analyses and suggestions to weather the intense competition.
Both companies have faced challenges this year as they grapple with the rapid growth of Pinduoduo, which has seen its sales and profits skyrocket.
Pinduoduo's shares have surged this year by 75 %. In the previous month, its market capitalization surpassed that of Alibaba for the first time, with JD.com trailing far behind.
The Hurun Research Institute ranked PDD founder Huang Colin as the fastest-rising individual on its annual rich list. Huang moved up seven places this year to become the third-richest person in China with an estimated net worth of 37.2 billion US dollars.
JD.com, however, has experienced drops in its share price.
"Consumers are increasingly demanding a good price-to-value ratio, which is not one of JD.com's strengths," Chelsey Tam, a leading stock analyst at Morningstar, wrote in a report in November.
Enrichment Insights:
Liu Qiangdong's leadership has been marked by strategic initiatives and key principles, such as:
- Development of logistics infrastructure: JD.com has invested heavily in creating a comprehensive network of warehouses and distribution centers for swift and efficient deliveries.
- Embracing technological advancements: The company has focused on integrating advanced technologies like AI, big data, and cloud computing across its operations, aiming to enhance efficiency and service.
- Customer-centric approach: Liu accentuated the value of catering to customer demands for convenience, reliability, and trust, which helped build a loyal client base and uphold high review scores.
- Overseas expansion: JD.com has expanded its market in regions like Australia to diversify revenue sources and expand its market share.
- Innovation in services: The company has introduced new offerings like JD Takeaway, integrating food delivery into its e-commerce platform, to provide a seamless shopping and dining experience utilizing its solid logistics capabilities.
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Facing intense competition in the Chinese business and technology sector, JD.com, led by Liu Qiangdong, takes on the challenge of addressing complex problems, such as improving marketing efforts and bolstering support for merchants, to secure its market share. Overall structure and organization issues have left JD.com and its employees grappling with inefficiencies, according to Liu.
