JD.com is an e-commerce business enterprise based in China. Its founder is Liu Qiangdong, who initially began his entrepreneurship journey in the hospitality sector, including working in restaurants. The hospitality sector was not thriving as he wished, leading him to invest in other businesses, such as selling computers and accessories. Previously, he operated in a brick-and-mortar location, but due to changing events, he changed his strategy and started transacting through e-commerce, which acted as the birth of JD.com.
From its humble beginnings, JD.com grew to become among the largest e-commerce companies globally. Besides founding it, Liu Qiangdong acts as its chief executive officer. He leads it using his innate abilities and knowledge acquired in various lines of business towards achieving its objective. While opening it, Liu aimed to ensure customers are satisfied with the services they receive and ensure that the company benefits everybody that associates with it.
JD.com has its subsidiary company known as JD.ID. The subsidiary operates in Indonesia and is currently finding the best alternatives for conducting e-commerce as more people appreciate this business trend. The e-commerce conversion is significant during these unprecedented times of COVID-19, affecting people’s social lives and movements. Since the onset of the virus, governments have passed laws restricting people from moving freely and holding social events. It’s common to find friends and family members socializing while they conduct shopping and do business, but government restrictions discourage such behaviors, leading to a boost in Indonesia’s e-commerce industry.
The business culture in Indonesia is different from that in China. Chinese are dynamic and adaptive to changes fast, whereas Indonesians are more restrained in adapting to new changes. Even before the onset of COVID-19, the Chinese had already adapted to conducting business online, which means that the prerequisite infrastructure for e-commerce is already in place. It’s different from Indonesia, where people like having business interactions, making it difficult to switch to online business except when conditions force them to do it.
When the pandemic forced JD.ID to operate e-commerce in Indonesia, the country’s business culture and people’s habits made it difficult, including the infrastructure available for e-commerce. For instance, the country only allowed e-commerce firms to list a single location in their online platform, making it difficult for customers to access any deliveries and pick-ups, like in Carrefour supermarket. Such a restricted infrastructure was quite disadvantageous to customers and businesses.
Being among the largest e-commerce companies globally, JD.com introduced nearby shops in Indonesia, making it easy for customers to access the products and services they need. This new feature benefits customers and business owners who can access customers within their shops’ locations. However, this concept is only operational in Jakarta, but there are expansion plans to access other cities and towns within Indonesia.
Despite the pandemic, Indonesia’s main shopping is conducted offline. Therefore, JD.com realizes the need to integrate its online and offline business, enabling it to optimize business and maintain the two types of customers. Using its subsidiary company in Indonesia, JD.ID realized the need to digitize business could not be used to abandon offline stores; there’s a significant need to blend the two, leading it to develop an Omni-channel service. The Omni-channel service aligns with its core vision and objectives, making it the best strategy to achieve positive outcomes.