The billionaire founder of the Chinese online shopping giant has recently called for a change at his company, after he recognised his own \u201cmismanagement\u201d of JD.com. The chairman of JD.com, Richard Liu, told employees that the Beijing-based firm is dealing with serious issues and unless they fix them they \u201cwill have no way out.\u201d<\/p>\n\n\n\n
Liu\u2019s comments echoed those of his rival Jack Ma, who weeks earlier had called for change at Alibaba, as the amazing performance of their competitor PDD (PDD) created concerns.<\/p>\n\n\n\n PDD is shaking up China\u2019s big tech firms as is the group behind Chinese online shopping giant Pinduoduo and fast-growing US-based retail upstart Temu. PDD saw its market value skyrocket to $188 billion after reporting a doubling in revenue year-over-year, and it isn\u2019t even as close at its all-time high recorded in early 2021. On the other hand, top names such as Alibaba are losing ground in recent times.<\/p>\n\n\n\n Last month, Ma congratulated PDD\u2019s stock rally after an employee comment in an internal Alibaba forum. Ma\u2019s post called his employees to share \u201cmore constructive comments and suggestions\u201d as it is also a big competitor of JD.com, which has been the second biggest e-commerce firm in China behind Alibaba. Both JD.com and Alibaba have seen their firms come under threat by PDD\u2019s amazing sales and profits in recent months.<\/p>\n\n\n\n PDD\u2019s stock has hit the roof, increasing by 75% this year, and surpassing Alibaba in market capitalisation for the first time last month. JD.com came third. In the meantime, shares of JD.com and Alibaba have dropped 54% and 19% in 2023, respectively.<\/p>\n\n\n\n Colin Huang, PDD\u2019s founder has also entered the rich and famous lists, and he was the fastest riser in Hurun Research Institute\u2019s annual ranking of China\u2019s wealthiest people. Huang is now the country\u2019s third richest person, with a projected net worth of $37.2 billion. The Hurun institute has estimated that his wealth has increased 59%, due to Pinduoduo\u2019s domestic growth and Temu\u2019s success in the United States.<\/p>\n\n\n\n Temu\u2019s success has dominated more than 40 markets beyond China, and the firm has made $21.8 billion in revenue from the first three quarters of 2023. With an aggressive marketing campaign, Temu has challenged Chinese giants, but the platform has caught the attention of the US authorities as the U.S.-China Economic and Security Review Commission under Congress published a report on the \u201cchallenges\u201d posed by Chinese fast fashion platforms, such as Temu. These challenges include \u201cexploitation of trade loopholes; concerns about production processes, sourcing relationships, product safety, and use of forced labour; and violations of intellectual property rights.\u201d<\/p>\n\n\n\n In JD.com\u2019s internal forum, Liu responded to a comment from an employee who criticised the company\u2019s various issues including the way it runs promotions and the inability to support its merchants who sell on the platform. Chinese news outlet LatePost reported the comments after a person close to JD.com confirmed the remarks.<\/p>\n\n\n\n The remarks were confirmed to CNN by someone who was close to JD.com and who requested to remain anonymous. Liu said: \u201cIt can be said that every one of the company\u2019s pain points is a real problem and must be changed.\u201d He added: \u201cOf course, so many problems are caused by my mismanagement; I very much blame myself.\u201d He asked his employees to \u201cnot lie flat,\u201d a Chinese slang term for rejecting a demanding work culture in favour of enjoying a simple life. He also wrote: \u201cThe organisation is big, bloated, and inefficient, and it does take time to change\u201d but he said that the company\u2019s foundation remained rock-solid. Liu acknowledged the employee, whom he referred to as a \u201cbrother,\u201d for their comment. He called for a change and said: \u201cI believe we will get out of the bottom. People and companies will go through several peaks and valleys to achieve greatness. Let\u2019s work together to change!\u201d Following the reports, a JD.com spokesperson said \u201cthis is a routine exchange, and it demonstrates our management\u2019s confidence, as well as the entire team\u2019s collaboration, in addressing problems and overcoming challenges.\u201d<\/p>\n\n\n\n JD has strived to meet challenges and respond to competition as consumers are demanding value-for-money products, which is not one of the giant\u2019s strong selling points. JD\u2019s stock weakened recently after the news that it was being removed from the Nasdaq 100 Index.<\/p>\n\n\n\n If you want to start trading CFDs on stocks, then IronFX is a great broker to explore this exciting market. At IronFX, you can trade CFDs on JD.com and other big tech companies from around the world with low costs and superb trading conditions. With CFDs, you can trade your preferred stocks with flexible leverage and the tightest spreads. IronFX offers supreme trading conditions and competitive terms, so you can maximise profits and reduce costs. If you want to trade and learn a bit more about your favourite companies, don\u2019t miss the chance to browse IronFX\u2019s educational resources through its Academy as well as its Blog. With tailored educational materials and dedicated articles on individual stocks and markets, IronFX experts have ensured that you can trade with exceptional resources and explore opportunities with confidence.<\/p>\n\n\n\n \u514d\u8d23\u58f0\u660e: JD.com Inc is a Chinese e-commerce company which operates…<\/p>\n![\"An](\"\/wp-content\/uploads\/2024\/01\/jd-logo.jpg\"){kind=logo}
<\/figure>\n\n\n\nTemu\u2019s success poses a threat to JD.com<\/strong><\/h2>\n\n\n\n
Issues faced by JD.com<\/strong><\/h2>\n\n\n\n
Demand for value-for-money products<\/strong><\/h2>\n\n\n\n
![\"someone](\"\/wp-content\/uploads\/2024\/01\/jd-temu-boxes-2.gif\")
<\/figure>\n\n\n\nCFD stock trading with IronFX<\/strong><\/h2>\n\n\n\n
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