JD Logistics Eyes Air Freight Business
JD Logistics is eying the air freight business to tap into the growing cross-border cargo market. The COVID-19 pandemic saw massive lockdowns and many airplanes grounded in a bid to curb the spread of the virus. The lockdowns precipitated huge jams at China’s seaport. Many companies are now turning to quicker alternatives like air freight to clear the backlog and ship new orders.
JD Logistics is thus considering setting its foot in the aviation industry to get a share of the pie in the aviation industry. JD Logistics has already set the ball rolling by carrying out conducting commercial viability and seeking the necessary approvals. The Civil Aviation Administration of China has already given JD.com the green light to operate the air freight business. In a statement issued by the chief executive officer of JD Logistics, Yui Yu, it plans to have more than 100 planes by 2030. In an interview with Bloomberg TV, Yui Yu said that Covid-19 stifled supply chain industries, occasioning a serious shortage of air freight and shipping resources. He also said that while Covid-19 has caused widespread disruptions, it has bolstered online shopping globally.
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JD Logistics now joins companies like Amazon.com, which is also considering purchasing cargo jets to ship its imports from China. JD Logistics plans to scale up its overseas warehouse networks and build highly automated delivery systems to grow its international business. The air freight business is expected to boost its earning, and cement is positioned as one of the region’s leading logistics and e-commerce businesses. The company also intends to reduce environmental pollution by investing $155 million in low-carbon supply chain technologies.
Leadership Changes hands at JD.com as Liu Qiangdong Steps Back.
Liu Qiangdong is planning to cede the position of CEO to enable in other matters like helping the underprivileged communities in China and mentoring young leaders. He is still much in control of the company and will retain 80% of the company’s voting rights, which in effect means that he will still play an active role.
The company has created a new president position to be filled by Ex-JD retail CEO Xu Lei. Lei will be charged with managing day-to-day operations and steering the vision of the company forward. He has the extensive industry experience and boasts an impressive track record. The leadership changes will impact most of JD’s subsidiaries and other units within the company. Xin Lijun takes the position of chief executive officer that fell vacant after Xu Lin assumed the role of company’s president.
About Liu Qiangdong
Liu Qiangdong is a shrewd businessman and founder of JD.com. He was born and bred in Chang’an, a small village in China. He grew there and later in life joined the University of China to study sociology. While studying at the university, he developed an interest in computer coding and started to train himself. After graduating, he was employed by Japan Life, a company that dealt with natural supplements. The company had an online presence, and as the director of computers, Liu Qiangdong developed a keen interest in online business.
Liu Qiangdong started engaging, trying his luck in different businesses, including restaurants, selling health products, and later selling computer parts. The retail business had started doing well but hit a snag when the SARS epidemic broke out in 2004. SARS propelled him to move his business operations online. As a result, a lot of people could be able to shop without leaving their homes. Liu Qiangdong trusted his online business intuition by closing physical businesses and selling the products online.
He maintained a great customer service experience and leveraged technology to beef up user experience. He created forward-thinking technology and strong back-end platforms that set him apart from his then competitors. He employed drones to provide same-day delivery. The online model helped JD leapfrog ahead of its competitors. The company has continued to grow in leaps and bounds and is lauded as one of the best e-commerce companies. The company is currently listed in NASDAQ.