The founder of JD.com addressed the concerns raised by the staff, acknowledging that the e-commerce giant had become excessively large and inefficient. In response to the staff’s complaints about platform issues amid heightened competition, he pledged to implement changes.
Richard Liu shared these remarks during an internal staff forum in response to a post made by an employee, as reported by local media. A source familiar with the situation confirmed the accuracy of his comments to Reuters on Tuesday.
Over the weekend, an anonymous staff member published a thousand-word article criticizing JD for its excessively complex promotion mechanism and the haphazard implementation of its low-price strategy. In response, Liu acknowledged the identified problems and attributed them to his “poor management.”
“The current organisation is huge, bloated and inefficient, and it does take time to change it,” Liu said in his comment, urging staff to join him in changing the company together.
“This is a routine exchange, and it demonstrates our management’s confidence, as well as the entire team’s collaboration, in addressing problems and overcoming challenges,” a JD spokesperson said on Tuesday.
His post surfaces just two weeks after Alibaba co-founder Jack Ma responded in a similar fashion to an employee’s post on Alibaba’s intranet, urging the company to “reform for tomorrow and the day after tomorrow” in light of escalating competition, as confirmed by a source acquainted with the situation.
Alibaba did not respond to an inquiry seeking comments regarding Jack Ma’s post.
JD.com and its competitor Alibaba have traditionally held the top positions among China’s e-commerce firms. However, this year, they have faced growing competition from lower-priced contenders such as PDD Holding’s Pinduoduo and ByteDance’s Douyin. The heightened competition arises as cautious consumers, confronted with macroeconomic challenges in China, become more frugal and cautious with their spending.
JD.com, which has unveiled a strategy centered around providing low prices to attract customers, has witnessed a 50% decline in its share price this year. In contrast, PDD Holdings has experienced a 75% increase in its shares during the same period.
Alibaba Group, currently undergoing its most significant restructuring in its 24-year history, has witnessed a 70% decrease in the value of its shares since the commencement of a regulatory crackdown in late 2020.