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Case II (Part B): JD.com: Migrating from Labor-Intensive Model to Technology-Intensive Model

In: Emerging Champions in the Digital Economy

Author

Listed:
  • Xiaoming Zhu

    (China Europe International Business School)

Abstract

Supported by a self-operated warehousing and logistics system, JD.com’s B2C business model was openly repudiated by its rival. “In the next decade, one million couriers will be required to deliver 300 million packages every day. No single company can manage so many couriers.” (Li and Jack 2016) In July 2016, Mr. Richard Liu, Chairman and Founder of the JD.com Group, responded, “I believe there is a 90% likelihood that JD.com will have a staff of over one million. I don’t think no company is capable of managing so many employees. After all, Walmart well manages 1.4 million staff around the world; Foxconn does the same, with one million staff in Mainland China. It’s safe to say personnel management has long been JD.com’s core competence.” Back then, JD.com had 60,000 couriers, which is about one half of its employees. In 2013, however, JD.com’s headcount stood at only 38,300.

Suggested Citation

  • Xiaoming Zhu, 2019. "Case II (Part B): JD.com: Migrating from Labor-Intensive Model to Technology-Intensive Model," Management for Professionals, in: Emerging Champions in the Digital Economy, pages 105-124, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-13-2628-8_4
    DOI: 10.1007/978-981-13-2628-8_4
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