Intertwining with traditional sectors to be key

(China Daily) Updated: 2015-12-16 13:25

Liu Qiangdong, CEO of JD.com Inc, China's largest online direct sales company. [Photo/IC]

A1 China's economy has entered the phase of the new normal. To smoothly make it through the transition period and change the powerhouse of the economy from export-driven to consumption-driven requires strong and sustained power.

Internet Plus represents the new direction of China's economic development.

JD.com has also set up its own Internet Plus strategy. We will integrate the Internet into four areas: community-based service, agriculture, finance and trade. Through further developing this strategy and cooperating with traditional companies, we hope to bring a prosperous future for both online and offline businesses and drive the upgrade of China's consumption market to be high-end.

A2 China has overtaken the United States in becoming the world's largest e-commerce market. Online retail transactions account for about 12 percent of total retail transactions in China and that keeps growing. With China's economy transforming to be more consumption-driven, the e-commerce industry will see a rosy future. The challenges in e-commerce include the protection of intellectual property rights and a level playing field.

A3 The Internet industry and traditional industry are interdependent rather than enemies. Without the Internet, traditional industries will gradually lose their vitality. But without the manufacturing industry, the Internet economy is no more than castles in the air.

In my opinion, the Internet cannot change the basic principles of how business works. What the Internet can do is to improve production and operational efficiency. The model of retail has evolved from brick-and-mortar marketplaces to supermarkets to e-commerce, which is driven by lower costs and improved efficiency in the supply chain.

A4 The most promising areas in China's economy are traditional sectors rather than the Internet sector. For example, in the clothing and footwear industry, there is a possibility some Chinese companies will emerge to become popular fast fashion brands. In the food and drink industry, I think in the coming five years there will also be some food brands that earn the trust of Chinese consumers. JD.com will work hard to directly sell more clothes and shoes online in 2016 to lower the costs of the entire industry.

A5 You need to ask yourself a critical question before setting up your own business, which demand in society do you want to meet with your project? If your goal is merely to gain money or fame, it is almost sure that you will fail. The secret of a successful business is hang in there, hang in there, hang in there.