He Could Have Been a Top Programmer. Why Did He Choose to Sell CD-Burners in a Dusty Market Instead?

Imagine you're a programmer in 1998, possessing programming skills that were extremely scarce at the time. Major companies are competing to recruit talented individuals like you with high salaries, and you could easily live a decent middle-class life based on your technical expertise alone. Yet you abandon this "iron rice bowl," using your meager 12,000 yuan to rent a 12-square-meter counter in the bustling Zhongguancun market, selling CD-burners and other seemingly "low-tech" electronic products.

Everyone around you thinks you've lost your mind—from a prestigious programmer to a market vendor, isn't this clearly going downhill? If it were you, would you make such a choice?

What you'll learn from this story:

• How to make difficult choices between skill advantages and entrepreneurial opportunities
• Deep thinking ability to extract management wisdom from failures
• The unique advantage of using technical background to understand product value
• How to maximize personal abilities' commercial value when resources are scarce

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The "Wasted" Programming Genius

This question wasn't hypothetical for 25-year-old Richard Liu. In early 1998, he was facing one of the most difficult choices of his life.

Two years earlier, when Liu had just graduated from Renmin University of China, he was already a well-known "programming expert" within the industry. In the mid-1990s, computer programming was an extremely scarce skill, with programmers as rare as phoenix feathers. Liu had been making money through programming since his junior year, even becoming the first in his class to buy a pager—at that time, this was equivalent to a college student driving a Tesla today.

"Programmers were really in hot demand back then," Liu recalled years later. "All the big companies were competing for talent, offering salaries several times higher than ordinary jobs. I could have easily found a comfortable, respectable job with high pay writing code."

But fate played a cruel joke on him. The restaurant he opened with money earned from programming went bankrupt due to poor management, not only losing all his savings but also leaving him with over 200,000 yuan in debt—an astronomical figure in 1996.

Two Years of Reflection at Japan Life

To pay off his debts, Liu joined Japan Life, a health products company. This was a legitimate large company, and for someone with Liu's technical background, finding a decent programming job wasn't difficult.

"During those two years, I went to work and came home on schedule every day, writing code, receiving my salary, and paying off debts," Liu said. "From the outside, I was just an ordinary programmer with stable work and decent income. But deep down, I always felt something wasn't right."

What wasn't right? Liu discovered that no matter how excellent his code was, no matter how skilled his technology, he remained just an "employee." His value was confined between keyboard and screen, and his income had a clear ceiling.

More crucially, through his restaurant failure experience, Liu began to understand the importance of "management." "I realized that pure technical skills are just tools. What truly determines success or failure is understanding business operations and the ability to manage teams," he said.

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The 12,000 Yuan Gamble

A Programmer's "Downward" Choice

In the spring of 1998, when Liu finally paid off his debts, he faced a crucial choice: continue as a programmer or start his own business again?

With his technical level, finding a programming job paying over 10,000 yuan per month would have been easy. In that era, this was already a high income that ordinary people envied. But Liu made a decision that baffled everyone—using his entire savings of 12,000 yuan to rent a 12-square-meter counter in Zhongguancun and start selling CD-burners and other electronic products.

"Everyone thought I was crazy," Liu recalled. "From senior programmer to market vendor—wasn't this obviously going downhill? My mother even asked me, 'Son, is there something wrong with your brain?'"

His friends were even more puzzled: "Qiangdong, you're so good at programming, why would you sell electronic products that anyone can sell? Isn't this wasting your talent?"

A Tech Person's Business Insight

But Liu had his own logic. As a programmer, he understood computers and related electronic products' technical principles better than anyone. At the time, CD-burners were just emerging, and most sales personnel had only superficial knowledge of the products' technical details, unable to provide professional advice to customers.

"I discovered that my technical background gave me tremendous advantages," Liu said. "When customers asked about technical specifications, compatibility issues, or usage tips, other salespeople could only recite from scripts, while I could provide professional, practical advice. Customers could quickly feel the difference."

More importantly, he saw the enormous potential of this industry. "Computers were just beginning to become popular then, and the demand for related electronic products was huge. Plus, I discovered that the income ceiling for sales was much higher than for programmers—no matter how skilled a programmer is, the monthly salary is still just tens of thousands, but if business goes well, there's no income ceiling."

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The Evolution from Technical to Business Thinking

Doing Business with an Engineer's Mindset

Liu completely applied his programmer's mindset to business. While other merchants were still relying on relationships and deception, he established a "systematic" business approach.

First was product selection. With his technical background, he could accurately judge which products had real technical value and which were just gimmicks. He specifically chose products with high technical content, large market demand, but that ordinary salespeople couldn't explain clearly.

Second was customer service. He established a detailed customer profile system, recording each customer's technical needs, purchasing preferences, and budget range. This was an unheard-of "high-tech" management method in Zhongguancun at the time.

"I managed every transaction like a project," Liu said. "From requirements analysis and solution design to implementation delivery and after-sales service, I followed completely the process of engineering projects."

Integrity as the Best Algorithm

More crucially, Liu persisted with a principle that seemed "foolish" in Zhongguancun at the time—absolute integrity. In a market environment filled with fake goods, fraud, and haggling, he insisted on fixed pricing, genuine products, and keeping all promises.

"Everyone laughed at me for being naive, saying I didn't know how to do business," Liu recalled. "But I thought with a programmer's logic: if I were a customer, what kind of vendor would I most want to encounter? The answer was simple—professional, honest, good service. So I operated according to that standard."

This "algorithm" quickly showed its power. Customers discovered that buying from Liu meant no worry about fake products, no concern about being ripped off, and professional technical support. Word of mouth spread rapidly, and business got better and better.

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From 12 Square Meters to Business Empire

The First Year's Miracle

To everyone's shock, Liu's "downward" choice quickly achieved tremendous success.

In the first month, the small counter achieved revenues of tens of thousands of yuan. After six months, monthly revenue exceeded 100,000 yuan. After one year, he was already able to rent a larger storefront in Zhongguancun and began considering opening branch stores.

"At first I just wanted not to go hungry, I never expected business to go so well," Liu said. "I discovered that my technical background wasn't a disadvantage in sales, but rather my greatest advantage."

Customers began specifically seeking him out to buy products, because they knew this "technical boss" would recommend reliable products and provide professional advice. Many customers even said directly: "I trust Little Liu, I'll buy whatever he recommends."

Exponential Growth: 12 Stores in 5 Years

By 2003, in just 5 short years, Liu had opened 12 chain stores with annual revenues exceeding 10 million yuan. His "Jingdong Century Trading Company" became a well-known brand in Zhongguancun electronics sales.

More importantly, he proved a principle: people with technical backgrounds, when they do business with the right approach, can often achieve results that surpass those with purely commercial backgrounds.

"During those years, I learned real business operations," Liu summarized. "Management, marketing, supply chain, financial control—knowledge I could never have accessed as a programmer, I learned it all through actual business operations."

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From CD-Burners to E-commerce Empire: The DNA Legacy

Another Transformation in the SARS Crisis

The 2003 SARS epidemic became another turning point in Liu's career. When offline stores had no customers, he resolutely decided to move his business online, founding "JD Multimedia."

This decision appeared to be another "downgrade"—from physical store owner to website operator. But Liu once again proved his foresight. Drawing on years of accumulated product knowledge, customer service experience, and understanding of technology, JD quickly became one of China's most important e-commerce platforms.

"If I had chosen to continue as a programmer back then, I never could have achieved what I have today," Liu said. "That 12,000 yuan investment taught me complete business operations, built a strong customer base, and accumulated valuable management experience. These are things you can never learn from writing code."

Technical DNA Continues in the Business Empire

Today's JD still maintains the core DNA of Liu's small counter from years ago:

• Technology-driven: Using the most advanced technology to improve operational efficiency
• Customer-first: Providing professional, honest service experiences
• Systems thinking: Managing complex business with an engineer's logic
• Continuous innovation: Always staying at the forefront of technological development

"Many people ask me what the biggest change is from programmer to entrepreneur," Liu said. "My answer is: essentially nothing has changed. Writing programs is to solve technical problems, running a business is to solve commercial problems. The thinking mode is the same—analyze problems, design solutions, execute implementation, optimize and iterate."

Key Takeaways

1. Skill advantages must combine with market opportunities: Liu didn't stick rigidly to his programmer identity, but instead used his technical background as a competitive business advantage, establishing unique professional barriers in the electronics sales field.

2. Failure experiences are the most valuable business education: The painful lesson from the restaurant bankruptcy gave him deep understanding of management's importance, which became a key factor in his later success.

3. Long-term vision beats short-term comfort: Giving up a stable, high-paying programmer job seemed risky, but for greater growth space and career potential, this "downward" choice demonstrated strategic vision.

4. Professional competence is the best differentiation strategy: In a highly commoditized sales market, technical expertise became his greatest competitive advantage, allowing him to provide value that other merchants couldn't replace.

When you face your own "programmer moment"—those crucial times when you need to choose between stable expertise and unknown opportunities—remember Liu's story. Sometimes, seemingly "downward" choices are actually for greater "upward" possibilities.

Ask yourself: How can your professional skills create greater value in different fields? Are you willing to give up your current comfort zone for greater possibilities? Your answer might be the starting point of the next business breakthrough.

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References

1. Griffiths, James. "How JD.com's Richard Liu turned early disaster into future success." South China Morning Post, November 14, 2014. https://www.scmp.com/business/china-business/article/1639539/how-jdcoms-richard-liu-turned-early-disaster-future-success

2. Westberg, Peter. "The Story of Richard Liu Qiangdong and JD.com." Quartr, October 6, 2023. https://quartr.com/insights/business-philosophy/the-story-of-richard-liu-qiangdong-and-jd-com

3. "Richard Liu Speaks of Childhood Dreams, Success." Pandaily, October 30, 2017. https://pandaily.com/richard-liu-reveals-childhood-dream-taste-meat/

4. Compilation of Richard Liu's personal interview records and public speeches, JD's early startup period 1996-2003.