The Counter King: How Richard Liu Built a Tech Empire from a Tiny Booth
Published on August 4, 2025 / 15 min read
Long before Richard Liu (Liu Qiangdong) became the formidable leader of JD.com, one of China's largest e-commerce players, his empire was confined to a tiny, four-square-meter booth in Beijing's bustling Zhongguancun electronics market.
What you'll learn from Liu's story:
- How to turn constraints into competitive advantages
- Why authenticity beats profit margins in the long run
- How to pivot during crisis without losing your core values
- The power of obsessing over customer trust from day one
The Humble Beginning
In 1998, a young Liu Qiangdong rented a small counter in Zhongguancun, Beijing's technology hub, with just 12,000 yuan (about $1,500) in savings. The booth was so small that he could barely fit a chair behind the counter, yet this cramped space would become the birthplace of what would eventually grow into JD.com, a company now worth billions.
Liu's initial business was simple: buying computer parts from manufacturers and reselling them to customers. What wasn't simple was the market he entered—one riddled with counterfeit products and untrustworthy sellers. Customers had grown accustomed to being cheated, and trust was a rare commodity.
The Betrayal That Changed Everything
The first major test came when Liu discovered that his most trusted supplier had been selling him counterfeit products. Customers began returning items, and Liu faced a choice: continue with the profitable but dishonest business model that everyone else was using, or take a stand for authenticity even if it meant lower profits.
Liu chose authenticity. He returned all the counterfeit products, refunded his customers, and made a promise that would define his entire career: JD.com would only sell genuine products, no matter the cost.
The SARS Turning Point
The real transformation began in 2003 during the SARS epidemic. When foot traffic disappeared from physical stores across Beijing, Liu watched his daily sales plummet from thousands of yuan to almost nothing. Faced with mounting rent and no customers, he made a desperate decision that would change everything.
Liu moved his business online, starting to sell on early Chinese e-commerce platforms and engaging directly with customers through online forums. What seemed like a crisis became the catalyst for transformation. He quickly realized that online retail offered something his physical booth never could: scalability without the constraints of physical space.
Building Trust in an Untrustworthy Market
What set Liu apart in the early days of Chinese e-commerce wasn't just his commitment to authentic products—it was his obsession with customer service. While other online sellers treated customer complaints as nuisances, Liu saw them as opportunities to build trust.
He would personally respond to customer inquiries, sometimes staying up until 3 AM to answer questions about products. He implemented a no-questions-asked return policy when most Chinese retailers offered no returns at all. These weren't just business decisions; they were the foundation of a reputation that would eventually attract millions of loyal customers.
The Logistics Revolution
By 2007, Liu realized that to truly differentiate JD.com, he needed to control not just what he sold, but how it reached customers. While competitors relied on third-party logistics that often resulted in delayed or damaged deliveries, Liu made the controversial decision to build JD.com's own logistics network.
Industry experts called it financial suicide. The upfront investment was enormous, and the path to profitability was unclear. But Liu understood something his competitors didn't: in a market where customer trust was scarce, reliable delivery was not just a service—it was a competitive advantage.
From 4 Square Meters to Global Empire
Today, JD.com is one of the world's largest e-commerce companies, with over 500 million active customers and revenues exceeding $150 billion annually. Liu's commitment to authenticity—the same principle he established in that tiny booth in 1998—remains at the core of the company's culture.
The journey from a 4-square-meter booth to a global empire wasn't just about business growth; it was about proving that integrity and customer obsession could triumph in even the most challenging markets.
The Lesson for Founders
Liu's story offers a powerful lesson for entrepreneurs: constraints can be catalysts for innovation, and staying true to your core values—even when it's costly—can become your greatest competitive advantage.
When everyone else was cutting corners, Liu chose to do the opposite. When the market rewarded dishonesty, he doubled down on authenticity. When competitors prioritized short-term profits, he invested in long-term customer relationships.
From that cramped booth in Zhongguancun, Liu didn't just build a business—he built a brand that customers could trust. And in a world where trust is increasingly rare, that may be the most valuable empire of all.
Key Takeaways for Your Startup
Start with authenticity, not perfection: Liu's commitment to selling only genuine products, even when it hurt profits, became JD.com's defining competitive advantage.
Embrace constraints as innovation drivers: The tiny booth forced Liu to think differently about retail. Your limitations might be hiding your biggest opportunities.
Crisis reveals opportunity: The SARS epidemic that devastated physical retail became the catalyst for JD.com's digital transformation. What challenges in your industry could become your breakthrough moment?
Customer obsession pays compound returns: Liu's 3 AM customer service sessions and no-questions-asked returns built the foundation for millions of loyal customers.
Think systems, not just products: Liu's decision to build JD.com's own logistics network seemed crazy but became a massive competitive moat.
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