Richard Liu’s JD.com Provides Aid to Flooded Henan Province

Extreme weather events seem to have hit almost every corner of the globe this year. From Germany to Canada to the United States and now China, it is beginning to appear that wildfires, floods and extreme heat waves could become a more common occurrence. For Richard Liu, founder and CEO of China's largest retailer JD.com, this is a call to action in aiding his country whenever possible. Known for an extensive logistical network and a focus on information technologies such as artificial intelligence and drones, JD.com is in the unique position of being able to provide quick and effective aid to wherever it is needed in the country.

Since July 17th, China's Henan province has been affected by extensive flooding after days of heavy torrential rain. The floods have overwhelmed roads and subways systems in the region and prompted the evacuation of at least 100,000 people. As authorities have raised China's flood control emergency system to the second-highest level, dramatic images and video shared on social media have captured the province -- which is home to nearly 100 million people -- in a state of distress. In Zhengzhou, the province's capital, passengers were seen trapped inside subway carriages as cars were washed away by the torrents of water on the roads, and the city saw a month's worth of rainfall in one hour.

As the leader of the company, Liu has expressed an understanding of the significant impact JD.com is able to bring to many situations, including natural disasters. In a recent letter to shareholders for the company's 18th birthday, which is June 18, Liu said "JD's dream is to turn the impossible into possible through staying focused on the long-term, upholding the principle of doing the right thing the right way, and shouldering our share of social responsibility." Since founding the company, it can be argued that this commitment to the greater good is what has seen his company catapult from a tiny booth in an electronics bazaar to the juggernaut it is today.

When Liu was only a small boy growing up in a rural village, his dream was to be a village head when he grew up. He saw that while his family and neighbors often only had pork once a year, the village head always had multiple racks hanging from the rafters of his house, and hoped to one day become a leader that could find a way to ensure everybody in his village had pork year-round. It is this same desire to help others that saw Liu initiate a rule in 2012 JD.com saying that if a disaster happened anywhere in China, the nearest JD warehouse should immediately donate and deliver its goods to meet the emergency demands. The manager in charge of the warehouse is given complete control to make such a decision without waiting for approval from upper management, expediting the process and ensuring aid can be provided in the quickest possible manner.

Since 2012, the rule has been applied on countless occasions, saving potentially thousands of lives in the process through provided aid. As the floodwaters have ripped through Henan province, Liu has seen to it that once again JD.com is swift in its response to the call to action. By the second day of the heavy rainfall over 20 trucks of rescue supplies donated by JD.com and transported from JD Logistics' closest warehouse arrived in Henan, including raincoats, rubber shoes, spades, instant noodles, water and more. JD's local warehouses also delivered batches of rescue supplies to designated hospitals in Henan. Due to the flooding it was estimated that there were over 5,000 medical workers and patients left stranded at the No. 1 Affiliated Hospital of Henan University of Traditional Chinese Medicine and 4,000 at the No. 5 Affiliated Hospital of Zhengzhou University, and JD's urgent delivery of relief supplies greatly alleviated the hospitals' needs.

Liu has also made sure that the company's response is not exclusively macro in its reach. JD Logistics delivered over 540 boxes of food and mineral water from its nearby warehouses to Tielu train station in Zhengzhou, capital of Henan, where hundreds of passengers had been stranded on the railway for nearly two days due to the floods. The storm had cut off all rescue channels around the station, and when the local JD Logistics team heard of their distress they immediately contacted the station head and quickly sourced and delivered supplies from its warehouses close to the station. For every video captured showing the devastation the flooding has brought, there have also been scenes of others helping one another, including JD couriers helping their local communities by helping children and elderly people wade through waters, or pushing cars out of the water onto dry land.

JD's self-developed logistics drone has also been put to use in aiding the flooding region. Dispatched from Xi'an to Henan province, the drone delivered emergency needs to Xinxiang, a flood-stricken city to the north of Zhengzhou. In addition to transporting goods, JD's rescue drones were also used in Zhongmou county of Zhengzhou to help survey the flood.

Flood relief has also been initiated across the company outside of solely delivering goods. JD Retail launched a dedicated service hotline for customers and merchants in order to help facilitate the coordination of providing emergency goods, and JD Health opened a free 24-hour hotline for local people's medical consultation. They also sourced and donated healthcare supplies for disinfection, epidemic prevention, mosquito prevention, treatment of wounds and anti-inflammation. AllianzJD, the insurance arm of JD.com that is a joint venture with the German insurance company Allianz, opened up a green channel for 24-hour claims settlement for clients located in the Henan province, as well as rescue services.

Finally, the company has remained dedicated to its merchants, seeking to reduce operating pressure for those who are located in the Henan province by announcing ten supportive measures to help tide them over while maintaining business operations. The company will make a number of operating fee exemptions of JD.com including exemption from penalties for product delivery delays, as well as offering their merchants employer liability insurance at no cost.

For Richard Liu, these are not superfluous actions performed by his company, but a duty they hold as citizens of China. The record rains and subsequent flooding have caused devastation to the Henan province, but for JD.com this opportunity to provide aid has nothing to do with profitability. It is the responsibility of a successful company to assume responsibility for the greater good of the communities it serves, which for JD.com is the whole of China and much of the world. The rains in central China may not have subsided yet, but JD.com will continue to provide massive aid to the entire region for as long as it is needed.