Liu Qiangdong talks about the reason for JD.com entering the logistics industry: there are too many transportation trips for goods, and the cost of socialized logistics is too high.

On the afternoon of November 7th, at the opening ceremony of the 2025 World Internet Conference Wuzhen Summit, Liu Qiangdong, the founder of JD Group and chairman of JD Group Board of Directors, mentioned in his speech that one of the main reasons JD entered the logistics industry was due to the significantly higher social logistics costs in China compared to developed countries, with the core reason being the disorganized flow of goods, leading to excessive handling. Since entering the logistics industry, JD has been continuously reducing this cost by "placing goods closest to consumers, reducing handling times and distances." He believes that within 5 years, the proportion of social logistics costs in China's GDP is expected to decrease from over 14% to within 10%.