After five years of operational stagnation, market share erosion, and intensifying competition, JD.com — one of China’s largest e-commerce giants — is launching an aggressive turnaround plan designed to restore its position as a technological and logistical powerhouse. Founder Richard Liu, who recently described this period as “the darkest in JD’s history,” is now spearheading a transformative strategy focused on food delivery, travel services, and a major European expansion — all targeted for execution by 2026.

A Strategic Reset After Years of Stagnation

Since 2020, JD.com has faced mounting challenges: slowing growth, squeezed margins, rising operational costs, and fierce domestic competition from rivals like Alibaba and Meituan. Despite possessing one of the most advanced logistics networks globally and a user base numbering in the hundreds of millions, JD struggled to redefine its market proposition.

Now, with a renewed sense of urgency, Richard Liu is stepping back into the spotlight to lead a sweeping operational reset, while CEO Sandy Xu will continue overseeing domestic operations in China. “JD lost its way,” Liu admitted. “Now is the time to rebuild — with innovation, upgraded customer experience, and bold international moves.”

Food Delivery: A Missing Link in JD’s Consumer Chain

A central pillar of JD’s new strategy is a full-scale entry into the competitive food delivery market — a domain long dominated by Meituan. Leveraging its logistics prowess, JD plans to offer rapid delivery services bolstered by deep subsidies and seamless integration with its core e-commerce platform.

According to Liu, around 40% of new food delivery users are already transitioning into JD’s broader ecosystem, indicating high operational synergy and cross-platform monetization potential. JD is also targeting small and medium-sized food vendors with a suite of tools — including inventory management, POS systems, and real-time delivery integrations — aimed at drawing supply-side participants away from entrenched competitors.

Travel and Hospitality: JD’s Unlikely New Frontier

In a surprising move, JD.com is entering the travel and hospitality booking space, rolling out new services for hotel reservations and flight ticketing. Initially focused on domestic tourism in China, the company plans to expand toward broader Asian and European markets.

The offering is anchored in a dynamic pricing model, reward programs for frequent travelers, and high customization via user data analytics. Strategic partnerships with airlines and hotel chains are reportedly underway, with JD aiming to carve out a meaningful share in a sector traditionally dominated by Trip.com and Ctrip.

Global Focus: Europe as the Next Growth Engine

While JD fortifies its domestic service portfolio, the company is simultaneously preparing a full-fledged push into Western Europe. As part of this initiative, JD is setting up logistics hubs in Germany, France, and Spain, focusing on fast-moving consumer goods and electronics.

Its target: two-hour delivery windows in key urban centers, competitive pricing, and localized customer support. Discussions are also in progress with European governments regarding compliance, tax regimes, and data protection laws. JD is reportedly evaluating the possibility of spinning off its European division into a semi-autonomous business unit to facilitate additional fundraising and operational flexibility.

Fierce Competition and Critical Risks Ahead

JD’s vision is ambitious, but it does not come without significant challenges. In China, the company must contend with well-funded rivals with deep user loyalty and aggressive pricing strategies. In Europe, it will need to battle global e-commerce players like Amazon, Zalando, and Otto, all of whom have deeply entrenched infrastructure and brand equity.

Another critical hurdle is the issue of brand recognition. While JD is a household name in China, it remains virtually unknown in many Western markets. Building a reputable presence abroad will require heavy investment in marketing, customer service, and user trust — all while navigating stringent EU regulations.

On the investor side, JD will also need to demonstrate that these initiatives can generate positive cash flow in a reasonable timeframe. Much of the new business — including food delivery and travel services — is currently subsidized and operating at a loss. Market watchers are therefore closely monitoring the company’s Q2 2025 earnings, which may offer the first tangible signs of traction.

Bottom Line: Rebirth or Risk?

JD.com’s turnaround plan represents a dramatic shift in scope and ambition. No longer content with incremental improvements, the company is pursuing transformative growth through aggressive diversification and global expansion.

If Richard Liu can effectively harness JD’s core strengths — logistical precision, technological innovation, and ecosystem integration — the company may reclaim its leadership role in the next phase of global e-commerce. The strategy is bold and capital-intensive, but for long-term investors with high risk tolerance, JD.com may once again become a story of scale, resilience, and renewal.