On October 18 China’s largest retailer, JD.com, announced that regular consumers now have access to their national logistics network. This means that consumers are able to send a parcel anywhere in that nation and 90 percent of the time it will arrive at its destination in one or two days.This is available to residents of Beijing, Shanghai, and Guangzhou. Consumers use JD.com’s app, input some information such as where the package is to be delivered, and the parcel can be sent anywhere in mainland China. JD.com, also known as Jingdong, has been increasingly opening up both its technology and its infrastructure to others including other businesses and shippers.
Consumers who access the Jingdong app will be able to specify delivery options such as what time the parcel should be delivered. In addition to regular items, they can also send high-value items such as jewelry and top-shelf electronics. JD.com has been working on greatly expanding its national network for the past decade.Urban professionals will be the ones who most use this service as they often need to get parcels reliably delivered all over China. Jingdong conducted a lot of research into offering this service to consumers and 74% of people stated that they really needed a service like this that could quickly deliver parcels and offer them a high quality service. If the parcel is being sent to an address in the same city it is being delivered from it will be same-day delivery.
Jingdong is highly a successful company with USD $55.7 billion in revenue for 2017. They have more than 500 warehouses, fully automated, strategically placed all over China. Most customers order through the JD.com mobile app, 80 percent doing so, and they have more than 300 million people actively buying from them each year.This company was founded on June 18, 1998. It was originally a company that sold just electronics but as of October 2008, they started offering general merchandise. They now offer a huge range of products including everything from fresh food to power tools to appliances. They are strategically aligned with America’s Walmart who own a 5 percent stake in them.
Entrepreneurs and investors become successful for a number of reasons. Hard work and tenacity both play roles in a driven person’s quest for success. Another trait assists with being successful. Successful people have a tendency to be more right than wrong. A person who puts money into the stock market or venture capital endeavor needs to be more right than wrong. Otherwise, the endeavors won’t yield any return on investment. Shervin Pishevar gained a strong reputation as someone who knows how to make the right moves. His career as a venture capitalist indicates he possesses strong insights into where a business may be headed profit-wise.
So, some panic may be circulating due to the tweet storm Shervin Pishevar blasted out over social media in February. Pishevar covered a range of different topics. Among those topics was a dire warning about the stock market. Pishevar held nothing back. He feels the market may collapse. By collapse, Pishevar suggests a decline of many thousands of points. If this prediction comes to pass, billions of dollars in wealth would be wiped away. Of course, markets experience both ups and downs. A crash might be followed by a boom period. The period in between, however, could be a long time.
An eventual recovery doesn’t eliminate the pain a market decline brings. Huge crashes, even ones that experience eventual recoveries, do create massive problems in the economy. To address the immediate loss of capital, businesses cease hiring and might initiate layoffs. Personal investors choose to stop spending their money as conservation becomes necessary. Such reasons are why Shervin Pishevar choose to deliver a warning on Twitter. He probably wants the public to be prepared for a worst-case scenario.
Pishevar’s commentary carries weight as he is known for putting money into ventures such as Uber and Silicon Valley startups. His assessment suggests a 6,000-point drop. Pishevar bases his opinion on the losses 2018 experienced in relation to the gains of 2017.
Will Shervin Pishevar change his opinion about the market? It is possible. Keep tabs on his Twitter feed to see if his stated opinion changes.