On October 31, 1919, which had just received a 2 billion yuan strategic investment from Alibaba and become a 'unicorn', released its first annual third-quarter report, with operating revenue reaching 2.928 billion yuan, a new high. Notably, the report also reveals several highlights that, once implemented, could trigger a 'chemical reaction' in the industry. What are the new highlights in 1919's third-quarter report? Revenue Growth Significantly Narrows Losses Platform Switch Shows Results According to the third-quarter report released by 1919, the company maintained high-speed revenue growth in the first three quarters and during the July-September period. At the same time, with the integration of online and offline operations, operational efficiency improved significantly, and the net loss narrowed markedly. The consolidated net loss was 4.55 million yuan, a reduction of 33.16 million yuan compared to the 37.71 million yuan loss in the same period last year. Such excellent results were first attributed to the company's strengthened fine management since 2018, while controlling the pace of store openings, improving store efficiency through meticulous operations. With limited new store additions, mature stores entered a period of growth and harvest, driving revenue growth. Secondly, after the half-year report showed improved profitability, 1919 accelerated its expansion pace in the third quarter, increasing the recruitment of franchisees for its 1919 Adjacent Warehouse stores. According to 1919 Chairman Yang Lingjiang's recent remarks in a media interview, 1919 still prioritizes scale at this stage. Notably, 1919's shift from a sales-oriented to a platform-oriented model has been effective, focusing on three main lines: new retail, new distribution, and new services. The six business lines—e-commerce, chain management, FMCG supply chain, urban warehousing and logistics, data marketing, and information technology—operate independently while supporting each other, effectively stimulating innovation and market vitality, making the alcohol beverage platform more scalable and imaginative. Online Orders Exceed 50% Alibaba Helps Reconstruct 'People, Goods, Scene' Since 2014, after listing on the New Third Board, 1919 has actively planned its transformation, transitioning from a primarily offline store model to a dual-driven online and offline approach. After 2015, the company repeatedly won first place in alcohol sales during Tmall's Double 11 Global Shopping Festival, laying a solid foundation for the dual-driven model. After years of development, 1919's online orders now account for over 50%, making it the company's biggest 'long board' compared to traditional alcohol retailers. Alibaba's 2 billion yuan strategic investment in 1919 has further boosted the company. Take 'Kuaihe' as an example: the 1919 Kuaihe APP focuses on '19-minute delivery', relying on thousands of stores nationwide for home delivery services. Currently, the 1919 Kuaihe APP has expanded from ordering alcohol to ordering meals and services, creating a professional banquet service platform. Meanwhile, with Alibaba's strategic investment, 1919's six business systems work in synergy, and over a thousand stores nationwide have been upgraded to Tmall 'Smart Stores', constructing a more complete new retail ecosystem by reconstructing people, goods, and scene. 'Smart Stores' use the Taobao membership code as the online entry point, recommending nearby 1919 stores, coupons, and hot products within apps like Mobile Taobao and Tmall. Users can use Alipay or the Mobile Taobao membership code to make purchases at 1919 offline stores. As a key new retail project after Alibaba's strategic investment in 1919, 'Smart Stores' further integrate online and offline consumption scenarios and omnichannel member data, connecting and operating consumers across all domains, accumulating consumer assets and data, enhancing store experience and consumption innovation, and supporting the sustained growth of 1919's transaction scale. Aiming for 3,600 Stores 'Dian Shang' Leading the Industry Since its founding, 1919 has always adhered to the principle that 'an egg broken from outside is food, but broken from inside is new life', continuously leading the industry. The third-quarter report targets 3,600 stores and proposes the concept of 'dian shang', once again reflecting this characteristic. The most important content of Alibaba's strategic investment in 1919 is to launch a new five-year expansion of categories, merchants, services, and stores. Currently, 1919 divides its managed stores into three categories: self-owned brand stores, co-branded stores, and manufacturer-managed stores. Self-owned brand stores include 1919 Alcohol Direct Supply Stores, focusing on new retail, and 1919 Adjacent Warehouse Stores, focusing on new distribution. Manufacturer-managed stores mainly include Sichuan Wine Cloud Stores and new retail stores of famous liquor manufacturers. Among these three business formats, 1919 Alcohol Direct Supply Stores mainly sell alcohol beverages, located in first- and second-tier cities, positioned as new retail first and new distribution second, with plans to open 1,200 new stores in 2019; 1919 Adjacent Warehouse Stores sell alcohol and FMCG products, focusing on third- and fourth-tier cities, positioned as new distribution first and new retail second, with plans to open 2,200 stores next year. The first Sichuan Wine Cloud Store has already opened in Nanjing, with plans to open 200 more next year, mainly selling Sichuan wine and Sichuan specialties, targeting the new group-buying market. At the same time, 1919's online e-commerce platform has also officially opened to the outside world, sharing core resources such as traffic, channels, logistics, and members. Several famous liquor manufacturers have already opened flagship stores on the 1919 Kuaihe APP, with plans to open 2,000 more manufacturer flagship stores in 2019. Since its inception, 1919 Chairman Yang Lingjiang has been known for 'breaking conventions'. Facing rapid changes in the alcohol distribution industry, he proposed that manufacturers need both e-commerce and store commerce, that is, distributors who are closest to users, can provide professional services, and can collect user data. The combination of e-commerce and store commerce is summarized as 'dian shang'. Thus, the so-called 'dian shang' is the 'upgraded version' of the combination of online and offline in the new retail era. Starting from offline stores, 1919 took 12 years to build China's largest alcohol chain. With Alibaba's strategic investment, the company's vision has become 'alcohol beverage service solutions and operation platform', and 'dian shang' is likely to be Yang Lingjiang's big weapon to build this platform. Source: Zhongshi Finance (ZSCJ-360), reprinted with permission. For authorization, please contact the original author. -END-