---
title: "Adding 10,000 Multi-Scenario Stores: Unpacking JD New Channel's 2020 Layout and Strategy"
description: "Recently, on the occasion of its fourth anniversary, JD New Channel announced that it will add 10,000 multi-scenario stores in 2020, built to the standard of 'Six Unifications.' At the same time, under the theme 'Unite All Directions, Benefit Neighbors,' JD New Channel reviewed its achievements over the past four years and clarified its next steps. As an industry observer, New Distribution witnessed this anniversary review and will use 'Unite All Directions, Benefit Neighbors' as the main thread to unpack New Channel's new layout and strategy for 2020."
author: "袁来"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-12-18"
categories: "Distribution & Channels, Retail Formats"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/adding-10-000-multi-scenario-stores-unpacking-jd-new-channel-s-2020-layo-756906c1/"
markdown: "https://xinjignxiao.com/en/articles/adding-10-000-multi-scenario-stores-unpacking-jd-new-channel-s-2020-layo-756906c1.md"
original_source: "https://mp.weixin.qq.com/s/BWKmCdNnmBHMH4BzIi9ZIw"
translation: "https://xinjignxiao.com/zh/articles/%E6%96%B0%E5%A2%9E1%E4%B8%87%E5%AE%B6%E5%A4%9A%E5%9C%BA%E6%99%AF%E9%97%A8%E5%BA%97-%E6%8B%86%E8%A7%A3%E4%BA%AC%E4%B8%9C%E6%96%B0%E9%80%9A%E8%B7%AF2020%E5%B9%B4%E7%9A%84%E5%B8%83%E5%B1%80%E5%92%8C%E6%89%93%E6%B3%95-756906c1.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/adding-10-000-multi-scenario-stores-unpacking-jd-new-channel-s-2020-layo-756906c1/"
citation: "袁来. “Adding 10,000 Multi-Scenario Stores: Unpacking JD New Channel's 2020 Layout and Strategy.” New Distribution, 2019-12-18. https://xinjignxiao.com/en/articles/adding-10-000-multi-scenario-stores-unpacking-jd-new-channel-s-2020-layo-756906c1/"
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---

# Adding 10,000 Multi-Scenario Stores: Unpacking JD New Channel's 2020 Layout and Strategy

> Recently, on the occasion of its fourth anniversary, JD New Channel announced that it will add 10,000 multi-scenario stores in 2020, built to the standard of 'Six Unifications.' At the same time, under the theme 'Unite All Directions, Benefit Neighbors,' JD New Channel reviewed its achievements over the past four years and clarified its next steps. As an industry observer, New Distribution witnessed this anniversary review and will use 'Unite All Directions, Benefit Neighbors' as the main thread to unpack New Channel's new layout and strategy for 2020.

Recently, on the occasion of its fourth anniversary, JD New Channel announced that it will add 10,000 multi-scenario stores in 2020, built to the standard of 'Six Unifications.' At the same time, under the theme 'Unite All Directions, Benefit Neighbors,' JD New Channel reviewed its achievements over the past four years and clarified its next steps.
As an industry observer, New Distribution witnessed this anniversary review and will use 'Unite All Directions, Benefit Neighbors' as the main thread to unpack New Channel's new layout and strategy for 2020.****
**-01-****Benefit Neighbors: Adding 10,000 'Six Unifications' Stores**
 △ Zheng Hongyan, Vice President of JD Group and President of JD Retail Group's New Channel Business Unit
Zheng Hongyan, Vice President of JD Group and President of JD Retail Group's New Channel Business Unit, said: "**In 2020, New Channel will open 10,000 'Six Unifications' stores in more fields and regions, including convenience stores, mother-and-baby stores, tobacco and liquor stores, restaurants, and unmanned vending shelves, and build the supply capability for goods and services in these scenarios.** "
Adding 10,000 multi-scenario vertical stores is arguably the biggest highlight of this meeting. At this point, one might ask: why is a B2B platform that does supply chain business so persistent in 'running stores'?
**Because in New Channel's view, the ultimate goal of the business of moving goods is to serve consumers well, and retail stores are the 'last mile' of consumption.** If they don't run stores, they will never accurately understand consumer needs and provide them with good products.
**Of course, 'running stores' here does not mean JD New Channel opens its own stores, but rather transforms traditional stores through empowerment and upgrades, requiring unification in six aspects: store image and signage, store management, facility configuration, service standards, product procurement, and logistics distribution.**
Why can JD New Channel do this? Over the past four years, JD New Channel has developed the capabilities of 'finding goods, distributing goods, and selling goods,' and has been committed to penetrating goods. Of course, having goods is only the foundation for store operations.
From the consumer perspective, the 'JD' brand itself carries strong trust endorsement, and 'genuine good products' is consumers' mental perception of JD. **With this perception, consumers naturally trust JD stores, and combined with the local store owner's personal relationships, as well as the product supply network and standardized services built by New Channel, consumers ultimately get better products and a better shopping experience.**
For example, comparing a nearby 50-60 square meter JD convenience store with a 500-600 square meter local supermarket, usually the larger store has an advantage with a richer product selection. But on O2O platforms, this is not necessarily the case; instead, JD convenience stores tend to have a relative advantage. Zheng Hongyan said that **on O2O platforms, JD convenience stores' average transaction volume is twice that of similar stores.**
Extending this, for stores like tobacco and liquor stores and mother-and-baby stores, consumers have higher demands for product and service experience, which implies more caution and sensitivity. The endorsement of the JD brand will dispel consumers' concerns about safety and quality.
A JD Convenience Famous Liquor Collection store in Qufu, Shandong, can achieve nearly 200,000 yuan in daily sales; a JD Mother-and-Baby Life Hall in Baoji, Shaanxi, saw its membership exceed 20,000 within three months.
**With the JD brand endorsement, solving consumers' trust and awareness issues with the store; with JD New Channel as the infrastructure, solving the supply of good products and operational management; and finally, through the store owner's personal relationships, solving the 'last step' transaction issue.** **Under such a retail model, it can be said to be a win-win for all parties, achieving a result of 1+1+1>3.**
**-02-****Unite All Directions: 8500+ Brand Partners, 4000+ Joint Warehouses**
To date, JD New Channel has reached cooperation with more than 8,500 brand partners. Cooperation is only the first step; assisting brand partners in doing good distribution and sell-through based on the current model is the second step. This has been JD New Channel's effort in B2B business over the past four years.
Of course, what New Channel wants to do today is the third step: creating new value for brand partners. Once, New Channel was a supply highway, allowing brand partners' goods to quickly reach more stores.
**Now, with more strongly managed stores, JD New Channel will have access to more supply chain efficiency data and product sell-through data. Complete and undistorted data from factory to end can more accurately help brand partners formulate marketing strategies and new product launch plans.**
Zheng Hongyan revealed that **recent communications with brand partners are no longer about what goods the brand manufacturers give the platform to sell, but rather New Channel, based on store operational data and product sell-through data, decides what goods it wants, and even proposes the concept of C2M.**
In the past, JD New Channel has always emphasized '**value creation**.' What to create? **It must be based on understanding and deep insight into the retail end and consumer behavior, feeding back to brand partners, making them more knowledgeable about retail and consumers, and then launching differentiated, precise marketing strategies and product plans.**
The consumption attributes of FMCG determine that it is a market with low attention and high homogeneity. In such an environment, it is often difficult for brand partners to understand the operational needs of the retail end and the consumption needs of consumers on their own. But now, with the help of JD New Channel's strongly managed stores, this problem can be effectively solved.
For example, in response to the demand for high-cost-performance products in small stores in markets below the third tier, New Channel and Yihai Kerry launched customized rice. They discussed and exchanged ideas on rice variety, origin, scale, pricing, and packaging, achieving reverse customization from the consumer end to the brand partner. It is understood that this rice has consistently ranked in the TOP 5 on Zhangguibao. In addition, for small stores' purchasing habits, New Channel and P&G jointly optimized product specifications and packaging, launching a B2B-exclusive small blue bottle.
Regarding brand partners' channel distribution, JD New Channel has proposed '7 Channel Solutions' for brand partners of different categories, scales, regions, and needs, in which joint warehouses play an important role. The 4,000+ joint warehouses, combined with JD Logistics, are gradually weaving a supply network covering the whole country.
JD New Channel's expectation is that in 'warehousing, distribution, and sales,' it can maximize the strength of local distributors (joint warehouses), using them to complete warehousing, distribution, and sales in local markets.
This move is also intended to tell joint warehouse partners that **in the future, their business will not only be their own distribution agency business, but also JD New Channel's 'agency, distribution, and sales' business. They no longer have to fight alone, but can rely on the 'big tree' of New Channel to continuously improve their local distribution service capabilities.**
**-03-****From Supply Chain to Supply Network: Making 'JD' Land**
Seeing this, we can basically understand what New Channel will do in the future: **centered on consumer demand, continuously forging the capabilities of product assembly, warehousing, distribution, and sales, and store sales assistance, creating value for all partners on the channel.**
One sentence from Zheng Hongyan left a deep impression: Today's New Channel is not like the past when JD created a 'field' online, doing incremental business and setting its own rules. Now New Channel has entered the offline stock market, and at this time it must abide by the rules.
**Business from 0 to 1 can set rules; business from 1 to 10 must abide by rules. On this basis, New Channel must also provide value to existing offline business entities, not only efficiency value, but also marketing value around consumer demand.**
In New Distribution's view, **the manifestation of JD's 'Boundaryless Retail' is to make 'JD' land, landing in various retail formats in various regional markets offline. In this process, New Channel is the 'executor' that undertakes the landing.**
Now looking back, when JD New Channel was established, it was truly worthy of being JD's 'Locomotive No. 1 Project.' As the road ahead becomes clearer, the rest is waiting.
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## Citation metadata

- Publisher: New Distribution
- Author: 袁来
- Published: 2019-12-18
- Canonical: https://xinjignxiao.com/en/articles/adding-10-000-multi-scenario-stores-unpacking-jd-new-channel-s-2020-layo-756906c1/
- Original source: https://mp.weixin.qq.com/s/BWKmCdNnmBHMH4BzIi9ZIw

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