--- title: "Disruption is Here! The First JD Convenience Store Opens! Future Plans to Open 1 Million Stores Nationwide!" description: "In April, Liu Qiangdong publicly announced a plan to open one million convenience stores in five years, sparking widespread discussion. Recently, a JD convenience store officially opened in Xin'anzhuang, Renqiu City, Hebei Province, and within less than a morning, the owner's half-month inventory was completely sold out! JD convenience stores are truly booming!" author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-06-26" language: "en" canonical: "https://xinjignxiao.com/en/articles/disruption-is-here-the-first-jd-convenience-store-opens-future-plans-to-95f8e63c/" markdown: "https://xinjignxiao.com/en/articles/disruption-is-here-the-first-jd-convenience-store-opens-future-plans-to-95f8e63c.md" original_source: "https://mp.weixin.qq.com/s/RgonmxW9spS31XyhxbxI-Q" translation: "https://xinjignxiao.com/zh/articles/%E9%A2%A0%E8%A6%86%E6%9D%A5%E4%BA%86-%E7%AC%AC%E4%B8%80%E5%AE%B6%E4%BA%AC%E4%B8%9C%E4%BE%BF%E5%88%A9%E5%BA%97%E5%BC%80%E4%B8%9A-%E6%9C%AA%E6%9D%A5%E5%B0%86%E5%9C%A8%E5%85%A8%E5%9B%BD%E5%BC%80%E5%88%B0100%E4%B8%87%E5%AE%B6-95f8e63c.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/disruption-is-here-the-first-jd-convenience-store-opens-future-plans-to-95f8e63c/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Disruption is Here! The First JD Convenience Store Opens! Future Plans to Open 1 Million Stores Nationwide! > In April, Liu Qiangdong publicly announced a plan to open one million convenience stores in five years, sparking widespread discussion. Recently, a JD convenience store officially opened in Xin'anzhuang, Renqiu City, Hebei Province, and within less than a morning, the owner's half-month inventory was completely sold out! JD convenience stores are truly booming! > **Foreword:** In April, Liu Qiangdong publicly announced a plan to open one million convenience stores in five years, sparking widespread discussion. Recently, a JD convenience store officially opened in Xin'anzhuang, Renqiu City, Hebei Province, and within less than a morning, the owner's half-month inventory was completely sold out! JD convenience stores are truly booming! You might not want to believe it! But this is real! Physical stores, convenience stores; rather, authentic physical stores and genuine convenience stores are counterattacking the traditional market at a speed you can't imagine! Grabbing territory... Looking at these pictures below, don't they seem ordinary? Isn't it just as ordinary as the small shops in your hometown? A very ordinary small supermarket, without luxurious decoration, with a sign at the entrance reading: 100% of products are from JD self-operated, guaranteed genuine, and if fake, we compensate tenfold! Buying in big bags and bundles! Despite such ordinary decoration, so many people are entering the store to buy, and within less than half a day of opening, the goods are almost sold out. The popularity of JD convenience stores has astonished everyone! **It's hard to believe why physical stores suddenly exploded without warning.** China has hundreds of thousands of small and medium-sized enterprises. Every year, they produce a large number of counterfeit, defective, inferior, unhealthy, and substandard goods. Over 90% of these goods are not destroyed and dare not be sold in big cities; they eventually flow into various small department stores in rural areas, gradually consumed by ordinary farmers... It can be said that in rural convenience stores, department stores, clothing stores, leather goods stores, etc., in villages, markets, and towns, apart from those selling fruits and vegetables, over 90% of all daily necessities, clothing, shoes, cosmetics, and other goods are counterfeit or inferior. If you were born in a rural area, you must understand this pain! **Liu Qiangdong: We must completely eliminate price discrimination in rural areas! Farmers already have a hard time making money, yet they have to pay more than urban residents to buy goods, and they also face the huge risk of being cheated and buying counterfeit or substandard products!** Today, all of this will change! JD has taken the lead in announcing plans to open 1 million convenience stores nationwide, half of which will be in rural areas. Tmall quickly followed, announcing plans to open rural Taobao stores across the country! The two e-commerce giants are joining forces to combat the rural market for counterfeit, inferior, and overpriced goods... In the next five years, with the opening of 500,000 JD rural convenience stores, over 80% of rural small department stores and supermarkets will be affected, with revenues plummeting! Counterfeit and inferior goods will have nowhere to hide and will be completely unsellable! Liu Qiangdong's move may seem simple, but behind it lies a stunning strategy. Some are happy, others... **1. Local distributors:** Traditional convenience stores have always been controlled by others; the price, date, and variety of goods are controlled by distributors. You have no choice, and if the quantity is small, they won't deliver; you must pick up and stock up yourself. This time, JD sets up warehouses, JD handles logistics, and JD manages prices—transparent, open, and comprehensive. Bypassing monopolistic local distributors, there's no need to travel across town to stock up. In the future, you can even use credit for purchases, and even achieve zero inventory by connecting supply and demand. **2. Soaring prices:** In recent years, urban prices have soared, and even more so in rural areas. Small shop owners arbitrarily raise prices; high costs are one reason, but opaque pricing that deceives the public is the root cause. This time, JD manages prices, from a pack of instant noodles to an air conditioner, with prices open and transparent, even cheaper than standard prices. This bridges the information asymmetry between urban and rural prices. **3. Counterfeiting and selling fakes:** Today, the hardest-hit area for counterfeit goods is rural areas, with brands like Kangshuai Fu, Lei Bi, Liu Guo Walnut, and Wang Laogu, which not only cheat people of money but also harm health. This time, with a tenfold compensation for fakes and 100% guaranteed supply sources, these rampant counterfeiters who operate with impunity in rural areas will be wiped out. **4. Danger for Postal and Four-Tong-Yi-Da:** 1 million JD physical stores mean 1 million JD network nodes, reaching the last mile. The strongest rural coverage by Postal and the monopoly of Four-Tong-Yi-Da in rural areas are now facing a crisis. **"A sparrow may be small, but it has all its organs," this saying fits convenience stores perfectly. Convenience stores are becoming the new retail trend, and although some don't believe it, it's not accidental.** On April 10, JD Group founder Liu Qiangdong announced on Toutiao the "Million JD Convenience Store Plan": **In the next five years, JD will open over one million JD convenience stores nationwide, half of which will be in rural areas.** This is the third offline cooperation project after the 10,000 JD Home Appliance Specialty Store plan, and there is also an offline-online integration project that Liu Qiangdong said is temporarily confidential. What JD calls "convenience stores" are more like the small department stores on streets and alleys, commonly known as mom-and-pop stores. In the past, they served neighbors as good neighbors, but they found it hard to enter the standardized operations of modern retail. This time, JD is bringing its supply chain system to comprehensively upgrade the bottom layer of China's retail industry. **Introduction:** JD convenience stores have two sourcing models: 100% sourcing and partial sourcing. Store owners place orders on JD's Zhanggui Bao, and JD is responsible for logistics and delivery to the store. Those who source 100% from JD will receive more support in market activities and other aspects. Currently, the planned main categories are FMCG, while other categories such as 3C, home appliances, clothing, and home furnishings can support partial display and commission-based ordering models. **Recruitment policy:** Zero franchise fee, zero management fee, zero training fee, only a quality deposit is required. Store owners must promise that 100% of the goods sold in the store are genuine, with "tenfold compensation for fakes." The costs of rent, utilities, decoration, and inventory are borne by the store owner. **Model:** The plan is undertaken by JD's New Channel Business Unit. The one million stores to be opened in the next five years will adopt the unified image of "JD Convenience Store." The photos currently shown are from early pilot stores. JD uses its business philosophy to empower offline stores, providing not only quality goods but also brand, model, and management. **Goal:** To open 1 million JD convenience stores in five years. The reason for this phenomenon is that the online dividend period is completely over, and the entire traffic relationship has shifted from online to offline. From an investment perspective, the focus now should be on who has offline traffic. Looking at future trends, the competition for offline convenience store territory will become even more intense. **E-commerce giants are competing to lay out "new retail"** "New retail" has become a key area for major e-commerce giants to compete in. Besides JD, giants like Alibaba and Xiaomi are also working to open up offline channels. In November 2016, Alibaba invested in Sanjiang Shopping, and Taobao Convenience Store, after Hangzhou and Shanghai, entered Ningbo with the help of Sanjiang. In May this year, Alibaba acquired Lianhua Supermarket with over 3,600 stores, officially stating that Shanghai will be the experimental ground for new retail. Amid the continued downturn in the physical retail economy, large retail enterprises such as China Resources Vanguard and Carrefour have begun to transform, experimenting with new small formats. China Resources is testing its new small format Tesco Express, and Carrefour has launched Easy convenience stores. A batch of small formats represented by community premium supermarkets and convenience stores has begun to emerge frequently, developing at a rapid pace. The reason for this phenomenon is that the online dividend period is completely over, and the entire traffic relationship has shifted from online to offline. From an investment perspective, the focus now should be on who has offline traffic. Looking at future trends, the competition for offline convenience store territory will become even more intense. Recently, media reports revealed that Zong Qinghou of Wahaha and Liu Qiangdong are in secret talks regarding matters related to the New Channel, but the results of the talks have not yet been officially announced. It is worth noting that when Liu Qiangdong announced the "Million JD Convenience Store Plan" in April, he mentioned that there was also an offline-online integration project that was temporarily confidential. It remains to be seen whether Zong Qinghou's Wahaha is the secret Liu Qiangdong referred to. Food Industry Entrepreneur will continue to follow the development of events. **Source: Food Industry Entrepreneur** -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671