Currently, internet e-commerce has severely impacted offline distribution. Traditional retail models can neither meet the higher consumer experience demands nor cope with global competition from peers, cross-industry players, and even cross-sector entrants. In 2016, JD proposed New Channels, and Alibaba proposed New Retail. China's distribution industry urgently needs transformation and upgrading. Eternal Asia, focused on supply chain services, introduced the concept of New Distribution in its 20th year. With an open, cooperative mindset, it embraces the internet to achieve comprehensive integration of resource, information, and capital sharing from upstream to downstream, liberating partners from their existing survival state and ushering in new life. Based on the 'three-izations' concept of New Distribution, Eternal Asia launched the new online-offline carnival 'Star Chain · Sanhao Festival' in 2017. On the 3rd of each month, a city takes the lead with surrounding cities joining in, conducting joint promotions for Eternal Asia's stores online and offline. Unlike traditional Tmall or JD shopping festivals, the Sanhao Festival is a brand marketing festival with synchronized online and offline carnival activities. Leveraging its strong offline presence, Eternal Asia broke through 100 million yuan in retail sales in just 16 hours in Guangxi during the first event. The second event in Sichuan-Chongqing followed up, achieving over 300 million yuan in combined online and offline sales on October 3! 1. What is the Sanhao Festival? 'Star Chain · Sanhao Festival' is a brand marketing festival meticulously crafted and heavily promoted by Eternal Asia, featuring synchronized online and offline carnival activities. With the theme 'Genuine products at low prices, buy on the 3rd,' on the 3rd of each month, thousands of major brands gather on Star Chain to offer consumers a vast array of products and services with 'good quality, good experience, and good prices,' creating a consumption feast and igniting a nationwide shopping carnival. As online shopping has become mainstream, 'shopping' has almost been reduced to mere treasure hunting. 'Star Chain · Sanhao Festival' redefines the meaning of 'shopping' and 'strolling.' With live band performances, Sichuan opera face-changing, DJ sets, VR games, and various online and offline experiential activities, it covers commercial streets, campuses, community stores, and more. The festival is no longer a shopping carnival for a single company or physical store but a celebration for the whole family and the entire public. Unlike traditional e-commerce carnivals, 'Star Chain · Sanhao Festival' creates a brand marketing event with rich categories, substantial discounts, and strong interactivity and innovation. It not only allows consumers to buy high-quality products at favorable prices but also attracts foot traffic to stores and boosts confidence in retail terminals. During this Sanhao Festival, over 10,000 retail outlets gathered through Eternal Asia's platform, unleashing the 'primordial power' of physical retail transformation, fully leveraging the advantages of internet+ scenarios to reshape consumer confidence in retail terminals. The event covered categories including food, beverages, daily chemicals, home goods, personal care, cosmetics, digital appliances, Mid-Autumn Festival specials, and mother and baby apparel. Many well-known brands joined the 'Star Chain · Sanhao Festival' promotions, including Nestlé, Abbott, Adidas, Philips, Wyeth, Luhua, Mars, Xinruike, Yunnan Baiyao, and others. There were not only valuable coupons to grab in advance but also buy-one-get-one, flash sales, group buying, and other cost-effective activities to reward consumers. 'Star Chain · Sanhao Festival' is a positive signal for China's distribution industry in urgent need of transformation, confirming the feasibility of the New Distribution path. It is foreseeable that in the future, 'Star Chain · Sanhao Festival' will bring change to every corner of China, making product circulation smoother, giving retail terminals more initiative, and turning the spark of New Distribution reform into a prairie fire, comprehensively promoting innovation and transformation in China's distribution industry and contributing greater strength to supply-side reform! 2. Value of the Sanhao Festival for Brand Owners In March 2017, Eternal Asia first proposed the forward-looking concept of 'New Distribution' to help the distribution industry open up the entire industry chain, help brand owners directly supply terminals, and achieve distribution flattening. This allows community stores to have a richer product assortment, realize one-stop community shopping, promote comprehensive integration and resource sharing across all distribution links, and fully meet and enhance consumer demand and shopping experience. A new era requires a new product circulation model. 'Star Chain · Sanhao Festival' marks the beginning of Eternal Asia joining all brand owners and retail terminals in entering the New Distribution era. To build 'New Distribution,' Star Chain Life adopted a 'rural surrounding the city' strategy. As for why activities were not held in first-tier cities with relatively mature internet, Eternal Asia's Chairman and CEO Zhou Guohui believes: core brands are currently competing in key cities, but the real pain point for brands is in surrounding cities. Eternal Asia aims to integrate resources and demands across regions, allowing brands and suppliers to focus their strengths on brand building, while Star Chain's internet platform helps brands with marketing. 'We are building a distribution internet platform; our positioning is not e-commerce,' Zhou said. 'Star Chain's positioning is marketing, internet marketing. I provide an internet platform to physical stores and supply goods, helping each physical store do its own e-commerce. We not only won't eliminate terminal stores but also help them use the internet to grow stronger.' 3. How New Distribution Helps Brand Owners Achieve the Three-izations Value Chairman and CEO Zhou Guohui said: 'The core value of New Distribution lies in three-izations: flattening, community-ization, and sharing.' In the traditional retail value chain—brand owner, agent, distributor, retail store, consumer—there are many intermediate links. Each time a brand owner wants to expand coverage, such as entering a province, manpower and time multiply, and distribution costs rise. Eternal Asia's flattening strategy is to replicate internet tools from online retail and provide them to traditional retail, using an online platform to directly connect brand owners with retail terminals (stores). Community-ization, unlike the holistic nature of flattening, builds a small-scale spatial logic. This small scope can be geographical, category-based, or consumer characteristic classification. This micro-structuring is like solution crystallization, requiring a container. Eternal Asia's prepared containers are 'Star Chain' and 'Star Alliance.' 'Star Alliance' handles functions—providing stores with services such as store image, product procurement, value-added business development, operations management, and financing; 'Star Chain' directly reaches consumers, allowing consumers to face stores and brand owners directly. Eternal Asia promises to achieve benefit sharing among participants, requiring delicate balance and foresight. Whether the platform builder can trade current benefits for future ones, attract enough participants first, then enlarge and fairly distribute the pie, determines the success of New Distribution. Behind Eternal Asia's ability to help brand owners achieve the three-izations value is its powerful supply chain system. As the first listed supply chain company, Eternal Asia uses a 'supply chain + internet' mindset to integrate all available resources and build a symbiotic O2O supply chain business ecosystem. It is not only a bridge for manufacturers, distributors, and small and medium retailers to New Retail but also a mutually integrated, co-developing healthy business ecosystem. Eternal Asia's initial goal was to become China's largest supply chain service company, connecting production enterprises to sales enterprises. With its strong supply chain warehouses, it can even become China's largest supplier. Eternal Asia insightfully identifies needs, integrates advantageous resources, and has built a global integrated supply chain service platform with logistics, business flow, capital flow, and information flow integrated as the carrier, and with production supply chain services, distribution and consumption supply chain services, global procurement center and product integration supply chain services, and supply chain financial services as the core. On this basis, Eternal Asia's 'Star Chain · Sanhao Festival' perfectly realizes the true implementation of O2O. It uses the 380 platforms in 380 cities across China as a solid carrier, Star Chain as the internet implementation, and leverages its advantage of covering over 1.5 million retail terminals nationwide, successfully taking an important step with brand owners and retail terminals on the New Distribution path. -END-
Brand Marketing · Distribution & Channels
Eternal Asia's New Distribution Strategy Takes Off: 'Sanhao Festival' Achieves 'Three-izations' for Brands and Retail Outlets
As internet e-commerce impacts offline distribution, traditional retail models struggle to meet higher consumer experience demands and face global competition. In 2016, JD proposed New Channels and Alibaba proposed New Retail. China's distribution industry urgently needs transformation, and Eternal Asia, a supply chain service provider, introduced the concept of New Distribution in its 20th year. With an open, cooperative mindset, it embraces the internet to achieve resource, information, and capital sharing from upstream to downstream, liberating partners from old constraints.
