Fragmented demand and fragmented scenarios require brand owners to transform from a single traditional business model to a more efficient, diversified, and multi-dimensional one. As FMCG products are characterized by immediacy, high turnover, and low value, offline channels have always been the main battlefield for brand owners. On one hand, there is a need for more efficient and diversified business models; on the other hand, the business is heavily offline. This places higher demands on brand owners: how to integrate online and offline, achieve precise store entry, and omnichannel marketing has always been the direction brand owners strive for. ▲ Zheng Hongyan, Vice President of JD Group and President of the New Channel Business Unit under JD Retail's Omnichannel Business Group for Large Supermarkets At the 2020 (3rd) China FMCG Conference held by New Distribution on August 24 this year, Mr. Zheng Hongyan's keynote speech, "Reshaping Value, Building an Ecosystem," seemed to provide a feasible path for brand owners. **-01-**JD New Channel: Enabling Omnichannel Business Growth for Brand Owners At the conference, Mr. Zheng Hongyan stated, "Based on the omnichannel and multi-scenario layout, as well as the ability to provide stores with full-scenario customer acquisition capabilities that connect online and offline, JD New Channel has also helped brand owners build a B2B2C omnichannel marketing system. By supplementing JD's large supermarket multi-dimensional marketing resources and full-touchpoint digital capabilities, it helps brand owners achieve broader and more precise user reach, obtain more complete data, and ultimately achieve omnichannel business growth." First, let's look at why JD New Channel has such confidence, from three perspectives: From its own perspective, JD New Channel has covered more than 300 cities, over 32,000 townships, and more than one million small and medium-sized stores. Over the past four years, JD New Channel has built a "highway" to stores in various regions, and a low-cost fulfillment supply network has taken shape, helping brand owners distribute products more efficiently. Among these, JD Convenience Stores have also completed the establishment of a "chain operation management system," with management models, store construction, and store management capabilities leading the industry. This is the core embodiment of its "store control capability." In addition, JD New Channel has connected online and offline for stores, helping brand owners link diverse sales scenarios. While helping stores achieve full-scenario customer acquisition, it also realizes the B2B2C omnichannel marketing chain from brand owners to consumers. From an organizational perspective, according to Zheng Hongyan, this year JD system underwent an organizational upgrade with the establishment of the Omnichannel Business Group for Large Supermarkets. In the future, with the support of JD Large Supermarkets, New Channel's capabilities in reaching and controlling stores, omnichannel supply and fulfillment, and omnichannel marketing will all be enhanced. In short, with the support of the Omnichannel Business Group for Large Supermarkets, New Channel can more effectively match the traditional stores it serves. Through "natural selection" (a JD program), whether it's traffic from inside or outside the platform, New Channel can help traditional offline stores more accurately match consumers. Stores can also gain new growth through pre-sales on JD's main site. For example, if a store receives fresh food orders on the main site and forms pre-sales, the store will receive fresh food inventory the next day, achieving category growth on top of its original categories. It can be seen that, backed by JD Large Supermarkets, New Channel's capabilities in store layout and control, omnichannel supply and fulfillment, and omnichannel marketing have all been upgraded. **-02-**Not Just Store Coverage, but Precise Store Entry In the past, we emphasized store coverage, but today JD New Channel can achieve not just store coverage, but precise store entry. Using stores as the carrier, it creates value for stores, generates high stickiness through deep connections, and then recommends brands and categories to stores to drive sales conversion. How exactly? With digital tools such as Huiyan and Langjing, New Channel helps brand owners achieve precise distribution of channel and store coupons. At the same time, using marketing methods on JD's Zhangguibao (a B2B ordering platform) such as brand pavilions, live streaming, red envelope rain, and sell-through tasks, it builds a private domain marketing battlefield between brand owners and stores. For terminal stores, JD New Channel has built four operational echelons for small and medium-sized stores nationwide, consisting of headquarters operations teams, store supervisors, joint warehouses + DSRs, and brand owner ground teams, providing professional and standardized services to stores. In simple terms, JD New Channel serves small stores through professional and digital capabilities, such as introducing more high-quality and unique products, not only full-category products, but also providing stores with service-oriented products covering life, public welfare, business, and finance. In this way, New Channel has a more comprehensive and in-depth understanding of small stores in various regions. Based on its grasp of stores and high-stickiness cooperation, it helps brand owners achieve direct connection with stores, enabling seamless interaction between brand owners and stores, and realizing the operation of brand owners' "store private domain traffic." Today, product entry into stores is no longer simply about "high gross margin, high fees," and putting products on shelves. Instead, it is based on store profiles, allowing brand owners to know which stores to enter and who the surrounding consumers are. At the same time, through various methods, stores can truly understand products, be interested in them, and know how to sell them. To achieve this, precise operation of "store private domain traffic" is an inevitable path for brand owners. Of course, precise store entry is just the beginning. How to sell more after entering the store is a higher requirement. **-03-**From B2B to B2C: Reconstructing the Value Chain from Brand to Consumer After establishing deep connections between the brand side and the store side, how to help brand owners sell more goods is the final key step. If we break down "selling more goods," the core lies in two aspects: First, traffic. First, there must be more people, whether online or offline. If we still rely solely on store traffic based on geographic location, it is naturally impossible to achieve the goal of "selling more." The core of selling more is to find incremental growth and attract traffic from outside through various means. Second, conversion. When consumers enter the store, how to promote conversion and encourage them to choose brand products. FMCG consumption is highly immediate and random, so it is important to attract consumers' attention through various methods. What has JD New Channel done about these two points? According to Zheng Hongyan, in addition to introducing diversified traffic sources such as the JD APP, JD Convenience GO, JD Daojia, and Meituan for stores, New Channel also empowers stores to build private domain traffic through mini-programs, community group buying, and social groups, achieving full-scenario customer acquisition. Based on open and diversified traffic, New Channel has also built a SaaS platform for stores, allowing one-click onboarding, which is fast and convenient, helping stores gain more incremental growth. When there are more consumers, brand owners' sales naturally increase. From the moment consumers enter the store to when they leave, New Channel also takes a series of actions to promote high conversion. For example, outside the store, there are themed store decorations, advertising screen exposure, and themed displays to attract consumers to buy on sight. At the cash register, there are external screens where consumers can scan QR codes to receive coupons, customized posters, and more. Brand owners can achieve higher sales conversion and attract consumers through multiple touchpoints via New Channel's actions. Of course, it is worth mentioning that in addition to traffic and conversion, there is also repurchase. Whether it's JD Convenience GO or POS scan payment, these are digital configurations that can effectively achieve consumer retention and secondary conversion. In short, it's about attracting fans and retaining customers. In the past, it was difficult for a brand owner to reach the C-end offline; they could only do awareness and education online, and transactions and delivery offline. Online and offline were separated, making efficient coordination impossible. Now, through JD New Channel, online and offline are perfectly connected, linking channels to diverse sales scenarios, such as online orders with offline fulfillment, and offline channels combined with online. Through the B2B2C marketing system built by New Channel, effective connection can be achieved. At the same time, brand owners can achieve omnichannel marketing and business growth within a complete closed loop. The real data connected can truly guide brand owners in understanding consumer demand. As Mr. Zheng Hongyan said: "The value of B2B should not stop at the level of product circulation from distribution to sell-through for brand owners, but should be based on full-chain value creation, achieving omnichannel supply and selling. In the future, New Channel will continue to optimize the supply capacity of goods and services, build higher-quality stores, provide consumers with the best experience, and work with the industry to achieve omnichannel ecosystem co-creation and full-chain value sharing." Tips will be paid 400-2000 yuan once adopted.