---
title: "JD New Distribution Positions 2018 as a 'Key Development Year', Targeting Coverage of 1 Million Small Stores!"
description: "As 2017 draws to a close and 2018 approaches, JD New Distribution, a leading FMCG B2B platform, marks its second anniversary. After two years of exploration, the company has laid a solid foundation and refined its model. For 2018, it aims to cover 1 million small and medium-sized stores, including 50,000 JD convenience stores, by focusing on brand partnerships, value-added services, and B2B logistics upgrades."
author: "袁来"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-12-18"
language: "en"
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# JD New Distribution Positions 2018 as a 'Key Development Year', Targeting Coverage of 1 Million Small Stores!

> As 2017 draws to a close and 2018 approaches, JD New Distribution, a leading FMCG B2B platform, marks its second anniversary. After two years of exploration, the company has laid a solid foundation and refined its model. For 2018, it aims to cover 1 million small and medium-sized stores, including 50,000 JD convenience stores, by focusing on brand partnerships, value-added services, and B2B logistics upgrades.

As 2017 draws to a close and 2018 approaches, for FMCG B2B platforms, after two years of trial and exploration, 2018 may be a significant year for every FMCG B2B platform.
As one of the most research-focused platforms in the FMCG industry, JD New Distribution celebrates its second anniversary this month. Today, I will share with you what New Distribution has accomplished over the past two years, its significance for industry development, and its strategic goals for 2018.
First, let's look at what JD New Distribution did in 2016 and 2017.
**Latest Milestones of JD New Distribution**
**2016**
- In December 2015, JD New Distribution Business Unit was officially established.
- In January 2016, JD CEO Liu Qiangdong announced at the annual meeting that the New Distribution Business Unit would undertake the "Locomotive No. 1" project.
- In March 2016, a strategic cooperation meeting with brand manufacturers was held, with 500+ major brands signing for direct supply.
- In April 2016, the JD Zhangguibao APP completed testing and was officially launched.
- In June 2016, the first "618" for Zhangguibao saw sales increase by 2005% compared to the previous month's daily average.
- In July 2016, JD New Distribution partnered with Shuanglu Battery and Zhongguo Juice to pilot terminal marketing.
- In September 2016, the "Golden September Stockpiling Festival" broke the 618 full-day sales record within the first hour of the first day.
- In November 2016, the "11.11 Stockpiling Battle" saw full-day sales increase by 900% compared to the previous month's daily average.
**2017**
- In March 2017, at the "Spring Sugar" event, they received tens of thousands of professional visitors.
- In April 2017, the Million JD Convenience Store Plan was launched, with over 100,000 applications within 3 days.
- In June 2017, 6.18 sales on JD Zhangguibao increased by 2300% compared to 2016.
- In August 2017, the first batch of JD convenience stores opened, with average sales increasing by 200%.
- In September 2017, JD convenience store recruitment fairs toured the country, with the highest on-site signing rate reaching 70%.
- In October 2017, the first "unmanned" JD convenience store opened at JD headquarters.
- In November 2017, JD Zhangguibao sales increased by 2400% compared to 2016, and 1,111 JD convenience stores opened on the same day.
Looking back at these two years, in one sentence, New Distribution has done two things: **First, improve infrastructure; second, refine the model.**
For JD New Distribution, 2016 and 2017 can be described as market launch, exploration, and foundation years. During these two years, New Distribution has been growing and changing, with highlights and growth points almost every month. The New Distribution team has solidified the market foundation and validated the model through small, incremental efforts.
1. Improving Infrastructure
**1.1 Enhancement of warehousing, logistics, and distribution:** Many might say that warehousing and logistics are already JD's unique advantage, so what is there to improve? However, I would argue that while JD already has warehousing and logistics, they were previously for the C-end. The warehousing and logistics for B-end are quite different. For instance, the warehousing management of beverages, with low value and high inventory occupancy, differs significantly from the warehousing management of online C-end products. It can be said that New Distribution has invested considerable effort in integrating warehousing, logistics, and distribution over the past two years. For example, in 2017, JD Logistics accelerated the layout of its fourth network—the B2B logistics network. JD New Distribution has opened truck transport in major cities from first-tier to second-tier across the country, and orders over 100 kg can be delivered by truck. Two years of warehouse and distribution integration have given New Distribution the confidence to carry the Locomotive No. 1 project.
**1.2 Enhancement of offline field teams:** In July 2017, JD announced nationwide coverage for New Distribution. Previously, Zhao Bo from New Distribution expressed the view that whether to cover the whole country is actually just an internal decision for New Distribution. Besides logistics, service infrastructure is also key to nationwide coverage. From the moment of the announcement, it was clear that the overall organizational framework of the offline field team had been basically established.
**1.3 Enhancement of software information systems:** If the first two points are hardware improvements, then the three systems (Smart Store Management System, Xingzhe Sales Promotion Platform, and Huiyan Big Data System) are software improvements. The launch of information systems has been highly attractive to brand owners. Accurate information feedback, visible inventory dynamics, and horizontal data comparisons have alleviated the long-standing "heartache" of brand owners in terminal marketing. As more brand owners join and cooperate, New Distribution has enriched its upstream product variety.
2. Refining the Model
FMCG B2B platforms fall into two categories: self-operated and platform models. JD is a representative of the self-operated model.
Judging from the growth rate over the past two years, although New Distribution's model is relatively heavy, it has already taken the lead among many B2B platforms, thanks to the support of the JD Group and its comprehensive warehousing and logistics system. Additionally, with the support of the Xingzhe Sales Promotion Platform, Huiyan Big Data System, and field teams, New Distribution has strong capabilities in new product distribution and sales promotion.
The development of FMCG B2B is a process from 0 to 1, and market trial and error is inevitable. Through two years of continuous exploration and trial, New Distribution has gained widespread recognition from brand owners and small stores.
**Looking to the Future:**
On December 16, JD New Distribution released its latest strategic goal: to cover 1 million small and medium-sized stores by the end of 2018, including 50,000 JD convenience stores. Over the past two years, New Distribution has covered 500,000 small and medium-sized stores. Based on the 50,000 stores announced at the end of 2016, New Distribution covered at least 450,000 stores in 2017. Therefore, for New Distribution, covering another 500,000 stores in 2018 is not difficult.
It is understood that New Distribution has positioned 2018 as a "key development year" and will ensure goal achievement through three aspects.
1. Accelerating brand partner introductions and cooperation
As mentioned earlier, with the feasibility of the model validated, in 2018, brand owners may no longer join through "cordial invitations" but rather "actively" apply for upgraded cooperation. Currently, the JD Zhangguibao platform has over 1,000 mainstream major brands and more than 300 regional brands. JD New Distribution has become a must-choose channel for FMCG brands to test B2B distribution. Moreover, cooperation with New Distribution will not just be simple product listing but will involve deeper research and cooperation with terminal stores in areas such as distribution, marketing, and promotion.
New Distribution is also laying out the hottest fresh food category. It is reported that JD Zhangguibao will launch fresh food categories next year. JD New Distribution has signed a cooperation agreement with a food processing enterprise in Shandong, introducing over 1,000 products including aquatic products, meat, eggs, vegetables, noodles, and canned goods.
2. Expanding value-added services for retail stores
In the development year of 2018, besides direct GMV and store expansion growth, New Distribution will also add more value-added services for small stores. Based on current understanding, in addition to services like virtual product sales, parcel sales, phone card sales, and financial management, 2018 will add more high-frequency community service projects, such as lottery sales, printing, and utility bill payments. Additionally, New Distribution will provide coffee machines to small and medium-sized stores through upstream partners, allowing them to sell freshly brewed coffee.
At the same time, management systems, credit period services, and online stores will also be launched soon. To expand stores, "more, faster, and cheaper" can only help small stores "cut costs," but the most important survival strategy for small stores is "increase revenue." Therefore, a dual approach is necessary to truly empower small stores.
3. Upgrading the B2B logistics network layout
In New Distribution's view, although there is a foundational logistics base, it is far from sufficient. The span of categories and products, supply of fresh and cold chain, seasonal and cyclical fluctuations, and last-mile delivery capabilities will all test JD's B-end logistics network. From 500,000+ to 1 million+, with the doubling of retail stores, the upgrade of the logistics network is inevitable. In 2018, JD New Distribution will continuously enrich and improve its logistics system based on the order characteristics and business logic of B-end users, further meeting demands such as "large span of categories and products, strong periodicity, heavy workload in receiving and inspecting goods, and service diversity."
**After seeing New Distribution's 2018 plan, I can't help but think: 2018 will definitely be the "most exciting" year for FMCG B2B. I look forward to 2018 and to JD New Distribution bringing different highlights to this traditional FMCG field.**
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