JD's Global Mid-Year Shopping Festival reached its ultimate battle on June 18. In the second battlefield opened by JD New Distribution for small and medium stores nationwide, Zhangguibao users maintained a frenzy of stocking and selling, with battle reports constantly refreshing. As the clock struck midnight on the 18th, JD New Distribution officially released its final battle report.

618 Overall Sales 13 Times Last Year, Average Order Value Tripled

The report shows that daily sales for the three consecutive days from June 16 to 18 this year each exceeded the total for the whole of 2016; cumulative sales from June 1 to 18 were 1300% of the same period in 2017, with order volume at 362% year-on-year. This also means that the average order value on JD Zhangguibao more than tripled. Clearly, New Distribution's penetration in the small B-end is gradually strengthening, and JD Zhangguibao has become the only platform in the B2B field that can leverage JD Logistics' advantages to cover markets from first-tier cities to township and village levels.

Zheng Hongyan, Vice President of JD Group and President of JD Mall New Distribution Business Unit

Zheng Hongyan said: "Since its establishment in December 2015, JD New Distribution has maintained high-speed growth for three consecutive years. In the 2018 618, New Distribution continued its crazy growth. Whether in supply chain capabilities, technological innovation strength, or platform integration capabilities, New Distribution has fully advanced and is capable of welcoming the era of borderless retail together with all upstream and downstream partners in the retail industry."

Rocket-Style Growth in Brands and Categories: Coffee and Milk Tea Up 6300% Year-on-Year

The rapid development of New Distribution has also driven partner brands to achieve rocket-style growth. Brands such as Rio, Heineken, Beiersdorf, and Blue Moon all achieved significant growth. Among them, on Blue Moon's Super Product Day, thanks to online live streaming and offline ground promotion, New Distribution helped Blue Moon conduct in-depth education for store owners on its "Machine Wash Supreme" product set, driving a comprehensive surge in daily sales across its four major product lines, with household cleaning reaching 8500% of May's average daily sales; P&G's hair care category's Super Product Day sales were 4880% of May's daily average, with 60% being strategic circulation products, showcasing New Distribution's rapid distribution capability. "We can help manufacturers distribute products to small stores, sell them in, and also help store owners with sell-through, selling products out. This is the value that many manufacturers see as different about New Distribution," Zheng Hongyan said.

In terms of categories, coffee and milk tea grew 6300% year-on-year, becoming the highest growth category. Convenience foods, drinking water, rice, and imported foods all made the Top-level growth categories, becoming must-stock items for small store owners during the mid-year promotion.

New Businesses Soar: 40,000 WeChat Mini-Programs, 1,000 Joint Warehouses, Catering Business Up 1681%

As the offline entity of New Distribution, JD Convenience Stores have not only spread across the country but also blossomed in airports, high-speed rail, train stations, highway service areas, campuses, and other channels. With the advantage of zero distance to C-end consumers, JD Convenience Stores became the offline main venue for New Distribution's 618.

The biggest highlight of this New Distribution 618 was the "online store" mini-program of JD Convenience Stores, which connected online and offline consumption scenarios, truly realizing the implementation of borderless retail. To date, Zhangguibao users have "opened" over 40,000 online stores. The online store mini-program sends 618 brand consumption vouchers to C-end consumers, making 618 a true online-offline celebration. A JD Convenience Store owner from Hebei said that after joining JD Convenience Store, they participated in this year's 618 online-offline joint promotion and also opened an online store mini-program, and their daily turnover has already tripled!

During 618, offline JD Convenience Stores were extremely popular

The joint warehouse distribution business, launched in March this year, allows store owners to stock and replenish faster, providing stronger support for selling during the 618 promotion. As of June 18, nearly 1,000 joint warehouses have joined the Zhangguibao platform, and at peak times, joint warehouse sales accounted for half of the total.

Another new business, JD Catering, also performed impressively, with cumulative sales over 18 days growing 1681% compared to May. In the height of summer, JD Catering's developed spicy crayfish dumplings and spicy crayfish tails were launched at all 33 Dongfang Dumpling King stores in Beijing, and were highly favored by consumers. Currently, shrimp meat and crayfish tails are in severe short supply.

All business segments of JD New Distribution achieved impressive results in this year's 618, and the high growth trend confirms that JD's borderless retail strategy is unleashing infinite potential. In the future, New Distribution will continue to upgrade retail infrastructure and bring more dividends to brand owners, distributors, wholesalers, terminal stores, and consumers.

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