From over 10,000 JD convenience stores participating in 618, to over 100 manufacturer roadshows across the country, from online ordering platforms offering the most direct discounts, to opening 'online stores' for small shop owners... In just four days, JD's 618 hot topics continued to heat up. As JD Group's 'Locomotive No. 1 Project', JD New Distribution played a strong hand: Data shows that on June 1 (as of 24:00), the effective order amount on JD Zhangguibao was approximately the total sales of the 18 days of the 2017 618 period, nearly the entire year's sales of 2016, and this figure was 6 times the average daily sales of Zhangguibao in May. Over the past three years, JD New Distribution has maintained high growth for three consecutive years. This year's 618 achieved a historic breakthrough. JD New Distribution has consistently proven with data that FMCG B2B can succeed, and it is leading the industry's growth. The impressive performance of JD New Distribution is not accidental, nor is it entirely the result of the 'giant effect'. So what exactly is the secret to its success? Every exploration points the way for the B2B industry Looking back at the growth history of the entire FMCG B2B platform, every exploration by JD New Distribution has pointed the industry in a new direction. From 2013 to 2015, FMCG B2B enterprises emerged like bamboo shoots after rain, staking their claims and bustling with activity. JD New Distribution was not born early; it was only announced in 2015, when Liu Qiangdong defined it as JD Group's 'Locomotive No. 1 Project'. From 2016 to 2017, the FMCG B2B platform entered an adjustment period. Many enterprises closed down one after another due to various reasons, and fewer new enterprises were established. JD New Distribution not only survived but thrived. In April 2017, JD New Distribution seized the opportunity again. Liu Qiangdong proposed opening more than 1 million JD convenience stores nationwide in the next five years. On the basis of building the B-end brand JD Zhangguibao for stores, it expanded to include consumer-facing brands and services. In 2018, following the convenience store trend, the era of boundaryless retail arrived. New Distribution seized the momentum again and launched two new businesses: partnering with small and medium distributors and wholesalers, using their existing warehousing and distribution resources as New Distribution's joint warehouses and distribution networks, launching 'Joint Warehousing and Distribution'; and announcing a full entry into the catering industry, building an efficient and transparent supply chain for small and medium catering stores nationwide. From staking claims (2015) to industry adjustment (2016) to the convenience store trend (2017), and finally to the accelerated implementation of the boundaryless retail strategy, JD New Distribution has created a complete boundaryless retail landscape encompassing brand owners, distributors, wholesalers, terminal stores, and consumers, gradually becoming a leader in the FMCG B2B industry. If the short-term development of the B2B industry depends on the model, medium-term on performance, and long-term on innovation, then New Distribution's rise as a heavyweight player is not only due to its natural supply chain and brand advantages but also because it continuously innovates in technology and models, contributing 'acceleration' to its high growth. 618 outbreak again, cooperation with over 1,300 manufacturers fully advanced In fact, New Distribution's natural advantage comes from JD's massive supply of genuine products, which has earned the trust of a large number of users. As of the end of 2017, the JD Zhangguibao platform under JD New Distribution had launched more than 1,000 mainstream major brands, introduced more than 300 regional brands, and signed in-depth strategic cooperation agreements with FMCG giants such as Unilever, Beiersdorf, Johnson & Johnson, PepsiCo, Mondelez, Nestlé, Uni-President, Wahaha, Mizone, Want Want, Yanghe, and Jiangxiaobai. In 2018, in addition to in-depth exploration in distribution, marketing, and promotion, JD New Distribution's cooperation with upstream manufacturers fully advanced, successively signing leading manufacturers such as Qiaqia, Yili, AB InBev, Kimberly-Clark, and Hengan, jointly focusing on product customization, warehousing and distribution, and joint store development. This undoubtedly allowed JD New Distribution's supply chain advantage to erupt again in the second half of B2B. The manufacturers' strong support for New Distribution is evident from this year's 618 preparations. It is reported that during this year's 618, New Distribution's partner manufacturers held more than 100 roadshows in seven major regions across the country, and some manufacturers even provided special rewards for New Distribution's field teams, striving to break 618 sales records. Technology empowerment, JD convenience stores cover the country If the massive manufacturer resources have consolidated New Distribution's unique advantage in the B2B supply chain, cultivating more downstream retail stores as loyal users of JD Zhangguibao and driving sales to rise steadily, this can be considered JD's inherent 'giant effect'. However, the series of convenience store empowerment tools independently developed by New Distribution should be considered New Distribution's 'acquired efforts'. In April 2017, JD New Distribution announced the 'Million Convenience Stores' plan. Since then, many loyal Zhangguibao users have upgraded to JD convenience stores. After a year of rapid growth, JD convenience stores have covered the country with lightning speed and have even penetrated to townships. Unlike traditional convenience stores, because of their online DNA, JD convenience stores are empowered by big data and intelligent technology. From distribution to sales promotion, there is a complete platform technology tool system. Small stores enjoy the dividends of technology empowerment, and their loyalty to New Distribution naturally increases. On the eve of 618, the 'Online Store' mini-program for JD convenience stores was officially opened to all Zhangguibao users, becoming a more convenient traffic entrance. The 'Online Store' mini-program also became the 'killer feature' promoted by New Distribution during this year's 618. It is understood that JD New Distribution, together with seven manufacturers including Mondelez, Unilever, and Want Want, launched coupons covering hundreds of products. Whether consumers shop in-store or order at home, as long as they pay online, they can use these coupons. This move, based on the concept of 'payment equals membership', helps stores quickly attract fans and increase the stickiness of surrounding users. In addition, in April this year, the JD Zhangguibao membership system was officially launched, providing exclusive rights and professional services to users who purchase goods on the platform and have a certain level of loyalty, aiming to build loyalty and increase output from high-value users through precision marketing and emotional interaction. The dual effect of technology empowerment and the membership system will have a positive impact on store output, average transaction value, and the proportion of purchases, and the improvement of these three can further feed back to the Zhangguibao platform. Joint warehouses cover 500 districts and counties, maximizing shared channel efficiency In addition, in implementing JD's boundaryless retail strategy and reconstructing cost, efficiency, and experience, New Distribution has also set a good example. To adapt to the high growth of the small B business, under the principle of 'integrated openness', JD New Distribution launched a new warehousing and distribution solution, building a 'Joint Warehousing and Distribution' system with brand owners and channel partners as a supplement to JD's existing B-end exclusive logistics. In March this year, New Distribution officially announced the launch of the joint warehousing and distribution model, using the power of small and medium distributors and wholesalers closer to convenience stores for delivery of high-frequency, high-service categories. At the same time, small and medium distributors and wholesalers also became suppliers to Zhangguibao, further enriching the platform's product sources. The joint warehousing and distribution project further optimized delivery time and costs, making it faster for convenience stores to stock and replenish, and providing a better delivery experience. It is reported that the joint warehousing and distribution system has 'greater density, wider coverage, and deeper penetration'. The project covers major cities across the country, with the lowest level reaching township-level markets. Each joint warehouse serves a radius of 3-5 kilometers, initially in high-frequency, high-service-demand categories such as grain, oil, alcohol, and milk. Currently, New Distribution's joint warehousing and distribution has covered more than 500 districts and counties, serving 20% of Zhangguibao users. During this year's 618, joint warehouses have become an important force on the Zhangguibao platform. Now, the FMCG industry's evolution in crossing over to the internet has gone from focusing on improving the quality and efficiency of manufacturer distribution to a stage of supply chain reconstruction focused on consumers. If JD New Distribution's initial growth relied on innate excellent genes, its current success is due to the momentum brought by acquired efforts. This year, its changes in supply chain upgrading, scenario upgrading, and marketing upgrading, and its vigorous promotion of joint warehousing and distribution, smart stores, and intelligent sales promotion, have accelerated the implementation of the boundaryless retail strategy and continued to lead the direction of the FMCG B2B industry. -END-