---
title: "Liu Qiangdong Makes a Surprise Move, Investing in Jianfu, Convenience Stores Begin to Take Sides"
description: "According to Tianyancha, Xiamen Jianfu Chain Management Co., Ltd. recently underwent industrial and commercial changes, with Jiangsu JD Bangneng Investment Management Co., Ltd. (Liu Qiangdong holds 45%, Li Yayun 30%, Zhang Wei 25%) becoming the second largest shareholder with a 20% stake. This marks JD's first strategic investment in a convenience store brand, signaling the entry of internet e-commerce giants into the convenience store industry, and the beginning of alignment in the sector."
author: "房煜"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2020-08-13"
language: "en"
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# Liu Qiangdong Makes a Surprise Move, Investing in Jianfu, Convenience Stores Begin to Take Sides

> According to Tianyancha, Xiamen Jianfu Chain Management Co., Ltd. recently underwent industrial and commercial changes, with Jiangsu JD Bangneng Investment Management Co., Ltd. (Liu Qiangdong holds 45%, Li Yayun 30%, Zhang Wei 25%) becoming the second largest shareholder with a 20% stake. This marks JD's first strategic investment in a convenience store brand, signaling the entry of internet e-commerce giants into the convenience store industry, and the beginning of alignment in the sector.

**Click the image above for details**
Today, according to Tianyancha information, Xiamen Jianfu Chain Management Co., Ltd. recently underwent industrial and commercial changes, with a new investor, Jiangsu JD Bangneng Investment Management Co., Ltd. (Liu Qiangdong holds 45%, Li Yayun 30%, Zhang Wei 25%), becoming the second largest shareholder with a 20% stake.
These few lines actually contain a wealth of information.
**First, this is JD's first strategic investment in a convenience store brand, meaning that internet e-commerce giants are beginning to face off in the convenience store industry.** Previously, Alibaba invested 500 million yuan in Shanghai's C-Store convenience stores.
**Second, this means that in terms of equity structure, JD has surpassed Sequoia Capital to become the second largest shareholder of Jianfu Convenience Stores.** Previously, one of the reasons Jianfu Convenience Stores attracted industry attention was its heavy investment by Sequoia Capital (see Huxiu report), with a valuation of 1.2 billion yuan.
This year, based on the "Convenience Store Enterprise Basic Situation Survey" and the total number of stores as of June 30, 2020, the China Chain Store & Franchise Association released the **"2020 China Convenience Store TOP100" list. Jianfu Convenience Stores ranked 10th. In Fujian Province, Jianfu ranked 1st, with nearly 2,000 stores, mainly distributed in Fujian Province, and also expanding into Jiangxi and Sichuan provinces.**
Source: Based on the "Convenience Store TOP100 List" from the China Chain Store & Franchise Association
**This is also the only publicly announced investment and financing news in the convenience store industry since the outbreak of the pandemic this year.**
In the current evolution of the retail industry, the convenience store sector is at its most delicate historical moment. On one hand, the overall social status of the convenience store format is rising, and the state, led by the Ministry of Commerce, has high hopes for convenience stores to play a role in people's livelihood infrastructure.
But on the other hand, the convenience store industry has also experienced the impact of the pandemic. Regarding future development directions, different regions and different types of convenience stores are heading down different paths.
Xiamen Jianfu Convenience Store is a leading second-tier convenience store chain. Huxiu previously reported that Xiamen Jianfu Convenience Store cooperated with JD in community group buying. However, regarding JD's strategic investment, all parties involved remained tight-lipped, and the outside world was unaware. Based on long-term tracking of Jianfu and opinions from industry insiders, Huxiu believes this matter is of great significance for the future development of the convenience store industry, for two reasons: online integration and ecosystem building.
**-01-**
**Online Integration Is Unstoppable**
When discussing convenience stores, let's first revisit a common concept. Many people might say that JD has its own "JD Convenience Stores," so why invest in a branded convenience store? According to general understanding, JD's own convenience stores are actually rebranded mom-and-pop shops. JD's role in them is more of a B2B supply chain service provider. This is completely different from the "tightly integrated chain" convenience stores practiced by Japanese brands like 7-Eleven.
So, when Alibaba incubated Hema and invested in C-Store, it was only a matter of time before giants appeared in the convenience store track. Can Alibaba talk about same-city retail without convenience stores? JD's "Survival of the Fittest" also cannot do without convenience stores. In the pan-community scenario (including business districts and office buildings), no current retail format can claim to have more advantages than convenience stores, being closer to consumers and enhancing brand reputation.
Look at the spontaneous praise and admiration of Japanese convenience stores from ordinary consumers online. Not long ago, when Lawson entered Tangshan, long queues formed again. **It's important to note that as channel brands, few can achieve such strong mindshare as well-known convenience store brands.** Many of the products they sell are not their own; they are Coca-Cola's, Nestlé's. Although the bento boxes are their own, you don't need to know where they come from, just where they are from. That's the charm of convenience stores.
But precisely because of this, convenience stores have long been the last fortress for full-channel online-offline integration. In the fresh food sector, there are front warehouses, but leading convenience stores still rely on location advantages and strong product power to resist. Currently, many convenience store brands have connected to online platforms, but objectively speaking, online platforms are truly just a supplement for convenience stores. Not to mention 30%, many convenience store brands have less than 10% of online orders. Of course, this is determined by the characteristics of convenience stores.
Internet people entering the convenience store industry have already brought some changes. In the practice of Bianlifeng, founder Zhuang Chenchao insists on using internet logic to transform stores. Bianlifeng not only insists on its own delivery, even with an average order value of only 20 yuan, but also persists in trying e-commerce models to expand categories and break through store limitations.
In the convenience store camp, FamilyMart is also doing e-commerce through its Jilai Alliance APP; Meiyijia, which surpassed PetroChina's convenience stores on the 2020 Convenience Store TOP100 list, has also started trying e-commerce again. Judging from the recent statements of Meiyijia's general manager Zhang Guoheng, Meiyijia is very clear about doing e-commerce and is determined in its approach, even if it doesn't do well in the short term, it will still do it.
Against this backdrop, what is JD's next move after strategically investing in Jianfu Convenience Stores? The answer is obvious: with JD's strong logistics and delivery capabilities and e-commerce capabilities, at least at Jianfu, the online integration of convenience stores will enter a new stage. For the industry, small stores plus e-commerce is already an irreversible trend.
**-02-**
**Taking Sides Begins**
JD's strategic investment in convenience stores means that JD not only seeks financial returns but also deeply intervenes in the transformation of this still-growing format. This also implies that taking sides, which once happened in the offline supermarket sector, is now beginning in the convenience store industry.
Of course, according to informed sources, Alipay will definitely still be usable at Jianfu Convenience Stores. Don't worry; such a low-level "choose one or the other" strategy will definitely not happen. That is, from a business perspective, Jianfu Convenience Stores will maintain its independence. After all, the convenience store format is quite delicate, similar to fresh food, and cannot be handled just by having money. In this regard, studying the senior management personnel adjustments of Sun Art Retail (RT-Mart) over the past three years will provide conclusions.
However, at the strategic level, Jianfu will obviously move closer to the JD and Tencent camp in the future, emphasizing strategic synergy, just depending on the level of coordination between the two sides. One thing is certain: they will regard each other as part of the ecosystem.
Huxiu previously reported that Jianfu Convenience Stores is building the largest industrial park in China's convenience store industry. The original intention of this industrial park is to achieve the integration of logistics, manufacturing, and supply chain for convenience stores.
Where does this thinking originate? Just look at the development of world-renowned convenience store brands. For example, Uni-President Group and Ting Hsin International Group are famous food and FMCG groups, but they are also the brand licensees of Shanghai 7-Eleven and FamilyMart, respectively. Food manufacturing groups extending into distribution channel business and ultimately forming an integrated ecosystem that connects the upstream and downstream of the food and catering industry chain is a proven successful path. And within such a system, the convenience store format unit will truly be empowered.
If you look at the development of convenience stores in Japan, it's the same. The media has summarized that the three major convenience stores under Japan's three major distribution companies are all supported by trading companies: the controlling shareholder of Japan's 7-Eleven is the Ito-Yokado Group, which also has Ito-Yokado department stores in China. FamilyMart is backed by Itochu Corporation (100% equity acquisition), and Lawson is backed by Mitsubishi Corporation.
In other words, excellent convenience stores are actually supported by an ecosystem. Because as convenience stores have developed to this day, they still need to seamlessly combine industrial manufacturing systems with modern retail management technology in a retail format to better serve consumers. In this system, R&D, production, manufacturing, logistics, distribution, and sales should ideally be integrated "one-stop," all being one's own or "self-controlled." This is why Japanese convenience stores are called manufacturing-oriented retailers.
Of course, in today's China, this chain must also include e-commerce delivery and home services.
So, from this logic, so-called taking sides is not necessarily about seeking a "protective umbrella," but more about truly leveraging the power of a certain ecosystem to achieve transformation. Regional convenience store brands often have deep roots locally, with profits coming from meticulous cultivation of every bottle of water, every bread, every bento box. Internet people accustomed to 100% growth cannot do this work. However, the internet's digital insights into user behavior, big data tools, and powerful algorithm capabilities are all needed by today's convenience stores.
It is hoped that the entry of giants like JD will bring more "amphibious creatures" to China's local convenience store industry.
Source: Ten Billion Consumers (ID: gjgc168);


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