JD's New Channel business unit was established on December 16 last year, and was designated by Liu Qiangdong as the group's top priority project for 2016, with Liu personally overseeing it. The New Channel primarily targets nearly 10 million small and medium stores in lower-tier cities, serving as their supplier. Now, a year later, the New Channel took the opportunity of signing cooperation agreements with well-known brands such as Coca-Cola, Unilever, Qiaqia, Modern Farming, Six Walnuts, Beiersdorf, Dongfang Tianyuan Grain & Oil, Charm Kitchen, Zhi Pu Mo Fang, and Shandong Jingzhi to review its performance over the past year and hold a new product signing ceremony on site. The biggest highlight of the entire conference was the launch of JD New Channel's Huiyan system. Continuous experimentation over the past year, innovation driving rapid development In 2016, the New Channel started from scratch, from team building and ground staff expansion, to the first brand strategic cooperation meeting in March, to the recognition of many store owners in the Hebei pilot. The journey has been arduous but rewarding. Fortunately, the New Channel has gained the trust of brand manufacturers from major FMCG sectors such as food and beverages, washing and cleaning, and daily necessities across the country. It has signed over 500 brands for direct supply. The 10 new product launches at this event are just the tip of the iceberg, but they prove that the New Channel model is gaining recognition from more and more brand owners. With the huge demand potential of B2B and the team's own efforts, the market has begun to take shape. It has launched in Hebei, Shandong, Sichuan, Jiangsu and other provinces, covering more than 50,000 small and medium stores. On June 18, CCTV Finance reported on the "grand occasion" of Ronglian Supermarket in Xianghe County, Langfang City, Hebei Province, using JD New Channel's one-stop B2B ordering platform, JD Zhangguibao, to participate in the 618 promotion. We saw how the New Channel's guarantee of genuine products, preferential prices, fast delivery, and flexible small minimum order quantities have brought changes to the business of small store owners. JD New Channel tested terminal marketing for Shuanglu Battery and Zhongguo Juice through a hundred pilot stores. Its pioneering cross-category marketing has advantages that traditional channels cannot match. On Double 11, with a daily sales increase of 900% compared to the monthly average, it reassured major partner brands. In the future, we can foresee that the New Channel, relying on JD Group's logistics and supply chain advantages, will create more surprises. Huiyan system launched, completely solving industry information pain points After this year's Double 11, Liu Qiangdong first revealed "JD's 12-year plan" - comprehensive retail intelligence, fully unmanned logistics, and fully personalized finance and insurance products. Especially the comprehensive intelligence of the retail system will be the top priority for JD's future development. For the New Channel, the core carrying the comprehensive intelligence of the retail system is this cloud-based "Huiyan" system. In the traditional commercial circulation field, not only is logistics efficiency low and handling times many, but more critically, all strategies of manufacturers' channel distribution are basically blind. All market conditions rely on manual feedback, terminal store information lags, market investment is not precise, and all marketing behaviors are basically based on experience and prediction. The New Channel has grasped this pain point of manufacturers. Aimed at the channel informatization construction that manufacturers urgently need to upgrade in the Internet era, it launched the "Huiyan" system. With advantages such as real-time business monitoring, promotion optimization, store management, and precise brand marketing, the "Huiyan" system completely changes the original blind marketing approach of manufacturers. So, what magic does this "Huiyan" system have to solve the pain points of manufacturers? In the traditional channel model, with too many levels, low informatization, and games between manufacturers and distributors, it is impossible for enterprises to accurately and efficiently obtain data on product inventory and transaction. The "Huiyan" system allows enterprises to accurately understand the dynamics of products in the channel in real time without leaving their offices. This is of great value for enterprises to coordinate production, dispatch transportation, reduce product retention in the channel, improve market response speed, and adjust sales rhythm. The "Huiyan" system also helps enterprises profile the selling behavior of small stores. Through these terminal store profile data, enterprises can launch more precise, effective, and timely action plans in marketing decisions. When implementing marketing plans, through the New Channel's "Huiyan" system, enterprises can understand in real time the terminal activities such as promotions and displays of brand owners, ensuring the effectiveness of resources invested in the channel and avoiding waste. Big data methods make manufacturers' business more future-oriented, looking three, five, or even ten years ahead. "Huiyan" is undoubtedly such a product. Scale coverage, precise service, achieving automated sales After a year of polishing, the JD New Channel team has basically verified the feasibility of its business model. From the goal of covering 500,000 stores in 2017, it can be seen that the New Channel is officially starting to race to expand, fully replicating its business model and marching nationwide. JD's existing tens of thousands of delivery teams and regional marketing centers have already extended business tentacles to every city and town. 500,000 is just the first step; targeting 5 million small and medium stores nationwide is Liu Qiangdong's true intention. Starting next year, the New Channel will focus on covering millions of small and medium stores, attracting more brand manufacturers to provide more and better quality goods. JD's world-class e-commerce capabilities can bring a better shopping experience to small stores, enhancing the New Channel's penetration and trust among small stores. Coupled with the most advanced information system to enhance brand manufacturers' sales capabilities, it will further enrich and stimulate small store owners to order from the New Channel, thereby increasing user stickiness and achieving automated sales. JD New Channel not only achieves a super-flat channel at the logistics level, helping enterprises reduce channel costs, but also makes the channel more transparent at the information level through JD's strong technical team. This technology-driven business intelligence strategy has obvious advantages over traditional channel models and will surely help enterprises achieve rapid growth and a second upgrade. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]
Distribution & Channels · 零售业态
Liu Qiangdong Supervises New Channel: Anniversary Report Targets 5 Million Small Stores
JD's New Channel business unit, established on December 16 last year, was designated by Liu Qiangdong as the group's top priority project for 2016, with Liu personally overseeing it. Targeting nearly 10 million small and medium stores in lower-tier cities, the unit has now completed its first year, signing cooperation agreements with major brands such as Coca-Cola, Unilever, Qiaqia, Modern Farming, Six Walnuts, Beiersdorf, Dongfang Tianyuan Grain & Oil, Charm Kitchen, Zhi Pu Mo Fang, and Shandong Jingzhi. At the event, it reviewed its annual performance and launched the Huiyan system.
