Shuanglu Battery, a well-known domestic alkaline battery manufacturer, has sales networks covering more than 80 countries and regions, with products exported to Asia, Europe, America, Africa, and Australia, while also striving to deepen its domestic market. In 2016, Shuanglu launched the 'Hundred Cities, Ten Thousand Stores' plan, aiming to create a new Shuanglu within five years. At that moment, JD New Channel, waving the banner of 'reshaping channel value', came into Shuanglu's view. Shuanglu felt it had found another good partner, and channel expansion had a new path.
On April 28, 2016, Shuanglu Battery signed a strategic cooperation agreement with JD New Channel. JD New Channel would leverage its logistics, services, and channel advantages to promote Shuanglu's brand deepening channel expansion in the offline market, and jointly carry out brand maintenance with Shuanglu.
Although it has been deeply cultivating the domestic market for many years, Shuanglu does not dare to underestimate small and medium-sized stores. Although most stores are small with limited turnover, the huge number of stores makes them a key channel for achieving massive offline consumer retail sales. Easier said than done; manufacturers daring to tackle the tough 3-6 tier channel are all battle-hardened big brands. But for most manufacturers, the labor cost of channel expansion is too high, the carrying capacity of a single brand is often limited, and the lack of a complete logistics distribution system is also a hard flaw in customer service experience. These are precisely JD's advantages.
Shuanglu Battery keenly grasped this key point and favored JD New Channel's business model—incorporating small and medium-sized stores into the brand's sales terminal system, providing brand owners with high-quality warehousing and distribution support, ground services, store marketing, data sharing, and other 'one-stop' services, holding both ends in one hand, bypassing intermediate levels, and delivering products directly to retail terminals.
As an e-commerce pioneer, JD also deeply understands the importance of offline channels. Besides providing a service platform for brand owners and terminal stores, it can also provide first-hand terminal store data, including store numbers, distribution areas, store types, and related category consumption data... In other words, the New Channel acts as an efficient research institution for brand owners at the terminal, helping them better plan markets, optimize production, and increase market share.
It is particularly noteworthy that JD New Channel has also built a professional and dedicated ground service team to help brand owners stock goods in small and medium-sized stores, post posters, achieve terminal visualization, jointly market with brand owners, promote new products, and train stores with professional sales scripts. Indeed, there is no shortcut to doing this well; 'legs diligent, hands diligent, mouth diligent, mind diligent' is their secret.
With the increasing saturation of consumer markets in first- and second-tier cities and the rise of new urbanization, the 3-6 tier city market has shown huge potential. Many visionary brand manufacturers regard channel expansion as the next growth point. Whoever takes the lead will seize the next dividend peak. We will wait and see.
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