---
title: "O2O Channels: A Key Path for FMCG Manufacturers to Match Personalized and Diverse New Consumer Demands"
description: "On January 14, JD Daojia, the local instant retail platform under Dada Group, hosted an 'Instant Retail Think Tank' salon, inviting dozens of leading brands and retailers to discuss new challenges and opportunities under the instant retail trend. This event came less than three months after JD Daojia's first brand partner conference on September 23, 2021, highlighting the attention brands are paying to JD Daojia and the development of instant retail."
author: "秦淮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-01-18"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/Sm7Qc6g1wjq2gNGYHRoFJQ"
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# O2O Channels: A Key Path for FMCG Manufacturers to Match Personalized and Diverse New Consumer Demands

> On January 14, JD Daojia, the local instant retail platform under Dada Group, hosted an 'Instant Retail Think Tank' salon, inviting dozens of leading brands and retailers to discuss new challenges and opportunities under the instant retail trend. This event came less than three months after JD Daojia's first brand partner conference on September 23, 2021, highlighting the attention brands are paying to JD Daojia and the development of instant retail.

On January 14, JD Daojia, the local instant retail platform under Dada Group, hosted an 'Instant Retail Think Tank' salon, inviting dozens of leading brands and retailers to discuss **new challenges and opportunities under the instant retail trend**. Although it was a small internal salon, the discussion atmosphere was exceptionally lively.

This came less than three months after JD Daojia held its first brand partner conference on September 23, 2021. This clearly shows the attention brands are paying to JD Daojia and the development of instant retail.

At the salon, participants engaged in in-depth discussions and exchanges around the topic of **'Omnichannel Supply Optimization'**. This article interprets the background of omnichannel supply optimization from an industry perspective, as well as the corresponding ideas and directions provided by JD Daojia.

**Omnichannel Supply Optimization May Be**
**Key to the Current Development of the Retail Industry**

Undoubtedly, accelerated by the pandemic, instant retail O2O has become a mainstream retail format. More and more consumers are accustomed to opening their phones, selecting products, and enjoying the consumption experience of one-hour delivery.

Therefore, when we talk about O2O and instant retail today, I think it is no longer about whether it is valuable to brands, how to gain sales, or how to do marketing well, but rather about the problems and pain points in the increasingly mature O2O landscape, and how to effectively solve these pain points and problems to achieve a win-win situation for consumers, retailers, brands, and platforms.

From an industry perspective, for many leading FMCG manufacturers, the current key issue is that **with the rise of Generation Z and post-90s young consumer groups, their consumption demands are showing trends of diversification, personalization, and niche preferences.** Facing such demands, although manufacturers have correspondingly launched good products that match these needs, the core problem they face is **how to efficiently reach and deliver?**

While pure e-commerce online is an efficient way to reach consumers, due to the category characteristics of FMCG—low value and immediate consumption—it is difficult for FMCG to achieve large-scale sales online.

On the other hand, offline channels can meet the need for immediate consumption, but due to the costs of offline channel distribution, it is difficult to achieve comprehensive coverage in a short time.

As discussed by several brand industry professionals at the meeting: brands face many pain points in new product promotion, such as lack of continuous operational support after online launch, disconnect between online and offline marketing, high entry barriers for offline store displays, and the need for supply chain cost reduction and efficiency improvement.

A JD Daojia representative stated that on one hand, the current user demand for products is mainly met by existing mature products, while on the other hand, consumer demand is personalized, and retailers have strong demand for new products.

In short, both users and retailers are eager for good and personalized products, and brands are continuously developing them, but due to various distribution costs and channel construction issues, they cannot penetrate downward.

From another dimension, the current mainstream users of instant retail are under 35 years old, belonging to Generation Z and post-90s, who have strong personalized consumption needs. However, on the product supply side, some products have been listed for over 5 years, and nearly half for over 3 years.

This means that **on O2O platforms, the people are young, but the goods are relatively 'old'. Demand has outpaced supply, and the satisfaction of new consumption demands on O2O channels needs improvement.**

This is the industry pain point currently facing the entire retail industry. Omnichannel supply optimization is becoming the key to the current and future development of China's retail industry.

Zhao Hongmei, Executive Director of Yihai Kerry's Consumer Products Channel Division, also mentioned, "Omnichannel supply optimization inevitably involves the optimization cost of the supply chain. The cost is the optimization of fulfillment costs for the platform, brands, and ultimately consumers. The core is to integrate this cost optimization solution.

With the continuous fragmentation of channels and diversification of consumer demands, Yihai Kerry has also begun to build flexible supply chain factories this year to continuously optimize omnichannel supply."

**JD Daojia's Confidence in Promoting Omnichannel Supply Optimization**

Of course, from the perspective of changing consumer demands, in the era of material scarcity, the first issue to solve for supply is whether it exists; with economic improvement, the issue becomes whether it is good; and **with the current abundance of materials, the core issue for supply is whether it is fast.**

The rapid development of instant retail in the past two years has fully validated the 'fast' aspect, which is the high-quality consumption experience brought by immediate fulfillment.

But in the future, as immediate fulfillment becomes increasingly mature, and with the trend of personalized and diversified consumer demands, how to deliver personalized and diverse good products to consumers faster through the instant retail system, achieving the dual experience of fast and good, is a topic of widespread industry concern.

During the salon discussions, JD Daojia also provided some preliminary ideas and approaches. For example, through JD's supply chain integration capabilities, including JD Daojia's city-station grid-based operation system, truly personalized good products can be distributed to offline stores, forming a cycle, and then synchronized to the B2C scenario, creating a product pool for offline retail stores.

**By collecting consumer demands, identifying potential high-quality products, and then covering stores with product gaps, the needs of omnichannel users can be maximally met.**

Zhao Bo, founder of New Distribution, also stated, "O2O platforms represented by JD Daojia have significant advantages in connecting omnichannel supply. Online delivery cycles are too long, and offline shelf efficiency costs are too high. O2O effectively rewrites the logic of shelves and delivery.

During delivery, logistics and warehousing do not need to be squeezed into store shelves, reducing the cost of listing compared to the past. The value of O2O lies in 'connecting the upper and lower', quickly enabling new products to achieve growth from 1 to 10."

Of course, to achieve the above vision, **promoting omnichannel supply optimization must be supported by strong capabilities and strength.**

**First, on the traffic side**, under the background of Dada Group fully undertaking JD's instant retail business, there are over 552 million active users from JD, and over 57 million active consumers on the JD Daojia platform. By integrating JD ecosystem resources, the digitalization level of store users can be enhanced.

Through the full integration of JD's instant retail marketing scenarios, a marketing ecosystem where platform, brand, and merchant resonate and share can be further built. Massive traffic and omnichannel marketing data provide a good foundation for the platform to build digital supply-demand matching capabilities.

**Second, in digital capability building**, over 6 years, JD Daojia has built a comprehensive and mature instant retail brand cooperation system. JD Daojia has the most comprehensive and applicable products and middle platforms, assisting brand development in five major aspects: fulfillment and delivery, marketing transactions, product management, user operations, and digital construction, providing integrated digital solutions.

For example, relying on its digital capabilities, JD Daojia uses the networked operation product tool 'Kunce Platform' to help brands optimize supply chain efficiency, discover opportunity points, and provide strategic recommendations and actionable solutions in areas such as supply coverage, product price comparison, traffic distribution, and user operations.

By dividing cities into grids, on one hand, it identifies key cities and high-quality grids to ensure product supply coverage; on the other hand, it identifies problem grids and stores, increases online coverage of key brand products, and leverages merchant stores to improve displays and prepare inventory in advance.

**Third, in supply scale**, JD Daojia is now the first platform for supermarket instant retail, having cooperated with 82 of the top 100 supermarkets, including 9 of the top 10. The platform has also cooperated with over 200 brands. In instant retail, physical supermarkets have strong offline supply chain advantages, are an indispensable source of supply, and are the most important sales channel for FMCG brands.

**Fourth, in platform model**, JD is the only company in the industry with a complete model and solid layout of 'B2C model + origin model + local retail model' three major and five types of supply chains. The complete supply chain layout can meet the differentiated needs of manufacturers, brands, and consumers.

This is the confidence that enables JD Daojia to promote omnichannel supply optimization. Frankly speaking, achieving omnichannel supply optimization is not an overnight task; it is a significant challenge for platforms, retailers, and brands alike.

Of course, this is precisely why collaboration and discussion among all parties are needed. I think this is also the key reason why JD Daojia initiated the 'Instant Retail Think Tank'.

**Integrating into the Instant Retail System Will Be**
**a Key Path for Brands to Meet New Demands**

Just now we discussed omnichannel supply optimization from an industry perspective. From a brand perspective, instant retail actually faces the most 'valuable' young consumer group, whose consumption demands are inherently for novelty, differentiation, and personalization.

In the past, when brands launched new products, they often chose online B2C e-commerce. However, limited by the low value and immediate consumption characteristics of consumer goods, this often restricted new product sales.

But through the instant retail system, with high integration of online and offline, this pain point can almost be perfectly solved. Imagine future new products: through online content seeding and transaction conversion, testing new product preference, with real-time user feedback.

When the product iteration matures and officially enters offline, through JD Daojia, coverage of some offline stores is achieved, and network point profiles are anchored based on sales volume. Based on the standard profile of network points, distribution coverage is expanded to maximize precise distribution of new products.

On one hand, instant retail O2O serves as a full-chain digital experimental marketing field for new products entering offline, and is also a key source of new product sales, pushing new products from stage 1 to 10. As consumer awareness matures, they finally enter the broader fragmented stores across various regions.

For brands, this will greatly optimize the path of omnichannel supply optimization in the face of new demands. I believe that the instant retail format will be a key and inevitable path for FMCG manufacturers to meet the new demands of new consumer groups.

This instant retail think tank is the beginning of the 'Omnichannel Supply Optimization' topic, and also the starting point for JD Daojia and more brands to practice and explore!

**Are you 'watching' me?**


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