---
title: "Retail Stays 'Online' for the Long Haul"
description: "For some companies, sales from home delivery now account for over 10% of total revenue. Even during the festive month of reunion, Jiajiafu persists with live streaming, launching its first live session of the Tiger Year on February 11. Similarly, MINISO keeps its 'dual intelligence' online, focusing on member digitalization and private domain traffic to transform each member from a mere code into a richly tagged individual, seamlessly integrating online malls, offline stores, products, inventory, marketing, and orders."
author: "燕双飞"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-02-23"
language: "en"
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---

# Retail Stays 'Online' for the Long Haul

> For some companies, sales from home delivery now account for over 10% of total revenue. Even during the festive month of reunion, Jiajiafu persists with live streaming, launching its first live session of the Tiger Year on February 11. Similarly, MINISO keeps its 'dual intelligence' online, focusing on member digitalization and private domain traffic to transform each member from a mere code into a richly tagged individual, seamlessly integrating online malls, offline stores, products, inventory, marketing, and orders.

For some companies, sales from home delivery now account for over 10% of total revenue.
Even during the festive month of reunion, Jiajiafu persists with live streaming. On February 11, Jiajiafu's first live session of the Tiger Year started at 18:30, attracting countless fans to snap up products.
Similarly, MINISO keeps its 'dual intelligence' online.
Unlike Jiajiafu's focus on interactive online engagement, MINISO targets member digitalization. Through private domain traffic operations, each member is no longer a digital code of 0s and 1s but an entity with countless tags and traits, and through ever-expanding roots, it seamlessly coordinates online malls, offline stores, products, inventory, marketing, and orders.
During the year-end promotion on December 31, 2021, MINISO's single-store daily sales hit a new high, and the surge in member coupon redemption rates also confirmed the strong purchasing desire of young consumers during the New Year shopping festival.
For the new retail consumption sector, on one hand, product online, customer online, operation online, and management online are becoming compulsory courses; on the other hand, with public domain traffic peaking, decentralization, activating private domain traffic, and deep mining of individual traffic have become the 2.0 model for retail advancement.
However, retail online not only tests retailers but also requires numerous service providers to work together to efficiently and targetedly navigate the advancement path.
**From 0 to 1**
Rome wasn't built in a day, and neither is retail digitalization.
In 2015, platform e-commerce giants like Alibaba and JD.com were accelerating their shift from PC to mobile. At that time, for Kidswant, which focused on offline stores, it was also the moment to initiate interactive online engagement and take the first step in transformation.
In 2015, Kidswant launched its own shopping mall, initially achieving product online presence. But how to bring hundreds of offline stores into the fold and fully leverage their value was a challenge for Kidswant.
Subsequently, through store digitalization, employee digitalization, and customer digitalization, Kidswant gradually achieved online presence for products, stores, and interactions.
Through the establishment of a super middle platform for information systems, as well as the online presence of interactive activities and parenting consultants, thousands of parenting consultants use their professional and caring services to manage members, communicating with customers from multiple dimensions such as pregnancy preparation, parenting, and education, thereby fully satisfying consumer demands, interests, and needs.
These are reflected in the data middle platform as the rapid distribution and precise targeting of systems such as products, product pools, users, orders, inventory, reach, payments, account systems, points systems, coupon collection, coupon issuance, promotions, and red packets, effectively activating customer data assets and maximizing the value of digital and omnichannel resources.
This also means Kidswant has achieved retail digitalization 1.0.
In his 2019 New Year message, Kidswant co-founder and CEO Xu Hongwei wrote, "We exceeded 10 billion in scale in 2018... We have achieved comprehensive digitalization and real-time online presence of all production factors, establishing a dual middle platform for business and data with the same technical architecture as top internet companies."
Also in 2015, retail began moving from informatization to digitalization.
In 2015, Wumart incubated an O2O project called Dmall, and JD Daojia began rapid expansion. Meanwhile, Weimob and Youzan, dedicated to the WeChat ecosystem, were also flourishing.
Data shows that in 2015, Youzan had over 369,000 active registered merchants, with total merchandise transaction volume exceeding 4 billion yuan, 14 times and 16 times that of 2014, respectively.
At that time, Fresh Legend had just been incubated from Lecheng, opening its first store in June of the same year, and through rapid iteration in subsequent years, became one of the unicorns in fresh food community stores.
While leading the team in store model iteration, Wang Wei did not neglect digitalization.
In his view, the biggest problem for fresh food small stores is uncontrollable gross margins, but this can be solved through technology empowerment, such as optimizing ordering, online management, and reducing management layers. "Technological iteration brings changes in sales methods, but ultimately electronic means should make management simpler and service more humane."
Thus, Fresh Legend found many partners, such as Create Century Cloud providing technical support for the initial development of the APP.
**Ye Weimin, CEO of Create Century Cloud, stated that from the earliest ERP systems to the smart retail suite in 2013, and then to the omnichannel business core middle platform in 2018, although the digitalization of physical retail has been slower, many entrepreneurs have clearly recognized that this is a decision enterprises must make.**
On December 8, 2017, just 105 days after the opening of the fourth-generation store, the Fresh Legend APP was officially launched. Through the APP, it achieved 24-hour store online, product online, member online, employee online, service online, resource online, and content online.
This also added an online entry point for each store, achieving a thousand stores with a thousand faces, and the "store + APP" model ultimately completed the upgrade of community users' stickiness to individual stores.
**"The rise of new business formats is also pushing the enrichment and growth of industry digitalization."** Ye Weimin pointed out that as a solution provider deeply engaged in physical retail digitalization for over 20 years, the results of accompanying growth, customized needs, and deep team collaboration are bidirectional.
This is destined to be a long-term battle.
**Expanding Customer Traffic**
There are always black swan events that cannot be predicted, but whether to respond proactively or passively also reflects the highest threshold of a company's comprehensive strength.
Supermarket companies that only started home delivery services after 2018 were "forced" to develop them due to the 2020 pandemic.
**"It is precisely this 'force' that gave many companies the determination and courage to change and fully embrace consumers."** Ye Weimin told Ling Shou.
The China Chain Store & Franchise Association's "2020 China Supermarket Top 100" list also shows that in 2020, the store coverage rate of home delivery services among the top 100 supermarkets increased to 65.1%, with online sales accounting for an average of 5.0%.
Regarding this figure, Ye Weimin said, "We can see that some companies' home delivery sales account for more than 10%." From a numerical perspective, it may not seem high, but from the annual growth rate, it is already a very good result.
In May 2020, Jiajiafu, which had just finished an online live training session for employees, was thinking about whether it could try live streaming itself.
So, on a Friday evening not long after, Jiajiafu launched its first live session.
"This business has both similarities and differences with offline business, so we can only explore slowly," said Yang Jun, e-commerce manager of Jiajiafu.
First, in product selection, in addition to regular promotional bestsellers, purchasing pays more attention to new products and internet-famous products, as well as introducing products not sold in offline stores through purchasing, complementing offline promotional products.
It is worth noting that leveraging the company's own diverse resources and regional advantages of cross-industry cooperation, Jiajiafu focuses on cooperation with department stores, home appliances, banks, healthcare, etc. Among them, a single live session for ginseng, antler, and cordyceps health products, in cooperation with a local pharmaceutical retail leader, achieved sales exceeding one million yuan.
At Jiajiafu, every live session requires pre-event consumer warm-up and post-event summary feedback: pre-event, they accumulate fans through all channels that can reach core users, including stores, communities, Moments, and official accounts, highlighting this session's bestsellers, flash sales, and benefits on promotional posters to attract enough attention, and during the live session, they timely add sharing scripts.
Shopping is a complete experience and must have a beginning and an end. At Jiajiafu, issues such as pickup and after-sales for live-streamed products are handled by dedicated group leaders who reply and coordinate, finding more room for improvement from customer feedback and ultimately giving back to customers.
It is worth noting that among Jiajiafu's live-streamed products, fresh products and snack/grocery products are picked up separately: fresh products are picked up the next day to maximize freshness; snacks and groceries require a two-day interval.
Although this seems to bring consumers the "trouble" of multiple pickups, combined with the different categories or brands in each live session, it makes products and marketing more targeted, actually reducing consumers' choice fatigue, making it easier to form memory points and brand recognition, thereby enhancing customer experience.
Regarding such changes, Ye Weimin frankly stated, **"This is a shift in retail enterprises' operational focus, from product management to customer analysis and research."**
The front end brings new growth points through changes in channels and touchpoints, while at the back end, "from logistics and distribution, customer service feedback, financial settlement, employee performance assessment, and benefit distribution, comprehensive adjustments and matching have been made. Only in this way can we achieve cost reduction and efficiency improvement at key nodes, fully mobilizing the participation enthusiasm of the team and customers," Yang Jun said.
Such changes are particularly meaningful in Ye Weimin's view.
Physical retail has basically accepted the four "online" aspects: members, products, management, and employees. But after initially completing online presence, enterprises need to think in each scenario about how to efficiently meet consumers' product and service needs across multiple dimensions including scenario, time, and experience.
**"This requires the entire team to develop in coordination with a complete set of retail digitalization tools. It is not a change for one person or department, but the overall coordination of operations, procurement, logistics, stores, and even finance, and a comprehensive change in organizational structure and business philosophy."**
**Deepening Single-Customer Value**
To become a century-old enterprise, one must have the ability to cross cycles.
The same applies to customer management: one must have the ability to serve customers throughout their entire lifecycle, fully tapping into products and services across the customer lifecycle to achieve breakthroughs.
Digitalization is both a tool and a core competitiveness. Kidswant, with over 40 million members, deeply understands the essence of customer lifecycle and member management in this transformation.
"We are willing to give up orders where we don't know who the buyer is, and only serve members with real names and profiles, so we choose an extreme membership model," said Xu Weihong, co-founder and CEO of Kidswant, in an annual review, mentioning the "heavy membership model" first. "Nearly 100% of our business comes from members."
Regarding single-customer economy, Kidswant also clearly stated in its prospectus: "The entire 'single-customer economy' model of 'interaction generates emotion—emotion generates stickiness—stickiness brings high-value members—high-value members' word-of-mouth influences potential consuming members'."
Data shows that Kidswant's highly sticky paid Black Gold members have reached 2 million, with annual output per customer reaching 10 times that of ordinary members.
However, more physical retailers can only watch from the sidelines because "the results are often others', but the investment is my own."
From this perspective, the rise of private domain traffic operations has also given many companies the opportunity to catch up with small steps and fast runs.
In 2019, MINISO launched omnichannel member operations, built a membership system based on the WeChat ecosystem and mini-programs, segmented members with tags, and established member strategies for the entire user lifecycle.
In 2021, MINISO elevated private domain to a group strategy. During the subsequent Double 11, private domain retained users reached 15 million, and mini-program monthly active users exceeded 6 million.
Whether it's regional retailers like Jiajiafu and Fresh Legend, or national chain brands like Kidswant and MINISO, they are increasingly clearly recognizing that digitalization is inevitable and a long-term investment.
In multiple communications and collaborations with them, Ye Weimin also said that how to maintain balance in dynamics is something both service providers and retail enterprises are exploring. **Ultimately, it is about the management of people, whether management personnel or target users.**
**More importantly, "digitalization runs through the entire process and is constantly adjusted and changed." Changes in consumers and the consumption environment determine the improvement of tools, and then it is up to enterprises and personnel to operate and serve users, ultimately achieving the dual improvement of human efficiency and customer efficiency.**
"Create Century Cloud has always been 'online' breaking through; it's time for retailers to speed up too," Ye Weimin said.
Source: Ling Shou (ID: lingshouke)
 **-END-**


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