“What JD New Channel does is to empower and upgrade brand owners and retailers, giving them more choices.” Recently, in an interview with the media, Zheng Hongyan, Vice President of JD Group and President of JD Mall New Channel Business Unit, introduced the empowerment system of JD New Channel: “For brand owners, it is to do a good job in distribution and sales promotion without destroying the original model or adding new pain points, helping brands establish a rapid supply system with small stores, expanding increments and refining stock; for retailers, it is to help them build a platform to complete the empowerment and upgrade of traditional small stores.” 1. Boost Sales Promotion, Help Brand Owners Expand Increments and Refine Stock Brand owners often spare no effort to establish distribution channels to sell products to more stores. For mature brands, compared to “distribution” of stocking products to stores, the “sales promotion” of how to sell products to consumers is a more important issue. Based on this, JD New Channel, while optimizing the distribution system, “puts more energy into sales promotion” to help brand owners “expand increments and refine stock.” According to the original distribution system, the intermediate links were time-consuming, costly, and new product distribution was slow. JD New Channel, adhering to the principle of “solving old pain points without adding new ones,” upgrades the original model. Zheng Hongyan told the media that JD New Channel uses digital systems such as the Huiyan Big Data System, the Xingzhe Sales Promotion Platform, and the Store Labeling System to build a precise distribution system for brand owners, ensuring full transparency of the channel chain, precisely delivering products, resources, and services, and helping brand owners solve distribution problems. At the same time, through the JD Zhangguibao APP, small stores can order and receive products directly supplied by brands in one stop, thus forming a rapid supply system between brand owners and small stores, improving the brand sales promotion rate. In addition, JD New Channel provides business guidance to store owners through its self-built professional field team, and conducts joint visits with brand manufacturers’ ground teams to further ensure more efficient implementation of sales promotion. 2. Replace Price Competition with Services Multiple Empowerment Measures Optimize Small Store Management According to data released by the China Chain Store & Franchise Association, in 2017, the domestic convenience store industry grew by 23%, with a market size exceeding 190 billion yuan and more than 100,000 stores. “Traditional convenience stores only sell products, while JD Convenience Stores are an upgrade of small stores, empowering them with JD’s brand, supply chain, operations, and technological innovation capabilities, and providing modular scenario-based operational services, allowing store owners to make differentiated choices based on consumer scenario needs, thereby achieving upgrades in store categories, image, and operational capabilities.” In the media interview, Zheng Hongyan again explained these aspects of empowerment. “First is brand empowerment. JD’s brand and logo bring a sense of brand upgrade to small stores, and also serve as an endorsement for quality stores.” Zheng Hongyan explained that the red line for JD Convenience Stores is absolutely no counterfeit or shoddy products, and gradually cultivate the habit of stocking up on Zhangguibao. In terms of fees, JD Convenience Stores completely waive franchise fees, training fees, management fees, and other items, retaining only a quality deposit to urge store owners to ensure regular, legal, and continuous operation, thereby protecting consumers’ legitimate rights and interests. Second is operational empowerment. JD New Channel’s self-built field team will provide door-to-door services, formulate marketing plans for support, and provide training and guidance to store owners on all aspects of convenience store operations, bringing more sales and profits to stores through differentiated product selection, layout adjustments, and category structure optimization, while comprehensively improving store owners’ convenience store operation and management levels. In terms of technological empowerment, JD Convenience Stores will install an intelligent store management system that integrates product management, customer management, and marketing services. Based on JD’s online big data advantages, this system provides support for intelligent replenishment and product selection based on consumer profiles, and is integrated with the JD Convenience GO mini-program, achieving integrated management of data, membership, and inventory between physical stores and JD Convenience GO. Store owners can manage goods, money, and customers with just one mobile phone. The JD Convenience GO mini-program has been fully opened to JD Convenience Store and JD Zhangguibao users, not only establishing a new sales channel for stores but also becoming a membership marketing platform for brands and stores. With the help of JD’s “payment is membership” system, small stores establish deep connections with surrounding customers, accumulate loyal users, and further improve their sales conversion rates. During this year’s 11.11 period, the JD Convenience GO mini-program was connected to the JD APP for the first time, successfully bridging online and offline traffic and achieving full-chain marketing through B2B2C. “We use services to replace price wars and value-added services to optimize small store management,” Zheng Hongyan said. JD Convenience Stores also integrate various value-added services into small stores, such as parcel collection, virtual product sales, utility bill payment, SIM card services, JD repair, and printing services, helping store owners diversify their operations and expand profits, while also increasing interaction and stickiness between small stores and consumers. 3. Improve Consumer Experience and Optimize Life Services Create a Half-Hour Living Circle JD originally focused more on online retail, while JD New Channel provides consumers with more services through offline scenarios. “In the city, consumers can obtain more life services such as clothing, cosmetics, maternal and infant products, and home appliances within half an hour. This is our vision of making JD Convenience Stores a half-hour living circle for consumers,” Zheng Hongyan told the media. As consumers’ time costs gradually increase, saving time and effort is a key factor for contemporary people when consuming. In this context, the half-hour concept is even more important. The multiple empowerment measures provided by JD Convenience Stores to store owners are also to help stores provide better services to consumers and make consumers’ lives more convenient. For example, the quality deposit form supervises store owners to ensure product, service, and quality, protecting consumers’ legitimate rights and interests; training store owners to improve layout, image, shelf height, and other details enhances the consumer shopping experience. In addition, various value-added services cover the basic life scenarios that consumers need. Consumers can obtain basic life services through JD Convenience Stores and the JD Convenience GO mini-program. In March this year, JD New Channel also launched joint warehousing and distribution, cooperating with small and medium-sized distributors and wholesalers. Under the premise of obtaining brand authorization, the brand’s existing warehousing and distribution resources are used as JD New Channel’s joint warehouses and distribution network, further improving the rapid supply system between brand owners and small stores. As of now, 2,000 joint warehouses have joined JD New Channel, covering 400 cities in 30 provinces across the country. Relying on JD’s high-quality supply chain and connecting people, goods, and venues with big data and intelligence, JD New Channel has maintained rapid growth for three consecutive years. During the just-concluded 11.11, JD Zhangguibao’s cumulative 11-day sales reached 1100% of the same period in 2017. 2018 is the year for the full implementation of JD New Channel’s boundaryless retail strategy. The advantages of JD New Channel’s dual online and offline main venues are becoming increasingly prominent. Rich gameplay and strong promotions benefit more than a thousand brands, tens of thousands of stores, and over a million consumers. A boundaryless retail landscape composed of brand owners, channel providers, retailers, and consumers is gradually taking shape. Star Mark: New Distribution You won’t miss any message! -END-