Since JD proposed its million convenience store plan last April, JD Convenience Stores have attracted much attention, with store owners across the country inquiring and seeking cooperation. After a year of rapid growth, JD Convenience Stores have covered the whole country at lightning speed, successfully establishing a foothold in the convenience store market. On May 24, at the 2018 China Convenience Store Conference, elites, experts, and leaders from inside and outside the industry gathered for a "Sword Forum" of the convenience store world. As a newcomer to the convenience store industry, JD Convenience Stores also appeared and spoke at the conference. Why can JD Convenience Stores attract so many store owners in droves? "How has JD Convenience Stores developed to this day?" Zheng Hongyan, Vice President of JD Group and President of JD New Channel Business Unit, introduced to the traditional convenience store leaders present that, at present, apart from Hong Kong, Macao, and Taiwan, JD Convenience Stores have covered all administrative provinces and regions in mainland China. Whether you are in a tourist attraction, on an isolated island, or at a temporary venue like the Strawberry Music Festival, you can see JD Convenience Stores appearing in diversified forms. Covering the whole country in one year is an unimaginable speed for the traditional convenience store industry. Taking the opportunity of the convenience store conference, Zheng Hongyan explained JD Convenience Stores' model to the outside world for the first time: the biggest difference between JD Convenience Stores and traditional convenience stores is that JD Convenience Stores are not in the form of chain franchising, but mainly rely on loose cooperation with brand empowerment, using innovative models to stimulate store owners' centripetal force, largely retaining store owners' autonomous management rights. Traditional convenience store leaders are still puzzled: currently, traditional convenience stores in China are still concentrated in first- and second-tier cities, and most brands' expansion is limited to specific regions. Why can JD Convenience Stores not only spread across the country but also go down to townships and even rural areas? Zheng Hongyan explained on the spot. Behind Rapid Expansion: Unique Smart Supply Chain In Zheng Hongyan's view, the core of JD Convenience Stores' rapid and comprehensive expansion is logistics. ▲Zheng Hongyan, Vice President of JD Group and President of JD New Channel Business Unit JD is the only smart supply chain enterprise in the world with six major logistics networks. JD's C-end logistics has a good reputation, but at the same time, JD has also been laying out a B-end exclusive logistics system, which is JD's "fourth logistics network." How powerful is this logistics network? At present, JD Logistics has achieved 100% coverage of mainland administrative counties and districts, meaning that nationwide delivery is not restricted by region, so JD Convenience Stores have even opened in Tibet! Not only is the coverage wide, but with JD Logistics' speed, 85% of self-operated orders can be delivered within 24 hours, so brand manufacturers' rapid product distribution and resource deployment are not a problem! In March this year, New Channel also officially announced the launch of a joint warehouse and distribution model. For orders in high-frequency, high-service categories, it leverages the power of small and medium-sized distributors and wholesalers closer to convenience stores for delivery, further optimizing delivery time and cost, making it faster for convenience stores to stock and replenish goods! Technology Tools Support Store Management One Million JD Convenience Stores: Scattered in Form but United in Spirit Unlike traditional convenience stores, because of its online genes, JD Convenience Stores are empowered by big data and intelligent technology, from distribution to sales promotion, with a complete platform technology tool system. These technology tools effectively bring together one million convenience stores. JD's one-stop ordering APP under New Channel, JD Zhangguibao, connects goods, stores, and consumers. "JD Convenience Stores have access to the Zhangguibao inventory management system, so in each specific city, which product sells better, which packaging sells better, and which combination with other products sells better, JD New Channel has accurate first-hand data and will profile consumers based on the data," Zheng Hongyan said. Based on this data, distribution and sales promotion efficiency is higher, and costs are lower. JD Zhangguibao also embeds an "online store" system, and recently a separate "online store" mini-program was developed. Store owners can move their in-store products and services online with one click, establish deep connections with surrounding customers, and retain loyal users. Moreover, even for products not in their own stores, as long as JD sells them, they can be placed in their online stores for sale. Store owners can get JD's profit sharing without worrying about capital and inventory. "We help small stores earn money they couldn't earn before and build consumer loyalty they couldn't build before," Zheng Hongyan said. The application of these technology tools makes it easy for store owners to operate convenience stores with support, keeping one million JD Convenience Stores scattered in form but united in spirit. At present, under the B2B2C full-chain platform model connecting online and offline, JD New Channel upgrades the retail infrastructure of every node in the JD Convenience Store business chain through brand empowerment, quality supply, a strong logistics system, and store technology. Ultimately, JD Convenience Stores will become important "endpoints" across offline in JD's boundless retail landscape, closely connecting brand owners, store owners, and consumers, and reconstructing cost, efficiency, and experience based on knowing people, knowing goods, and knowing the scene. -END-