In the exploration of channel digitalization, Coca-Cola has always been ahead of most brand owners. As early as June, Coca-Cola reached a comprehensive strategic cooperation with JD New Route, taking the first step in channel digitalization. Just yesterday (November 19), Zhengzhou Swire Coca-Cola held a grand launch ceremony with Alibaba Retail Link in Zhengzhou. In the future, the two parties will be driven by technology, using big data and informatization as tools, to carry out comprehensive cooperation in channel construction, outlet expansion, precision marketing, and improving outlet profiling, jointly promoting Coca-Cola's market development in Henan and expanding market growth. Before the launch ceremony, Xu Yonggang, Director and General Manager of Zhengzhou Swire Coca-Cola Beverage Co., Ltd., accepted an exclusive interview with New Distribution. So, as a veteran with decades of traditional FMCG marketing experience, how does he view B2B and channel digitalization transformation? Identifying Gaps, Multi-Channel Development, and Finding Outlet Growth Opportunities In foreign markets such as the United States and Mexico, Coca-Cola has achieved full market coverage. However, in the domestic market, due to its vast size and significant regional development imbalances, Coca-Cola has adopted the 101 partnership model to achieve market service and coverage. As a populous province, Henan currently has a majority of rural residents. Additionally, with over 130 counties, more than 1,700 townships, and over 5,400 villages, the high fragmentation and granularity of administrative divisions mean huge opportunities, but also a large number of market gaps. This has, to some extent, facilitated the cooperation between Zhengzhou Swire Coca-Cola and JD New Route, Alibaba Retail Link, etc. Xu Yonggang, Director and General Manager of Zhengzhou Swire Coca-Cola Beverage Co., Ltd. "This year, we accelerated the pace of expanding RTM partners. Although we have achieved significant development and progress, there is still a large space for market growth. In this situation, we need new models to supplement, and the emergence of B2B now undoubtedly brings us more choices," Xu Yonggang said. When many traditional brands cooperate with B2B platforms, the conflict between online and offline channels is often one of their most important considerations, and Zhengzhou Swire Coca-Cola is no exception. The reason for choosing to cooperate with JD New Route and Alibaba Retail Link, Xu Yonggang told New Distribution, is mainly based on the following considerations: The digitalization of traditional market channels is irreversible. Whether or not to cooperate with B2B platforms, B2B will exist as a new distribution method. However, cooperating with B2B platforms represented by JD New Route and Alibaba Retail Link can make customers more transparent and services more accurately reach outlets. In addition, for B2B customers, Zhengzhou Swire Coca-Cola will maintain the same price system as traditional offline customers. In this case, sales representatives need to provide more professional and high-quality services to build and maintain customer stickiness, which will undoubtedly greatly promote and improve their business capabilities. Adjusting Organizational Structure and Actively Embracing Change As the first factory within the Swire Group to cooperate with a B2B platform, Zhengzhou Swire Coca-Cola has made significant adjustments in both organizational structure and staffing for this cooperation with Retail Link. In terms of organizational structure, Zhengzhou Swire Coca-Cola has established a dedicated B2B department and assigned personnel engaged in data analysis and market affairs to collaborate and connect with the B2B platform. Group photo of Zhengzhou Swire Coca-Cola issuing honorary certificates to the first I101 partners In terms of backend logistics and distribution, Zhengzhou Swire Coca-Cola has selected four additional distribution partners specifically responsible for B2B business to help Retail Link achieve rapid fulfillment of online orders. In addition to support in product and marketing policies, the T+1 delivery efficiency has also become an important commitment of Zhengzhou Swire Coca-Cola to Retail Link services. Furthermore, to distinguish B2B customers from traditional 101 partners, Zhengzhou Swire Coca-Cola has established a dedicated customer code for B2B distribution partners: I101 (Internet 101). Although there have been precedents of cooperation with B2B within the Coca-Cola system, creating a unique customer code for offline partners is a bold attempt and innovation by Zhengzhou Swire Coca-Cola, from which we can also see its efforts and determination in channel digitalization innovation. Comprehensively Advancing Cooperation with B2B With the development of society, more and more modern channels are becoming traditional channels, while internet companies represented by JD.com and Alibaba represent future development changes and trends to some extent. Especially after the concept of New Retail was proposed, Zhengzhou Swire Coca-Cola has also been trying to connect people, goods, and places, such as cooperating with B2C and O2O platforms, and launching on platforms like Meituan and Ele.me. This cooperation with Retail Link will undoubtedly elevate the collaboration capability and level of both parties to a new height and level. In the future, the cooperation between Zhengzhou Swire Coca-Cola and Retail Link will mainly be reflected in the following aspects:

  1. Expanding channel types, increasing outlet coverage, and achieving growth;
  2. Precision marketing to reduce information distortion during transmission; Coca-Cola's project focusing on women's growth [520 Plan] The first co-branded Tmall convenience store launched with Retail Link in Zhengzhou
  3. Better practicing corporate values and social responsibility, typically such as the 520 Plan and cooperation with Tmall convenience stores. The Coca-Cola 520 Plan aims to help women overcome obstacles in life and development, stimulate their potential and strength, and drive the vitality of family and community development. The combination of the 520 Plan and Retail Link's Tmall convenience stores provides broad female entrepreneurs with development opportunities and space in the New Retail environment.
  4. Enriching and improving customer profiling. Cooperation with Alibaba Retail Link can fill the gaps in Zhengzhou Swire Coca-Cola's consumer behavior and consumer profiling, thereby enabling more precise marketing activities. "Through cooperation with JD New Route, Alibaba Retail Link, etc., we hope to expand to customers not previously covered and incorporate them into our current sales network system; for some low-VPO customers, we hope to leverage the existing sales team of B2B to achieve continuous service, and use digital marketing tools and means to improve customer quality. This is undoubtedly a win-win for Coca-Cola, B2B platforms like JD New Route and Alibaba Retail Link, and Zhengzhou Swire Coca-Cola's existing sales team," Xu Yonggang concluded. Star: New Distribution You won't miss any message! -END-