NEW DISTRIBUTION RESEARCH TOPIC
How is instant retail changing stores, platforms, and supply chains?
Coverage of flash warehouses, front warehouses, discount stores, supermarket transformation, and local commerce platforms in China.
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Cost Pressure: JDB and Wong Lo Kat Raise Prices Simultaneously
Recently, a price adjustment notice from JDB indicated that products in five packaging specifications would see price increases of 2-3 yuan per case. Additionally, distributors revealed that Wong Lo Kat has also raised prices. Industry insiders believe that due to increased cost pressures and the near conclusion of the 'Wong Lo Kat' dispute, companies can focus on daily operations, hence the price hikes. However, since the increases are at the distributor level, they will inevitably pressure distributors, testing the operational capabilities of both JDB and Wong Lo Kat.
李振兴2017 Retail Latest Casualty List! Hypermarket Closure Wave Still Fierce, New Retail Rises
Supermarket listed companies significantly improved profitability in 2017, but adjustments continued. According to Lianshang.com statistics, 14 listed supermarket companies opened 1,169 stores in 2017, up 3.18% year-on-year, and closed 828 stores, up 14.84% year-on-year. By the end of 2017, they operated 11,010 stores in total.
联商网 崔旭升Interview with 7-ELEVEn Executive Director: Why We Are the No.1 Convenience Store Brand
7-ELEVEn explains why it is the leading convenience store brand, and you can find the answer in Uchida Shinji's elaboration and thinking. This article is from the WeChat public account Retail Boss Insider (ID: lslb168). The communication with Mr. Uchida Shinji was an unusually open process. This Japanese 7-ELEVEn Group Executive Director and Chairman and General Manager of 7-ELEVEn (China) Investment Co., Ltd. does not avoid questions, uses no diplomatic rhetoric, and is straightforward. If you have any questions about 7-ELEVEn's store operations, his answers make it seem as simple as eating when hungry or sleeping when tired.
New DistributionJD.com to Halve Workforce, Taxis Turn into 'Convenience Stores'—Is the New Economy Taking Aim at Distributors?
Distributors, caught between manufacturers and retailers, seem poised to foot the bill for the new economy again. JD.com CEO Liu Qiangdong announced at the World Retail Congress in Spain that the company will halve its workforce and operate fully automated with AI, while some Shanghai taxis have begun selling snacks and drinks, taking a cut of sales. These developments threaten traditional distributors, but experts argue that AI cannot replace the human touch in market development and customer relations, and the taxi retail model may face challenges similar to failed unmanned shelf projects.
New DistributionCan Terminal Stores Take the Initiative to Order on Their Own?
When we shop online, we place orders ourselves; but in physical stores, like clothing shops, salesclerks help customers place orders, and in restaurants, waiters take orders. Whether customers should place orders themselves or sales representatives should do it for them depends on the specific context. In the FMCG industry, terminal stores typically have sales reps place orders on their behalf, known as 'visit sales' or 'vehicle sales'.
New DistributionTencent officially enters FMCG B2B, Alibaba, Tencent, and JD.com gather, ushering in an era of tripartite competition?
Recently, New Distribution learned that Tencent has strategically invested in the well-known FMCG B2B platform Huidanxia. Since then, the three giants ATJ have gathered in the FMCG B2B industry, bringing changes and impacts to an already fragmented and competitive landscape.
刘少德Goodbye, Lotte Mart!
Lotte Mart has finally found a new buyer for its Chinese operations. Liqun Commercial Group announced it will acquire 12 Hong Kong and East China legal entities from Lotte Shopping (Hong Kong) for 1.665 billion yuan, gaining 15 properties and 72 stores. This move marks Liqun's expansion from a regional to a national retail group.
联商网Big News: JD New Channel Fully Opens Online Stores, and Not Just Store Owners Benefit!
Recently, the author received a tip from industry insiders that JD New Channel is quietly moving numerous offline mom-and-pop stores online. After checking JD New Channel's WeChat official account, the author learned that the "online store" system, previously only available to JD convenience stores, is now being promoted to all JD ZhangguiBao users, and it is likely to become an important marketing platform for JD New Channel during this year's 618 shopping festival.
新经销团队Costco to Officially Enter Mainland China in 2019; Chinese Trademark Is Not 'Haoshiduo'!
At a supplier conference in Shanghai on May 9, Costco announced plans to open its first mainland China store in Minhang District, Shanghai, in spring 2019, with a second store planned for Pudong by 2021. The company also revealed that its registered Chinese trademark in mainland China is 'Kai Shi Ke', not 'Haoshiduo'.
New DistributionNo 10 Billion, No Leaving Guangdong; No 10,000 Stores, No National Expansion: Where Does No.1 Life's Confidence Come From?
With 82 warehouses, 182,000 square meters of storage space, over 370 vehicles, and more than 320 full-time business developers serving nearly 25,000 stores, No.1 Life insists on not expanding beyond Guangdong until reaching 10 billion in sales, and not expanding nationally until operating 10,000 convenience stores. The company's confidence stems from its self-operated systems, warehousing, logistics, and business teams, which enable operational, regional, and upstream-downstream synergies.
赵波 刘少德Carrying Alibaba's Ambitions: How Difficult Is It to Replicate Hema Fresh?
Hema Fresh, Alibaba's new retail benchmark, opened stores in 10 cities simultaneously on April 28, 2018, bringing its total to 47 stores across 13 cities. Its unique model combines premium seafood, hot products, and direct sourcing, with a 30-minute delivery service and digital integration, but replicating it faces high costs and technological barriers.
孔学劭 马宁宁Comprehensive Layout in WeChat Market, JD.com Proposes a Package of Social E-commerce Solutions
JD.com, as one of the first retail platforms to enter the WeChat ecosystem, has proposed a comprehensive set of social e-commerce solutions based on its unbounded retail blueprint for the WeChat social ecosystem, aiming to help brands connect social traffic with retail and achieve traffic precipitation, operation, and conversion.
New DistributionFrom Taobao and Meituan to Didi and Yunji: Uncovering the Success Code of Internet Platform Startups
Recently, social e-commerce platform Yunji announced the completion of a $120 million Series B funding round, following Pinduoduo's $3 billion investment led by Tencent, which valued it at $15 billion. Two years after Wang Xing coined the term 'the second half of the internet,' we are witnessing that the first half may be less than halfway through. As an internet veteran with nearly 20 years of experience, I recently moved to Xiamen to start a business and, during my preparation, analyzed the common traits of platform-level companies.
张栋伟After Buying a Few Things on Pinduoduo, I Think It Should Be on Next Year's 315 List
Even if you've never used Pinduoduo, you've likely seen its name multiple times in the media or in WeChat groups and Moments recently. This e-commerce platform, where '300 million people are shopping together,' has overnight become a media darling with tens of millions of traffic, alongside Douyin. For this rustic shopping platform full of 9.9-yuan free-shipping items, people inside the Fifth Ring Road first said they didn't understand or look down on it, but the world has always been about winners and losers. As its performance soared, Pinduoduo expanded in media coverage and was crowned as the third pole of e-commerce, making Taobao silent, JD crying, and Tencent's mouth curling up.
吴羚Alibaba VP Recalls Early Store-Visiting Experience: No One Can Succeed Casually
On April 27, Alibaba Vice President and General Manager of Retail Link Lin Xiaohai shared his early experience of delivering goods by tricycle at the first Retail Link City Partner Conference, encouraging partners to persevere and achieve new success in the new fiscal year. Retail Link is the world's largest one-stop store procurement platform, with one million small stores purchasing through it, meaning one in every six stores in China is a Retail Link contracted user. With over 4,000 staff, Retail Link carries forward the 'Alibaba Iron Army' spirit, tasked with expanding small stores, selling selected products, and providing value-added services.
林小海Major News: Coca-Cola Invests in Internet-Famous Yogurt Brand LePur!
New Distribution has learned that LePur, a popular internet-famous yogurt brand in China, has received a strategic investment of several hundred million RMB led by Coca-Cola, making Coca-Cola its second-largest shareholder, with existing investors IDG Capital, ZhenFund, Dahe Capital, and Maixing Investment all following the round. This marks Coca-Cola's first strategic investment and partnership with a startup in Asia. LePur is an internet-driven FMCG company that has gained a loyal following through digital marketing and user-centric operations.
New DistributionWhat Traditional FMCG Companies Should Know About WeChat Business
Last night (April 26) at 8 PM, New Distribution invited Zhang Chi, editor-in-chief of Social E-commerce Review, to give an online sharing session titled "What Traditional FMCG Companies Should Know About WeChat Business" in the New Distribution public class community, which received enthusiastic responses. At the request of many friends, the content has been organized for readers. Friends who missed the session or are interested in this topic can review the main content with us.
张驰FMCG Terminal Channel Classification Overview! Understand 10 Major Categories and 60 Segmented Markets in 3 Minutes!
Multi-channel distribution has always been at the forefront of the FMCG market. This article details the 10 major categories and 60 terminal channels in the FMCG sector, providing a comprehensive reference for sales and distributor teams.
New DistributionOpinion PK | Alibaba Invests in Huitongda, JD.com Sticks to Convenience Store Model: Who Will Win the Rural Battle?
On April 17, Alibaba announced a strategic investment of 4.5 billion yuan in rural e-commerce platform Huitongda. With giants like JD.com, Suning, and SF Express entering, the battle for rural e-commerce—the 'last piece of cake' in e-commerce—has intensified. Huitongda now relies on Alibaba, gaining strong backing, while bringing Alibaba a base of 80,000 rural outlets. Alibaba is escalating the war, while JD.com continues to expand its rural convenience store plan into more villages. Who will win the rural retail market battle? Pro: Alibaba invests in Huitongda...
崔三妹News Flash | Nongfu Spring Invests Another 500 Million Yuan in Tea Beverage Project; Luzhou Laojiao to Phase Out a New Round of Distributors; Walmart Continues Store Closures...
Highlights include Tao Li Bread launching a new 'dirty bread' product, Coca-Cola entering Japan's soda wine market, Quan Shi convenience stores expanding to Nanjing, Sanyuan introducing a new yogurt, Qinqin shrimp crackers launching crayfish-flavored snacks, Luzhou Laojiao potentially eliminating distributor brands, Nongfu Spring investing 500 million yuan in a tea beverage project, Walmart closing three stores in less than a month, Shuangta Food releasing its 2017 annual report, Schwarzkopf recalling defective hair dyes, and experts defending instant bird's nest products.
New Distribution9 Months, 80 Square Meter Tobacco and Alcohol Store Sales Increase 300%, It's Not So Easy for the Times to Abandon You
Tobacco and alcohol stores are the most common retail outlets for alcohol near urban residential areas and communities. They used to be our first choice for purchasing cigarettes and alcohol. In recent years, their business has been declining. E-commerce has taken away a large portion of customers online, as seen by the couriers from SF, ZTO, and YTO coming and going at the community gates, indicating where previous sales have gone; offline, Alibaba and JD's retail platforms and convenience stores are also encroaching step by step, forcing some struggling stores to 'sell out'; additionally, franchise chains like 7-11 and Quanshi are expanding, leveraging brand and supply chain advantages.
New DistributionFrom Fire Chicken Noodles: Why Do Imported Internet-Famous Products Fade Away After a Brief Boom?
Fire Chicken Noodles, known for their extreme spiciness, went from near-zero sales in China to the top-selling instant noodles on Taobao in just 60 days in 2016, driven by online eating shows and social media. However, despite winning over Chinese consumers online, the product is now losing out to offline channels due to a lack of channel management and price control, leading to a decline in the offline market.
袁来How to Become a Localized Pinduoduo?
Pinduoduo grew from monthly sales of less than a few million to over ten billion in less than three years. Behind this transformation, Dong Ge identifies three key factors: social traffic diversion, consumption downgrade, and community marketing fission.
任小东Liu Qiangdong: Aiming to Open 1,000 Convenience Stores Daily by Year-End, with One Every 300 Meters on Streets
At the 2018 China 'Internet+' Digital Economy Summit held yesterday, Liu Qiangdong, Chairman and CEO of JD.com, set a goal to open 1,000 JD convenience stores daily by the end of this year. Two years after launching the convenience store plan, JD opens 1,000-1,200 new stores weekly as of March, receiving 50,000 applications daily. Liu stated that through a franchise model, JD convenience stores will be located every 300 meters on streets, ensuring no counterfeit goods, with JD Finance providing loans, and store owners earning around 8,000 yuan monthly.
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