Create value for the upstream and downstream of the channel, let more high-quality goods and services enter millions of households.
4 years ago, on December 16, 2015, Jingdong New Access Business Unit was formally established . In media reports at the time, this move by Jingdong was seen as a clear signal that the online e-commerce giant had penetrated the offline terminal market.
In the four years after the establishment of the business unit, New Channel announced that in 2020, it will focus on consumers, continue to optimize costs, efficiency and experience, and deploy 10,000 “six unified” stores in multiple scenarios to make more high-quality products. Goods and services enter millions of households.
“After four years, the new channel has grown into an online and offline B2B2C intelligent platform covering all channels and multiple scenarios” , vice president of JD.com and JD.com. Zheng Hongyan, president of the Channel Division, said.
Zheng Hongyan, Vice President of JD Group and President of JD Retail Group’s New Channel Business Division
Combining the four corners and four neighbors is probably the best footnote to describe Jingdong’s new channel bringing changes to the entire retail industry. On the one hand, through model innovation and data-driven, brand communities, channel dealers, retailers and other interest communities together with JD.com achieve an upgrade and a win-win situation; at the same time, through the orderly organization of the distribution and mobile sales system, it is regarded as a “four neighbors” Consumers also benefit.
Considering the fact that the Internet traffic dividend is waning recently, the offline market reached by the new channel just happens to complement the original business of JD.com. Among them, more incremental space has been tapped, and the original stock has realized long-term operation. As a result, JD.com has obtained new growth drivers and imagination space.
Jingdong New Access Events
Retail Rush and JD.com
Jingdong New Channel faces a severe external environment at the beginning of its launch. Both online e-commerce and offline physical retail have entered a period of revolution without exception. The online retail format has begun to face With increasing pressure, this is due to the beginning of the first round of traffic bonus periods around first- and second-tier cities; for offline retail entities, they are also facing challenges related to operational efficiency.
Especially the traditional retail chain represented by dealers, mom-and-pop shops, etc., is more difficult to survive. The increase in house rents and the impact of online e-commerce have made Ping Xiao an indicator that every entity needs to pay attention to. If it is said that urban complexes, department stores, and even supermarkets that have begun to take shape have capital through the introduction of mature data-driven solutions to reconstruct a new business model, then more widely distributed small and medium-sized dealers, mom-and-pop shops, and tobacco hotels Is it possible to iterate on new business models? This has become the key point for Jingdong New Access to seek a breakthrough.
In fact, there are as many as 6.8 million mom-and-pop stores across China, and most of them are facing urgent needs for transformation and upgrading. If the perspective is extended to more forms such as dealers, tobacco hotels, mother and baby shops, then the expandable space scale will become even more impressive.
In addition to their size, these seemingly humble shops are also occupying an important strategic position in the current retail battle. To some extent, it can be said that traditional distributors and small retail stores are even the key “city” that is related to the future success or failure of the retail industry.
Internet platforms have given their ideal business models in the past few years, but it is not easy to get rid of the bone of small retail stores and upstream and downstream markets. First, it is very different from the market that the retail industry has faced in the past; second, there are great differences between different regions. These two characteristics determine that the understanding of traditional retail chains and the ability to land will become the core advantages of JD.
Combining the Quartet and the Four Neighbors, the old and new in the retail chain
Blue Moon has felt the benefits of Jingdong’s new channel for a long time.
In previous pilot projects launched in Shandong with Xintong, relying on the joint warehouse agency model, Blue Moon achieved a rapid doubling of sales and a 90% increase in sales stores. Among them, in just one area of Zaozhuang, Liancang helped increase sales by nearly 11 times, and the number of moving stores increased by 200%.
In the retail industry, mobile sales are considered an important indicator of the reach of purchased consumers. When the increase in mobile sales stores is considerable,This means that with the mature model of the new channel, Blue Moon’s local sales network has been opened efficiently. With the power of the new channel combined warehouse, more first-tier brands like Blue Moon will open up the full link channel of the sinking market to a greater extent. In fact, Blue Moon is just the epitome of many beneficiary brands. At present, more than 8,500 brands have established partnerships with JD.com. It is a criterion that the new channel always adheres to brand owners to increase the increment and make the fine stock.
For brands, the cooperation with New Channel not only means that the sales network is quickly opened, but also represents closer to consumers, and even the possibility of C2M reverse customization based on consumer data.
For example, JD.com has customized rice with Yihai Kerry and advised on rice varieties, origin, specifications, pricing, packaging and marketing solutions based on data. The effect of similar cooperation is immediate, and the sales volume of Yihai Kerry’s rice products has always been among the top five among JD.com shopkeepers for small shop operators.
This change benefits from the full link data capability of the new channel. Based on the massive data deposited in each transaction link of distribution, to the store, and home, Jingdong New Channel has opened up B2B2C data from brands to consumers. Chain. In this process, the new channel adopts a differentiated product strategy that distinguishes regional and scene needs, and through reverse customization, it helps stores to introduce more cost-effective products.
“The combined warehouse has more than 4,000, covering more than 300 prefecture-level administrative regions, and more than 1,800 counties, of which 64% cover third-tier and below markets” , Zheng Hongyan A series of numbers detailing the achievements of the new channel joint warehouse. The so-called joint warehouse is an innovative business model of the new channel. By combining the strength of small and medium-sized dealers and wholesalers, they complement their warehouse allocation, resources, and channels with JD.com, thereby effectively improving the distribution efficiency and expanding the last mile distribution. The achievable range of the channel can enhance the user experience and let the potential of the entire channel be fully released.
To a certain extent, the new channel also realized the upgrade from the supply chain to the supply network, and introduced 7 modular channel solutions. Brands can base their needs on categories, brands, regions, and development stages, as needed. Choose a more open, efficient, and economical access model. In addition, the new channel also established an integrated B-end warehouse distribution network consisting of provincial warehouses, urban warehouses, urban agglomeration warehouses, and joint warehouses to strengthen B-side automobile transportation, further improve service levels, reduce costs and increase efficiency.
“We are willing to integrate and integrate with channel dealers into an efficient system integrating JD.com and socialized logistics, so we say that we are a concept for channel dealers to reshape their roles and quickly upgrade, and “Build an integrated and open access solution” , Zheng Hongyan emphasized.
A concept like this runs through the upgrade of the retail chain. Zheng Hongyan mentioned that Jingdong New Channel will neverIt is the “breaker” of the traditional chain, but the “cooperator”. This open thinking makes it easier to be accepted and welcomed by traditional industry players. As a result of this thinking, JD.com new channel will be an open system, all participants in the retail chain can join this system, and JD. Seeks to enable all nodes to create more assistance with the help of technologies such as big data. Much new value.
In general, the deprecation and replacement of the retail chain anchors the direction of “joining the Quartet and neighbouring neighbors”-the former is a commitment to create value with partners, and the latter is through the retail business model The deep innovation of the company has brought convenience to a wider range of consumers.
Omni-channel, multi-scenario, create a half-hour life circle
“The new channel extends from the penetration of early goods to the penetration of the operating and operating capabilities in the scene, and it has upgraded the traditional small stores in terms of brand, image, supply, operations, systems, etc., and opened up online and offline Traffic, we hope to have more influence on these markets, or conversely let consumers have a better connection with us through stores. “ Zheng Hongyan said.
For small retail store operators such as mom and pop shops, the empowerment of business models can bring more significant benefits. In the past, such stores were highly dependent on the existing experience of the operators; but now, with the perfect business model of JD.com, the operation of small stores has become more scientific and efficient.
In 2019, the new channel will gradually improve the management and control of some of its JD Convenience Stores, JD Convenience Famous Wines, and JD Maternal and Child Life Museum, and implement the “six unified” standard to upgrade the service quality of stores, that is, store image logos, stores Unified management, control, facility configuration, service standards, commodity procurement and logistics distribution.
Although it seems that it only undertakes simple duties such as sales, the improvement of small store operation efficiency is closely related to many micro-level issues, such as whether the product display is conducive to purchase, whether the owner needs to purchase new products, and how to carry out marketing activities based on the store. Wait for more subtle but critical issues. “We put our utmost energy on moving sales. Because there is no moving sales, your distribution can’t be done. I won’t help small stores with good sales today, and brand manufacturers can’t do well.” Zheng Hongyan said.
In order to solve such problems, JD.com has constructed a complete set of solutions. For example, Jingdong Treasurer Bao introduced a one-stop purchase for shop assistants. Through credible purchase channels, small stores that sell drinks can obtain the guarantee of supply and product quality. An intelligent store management system called shopkeeper butler, then It can help stores to complete real-time data analysis and scientifically plan the purchase process.
In addition, through the expansion of JD Convenience GO Mini Program and other online scenarios, the store operator will also get more sources of passenger and cash flow-in Gansu, there have been convenient GO single store monthly flow of more than 400,000 In many cases, online sales in many physical stores are double to triple as much as offline. “We not only want to help the store do its original in-store physical business, we also want to make the store a more diversified and more Internet-based store. By connecting online and offline traffic, we can bring consumers quality-based products. , A better experience based on quality services. “ Zheng Hongyan said.
A convenience store located in Xidan, Beijing, under the guidance of the operation team of JD Convenience Store, determined the portraits of target customers targeted at mid-to-high end, mainly white-collar workers, students, and tourists. On the basis of this insight, in addition to decoration according to the unified logo and image elements of JD Convenience Store, this store highlights the food and beverage categories on the merchandise display, and based on the geographical advantages of many tourists, it has added a special area of Beijing. Through this series of scientific preparatory processes, the store has obtained good sales results and stable customer base in subsequent operations.
Jingdong Convenience Store Xidan Store
JD.com recently announced that it will continue to promote related businesses in the new year, with the goal of adding 10,000 “Six Unity” stores in 2020. And the scope of coverage will not be limited to mom-and-pop stores, including mother and baby shops, tobacco hotels, catering stores, unmanned shelves and more new formats will also be covered, allowing the half-hour life circle dream of “retail as a service” to truly land .
For the new channel four years ago, its initial appearance may have more or less a mission to help JD.com develop an incremental battle; but the result of the four-year development is that both upstream and downstream of the new channel benefit from it. .
For whom, China ’s vast territory is deepThe degree determines that the business model of each region must be diverse, and the battle facing Xintong will be hard. However, for e-commerce and the entire retail industry, the new market space represented by retail shops is clearly visible. And this requires them to really land on the rigorous operation, which will be of great value in terms of both business and society.
Blue Moon has felt the benefits of Jingdong’s new channel for a long time.
In previous pilot projects launched in Shandong with Xintong, relying on the joint warehouse agency model, Blue Moon achieved a rapid doubling of sales and a 90% increase in sales stores. Among them, in just one area of Zaozhuang, Liancang helped increase sales by nearly 11 times, and the number of moving stores increased by 200%.
In the retail industry, mobile sales are considered an important indicator of the reach of purchased consumers. When the increase in mobile sales stores is considerable,This means that with the mature model of the new channel, Blue Moon’s local sales network has been opened efficiently. With the power of the new channel combined warehouse, more first-tier brands like Blue Moon will open up the full link channel of the sinking market to a greater extent. In fact, Blue Moon is just the epitome of many beneficiary brands. At present, more than 8,500 brands have established partnerships with JD.com. It is a criterion that the new channel always adheres to brand owners to increase the increment and make the fine stock.
For brands, the cooperation with New Channel not only means that the sales network is quickly opened, but also represents closer to consumers, and even the possibility of C2M reverse customization based on consumer data.
For example, JD.com has customized rice with Yihai Kerry and advised on rice varieties, origin, specifications, pricing, packaging and marketing solutions based on data. The effect of similar cooperation is immediate, and the sales volume of Yihai Kerry’s rice products has always been among the top five among JD.com shopkeepers for small shop operators.
This change benefits from the full link data capability of the new channel. Based on the massive data deposited in each transaction link of distribution, to the store, and home, Jingdong New Channel has opened up B2B2C data from brands to consumers. Chain. In this process, the new channel adopts a differentiated product strategy that distinguishes regional and scene needs, and through reverse customization, it helps stores to introduce more cost-effective products.
“The combined warehouse has more than 4,000, covering more than 300 prefecture-level administrative regions, and more than 1,800 counties, of which 64% cover third-tier and below markets” , Zheng Hongyan A series of numbers detailing the achievements of the new channel joint warehouse. The so-called joint warehouse is an innovative business model of the new channel. By combining the strength of small and medium-sized dealers and wholesalers, they complement their warehouse allocation, resources, and channels with JD.com, thereby effectively improving the distribution efficiency and expanding the last mile distribution. The achievable range of the channel can enhance the user experience and let the potential of the entire channel be fully released.
To a certain extent, the new channel also realized the upgrade from the supply chain to the supply network, and introduced 7 modular channel solutions. Brands can base their needs on categories, brands, regions, and development stages, as needed. Choose a more open, efficient, and economical access model. In addition, the new channel also established an integrated B-end warehouse distribution network consisting of provincial warehouses, urban warehouses, urban agglomeration warehouses, and joint warehouses to strengthen B-side automobile transportation, further improve service levels, reduce costs and increase efficiency.
“We are willing to integrate and integrate with channel dealers into an efficient system integrating JD.com and socialized logistics, so we say that we are a concept for channel dealers to reshape their roles and quickly upgrade, and “Build an integrated and open access solution” , Zheng Hongyan emphasized.
A concept like this runs through the upgrade of the retail chain. Zheng Hongyan mentioned that Jingdong New Channel will neverIt is the “breaker” of the traditional chain, but the “cooperator”. This open thinking makes it easier to be accepted and welcomed by traditional industry players. As a result of this thinking, JD.com new channel will be an open system, all participants in the retail chain can join this system, and JD. Seeks to enable all nodes to create more assistance with the help of technologies such as big data. Much new value.
In general, the deprecation and replacement of the retail chain anchors the direction of “joining the Quartet and neighbouring neighbors”-the former is a commitment to create value with partners, and the latter is through the retail business model The deep innovation of the company has brought convenience to a wider range of consumers.
Omni-channel, multi-scenario, create a half-hour life circle
“The new channel extends from the penetration of early goods to the penetration of the operating and operating capabilities in the scene, and it has upgraded the traditional small stores in terms of brand, image, supply, operations, systems, etc., and opened up online and offline Traffic, we hope to have more influence on these markets, or conversely let consumers have a better connection with us through stores. “ Zheng Hongyan said.
For small retail store operators such as mom and pop shops, the empowerment of business models can bring more significant benefits. In the past, such stores were highly dependent on the existing experience of the operators; but now, with the perfect business model of JD.com, the operation of small stores has become more scientific and efficient.
In 2019, the new channel will gradually improve the management and control of some of its JD Convenience Stores, JD Convenience Famous Wines, and JD Maternal and Child Life Museum, and implement the “six unified” standard to upgrade the service quality of stores, that is, store image logos, stores Unified management, control, facility configuration, service standards, commodity procurement and logistics distribution.
Although it seems that it only undertakes simple duties such as sales, the improvement of small store operation efficiency is closely related to many micro-level issues, such as whether the product display is conducive to purchase, whether the owner needs to purchase new products, and how to carry out marketing activities based on the store. Wait for more subtle but critical issues. “We put our utmost energy on moving sales. Because there is no moving sales, your distribution can’t be done. I won’t help small stores with good sales today, and brand manufacturers can’t do well.” Zheng Hongyan said.
In order to solve such problems, JD.com has constructed a complete set of solutions. For example, Jingdong Treasurer Bao introduced a one-stop purchase for shop assistants. Through credible purchase channels, small stores that sell drinks can obtain the guarantee of supply and product quality. An intelligent store management system called shopkeeper butler, then It can help stores to complete real-time data analysis and scientifically plan the purchase process.
In addition, through the expansion of JD Convenience GO Mini Program and other online scenarios, the store operator will also get more sources of passenger and cash flow-in Gansu, there have been convenient GO single store monthly flow of more than 400,000 In many cases, online sales in many physical stores are double to triple as much as offline. “We not only want to help the store do its original in-store physical business, we also want to make the store a more diversified and more Internet-based store. By connecting online and offline traffic, we can bring consumers quality-based products. , A better experience based on quality services. “ Zheng Hongyan said.
A convenience store located in Xidan, Beijing, under the guidance of the operation team of JD Convenience Store, determined the portraits of target customers targeted at mid-to-high end, mainly white-collar workers, students, and tourists. On the basis of this insight, in addition to decoration according to the unified logo and image elements of JD Convenience Store, this store highlights the food and beverage categories on the merchandise display, and based on the geographical advantages of many tourists, it has added a special area of Beijing. Through this series of scientific preparatory processes, the store has obtained good sales results and stable customer base in subsequent operations.
Jingdong Convenience Store Xidan Store
JD.com recently announced that it will continue to promote related businesses in the new year, with the goal of adding 10,000 “Six Unity” stores in 2020. And the scope of coverage will not be limited to mom-and-pop stores, including mother and baby shops, tobacco hotels, catering stores, unmanned shelves and more new formats will also be covered, allowing the half-hour life circle dream of “retail as a service” to truly land .
For the new channel four years ago, its initial appearance may have more or less a mission to help JD.com develop an incremental battle; but the result of the four-year development is that both upstream and downstream of the new channel benefit from it. .
For whom, China ’s vast territory is deepThe degree determines that the business model of each region must be diverse, and the battle facing Xintong will be hard. However, for e-commerce and the entire retail industry, the new market space represented by retail shops is clearly visible. And this requires them to really land on the rigorous operation, which will be of great value in terms of both business and society.