Zheng Hongyan, JD.COM New Access Road: Intelligently Upgrading Traditional Stores Based on Digitalization

with the increasing diversification of consumer demand, consumption scenarios and channels are also developing in diversified directions, and "what you think is what you get" has become the urgent need of most consumers.

so, how can traditional retail stores meet the ever-changing consumer demand? Recently, the new distributor visited the convenience store in JD.COM to see what JD.COM did in view of the transformation and upgrading of traditional retail stores by Internet companies.

Smart Convenience Store with Closed Scenes

JD.COM Convenience Store

JD.COM Convenience Store, which is newly distributed and visited, is located in JD.COM Group Building, and white-collar workers who commute every day are the main audience of this convenience store.

The fast-paced life and work make office workers have little time to go shopping, but this convenience store in JD.COM "moved" the daily leisure snacks, milk drinks, toiletries, self-heating food, etc. to the office building, so that office workers can conveniently buy the required goods without leaving home.

This JD.COM convenience store is not a traditional convenience store, but a modern intelligent retail terminal. JD.COM has applied the big data ability, consumer insight ability, commodity marketing analysis ability and intelligent management ability accumulated for many years to this small shop of more than 2 square meters.

first of all, all the goods in the store are combined according to the living and working formats of the consumer groups, combined with the ability of JD.COM New Channel to select products accurately. This is also an important reason why more than 6 SKUs in a space of more than 2 square meters can meet the basic shopping needs of daily office workers.

Secondly, the application of intelligent technologies such as ink screen electronic price tag, face recognition and face payment in the store has greatly improved the sales efficiency of the store and reduced the redundant labor costs.

In the corner of the store, consumers buy and pay

According to the data of the store's merchandise sales, the staff can also make timely replenishment and "scene replenishment" at different stages. Through "scene replenishment", the sale of goods is improved, and by increasing the layout and display of a certain product, the sales volume is increased and the overall profit of the store is increased.

A convenient self-help shop in JD.COM, Xi 'an

Coincidentally, at the end of July, an office building in Xi 'an also appeared a convenient self-help shop in JD.COM, which was only over 1 square meters, specifically for white-collar people. In less than half a month, the daily running water covered the costs of rent, labor, water and electricity, and it has been rising. It is not difficult to see that these new convenience stores all have the following characteristics:

1. The store area is small: this kind of convenience store is generally small, and the rental cost of the store is relatively low;

2. There are many kinds of goods: although the store is small, it sells milk and drinks, food, rice balls, bread and other goods, which can meet the daily needs of consumers to the greatest extent;

3. Intelligent management: the use of face payment, electronic price tag, etc., easy consumption, intelligent experience;

4. Light business model: small store area, standardized operation and high reproducibility of business model.

these small convenience stores in JD.COM are not only suitable for offices and office buildings, but also can be customized according to the needs of shopkeepers and the location environment, and can be applied in various scenes such as libraries, schools and airport stations.

A thousand stores have thousands of faces and a thousand stores have one side

Both the JD.COM convenience store at the headquarters of JD.COM Group and the JD.COM convenience self-help shop in Xi 'an are inseparable from the support of the new access road in JD.COM. As the leading B2B platform in the domestic industry, JD.COM New Channel can not only provide one-stop high-quality supply support, complete logistics distribution and after-sales service for more than one million stores nationwide, but also solve the problem of commodity procurement for stores.

at the same time, relying on the data capability of B2B2C full link, JD.COM New Channel also introduces diversified traffic and innovative marketing model by exporting brands, models and management, and continuously helps traditional retail stores to realize digital upgrade by enhancing their multi-scene retail capabilities.

for example, the new channel further strengthens the unification of store image identification, store management and control, facility configuration, service standards, commodity planning and logistics distribution, thus continuously optimizing consumers' shopping experience in stores. In addition, the new channel also introduced JD.COM APP, JD.COM Convenience GO, JD.COM Home, Meituan and other diversified open traffic for the store to promote transformation and drive sales.

Zheng Hongyan (left), Vice President of JD.COM Group, President of New Channel Division of Dashang Super Omni-channel Business Group of JD.COM Retail Group, and Zhao Bo (right), founder of new distribution

Zheng Hongyan, Vice President of JD.COM Group and President of New Channel Division of Dashang Super Omni-channel Business Group of JD.COM Retail Group, said: "The essence of retail is cost, efficiency and experience. The scheme given by the new channel is based on digitalization and intelligent transformation, based on the ability of users' portraits to accurately match goods. The most important point in the future business model is that you can give consumers the right goods in the current scene and time.

In the past, the new channel has accumulated a complete supply capacity of stores, and we have also established the ability to upload user portraits up and down under the ERP system of stores to determine the store's purchase, sale and storage. The new access road has built a JD.COM convenience store with thousands of stores, and at the same time, it can achieve a thousand stores in service. "

if the new channel emphasized empowering traditional stores, now it is devoting itself to the retail field with a brand-new posture. Based on the ability of goods, the ability of data, the insight of demand, and the mastery of scenes, we will deepen the front line and finally promote the digital upgrade of offline retail stores.

Helping brand to create market increment

The value of JD.COM New Channel Intelligent Supply Chain lies not only in helping stores to purchase all kinds of goods with high quality and low price, but also in helping brands to truly realize the linkage between online and offline business. By understanding the differences of consumption behavior, consumption habits and shopping methods in different consumption scenarios, it provides more comprehensive decision-making basis for brand brands' product research and development, price positioning, marketing strategy and distribution policy.

in the past, transaction and delivery were completely separated, and online and offline were separate systems, so it was difficult to connect in real time and efficiently. Online data could not effectively guide offline, and offline transactions could not feed back online, which was extremely inefficient.

consumer self-service settlement

JD.COM New Channel effectively connects goods, consumers and stores through the intelligent system of stores. All transaction data are online in real time, the portrait of consumers can be seen at any time, and the inventory of goods can be clearly checked, which has built a good infrastructure for brand promotion and new product testing. Compared with before, the product verification and market distribution cycle of brand merchants will also be greatly shortened, and the distribution efficiency will be greatly improved.

for traditional retail stores, only by constantly arming themselves with digital tools and methods and choosing good partners can they develop healthily and sustainably. With the acceleration of digital penetration in various industries, intelligent and digital distribution methods will surely become the urgent need of all enterprises, and JD.COM New Channel will undoubtedly become an excellent partner for all brands, distributors and retailers in the process of digital upgrading and transformation.