Nov 23, 2020|
JD Empowers Fook with Supply Chain and Smart Logistics
by Rachel Liu
Leading Chinese convenience store brand Fook (见福) has achieved extensive expansion in Fujian province and the city of Chengdu in the past two months after cooperating with JD.
Fook is the largest convenience store chain brand in Fujian province, southeast China. JD invested in Fook this August, and after leveraging JD’s supply chain and smart logistics, Fook has covered most of the areas in the 3rd to 5th tier cities in Fujian, and built over 100 new stores in Chengdu with one-hour delivery service.
Achieving digitalization in the convenience store industry is not easy, as the stores are usually in different geographical areas, and the direct-sale + franchise model used by Fook means higher standards on products and supply chain. According to Haifeng Chen, general manager of strategy innovation at JD FMCG Omnichannel, JD’s support for Fook mainly covers supply chain, products and omnichannel marketing.
On supply chain management, JD has launched the Fook Flagship store to introduce iconic products from Fujian province to customers from all over China. JD also used big data to analyze the most popular products in Fujian as a supplement to Fook’s supply chain. JD’s Location Based Service allows customers to enjoy on-demand delivery when they shop on the Fook store on JD.
Fook also joined JD’s Omnichannel Fulfillment program and saw its sales of online to offline orders increase over 10 times YoY. Over 100 stores have introduced JD’s smart advertisement screen to provide cloud shelves, advertisement exposure and interaction games with customers.
JD’s extensive logistics network that can reach over hundreds of millions of customers is an important supplement to Fook’s original supply chain, which is more focused on delivering products to stores. “Fook’s business was mostly offline before. After working with JD, we have seen new development opportunities in online and offline integration,” said Li Zhang, CEO of Fook.
“JD’s participation has given us more confidence. Previously, we didn’t have that much confidence to say that we can open 30,000 or 50,000 stores. But now with JD in charge of supply chain and Fook in charge of operations, we think Fook will develop very fast in the future,” said Zhang.