- Jun 30, 2020
- Business Update
The First JD Franchised Community Fruit Store Opens in Beijing
by Yuchuan Wang
During this year’s 618 Grand Promotion, the first JD franchised fruit store was launched in Beijing’s Huixinbeili (惠新北里) residential compound. The store named Jingxuanhaoguo (京选好果 in Chinese which means “JD’s select of quality fruits”) is the latest community shop model incubated by JD Fresh, JD.com’s fresh food business, to empower traditional mom-and-pop stores.
Mom-and-pop stores often face challenges of quality procurement, transportation and storage. During the pandemic, with a shortage of supply from wholesale markets, many small shops lacked procurement channels. Product offerings and the ability to negotiate good prices are also often restricted due to the limited scale of mom-and-pop operations.
JD’s solution connects small store owners with procurement and transportation resources. Through a purchasing app, they can now order all kinds of global fresh produce and have it delivered within the next day. It not only improves the amount and quality of products provided to consumers but also saves operations costs and human resources. Furthermore, through the program, store owners will also receive guidance on how to run their stores more effectively, benefitting both them and their customers.
“JD helped me upgrade my store down to the design. With the help of JD, my business is getting better and better,” said Liwei Zhao, the shop owner of the first Jingxuanhaoguo.
JD Fresh is helping Zhao to engage with neighbors through community group buying. Consumers can order products via WeChat mini program and pick them up at Zhao’s store. The model is expected to bring more repeat customers to Zhao’s store.
Since the outbreak of COVID-19, the community has played an important role in ensuring people’s daily life, as movement restrictions have made proximity more relevant. As a result, the “community-based economy” has faced both extraordinary opportunities and challenges.
The Jingxuanhaoguo model is consistent with JD’s overall plan to open up of its capabilities centered on supply chain to empower small and medium enterprises, stall owners and shopkeepers.