- Don't use the same approach you use with manufacturers when partnering with B2B platforms, whether you're seeking technical or market collaboration. Honestly, you're not on the same page. This test shows you're still a traditional company that hasn't figured out what you want to do. As Ms. Dong put it bluntly, don't waste time with people who haven't thought things through.
- Distributor alliances without proper equity structure are basically each harboring their own agenda, everyone wanting to be the boss. Before anything is even underway, they're already thinking about reaping benefits and carving up territories. Basically, I'm not optimistic about this direction.
- Many distributors have learned too much without clarifying what they really need. B2B is like a basket; they want to put everything in it. But they haven't figured out their business logic, and they end up piecing together technologies without realizing that the essence of B2B is competing on supply chain efficiency and effectiveness.
- A B2B platform without logistics and delivery is like a group of eunuchs visiting a brothel.
- One obstacle for distributors doing B2B is: who are you? Using the identity of a distributor, you can't organize an efficient product structure; you must change your identity. Those distributors who want to have it both ways can take a break.
- The development of B-end e-commerce will definitely represent a new division of labor in future distribution. At least 50% of distributors will be eliminated, and the rest will basically transform. Rather than being eliminated in the future, it's better to plan now—either cooperate or embrace it.
- For distributors' B2B, don't talk about platforms; first build a sales management information system. The most suitable model is to establish an information management system based on a three-tier delivery system. If you want to know how, ask the B2B veteran dongge5094!
- When distributors do B2B, they often want to become a platform. You're overthinking it, my friend! The veteran believes the fastest way to see results is to turn your own company into a platform for employee entrepreneurship, distributing shares to your middle and senior management. They contribute money and effort, money and heart. In the internet era, sharing and co-creation are most important—this is 100 times more important than a B-end platform.
- For B2B, I prefer the term BSB—not connection, but service. With service, there will be connection; with the number of connections, there will be scale; with scale, there will be efficiency. If you don't understand this logic and instead fantasize about relying on technology platform installations and subsidies for operations, you're basically doomed, just like O2O, burning through everything.
- Want to rebrand stores or run direct-operated stores? Forget it, the window has passed. Either go directly to 5th-generation stores, but that's a red ocean. Stop struggling; find a suitable B2B platform to marry, either cooperating on supply or market. For example, look for New Gaoqiao. The transformation of distributors should be viewed against the backdrop of broader circulation channel reform and restructuring. Currently, I see four successful paths in practice. The first path is called new channel construction: focusing more on local life and circles to match channels. This is called digging deep, breaking through through offline stores/channels + social e-commerce platforms + community marketing matrices. The second path is the provincial B2B platform: advancing boldly, using a B-end platform to cover one province, several provinces, and eventually the whole country, replicating and expanding in larger regions. This is a path that only a few can walk well. The team needs a combination of four genes, with four veteran roles: those who understand manufacturer logic, distributor logic, retailer logic, and internet logic and technology. The third path is the informatization of distributor sales management systems I mentioned earlier. This is more feasible. The model is to informatize warehousing and sales to improve operational efficiency. In 2013, I visited a top-3 national distributor that, through this transformation, grew from 300 million to 600 million, and later started a factory based on this. The fourth path is called manufacturer-distributor integration: that is, category-research-based OEM + own channel sales + national distributor channel sales + share cooperation with other manufacturers' sales teams. The factory is all OEM, and you only keep a small marketing planning division of 8-10 people, plus cooperate with manufacturers and distributors with mature sales systems. This is also an alternative B2B. However, many times I tend to suggest focusing on local life and circles to restructure channels and communication. For example, Teacher Niu Enkun's practice of restructuring channels and products based on community circles is worth learning from for many distributors. Essentially, it forms a new demand chain in the region to drive the formation of new channels, bringing explosive growth for mainstream upgraded products. Interested students can look at Teacher Bao Zheng's community business theory. If the team's average age is around 35, distributors can still talk about B2B. Once over 45, it's too difficult—not in capital or technology, but in cognition, communication, decision-making, and atmosphere. Imagine, someone who can't even use a smartphone or WeChat well—how can they do business in the internet era? What to do? Exit! Focus on traditional business. Give money and position to the next generation to take over. That's much more reliable! To distributors who reject B2B platforms, I want to say: don't think manufacturers are your big backer. From my experience as a manufacturer, once B2B platforms gain momentum, manufacturers will change their faces and cut off distributors faster than anyone. What's your sales volume, even if it's a few hundred million? Even if you grew up with the manufacturer from the start? B2B platforms distribute faster than you, so you become worthless. Social division of labor is the trend. This year, I've communicated with many senior manufacturer executives. From outright rejection a year ago to now being interested and secretly supporting bypassing the distributor system, it really makes me sigh. Wake up. -END-
Dealer Operations · Supply Chain & B2B
10 Reminders for Distributors Venturing into B2B in 2017
Distributors entering B2B must avoid using manufacturer-facing tactics, ensure proper equity structures in alliances, and focus on supply chain efficiency rather than platform hype. The article outlines 10 key reminders, including the need for logistics, the inevitability of channel restructuring, and the importance of information systems, while also presenting four viable transformation paths.
