According to data from Yiou Think Tank, in the first half of 2016, the B2B industry saw 81 investment and financing events totaling 7.6 billion RMB, a staggering growth compared to the 5.01 billion RMB invested in all of 2015. As the B2B entrepreneurship boom rises, market optimism has sparked various discussions about platform models. After long-term observation of the B2B industry, Li Lun, partner at Panda Capital, believes that 90% of platform entrepreneurs are on the wrong track, falling into the trap of "information matching." If "matching" is meaningless, then what is the real value that B2B platforms can deliver? Why do we say that B2B "information matching" is a trap? Through long-term observation of entrepreneurship in the B2B field, we can say that 90% of platform entrepreneurs are on the wrong track, falling into the trap of "information matching." Moving existing offline transactions to an online platform, called "information matching," seems to complete real transactions on the platform, connecting buyers and sellers and achieving impressive cash flow. But in reality, the platform's "transaction volume" is nothing more than impressive numbers. Some entrepreneurs quickly realize the insignificance of "information matching" and seek transformation, but they fall into another "trap": starting with information matching, finding little value, then turning to self-operated business, but inevitably becoming traders. Being a trader is essentially earning the price difference. It can quickly achieve scale, shortening the growth process from 5 to 10 years to 3 years through internet-based thinking and methods, and with the push of capital, it can produce rapid growth effects. From information matching to self-operated trading, this process cannot be said to be without achievements, but if B2B is turned into a large trader, then where is the value of the internet? We cannot help but ask: What is the real value that B2B platforms can deliver? What kind of startups can break out from the B2B field? The essence of B2B: dominated by upstream, key lies in resource integration and efficiency optimization To answer the above questions, we must start with the essence of B2B. The development of B2B is subject to many restrictions, the most fundamental of which is its structural limitation by the upstream. Even without the internet, the entire structure of B2B is determined by the upstream. Facing upstream producers, B2B platforms and merchants have weak bargaining power, which also determines the two major trends in B2B model development: resource integration and efficiency optimization. Although the largest transactions on B2B platforms are physical or tangible goods, this does not mean that entry should be from the production side. First, production has barriers, which is easy to understand; second, even some production sides that seem low-tech (such as fresh produce, flowers, etc.) may not be inefficient just because they do not use information technology. The profits in these industries have been squeezed dry, and even if they become manufacturers now, they may not be able to control costs better than the original manufacturers. In B2B platforms, in most cases, the products traded are not produced by the parties involved in the transaction. But there are exceptions, such as the restaurant ingredient B2B e-commerce "Meicai Wang." Because Meicai Wang did not have a good upstream supply chain, it reformed and became a producer with its own channel digestion capability. However, this approach of changing the supply chain by oneself is difficult to replicate. In most fields, such as chemicals and medical, suppliers control patented technologies, and platforms cannot grasp them, so it is impossible to cut in from the supply chain side and "revolutionize oneself." Thus, the greater value of B2B lies in the platform, not the producer. The platform neither produces nor truly consumes these goods, so if you want to form a new trading platform and divert transactions, you can only provide services that are more innovative, higher quality, cheaper, and more efficient than traditional ones. The core of B2B platform development: service links that facilitate transactions For large-scale B2B transactions, the core is not the transaction itself. The location of B2B platform transactions depends on the services that influence the transaction, such as finance, logistics, warehousing, SaaS, etc. In the B2B field, to break out, you must master two core elements: decision-makers and service links.

  1. Can the platform have enough decision-makers? In platform development, a crucial point is: can it find the key decision-makers in the transaction process more effectively than traditional industries, and influence them? Decision-makers vary by industry. The decision-maker is not necessarily the boss of a company, but they are the key person in the transaction process. For example, "Youliaobao" targets designers as its "decision-makers"; in the plastic raw materials industry, the decision-maker is the person who needs to do modification, coloring, or has requirements for plastic product indicators.
  2. Find the most needed related services for decision-makers Once the decision-makers are identified, what core factors can maximize influence on their decisions? This lies in what services the platform can provide.
  3. Professional services Professional services, due to their knowledge and specificity, not only meet user needs but also build the platform's own barriers. For example, "Youliaobao" provides consulting on fashion trends and design concepts.
  4. Broader peripheral services: finance, warehousing, logistics, etc. In addition to professional services, peripheral services such as finance, warehousing, and logistics should be more effective in facilitating transactions, shortening the industry chain, and improving industry efficiency. Most of the time, it is financial leverage that limits the development of trading companies. At the same time, a large number of B2B transactions involve finance. If you cut in from finance, the efficiency improvement should be the greatest. Because new business forms need new financial means to match and serve them. Or, new financial means themselves have the need to export, so they will actively seek new asset targets and new forms of traders to provide services. Traditional financial models are constrained and do not help much with new B2B transactions and supply chain improvements, while new internet-based financial platforms have the possibility to provide financial services for new B2B transactions. Through internet financial services, quickly helping enterprises grow is a value that a platform can deliver. Take "Quanmin Wealth" as an example. It is a financial service institution rooted in supply chain finance, focusing on personal wealth appreciation. In terms of enterprise services, "Quanmin Wealth" revolves around core enterprises, manages the capital flow and logistics of upstream and downstream small and medium-sized enterprises, and transforms the uncontrollable risks of individual enterprises into controllable risks of the entire supply chain enterprises. By obtaining various types of information in a three-dimensional way, it provides financial services that minimize risks. Simply put, it is a financing model that connects core enterprises with upstream and downstream enterprises to provide flexible financial products and services. "Quanmin Wealth" cuts in from internet finance and quickly improves transaction efficiency through financial methods. An example can illustrate the efficiency of its services: after cooperating with a tire company for three months, the company's transaction scale expanded fivefold. Secondly, peripheral services such as warehousing and logistics can greatly shorten the industry chain and gather industries together. Although "Quanmin Wealth" cuts in from internet finance and provides financial services, because it does warehouse receipt mortgage, it can further provide warehousing and logistics services. When its warehousing gets better and better, it actually greatly shortens the industry chain, improves the efficiency of the entire industry, and strengthens its bargaining power in the industry. The bigger imagination space for B2B platforms: Uber model In the B2B 1.0 entrepreneurship era, many companies tried to subsidize transactions. We believe this has no practical value because users who stay through transaction subsidies have no stickiness. The real core is not subsidizing transactions, but improving services through subsidies, forming influence on decision-makers, and only then can scale effects be achieved. The bigger imagination space for B2B lies in turning bulk transactions into an Uber model. As a ride-hailing platform, Uber's transactions integrate weak attributes such as time, location, and scale. This integrated platform enables efficient matching of dispersed supply and demand in ride-hailing. Correspondingly, B2B needs to achieve specialized division of labor and improve industry efficiency. Traditional small trading companies on B2B platforms only need to perform two functions: BD and customer service. Other related services (finance, warehousing, logistics, etc.), and even professional related services, are completed by the platform. The trading companies on the platform only need to do well in customer development, maintenance, and service. B2B platforms can then charge related service fees for profit. Take "Yizhitong" and "Hangyuncheng" as examples to further explain the Uber model of B2B. "Yizhitong" is a furniture logistics and installation platform. It cuts in from the logistics link and then provides richer services (such as installation). Through the "logistics + installation" service, it greatly extends the transaction radius of furniture products. Next, it can also cut into furniture manufacturers' suppliers, including processing plants of production factories, so it can even output flexible production standards, thereby revitalizing the furniture production industry. "Hangyuncheng" starts from shipping matching transactions, raises the threshold by providing SaaS services such as customs declaration systems, and adds financial services like tax rebates and warehousing and logistics services, revitalizing the concept of "shipping + big logistics." By cutting in through "Ctrip-style" container transactions, it becomes the largest asset-light carrier. These B2B platforms do not change the upstream supply chain, but they revitalize the entire B2B link. Therefore, we believe that B2B should not be a manufacturer or a trader, but a comprehensive service-oriented platform. In this platform, in addition to simple information matching, it is more important to provide services directly related to transactions and determining the direction of transactions. This article is from the WeChat public account: Panda Capital (ID: pandavc). At the request of many distributor friends, the fourth B-end e-commerce inspection class of this public platform will be held from August 15 to 18, visiting Qianmi Network and Alibaba 1688 Retail Connect in Nanjing and Hangzhou. Distributor friends who intend to transform can come with us for on-site inspection: Activity process: Time: August 15-18

15th: Check in at designated hotel in Nanjing; 16th: On-site inspection of Qianmi Network, then high-speed rail to Hangzhou in the afternoon; 17th: Participate in the "FMCG Distributor B2B Transformation Exchange Summit"; 18th: On-site inspection of Alibaba 1688 Retail Connect in Hangzhou; Distributor friends who intend to transform are welcome to come with us to learn and inspect on-site: Organization form ************1. Company visit

  1. Actual market case visit
  2. On-site explanation
  3. One-on-one communication************ Participating distributor friends only need to pay a registration fee of 200 RMB Other expenses are self-paid Note: This inspection is limited to distributors only Distributor friends who are interested can long press the QR code below to register. When adding, please note: "Fourth Phase Registration". Non-participants please do not disturb Group photos of previous inspections: Group photo of the 3rd B-end e-commerce inspection, from top to bottom: Yunbao Shangmeng, Weijie Chengpei, Wanshang Yizhan. Group photo of the 2nd B-end e-commerce inspection, from top to bottom: Jinhuobao, Caiba, Yishang. Group photo of the 1st B-end e-commerce inspection, from top to bottom: Piduoduo, Beiquan, Yishang. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operation management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new sales | 015 Internet, brand | 016 Distributor B2B transformation | [Long press QR code to follow]