Click 'Read Original' for details. Previously, New Distribution published an article about a county-level distributor in Ganyu County, Jiangsu, who achieved a remarkable turnaround, doubling annual sales from 20 million to 40 million yuan in less than a year. In today's distribution environment, 100% annual sales growth is a rare miracle; even 20-30% growth is considered 'high performance.' How did this distributor achieve doubled sales? You might rack your brains, but the answer is simple: he outsourced warehousing and distribution to a third-party city logistics provider. Many may wonder: What does outsourcing warehousing and distribution have to do with sales growth? In fact, Chinese FMCG distributors are very traditional. Most are still 'all-in-one' distributors, combining commerce, logistics, information, and capital flows, with warehouses, delivery vehicles, warehouse staff, drivers, salespeople, and finance all under one roof. These 'complete' operations require coordination and daily management, typically handled by one person who wears many hats. But human energy and ability are limited; managing so much and so many diverse tasks means you can't excel at any one thing. 'Good enough' is the best you can achieve. The true value of outsourcing warehousing and distribution is freeing up the distributor's time and energy to focus entirely on the core business. Previously, a distributor's time was fragmented: managing finance, warehouse, vehicles, sales, product selection... Now, by outsourcing to a third-party city logistics provider, warehouses and vehicles are no longer a concern, and finance and processes are streamlined through the provider's information platform, with 100% transparent data integration. Distributors only need to focus on two areas: sales and product selection. In summary, for distributors, a city logistics platform brings not just 'cost reduction,' but 'efficiency gains and volume growth'! Regarding FMCG city distribution logistics, New Distribution believes we shouldn't simply focus on distributors outsourcing logistics functions or the industry trend toward centralized and routed distribution. More importantly, the socialization, third-party involvement, and platformization of FMCG city distribution will greatly improve distributor efficiency and help them achieve their goal of becoming bigger and stronger. To this end, New Distribution is organizing a 'FMCG City Distribution Logistics Conference' on October 23-24, with in-depth discussions on city distribution logistics for FMCG distributors. 01 Three Core Topics 1. In city distribution, what should you actually earn money from? Many distributors have sensed the trend toward unified warehousing and joint distribution and are actively preparing or already transitioning to warehousing and distribution platforms. Before transitioning, the plan was to provide warehousing and distribution services to distributors and charge fees. But after actual operation, they find that the profitability of such services cannot support the high upfront investment in 'intelligent, tech-driven, equipment-heavy' infrastructure. A 10,000m² warehouse, dozens of vehicles, transaction volume exceeding hundreds of millions, yet revenue is only a few million, and after costs, net profit is less than a million. So, how should you make money in city distribution? Besides distributors, who else is willing to pay? Can upstream brands pay? Can chain retailers pay? Can e-commerce giants pay for last-mile delivery? Additionally, can warehousing and distribution platforms extend into other businesses, such as providing financial services like warehouse receipt pledge for distributors, or expanding into B2C community group buying? 2. When distributors transition to same-city logistics, how to break through if peers refuse to join the warehouse? The first hurdle for distributors transitioning to a same-city logistics platform is that peer distributors won't join the warehouse! 'You talk until you're blue in the face, but they just won't come in.' Facing these 'stubborn' traditional distributors, what methods can we use to get them to join? Should multiple distributors jointly establish a supply chain management company to achieve platform density in products, delivery, and outlets? Or should we use ground teams to root in small stores, serve them, or even rebrand them to force distributors to join? Furthermore, how to alleviate distributors' concerns about their business being intercepted? How to resolve their distrust that the platform can provide incremental growth? Is it through guaranteed distribution income? Or by first operating a 1.5-tier distribution platform to show distributors sales growth? 3. Launch Ceremony for the 'China FMCG Distributor City Distribution Alliance' New Distribution believes that although FMCG B2B has developed rapidly in recent years, warehousing and distribution for product circulation still hasn't been well resolved. The entire FMCG industry needs a nationwide trunk and feeder network to truly achieve 'bus-like' and routed warehousing and distribution logistics. In the past, both self-operated B2B platforms and traditional distributors transitioning to warehousing platforms have been fragmented, localized, and single-purpose, unable to holistically support upstream brands' supply chain digital transformation. Especially for companies with tens of billions in scale, brands have a strong need for omni-channel supply chain services (warehousing and distribution). Based on this, the China E-Commerce Association's FMCG Branch has initiated the establishment of the China FMCG Distributor City Distribution Alliance, a public welfare organization. The goal is to leverage social forces to build a socialized, third-party national logistics and city distribution alliance, empowering local regional warehousing and distribution platforms. This will help upstream brands quickly implement warehousing and distribution through the 'City Distribution Alliance.' In short, under the association's guidance, we will unite all city distribution companies and distributor-transformed warehousing platforms nationwide to form an industry-wide 'order receiving platform.' This allows city distribution platforms (demand side) to not only receive local city distribution business but also connect to national business; and allows brands (supply side) to avoid searching for third-party city distribution platforms one by one, region by region. We hope that with the association's leadership, promotion, and advocacy, the alliance will become a highly influential industry platform for city distribution orders, a 'bidding and tendering center' for urban supply chains. Details of the alliance will be presented by Mr. Ren Xiaodong, Secretary-General of the E-Commerce Association's FMCG Branch, on the morning of October 24. 02 Regional Kings Development Alliance Conference On October 23, Zhongke Shangruan, a well-known system service provider, together with New Distribution, will organize a Regional Kings Development Alliance Conference. Zhongke Shangruan will bring the regional kings it serves, including brand owners, distributors, retailers, and B2B platforms, to discuss transformation practices. First, focusing on regional supply chain platforms, we will deeply explore each module of platform operations: how to build the procurement system; how to embed chain systems downstream; how to become a sales-service platform; and how to expand omni-channel distribution. Second, Zhongke Shangruan will invite well-known financial institutions, including China Construction Bank, to discuss how financial parties can support local platform transformation and create new financial value. Third, community group buying e-commerce has become a new trend. How can companies that have successfully transformed into local supply chain platforms seize this opportunity and introduce community group buying with zero cost? List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-Commerce Co., Ltd. Unilever Services (Hefei) Co., Ltd. Shanghai Branch HC360 Hunan Xuan'ang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Province Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Commercial Firm Boda Trading Industrial Bank Changsha Branch Wuhan Muchen Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-Commerce Co., Ltd. Jiangxi Xiao Lao Er E-Commerce Co., Ltd. Jinshankoufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chao'an Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Development Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhiru Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. ... Representative Distributor Transformers (Proposed) In no particular order Rong Jun, Chairman of Jiangsu Huashang City Distribution Network Co., Ltd. Wang Bo, Chairman of Hubei Yijiaren Logistics Co., Ltd. Jiang Shuming, General Manager of Sichuan Chengdu Xingrenxing Trading Co., Ltd. Liu Jichen, Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd. Tu Mingyu, Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Yang Su, Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Yuan Xia, Chairman of Sichuan Bajie Supply Chain Management Co., Ltd. Li Qiangyun, Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Zhang Jianyong, Chairman of Henan Xuchang Jiulegou E-Commerce Co., Ltd. Ma Haichao, Founder of Hebei Changyi Logistics Co., Ltd. Meng Yucun, General Manager of Hebei (Chengde) Wulian Yun Warehouse Co., Ltd. Zhang Xun, Chairman of Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Zhang Hailing, Chairman of Jilin Sanxing Lian'gou Qiang Huitao, Founder of Hebei Dunjie Supply Chain Management Co., Ltd. Liao Lei, General Manager of Hunan Damei Supply Chain Management Co., Ltd. ... -END-