Click to read the original text for details. Local wholesaler bosses face an uncertain future in their business. In the past two years, various FMCG B2B platforms have emerged one after another. Platforms like Alibaba Retail Link, JD.com's Zhangguibao, and Zhongshang Huimin are thriving, while former platforms such as Shenzhen Xingliyuan, Dianshang Hulian, and Jinhuobao have been shut down. While these FMCG B2B platforms come and go, there is an extremely large group doing the same thing as B2B platforms—they are the very traditional local wholesalers. A couple, a van, delivering goods to nearby grocery stores—what is their current situation? Under the banner of Huoquanquan, the Weishu Laboratory sampled 532 local wholesalers nationwide (excluding large distributors) to discuss some aspects of their business and produced this "Report on the Survival of Wholesalers." Age of Wholesalers & Duration of Store Operation Most wholesaler bosses are post-80s How old are wholesaler bosses? Data shows that post-80s wholesaler bosses account for 54.55% of the total; post-70s account for 36.36%, and post-90s account for the least. Looking at another set of data, among the years of store operation, those who have been in business for more than 10 years are the most, accounting for 45.45% of the total; those operating for 1-2 years are the least, accounting for 4.55%. These two sets of data indicate that most post-80s wholesaler bosses have been in the wholesale business for more than 10 years. Geographical Location 63.64% of wholesalers are located away from urban areas Data shows that 36.36% of wholesalers are located in urban areas; the majority are in suburban areas, accounting for 63.64% of the total, showing a distribution pattern of more outside and less inside. 61.92% of wholesaler bosses said they would like to operate in urban areas for convenient delivery. However, due to policy restrictions and high rents, they can only rent storefronts in suburban areas. Delivery Range & Tools Tricycles are essential tools for local wholesalers Data shows that 59.09% of wholesalers have more than two types of delivery tools. Furthermore, 13.64% have more than three types. Note that the tricycles have pedals—human-powered, not electric tricycles! 48% of merchants have tricycles, and 36% have medium-sized vans (Jinbei). Small vans and medium-sized vans (Jinbei) are mainly used to deliver goods to nearby grocery stores, while tricycles are basically used for moving goods within the store. The ownership rate of box trucks is only 28% of the total, indicating that most local wholesalers do not have the capability for long-distance, high-volume delivery. Most Concerned Cost Operating costs are the most concerning cost Data shows that 50% of bosses care about operating costs, 31.82% care about labor costs, and 18.18% care about rent costs. It is evident that operating costs are the most concerning. (Operating costs mainly refer to purchase prices, daily meals, fuel costs, and other daily store expenses.) The main reason is that labor and rent costs are relatively fixed, but operating costs vary greatly, so wholesalers pay more attention to operating costs. 77.27% of wholesalers employ staff, mainly two people, primarily to help with moving goods. Taking Beijing as an example: Wholesalers pay employees wages ranging from 4,000 to 7,000 yuan. 62.5% of bosses said the hiring price is between 5,000 and 6,000 yuan and includes room and board. This shows that labor costs in first-tier cities are relatively high. Time Spent Managing the Store Most wholesalers feel very busy Data shows that over 54.55% of wholesalers believe they are busy all day! Are wholesalers really that busy? This is closely related to the number of customers, operating hours, and operational efficiency. Number of Customers 10-20 grocery stores can support a supplier Data shows that wholesalers delivering to 10-25 customers account for 38.10% of the total; those delivering to 25-40 customers account for 14.29%. Wholesalers delivering to more than 40 customers account for 33.33% of the total; another 14.29% have unstable customer sources. There are also significant differences among local wholesalers, mainly due to different business models leading to different customer numbers. Delivery Time & Range 86.36% of wholesalers guarantee same-day & next-day delivery Delivery time is closely related to delivery range; different distances result in different delivery times. Local wholesalers control their delivery range within 10 kilometers, with delivery times of same-day & next-day; long-distance, multi-day deliveries account for a low proportion. Use of Management Systems Data shows that 73.33% of wholesalers do not have an inventory management system. Promotional Activities 52% of wholesalers said they occasionally run promotions; 33% said they frequently run promotions; only 15% said they run promotions regularly. Most Concerned Competitors In the survey, we found that 57.14% of bosses believe e-commerce has a significant impact on their business. The main reason is that B2B e-commerce has developed rapidly in the past two years, and many wholesalers' customers have started using e-commerce for purchasing, which inevitably impacts their business. Whether to Continue Wholesaling Wholesaler bosses face an uncertain future Data shows that 63.64% of wholesaler bosses said whether to continue in the wholesale business depends on circumstances; only 36.36% said they will continue indefinitely. This is related to the rapid development of B2B e-commerce in the past two years, as many wholesalers' customers have started using e-commerce for purchasing, leading to a lack of confidence and a wait-and-see attitude among many wholesaler bosses. E-commerce vs. Traditional Wholesalers Since we mentioned the impact of e-commerce on traditional wholesale business and that most wholesaler bosses lack confidence, let's compare the differences between e-commerce and traditional wholesalers. Weishu Laboratory Perspective: In comparison, local wholesalers have the greatest advantage in delivery speed because they mainly serve nearby grocery stores and can guarantee delivery within at least the next day, which e-commerce cannot surpass. E-commerce is essentially wholesalers combined with the internet; at its core, it is still a mover of goods, no different from traditional wholesalers in this regard. If wholesaler bosses combine with the internet, leverage their own advantages in delivery and service, and adopt the efficient operational methods of the internet, they can completely surpass e-commerce. Source: Huoquanquan On October 23-24, during the Autumn Sugar and Wine Fair, New Distribution will host the "2018 FMCG City Distribution Logistics Conference." We will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of distributor transformation, hoping to bring you different inspiration and thinking! The specific agenda is as follows: 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 Service (Hefei) Co., Ltd. Shanghai Branch Huicong 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 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 Laoer 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 Jiuzhi Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. ...... Representatives of Distributor Transformation (Tentative) In no particular order Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao Hebei (Chengde) Wulian Yuncang Co., Ltd. General Manager, Meng Yucun Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun Jilin San Province Lianggou Chairman, Zhang Hailing Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei ...... -END-