---
title: "After 6 Years in Trade, Annual Sales of 1 Billion, Covering 15,000 Local Small Stores: The Development History of Jiayun Yunship"
description: "A distributor achieved annual sales of 1 billion yuan just six years after starting, which is rare in China's FMCG distribution sector. Founded in March 2017, the company broke 1 million in its first month, and by 2023, monthly sales exceeded 90 million, with projected annual sales of 1 billion. Despite the pandemic, the company maintained rapid growth, covering over 15,000 mom-and-pop stores in Xi'an with 6,000+ SKUs."
author: "袁来"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-02-27"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/z91lgFvfYxvjEMuUiCsmOA"
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# After 6 Years in Trade, Annual Sales of 1 Billion, Covering 15,000 Local Small Stores: The Development History of Jiayun Yunship

> A distributor achieved annual sales of 1 billion yuan just six years after starting, which is rare in China's FMCG distribution sector. Founded in March 2017, the company broke 1 million in its first month, and by 2023, monthly sales exceeded 90 million, with projected annual sales of 1 billion. Despite the pandemic, the company maintained rapid growth, covering over 15,000 mom-and-pop stores in Xi'an with 6,000+ SKUs.

There is a distributor who, just six years after starting, achieved annual sales of 1 billion yuan, which is almost unheard of in China's FMCG distribution and circulation field!
> Founded in March 2017, broke 1 million in the first month;
>
> December 2017, monthly sales exceeded 1 million;
>
> December 2018, monthly sales exceeded 20 million, annual sales exceeded 100 million;
>
> August 2019, monthly sales exceeded 30 million.
When the pandemic hit, this trading company still maintained rapid growth and simply couldn't stop. By 2023, monthly sales exceeded 90 million, with projected annual sales of 1 billion. Seeing these sets of data, I guess you'll be surprised at the speed of this company's business development. It's hard to imagine that for most mainstream distributors, achieving 30% annual growth is already excellent. This makes us wonder: What model and methods enabled such doubling growth every year? Is there support from JD.com or Alibaba behind it? How much was burned on subsidies? ... With surprise and doubt, let me formally introduce this trading company: **Located in Xi'an, Shaanxi, 'Jiayun Yunship' currently covers over 15,000 mom-and-pop stores in Xi'an, with 6,000+ SKUs covering all categories including beverages, snacks, grain and oil, daily necessities, with a market coverage rate exceeding 50%.** Recently, I visited Mr. Fan Qi, the founder of Jiayun Yunship. Just over a year since my first visit, Jiayun Yunship has been completely transformed, moving into an 18,000m2 standard three-dimensional warehouse and new offices. After a deep exchange with Mr. Fan Qi for over two hours, we uncovered the development history of Jiayun Yunship and his thoughts on distribution and circulation management. **What exactly is the model of Jiayun Yunship?** If you're familiar with Jiayun Yunship, many would define it as an FMCG B2b platform. Whether it's called B2b or not, I think it's inseparable from the essence of commodity distribution and circulation. To help everyone understand Jiayun Yunship's business model, I drew a diagram as follows: What exactly is the difference between Jiayun Yunship and traditional distributors? Fan Qi gave a very accurate description: **"Our positioning is as a supply chain service provider for small stores. Traditional trade first serves the brand, selling whatever is available, but B2b (platform distributors) first serve the store, selling whatever the store needs."** Indeed, currently 90% of distributors are based on their own brands or categories, covering various channels such as supermarkets and small and medium stores. Their business starting point is from distributing a certain brand or doing a certain category. But Jiayun Yunship's logic is based on store needs, purchasing goods on a large scale, and placing orders with manufacturers or distributors based on inventory, seasonal nodes, and market competition. According to Fan Qi, as of now, 60% of Jiayun Yunship's goods are distributed under agency, and 40% are supplemented through cooperation with local distributors or external procurement from wholesale markets. With 6,000 SKUs, covering 7 major categories including snacks, grain and oil, daily chemicals, beverages, and low-temperature dairy, 46 mid-level categories, and 228 small categories. Based on the product structure, Jiayun Yunship has set sales strategies for three types of products: "A products for bestsellers, B products for movement, C products for sell-in."
> **A products for bestsellers: first-tier brand bestsellers to drive sales;**
>
> **B products for movement: second and third-tier brand products must have movement and turnover;**
>
> **C products for sell-in: unknown products must be stocked by stores, otherwise they will be eliminated.**
**What are the operating principles of Jiayun Yunship?**
With 6,000 SKUs, one-stop meeting the FMCG needs of small stores, Jiayun Yunship has also set itself a "three no's principle": not expensive, not out of stock, not late. "Not expensive" means that the products supplied by Jiayun Yunship must have a price advantage, especially for first-tier brand products. Perhaps many distributors will ask, what exactly does "not expensive" mean? Is it cheaper than all local distributors or platforms? Fan Qi emphasized, "Since it's one-stop supply, price competition is inevitable. But it's also impossible to make all products cheaper than other distributors or platforms. To avoid getting caught in a price war from all sides, we have a strategy: within a specific time period, we only target one specific competitor and achieve relatively low prices." **We can't make all products "not expensive," but we can achieve relative "not expensive."** "Not out of stock" means that as long as a store orders products on the Jiayun Yunship platform, they will definitely be delivered. To ensure "not out of stock," Jiayun Yunship conducts monthly dynamic inventory checks and maintains a 100% order fulfillment rate. "Not late" means that according to Jiayun Yunship's delivery schedule, orders placed in the morning can be delivered the same day at the earliest, and orders placed in the evening will be delivered the next day. Regarding ordering, store owners have had two pain points in the past:
> **First, they don't know when the ordered goods will arrive;**
>
> **Second, if they order on the platform, it may not be delivered, either short or not at all.**
Fan Qi emphasized that the ordering behavior of small and medium store owners is a continuous, certain, and stable action. Since that's the case, the supply we provide to stores must also be certain and stable, so they know that as long as they order on Jiayun Yunship, it will be delivered on time without shortage. **Supply chain is a good business** In recent years, various new retail formats have emerged, such as wholesale supermarkets, discount supermarkets, warehouse supermarkets, snack chain stores, O2O front warehouses, community group buying, etc., which have had a significant impact on traditional offline supermarkets, with some formats directly seizing sales from mainstream supermarkets. This has also caused some impact and pressure on mainstream offline distributors. Facing declining channel business, distributors are becoming increasingly anxious. Coupled with rising operating costs and pressure from brand tasks, many distributors even believe that the supply chain business has "no future," only as a way to make money, not as a long-term stable career. In this regard, Fan Qi believes that **the local supply chain business is very worth doing. These mom-and-pop stores don't owe money, they are numerous, and providing one-stop supply on a large scale and efficiently can definitely bring economic value.** Fan Qi calculated an account for us: the supply chain business capacity for mom-and-pop stores in an ordinary third-tier city: based on 3,000 small stores, with an average daily sales of 2,000 yuan per store, excluding tobacco and alcohol (40%), daily sales of 1,200 yuan (all FMCG categories). With 80% coverage and 80% penetration. **3,000 stores * 1,200 yuan daily sales * 365 days * 80% coverage * 80% penetration = 840 million yuan.** Covering 3,000 local mom-and-pop stores, there is a market capacity of 840 million yuan. Looking at ourselves, our business with mom-and-pop stores ranges from a few million to tens of millions, with very few reaching over 100 million. **It's not that the market is bad, but that your business model and methods are outdated and haven't kept up with changes.** In fact, the distribution and circulation business has great potential. It's just that in the past, upstream brand manufacturers dominated the local trade landscape, and distributors were too small and not professional. But in the future, excellent local distributors will lead, dividing territories and competing for market share. Whoever wins will depend on changes in the coming years. Fan Qi said that the philosophy Jiayun Yunship adheres to is **doing "one meter wide, ten thousand meters deep" things, choosing a field, building strongholds and fighting steady battles, making the local market deep and thorough, and doing well in your own territory.** Due to space limitations, I can't elaborate on all the business methodologies of Jiayun Yunship.
**From March 14-16, 2024, during the Spring Sugar Fair, the Second China FMCG Distributor Conference, organized by 'New Distribution' and Zhoupu Data, will be held in Chengdu.**
On March 15, a closed-door private sharing session for distributors will be held: "Low-price impact, manufacturer direct control, declining customer flow, what are the options for distributors?" with one-on-one dialogues with excellent large distributors, sharing experiences, exploring business opportunities, and discussing era dividends.
At the same time, we will also invite 16 benchmark distributor bosses and related industry executives to share their latest thoughts on distributor business. We hope to provide some direction and set a lighthouse for distributors facing drastic changes today, so that at least their business direction is not blurred or confused!
The Second China FMCG Distributor Conference is not only an ideological feast of knowledge, cases, and methods, but also a conference that leads the future development of distributor business!
************This conference will focus on the theme **"Supply Chain Revolution"**. Over 3 days, there will be one main forum, one China FMCG Hard Discount Conference, one China FMCG Distributor Conference, more than ten sub-forums and closed-door exchange meetings, and the first major debut of the [Ultimate Supply Chain] Brand Factory Direct Procurement Fair. We will meet with thousands of FMCG brand owners, distributors, retail transformers, and industry service providers from across the country in Chengdu, continuously brainstorming, and jointly discussing the challenges and opportunities, changes and ways out in the era of supply chain revolution. In this era of supply chain revolution, a new business era will be born. We hope every participant will still have a place in this wave, and we believe this will be a conference worth attending! For business cooperation, please contact:
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