---
title: "After 8 Years in Distribution, Annual Sales of 1.2 Billion, Covering 23,000 Local Small Stores: The Growth Story of Jiapin Yunshi"
description: "One distributor achieved annual sales of 1.2 billion yuan just 8 years after starting, a rarity in China's FMCG distribution sector. Founded in March 2017, it broke 1 million in its first month, 10 million monthly by December 2017, 20 million monthly by December 2018 with annual sales exceeding 100 million, and 30 million monthly by August 2019. From 2017 to 2024, the company maintained rapid growth with a 25% year-on-year increase, and to date, Jiapin Yunshi covers 23,000+ mom-and-pop stores in Xi'an with 7000+ SKUs and annual sales of 1.2 billion yuan."
author: "袁来"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-05-17"
categories: "Consumer & Categories, Retail Formats"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/after-8-years-in-distribution-annual-sales-of-1-2-billion-covering-23-00-93eb3b64.md"
original_source: "https://mp.weixin.qq.com/s/KmGHvsjATY3JPZlkETdg5g"
translation: "https://xinjignxiao.com/zh/articles/%E5%B9%B2%E4%BA%868%E5%B9%B4%E5%95%86%E8%B4%B8-%E5%B9%B4%E9%94%8012%E4%BA%BF-%E8%A6%86%E7%9B%96%E6%9C%AC%E5%9C%B02-3%E4%B8%87%E5%AE%B6%E5%B0%8F%E5%BA%97-%E5%98%89%E5%93%81%E4%BA%91%E5%B8%82%E7%9A%84%E5%8F%91%E5%B1%95%E5%8F%B2-93eb3b64.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/after-8-years-in-distribution-annual-sales-of-1-2-billion-covering-23-00-93eb3b64/"
citation: "袁来. “After 8 Years in Distribution, Annual Sales of 1.2 Billion, Covering 23,000 Local Small Stores: The Growth Story of Jiapin Yunshi.” New Distribution, 2025-05-17. https://xinjignxiao.com/en/articles/after-8-years-in-distribution-annual-sales-of-1-2-billion-covering-23-00-93eb3b64/"
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---

# After 8 Years in Distribution, Annual Sales of 1.2 Billion, Covering 23,000 Local Small Stores: The Growth Story of Jiapin Yunshi

> One distributor achieved annual sales of 1.2 billion yuan just 8 years after starting, a rarity in China's FMCG distribution sector. Founded in March 2017, it broke 1 million in its first month, 10 million monthly by December 2017, 20 million monthly by December 2018 with annual sales exceeding 100 million, and 30 million monthly by August 2019. From 2017 to 2024, the company maintained rapid growth with a 25% year-on-year increase, and to date, Jiapin Yunshi covers 23,000+ mom-and-pop stores in Xi'an with 7000+ SKUs and annual sales of 1.2 billion yuan.

There is a distributor who, in just 8 years of entrepreneurship, achieved annual sales of 1.2 billion yuan, which is almost unheard of in China's FMCG distribution and circulation sector!
> Founded in March 2017, it broke 1 million in the first month;
>
> December 2017, monthly sales exceeded 10 million;
>
> December 2018, monthly sales exceeded 20 million, with annual sales surpassing 100 million;
>
> August 2019, monthly sales exceeded 30 million.
From 2017 to 2024, this distribution company has maintained rapid growth every year, with a continuous year-on-year growth rate of 25%, and it simply cannot stop. To date, Jiapin Yunshi has a warehouse area of 24,000 square meters, over 7,000 SKUs, a daily peak of 5.4 million yuan, and annual sales of 1.2 billion yuan. Seeing these figures, I imagine you would be astonished at the speed of this company's business development. It's hard to imagine that for most mainstream distributors, maintaining a slight growth in the current environment is already excellent. This makes us wonder: What model and methods have been used to achieve such high growth year after year? Is there support from JD.com or Alibaba behind it? How much has been spent on subsidies? ... With surprise and curiosity, let me formally introduce this distribution company: **Located in Xi'an, Shaanxi, 'Jiapin Yunshi' currently covers over 23,000 mom-and-pop stores in Xi'an, with 340+ partner brands and 7,000+ SKUs covering all categories including beverages, snacks, grain and oil, non-staple foods, and daily necessities.** Recently, I had an in-depth exchange with Mr. Fan Qi for over 2 hours, which unveiled the development history of Jiapin Yunshi and Mr. Fan Qi's thoughts and understanding of distribution and circulation operations. **What exactly is the model of Jiapin Yunshi?** If you are familiar with Jiapin Yunshi, many would define it as an FMCG B2b platform. Whether it's called B2b or not, I think it cannot be separated from the essence of distribution and product dealership. To help everyone understand Jiapin Yunshi's business model, I drew a diagram as follows: What exactly is the difference between Jiapin Yunshi and traditional distributors? Fan Qi gave a very accurate description: **"Our positioning is as a supply chain service provider for small stores. Traditional distribution first serves the brand, selling whatever is available, but B2b (platform distributors) first serve the stores, selling whatever the stores need."** 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 comes from being an agent for a certain brand or handling a certain category. But Jiapin Yunshi's logic is based on store demand, making large-scale purchases, and placing orders with manufacturers or distributors based on inventory, seasonal nodes, and market competition. According to Fan Qi, to date, 60% of Jiapin Yunshi's products are under agency agreements, while 40% are sourced through cooperation with local distributors or supplemented by wholesale market purchases. The 7,000 SKUs cover 7 major categories including snacks, grain and oil, daily chemicals, beverages, and low-temperature dairy products, with 46 mid-level categories and 228 sub-categories. Based on the product structure, Jiapin Yunshi has set sales strategies for three types of products: "A-category products for hits, B-category products for movement, and C-category products for entry."
> **A-category products for hits: Top-tier brand bestsellers should drive sales volume;**
>
> **B-category products for movement: Second and third-tier brand products must have movement and turnover;**
>
> **C-category products for entry: Unknown products must be stocked by stores, otherwise they will be eliminated.**
**What are the operating principles of Jiapin Yunshi?**
With 7,000 SKUs, one-stop fulfillment of FMCG needs for small stores, Jiapin Yunshi has also set itself a **"Three No Principles": Not expensive, No stockouts, No delays.** "Not expensive" means that the products supplied by Jiapin Yunshi should have a price advantage, especially for top-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 Jiapin Yunshi products cheaper than other distributors or platforms. To avoid getting caught in a price war from all sides, we have set a strategy: within a specific time period, we only target one specific competitor and achieve relatively lower prices." **It's not possible to be "not expensive" on all products, but we can be relatively "not expensive."** "No stockouts" means that for products on the Jiapin Yunshi platform, as long as a store places an order, it will definitely be delivered. To ensure "no stockouts," Jiapin Yunshi conducts monthly dynamic inventory checks and maintains a 100% order fulfillment rate. "No delays" means, according to Jiapin Yunshi'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 with missing items or no items at all.**
Fan Qi emphasized that ordering for small and medium store owners is a continuous, certain, and stable action. Since that's the case, the product supply we provide to stores must also be certain and stable, letting them know that as long as they order on Jiapin Yunshi, it will be delivered on time without shortages or missing items. **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 competing for sales volume with mainstream supermarkets. This has also caused certain impacts 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," and can only be treated as a business to make some money, not as a long-term stable career. In this regard, Fan Qi believes that **the local supply chain business is very worthwhile. These mom-and-pop stores don't owe money, there are many of them, and providing one-stop supply to small stores on a large scale and efficiently can definitely bring economic value.** Fan Qi gave us a calculation: 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 at 40%, daily sales are 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 back at ourselves, our business with mom-and-pop stores ranges from a few million to tens of millions, with very few reaching the billion scale. **It's not that the market is not working, 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 distribution landscape, and distributors were too small and not professional. But in the future, it will definitely be led by excellent local distributors, dividing territories and competing for market share. Whoever wins will depend on the changes in the coming years. Fan Qi mentioned that the philosophy upheld by Jiapin Yunshi is to **do things "one meter wide and ten thousand meters deep," choose a field, build strongholds and fight steadily, deepen and thoroughly penetrate the local market, and do well in your own territory.** Due to space limitations, it's impossible to elaborate on all the business methodologies of Jiapin Yunshi. Therefore, **"New Distribution" will organize an in-depth study tour on May 27th, visiting Jiapin Yunshi in Xi'an, to have in-depth discussions with founder Mr. Fan Qi and co-founder Mr. Zhang Jun on the changes in local distribution and circulation business, and to discuss Jiapin Yunshi's business model, development path, and the latest business strategies.** The two founders will share everything, providing a model and practical cases for distributors in full-category supply covering small and medium stores, showing how to achieve 7,000 SKUs in full-category operations, cover 23,000 stores, achieve annual sales of 1.2 billion, with 60% agency distribution and 40% supplier supply, 0 credit period, and cash on delivery. Interested friends, scan the QR code to add my WeChat for details.


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## Citation metadata

- Publisher: New Distribution
- Author: 袁来
- Published: 2025-05-17
- Canonical: https://xinjignxiao.com/en/articles/after-8-years-in-distribution-annual-sales-of-1-2-billion-covering-23-00-93eb3b64/
- Original source: https://mp.weixin.qq.com/s/KmGHvsjATY3JPZlkETdg5g

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