Editor's Note: In the "2023-2024 China FMCG Distributor Business Condition Survey Report" released by New Distribution, a set of data shows that only 55.0% of distributors achieved their Top1 brand sales target, and 63.2% of distributors saw profit declines. Business is indeed tough right now. On one hand, consumption is sluggish; on the other, the market is being redistributed, with various new channels such as snack stores, discount stores, and flash warehouses all carving up the offline business pie. In such an environment, many distributors feel "anxious" and "confused" about the future. Based on this, the "TOP500 China Distributor Supply Chain Alliance" (hereinafter referred to as the "Tower Alliance") has launched the "B2b Platform Distributor In-depth Study Tour". We hope to organize more distributors willing to learn, visit benchmark regional B2b enterprises, learn from their experience, and put it into practice. This is the first session of the B2b Platform Distributor In-depth Study Tour. On October 16-17, we will visit "Luoyang Shendu Yigou" to jointly explore how regional distributors can transform into B2b platforms.
Why Choose Luoyang as the First Stop? Why is the first stop of the "B2b Platform Distributor In-depth Study Tour" at "Luoyang Shendu Yigou"?
- Luoyang Shendu Yigou is a traditional distributor that built a local B2b supply chain platform, rather than directly starting a B2b business. At the same time, it retains its original trading business and now also has a B2b platform business.
- Luoyang Shendu Yigou operates B2b in a third-tier city, not a first-tier city with a large market and capacity, making it more representative.
- In three years, the B2b business grew from zero to 100 million yuan, with a relatively mature regional B2b implementation path and successful operational experience and methods.
Luoyang Shendu Yigou is the second growth curve extended by Luo Kai, general manager of Luoyang Hecai, based on his trading business.
Luoyang Hecai, established in 2006, distributes and represents over 70 brands including Strong, Lay's, Extra, Perfetti Van Melle, Alpenliebe, Wuqiong, and Orion, focusing on snacks and covering categories such as food, beverages, seasonings, daily chemicals, and freshly brewed drinks. It has 100+ employees, 7,000+ square meters of warehouse space, and 50+ vehicles.
On December 15, 2020, Luoyang Hecai launched its B2b business (formerly known as Luoyang Rongcheng Yigou, now renamed Shendu Yigou).
After a full year of operation in 2021, the business achieved sales of 30 million yuan, 60 million in 2022, and nearly 100 million in 2023 (excluding the trading business). It has 4,500 annual active stores and 3,200 monthly active stores.
To date, it has a total of 4,200 SKUs, of which 60% are from distribution and agency, and 40% from external procurement. In terms of category revenue structure, snack foods account for 65%, beverages 15%, convenience foods 10%, grain and oil seasonings 3%, household cleaning and daily chemicals 2%, and other categories about 5%.
What Makes This In-depth Study Tour Different?
1. Founder's In-depth Interpretation: Mr. Luo Kai, founder of "Shendu Yigou", will share in depth the practical path from traditional trading to B2b transformation.
- The reasons and thoughts behind building B2b: internal business ceiling, external environmental challenges
- Preparation stage for building B2b: how to set up warehouse, products, personnel, and tools
- Launch stage for building B2b: business promotion, store management, product structure optimization
- Operation stage for building B2b: organizational building, professional talent development
At the same time, the core team of "Shendu Yigou" will take participants to visit the latest 7,000-square-meter three-dimensional warehouse and explain the entire warehouse picking and distribution operation process on site (warehouse layout, personnel division, picking management, distribution management).
2. In-depth Dialogue + Discussion: Preparation before starting, doubts after launch, and difficulties in operation will be addressed through on-site Q&A and discussion, ensuring all problems related to building a B2b supply chain platform are resolved during this training session.
3. Practical Course on Starting and Operating: Yunchuan, a national B2b consultant for 40+ platforms and founder of Shengyihao Consulting, will share systematic practical experience from product procurement, platform operation to sales management, based on his experience serving dozens of B2b platforms.
Event Agenda
Who Should Attend the "B2b Platform Distributor In-depth Study Tour":
- Distributors planning to start or already started B2b
- Distributors of beverages, drinks, snacks, daily chemicals, general merchandise, etc.
- Distributors whose trading business in prefecture-level cities has hit a bottleneck
- Distributors with confusion in advancing B2b transformation
- Operators of FMCG distribution businesses in various regions