In recent years, transforming to B2b has become a hot topic, mainly because many distributors face increasing challenges in their operations, forcing them to reassess and adjust their business models. Specifically, these challenges include shrinking supermarket channels, the impact of new retail formats, high returns with low profits, difficult payment collections, sluggish growth, and inventory backlog. These pressures are driving distributors to transform, and B2b offers a relatively clear and structured path, which has drawn widespread attention.
On March 19, 2025, at the 10th China FMCG Innovation Conference and the 4th China FMCG Distributor Conference hosted by New Distribution, Mr. Liu Peng, Dean of the Business School of Chengdu Laiken Information Technology Co., Ltd. and Deputy General Manager of Operations at Chengdu Qilian Technology Co., Ltd., delivered a keynote speech titled "B2b Transformation: The Pitfalls and the Paths," which resonated deeply with many manufacturers and distributors present, sparking lively discussion. New Distribution is pleased to share the highlights of his speech with our readers.
Why Do Distributors Fall into Pitfalls When Transforming to B2b?
Over the past decade, many pioneers have emerged in the B2b transformation wave, but looking across the industry, we see numerous failures and struggling cases, with only a handful of true successes. So, what pitfalls did these pioneers encounter? What caused these mistakes? Can we learn from their experiences to guide future B2b transformations?
After data analysis, the specific reasons for most distributors' pitfalls can be attributed to two main points:
First, a misunderstanding of B2b, simply viewing it as changing ordering tools—just shifting from salespeople taking orders manually to customers ordering independently on an online mall.
Second, when operating a B2b platform, they still apply traditional thinking patterns, not realizing that this is an entirely new business.
The Eight Major Pitfalls in Distributor B2b Transformation
Based on these cognitive misconceptions, distributors often fall into the following eight major pitfalls during actual transformation, which not only waste resources but may also trap the company in difficulties. Whether you are already in the B2b arena or considering transformation, you need to be highly vigilant and avoid these pitfalls.
Pitfall 1: Everything is ready, but it just won't move.
For example, a distributor boss, on a whim, decides to start B2b. The mall is built, the team is organized, and the categories are determined. They start promoting, assigning tasks to salespeople: each person must register 20 customers daily. The sales manager pats his chest and guarantees no problem. But on the first day, 8 salespeople register only 4 customers in total; the second day, 8; the third day, 9. After more than 20 days, they have only about 70 customers, but only 2 or 3 place orders daily, with an average order value of only 200 yuan. Such situations are common.
Where is the problem? Ultimately, it's the typical "three pats" mistake: first, pat the head (impulsive decision), then pat the chest (blind confidence), and finally pat the thigh (regret).
The real core issue is: the B2b platform lacks clear differentiation and selling points.
How to break through? The key is "positioning."
In a stock competition, the market landscape varies by region. Take Chengdu as an example: some focus on alcoholic beverages, some on snacks, and others cover all categories. Even within the snack category, some do well in Pi County, while others have advantages in Wenjiang.
Different positioning means different choices of region and category. Only with accurate positioning can you find more customers in the stock market and take business from others.
Therefore, distributors need to find their positioning, considering three dimensions: self, market, and competition.
Market dimension: Analyze the regional market specifics, including population base, consumption habits, consumption levels, and climate conditions, to determine suitable category combinations and market capacity.
Competition dimension: Analyze the number of competitors, their strengths, strong categories, and regional distribution. For example, if there are already two B2b companies doing well locally, blindly following suit with the same B2b model will likely lead to price wars to win customers.
Self dimension: Assess your own financial strength, capabilities and experience, team size, and brand heritage, clarify your strengths and weaknesses, and then choose regions, categories, and strategies based on market and competition.
With proper positioning, in the short term, you can establish a differentiated competitive advantage; in the medium term, it helps determine strategic direction to ensure you don't go astray; in the long term, it can occupy customer mindshare, leading to "designated purchases."
Pitfall 2: Even if you get it moving, you can't achieve stable profitability in the long run.
There are two types of distributors in this situation. The first type has overly high expectations, hoping to be profitable as soon as they launch, ignoring the ramp-up period of B2b business, leading to a psychological gap and affecting subsequent investment.
The second type is overly optimistic: first, they treat early losses as "strategic losses," and second, they believe that "scaling up will bring profitability."
But the truth is: strategic losses require a clear strategic investment budget; anything beyond the budget cannot be considered strategic losses. Secondly, the mix of core categories determines the platform's profitability cycle and whether it can achieve stable profitability. Therefore, endless capital investment without a clear profit model will ultimately lead to failure.
So, a correct, normal platform-based distributor typically needs to go through three stages:
Strategic investment period (0-12 months): Focus on volume, with significant investment and rapid growth, possibly exceeding 25% monthly growth. The focus is on customer acquisition, cultivating customer habits, and building and optimizing the supply chain.
Model stabilization period (13-18 months): Gradually achieve monthly profitability, but it may be unstable. It's advisable not to act blindly or look at other opportunities. The focus is on optimizing the supply chain, adjusting compensation structures and performance, and changing warehouses.
Platform development period (after 18 months): Profitability and model stabilize, and you begin to build a "second growth curve" through brand partnerships to enhance competitiveness.
Pitfall 3: Greed for size and completeness, pursuing high-end and grand solutions.
Should hardware be high-end or within your means? Should product offerings be comprehensive from the start or take small steps? Many distributors pursue high-end solutions from the beginning, leading to tight cash flow and mismatched returns on investment. In reality, B2b emphasizes "small steps, fast iteration," using limited resources on key links to achieve healthy growth.
Pitfall 4: I'll do whatever categories others do.
If peers do B2b, you want to do it too; if others have all categories, you also want all categories. But each company has different resource endowments. Successful B2b companies analyze based on market, competition, and their own situation.
Pitfall 5: Treating new and old customers the same.
In the early stages of B2b, customer strategy is crucial. Focusing on old customers: can quickly increase order volume, but may be limited to the original business model with insufficient innovation. Focusing on new customers: expands market space, but early customer acquisition costs are high. Trying to capture both new and old customers: resources are dispersed, leading to a lack of focus.
Pitfall 6: Believing price is king and engaging in price wars.
Price wars yield no profit, but without them, it's hard to push forward in the long run—this is a common dilemma in transformation. However, the core of pricing strategy must return to "positioning." Without competitiveness and differentiation, price wars are hard to avoid.
So, from the scale, customer, category, and price levels, you need to analyze based on positioning, your own dimensions, market dimensions, and competition dimensions to determine what to do and how to do it in this market.
Pitfall 7: Thinking anyone is suitable for B2b.
In fact, it's not that only distributors with large local market share, high volume, or significant influence are suitable for B2b. Bosses suitable for B2b need to have three factors:
Ambition: not satisfied with the status quo, willing to break through the existing business model.
Determination to fight with their backs to the wall: able to withstand market competition and short-term pain.
Sufficient fundraising ability: initial investment is large; you can't start with a "zero budget."
Pitfall 8: Thinking that choosing a good software can ensure B2b success.
Many distributors think that choosing good software and building a mall is enough to succeed in B2b. But the core of B2b is not just the system; it's the comprehensive capability of "software + operations + strategy." Software is just a tool; what truly determines success is the business logic and market strategy.
Choosing the Right System to Avoid Detours
In the FMCG industry's B2b transformation, choosing the right software system is the primary challenge for distributors. There are many solutions on the market, but few truly fit the characteristics of the FMCG industry and solve distributors' actual pain points.
As a digital solution provider focused on the FMCG industry, Laiken Cloud Business understands this transformation pain point well. We provide distributors with integrated software covering ordering malls, inventory management, financial management, field service management, warehouse and distribution WMS, and delivery systems, along with strategic consulting and operational support services, truly achieving a "tool + methodology" dual-drive approach.
Case 1: Huijinhuo—Growth Path from 0 to 200 Million
Huijinhuo is a B2b platform familiar to distributors in Chengdu, Sichuan; it is the Chengdu warehouse of Yijiupi. From July 2016 to July 2018, Laiken Cloud Business participated as a technical partner in the construction and operation of Huijinhuo, growing sales from 0 to 200 million yuan. In November 2016, it achieved monthly sales of one million; in December 2017, daily sales exceeded 500,000; and in March 2018, it was fully acquired by Yijiupi.
Case 2: Zhongyuan Yigou—Rapid Breakthrough in a New Market
Zhongyuan Yigou is a regional B2b platform built from scratch. The owner originally did business in a county in Henan, then entered the Zhengzhou market, opening warehouses, hiring staff, and promoting, with no existing customers. After ten months online, revenue exceeded 2 million yuan, achieving break-even; after 15 months, revenue reached 3 million yuan.
At the beginning of 2024, Zhongyuan Yigou's daily data was less than 20,000 yuan. After deep adjustments, it relaunched in July with about 70,000-80,000 yuan per day, and by year-end, it was close to 200,000 yuan per day—a tenfold increase.
Compared to leading platforms, this performance may not be impressive, but the B2b track is not about who runs fastest; it's about who survives longest. Balance profit and speed, and win steadily.
As a B2b digital solution provider dedicated to FMCG distributors, Laiken Cloud Business offers one-stop software and consulting solutions to help B2b upgrades land efficiently.
Its core advantages are mainly in three aspects: first, a focus on the FMCG industry and deep cultivation of the B2b model; second, continuous technological leadership, from pioneering the "B2b + inventory" integrated system in 2015 to upgrading to a comprehensive solution of "B2b + inventory + finance + WMS + TMS" in 2019; and third, proven successful cases that provide cost-effective solutions, reducing trial-and-error costs for enterprises.
Summary: B2b success is not a short-term growth game but a long-term battle. Establishing differentiated competitive advantages, optimizing operational models, and steadily improving profitability are the keys to long-term survival.
In the 2025 market environment, competition among FMCG distributors will be even fiercer. Only by continuously enhancing digital capabilities can you ensure you maintain the initiative in the market.