This year, distributor transformation to B2b has once again become the biggest trend in the FMCG industry. New Distribution has organized multiple regional B2b study tours, each drawing large crowds. We can deeply feel the enthusiasm, determination, and action of distributor friends towards business transformation. However, we also find that most distributor friends still lack sufficient understanding of B2b and seriously underestimate the difficulty and the huge challenges ahead. But so many distributors stepping out of their familiar circles and regions to go nationwide to contact, observe, and learn from the pioneers' B2b paths is undoubtedly a very good start.
Distributor transformation to B2b is a narrow gate. What is a narrow gate? Jesus encouraged people to enter the narrow gate: "Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it." In business, a narrow gate means a path that is different but with limited opportunities and extremely difficult. Distributor transformation to B2b is such a narrow gate. The traditional distributor business model is a "wide gate" with low barriers and no difficulty in starting. But the easiest path is often the downhill one. The less difficult and easier to imitate, the more competitors on the way. Therefore, the traditional distributor model is becoming increasingly difficult and falling into a universal predicament. The wide gate of the traditional model is no longer viable, but the narrow gate of B2b is also not easy to walk. The few eventual winners will surely emerge from the distributor community that dares to explore and practice today. So, how can one successfully pass through the narrow gate of B2b? First, distributors need a clear understanding of the following issues.
The eventual winners in a region will be few. Can your company bear the cost of failure in B2b transformation? The B2b path requires perseverance; do you have it? Gao Jingjing, founder of Beijing Guoyingjing Trade Co., Ltd., once said that transforming to B2b requires at least a year of "shedding three layers of skin."
The threshold for B2b is not low; it demands high cognition, strength, and capability. Is your local market position in the first tier? Can you and your team shift from upstream brand awareness to terminal awareness? Are you prepared for the capability transformation from traditional operations to internet operations?
B2b is not a battle but a long-term war. Except for core cities, the regional B2b model is winner-take-all. There will be multiple B2b platforms in a region, which means competition cannot be decided in the short term. If long-term and sustained investment is required without seeing profit returns, can you bear it?
If you have a clear understanding of the above and still choose to transform to B2b, then you have truly embarked on the path of B2b exploration and practice.
How to successfully pass through the narrow gate of B2b? Once truly on the B2b transformation path, distributors will face a series of practical and direct questions: How to design and choose a B2b model suitable for me in the region? How to judge and choose a B2b system that suits me better? Which categories to start with, and how to organize my product portfolio to be competitive? How to build a professional team with B2b operational capabilities? How to launch B2b from scratch? How can the logistics supply chain support B2b orders with many SKUs but small quantities? ... These questions directly determine whether a distributor's B2b transformation fails or succeeds.
Is it possible to find answers to all the above questions at once? Yes! At an industry conference in early December, you can not only find answers to the above questions but also directly obtain methods from successful cases! On December 6-7, the 21st China Marketing Ceremony and the 2nd China Consumer Goods New Supply Chain New Growth Conference, co-hosted by "Sales and Marketing" magazine and "Annto Smart Link," and co-organized by "New Distribution," will be held in Foshan. Among them, the special sub-forum themed "Distributor B2b Transformation Path" is a key segment of this conference. At this sub-forum:
Distributors who have successfully transformed to B2b in prefecture-level markets will share on-site;
Nanning Yijia Star, with a scale exceeding 300 million and sustained profitability, will share "Organizational Building for Traditional Distributors Transforming to B2b";
Teacher Yunchuan, founder of Shengyihao Consulting, will share "How to Build a High-Quality Regional B2b Platform";
Supply chain experts from Annto Smart Link will share "Transforming to Regional B2b: How to Build Strong Supply Chain Capabilities from Scratch";
Leading B2b digital service providers will share "The Path of B2B Digital Transformation Practice";
......
Transforming to B2b is an arduous self-revolution, meaning distributors will face a systematic, comprehensive, and complex systemic problem. Generally, it is rare for distributors to have the opportunity to get so many answers and methods in one go.
Therefore, if you are preparing to embark on or have already embarked on this B2b transformation path, then the conference on December 6-7 and the "Distributor B2b Transformation Path" sub-forum are not to be missed.
Distributor Transformation and Upgrading Not Only B2b B2b is a path with a future, but also a thorny one. However, for distributors to transform and achieve business growth, B2b is not the only path. We believe that upgrading the brand agency model, where distributors have the most experience and advantage, is a path with lower risk and higher success rate. In the brand agency business, what is the biggest problem for traditional distributors? Unwanted brands come knocking every day, while desired brands are hard to find, out of reach, and without opportunities. If unable to cooperate with promising and prospective brands, a distributor's local resource monetization and profitability will be greatly diminished. How can one get direct cooperation opportunities with these excellent brands? Similarly, as another key content of this conference, the "Supply Chain Innovation Supports New Growth" sub-forum on December 7 provides such opportunities for distributor friends. According to the organizers, the conference will have over 200 well-known brand executives participating, and at the "Supply Chain Innovation Supports New Growth" forum, several well-known brand executives will introduce their products, market cooperation conditions, and policies on-site. Previously, most distributors could only contact brand city managers, rarely face-to-face with factory executives, and policies were non-negotiable. At this forum, you can connect on-site and obtain better market support based on your resources, capabilities, and market position. Good brands and products are the primary competitiveness. Distributor friends who agree with this and are still striving for growth should not miss this conference and the "Supply Chain Innovation Supports New Growth" forum. Because in today's oversupplied and infinitely competitive environment, better brands and products, greater policy support, better communication, and trust remain the best growth paths for distributors. Whether bravely entering the narrow gate of B2b transformation or taking the broad road of brand agency reform and upgrading, we firmly believe that the Chinese FMCG distributor community, which has weathered entrepreneurial hardships and era changes, will, as before, overcome challenges, successfully transform, and move from victory to the next victory!