Recently, New Distribution has extensively reported on bC integration cases. We see that distributors still play an indispensable role in goods delivery and regional market operations. However, looking at the evolution of FMCG distribution channels—from provincial agents to regional distributors to deep distribution—brands are getting closer to the end market, and the role of distributors is weakening. The current bC integration is even more brand-led, using mini-programs to directly connect with retail stores and reach consumers. So we must ask: In bC integration, besides passive cooperation, do distributors have other choices? Is it a trap or an opportunity? Where is the direction for distributor transformation? With this question, I recently interviewed Qin Xian, founder of Rongcheng Yigou. Qin Xian entered the FMCG industry in 2009, founded the B2b platform Rongcheng Yigou in 2015, completed a digital distribution system in 2017, successfully transformed into a fourth-generation distributor, and established a unique digital distribution model. Since 2020, he has been exporting his digital distribution model, starting a chapter of empowering other traditional distributors in digital transformation. As a typical representative of distributor transformation, New Distribution has reported on him multiple times. So what new actions is Rongcheng Yigou taking in retail store operations? What role can distributors play in brand-led bC integration? Today, I will share our exchange in this article. Transformation to B2b
Wen Qing: How many retail stores does Rongcheng Yigou currently cover? Can you introduce the development history behind it?
Qin Xian: We currently cover 42,000 retail stores in the Chengdu area. I entered the FMCG industry in 2009, starting as an agent for leisure food. Later, I tried to make my own brand of leisure food, but quality and supply were unstable, so it didn't work out. In 2012, I started directly doing business with retail stores. In 2015, we founded the Rongcheng Yigou platform and officially launched it in November, becoming the first regional B2b online ordering platform in Chengdu. It was very difficult at first. In 2015, monthly sales were less than 2 million yuan, growth was slow, and team turnover was severe. But we persisted and gradually moved all offline business online. In 2017, Rongcheng Yigou entered the fast lane, with nearly 10,000 active stores. Up to now, we cover 42,000 stores in Chengdu. Wen Qing: As a B2b mall, what iterations has Rongcheng Yigou undergone in the past few years? Qin Xian: Initially, Rongcheng Yigou only had a PC website and H5 pages. Later, we added an APP and mini-program. Now we mainly interact with retail stores through WeChat mini-programs. In fact, we used mini-programs quite early, but the functions were not complete, so we didn't use them. In the last year or two, they have become our main carrier. On one hand, store owners don't need to download a special APP; it's easy to use and convenient for promotion in WeChat groups and Moments. On the other hand, mini-program functions have become more complete; besides ordering and transactions, we can also do live streaming to stores through the mini-program. Mini-program Live Streaming
Wen Qing: You mentioned live streaming. When did you start? What is the main content?
Qin Xian: In June 2021, we tried live streaming to stores for the first time, and now it has become a fixed form of communication with stores. The content: First, we invite brands to tell their brand stories. For example, we have a beef product brand called Niu Lang Han. Once their marketing director told me the story of their founder wandering from Shandong to Chongqing during the war and later founding the brand. The story was interesting, and I remembered it immediately. But I told him, you should tell this story to store owners because they are the ones who interact with consumers every day. Through years of operation, we found that retail stores know very little about brands. They don't know what the manufacturer's people look like or where the products come from. But it is precisely they who need to know more about the brand because they are the ones directly interacting with consumers. In the traditional way, salespeople visit stores, but they don't know much about the brand either, and even if they do, they can't communicate it accurately. Wen Qing: So, live streaming first helps with precise brand communication? Qin Xian: Yes. In addition, we have online ordering meetings. When brands have needs for new product launches, distribution, or displays, they can present through live streaming, with some discounts and red packets. Store owners can watch the live stream and place orders at the same time. This is much more efficient than the past salesperson visits. Of course, live streaming is not only for stores to learn about brands; store owners can also ask questions to the brand or our platform in the live room, giving us more opportunities to understand store owners' needs. So, live streaming is actually an efficient two-way communication mechanism. It solves the problem of precise brand communication to retail stores and greatly improves our communication efficiency with them. Wen Qing: There are many live streaming platforms now. Why use mini-program live streaming? Qin Xian: In fact, we tried other platforms before, such as Douyin live streaming. But on one hand, we are B2b, not B2C; on the other hand, we couldn't form an operational closed loop there. Mini-program live streaming is very convenient; it can be initiated on the Rongcheng Yigou mini-program page. We can send the live stream link to WeChat groups or directly to customers, making it easy to spread. Now they have formed a habit of watching our live stream every Wednesday, with up to 10,000 viewers. bC Integration
Wen Qing: Have you tried reaching consumers through stores to help them with sales? How?
Qin Xian: Not yet. But we are planning this work and have specific ideas. We have been doing B2b work all these years. Through live streaming, we help brands directly connect to b-end, and ultimately we want to open the toC link, which involves bC integration. Empowering retail stores—how to use digitalization to make stores sell faster and more, and let them earn more than just the price difference? This is an important direction for us. Wen Qing: Many brands now also connect to stores and reach consumers through mini-programs. Is there any conflict between you? Qin Xian: We currently represent more than 500 brands, and some of them have their own B2b mini-programs, but objectively there is no conflict. We are complementary and cooperative. Brands focus on A-class large stores, while we do more b, c, d-class small stores, which account for more than 80% of the total. We call them tail-end outlets. There are so many stores that brands can't manage them all. We help brands capture these tail-end outlets. Wen Qing: Do you think brand bC integration is an opportunity or a trap for distributors? What role do distributors play in bC integration? Qin Xian: As long as distributors position themselves well, any industry change is an opportunity. bC integration is essentially about solving distribution and sales promotion; our series of actions revolve around this. Whether it's fast and precise distribution of products to the b-end or b-to-C sales promotion, I think this is something we need to cooperate deeply with brands. For example, when we do live streaming, why do we let brands speak? Because they know themselves better, and it's more effective for them to talk to stores. In the store-to-C sales promotion, we will also cooperate deeply with brands. Distributors play a service role. As a new generation of distributors, our positioning is to do a good job in basic city services and basic services for brand value transmission. Digital Distribution
Wen Qing: From a traditional distributor to now, Rongcheng Yigou's transformation is very successful. What advice do you have for distributors still thinking about transformation?
Qin Xian: Now we are talking about digital distribution; distributor transformation should go in this direction. Distributors may feel that digitalization is far from them. But now there are very good tools, such as mini-programs, which greatly lower the threshold for transformation. From a digital perspective, customer acquisition, communication, and live streaming are very convenient. And there are many successful transformation cases, such as Rongcheng Yigou; we have already blazed a practical path. Since 2020, we have been helping distributors with digital transformation. Wen Qing: Helping distributors with digital transformation—is this a future direction for Rongcheng Yigou? Qin Xian: Yes. Our future development direction is divided into three parts. First, serve brands well. This is what we have been talking about: how to help brands communicate better, faster, and more precisely, and help them with fast and precise b-end distribution. This is an important task for Chengdu Rongcheng Yigou. Second, empower retail stores. Last year, we kept promoting that using Rongcheng Yigou is "more cost-effective," which lets stores earn the price difference. But we are also thinking about b-to-C sales promotion: how to use digitalization to make stores sell faster and more. Can we help them go from selling 1,000 yuan a day to 3,000 yuan, or even 6,000 yuan? Third, help the distributor industry transform and upgrade. This is also the topic we just discussed: helping traditional distributors achieve digital transformation. In 2020, we implemented the Rongcheng Yigou digital distribution model in Tibet, Wuhan, and Luoyang. We share all the digital tools of Chengdu Rongcheng Yigou, helping local distributors sort out organizational structures and build operations and talent systems. We enabled local traditional distributors to complete digital transformation and upgrade in a short time (e.g., Tibet took 45 days, Wuhan 38 days, and Luoyang only 19 days), achieving the ability to operate a digital distribution system. Last year, we established the "Rongcheng Yigou Advanced Research Institute," building an exclusive learning organization platform for distributors internally and externally, aiming to make it the "Whampoa Military Academy" of the distributor industry. I hope more industry organizations, including New Distribution, will work together to promote digital distribution and cultivate more digital operation owners and business leaders. Final Thoughts:
At the end of the article, let me share my thoughts on live streaming, bC integration, and distributor transformation.
What are your views? Welcome to leave a comment for discussion.