---
title: "Community Group Buying Is Here, Distributors Don't Be Afraid!"
description: "Scan the QR code in the image to register. Recently, I talked with a distributor named Wang Hua (pseudonym) who supplies to community group buying platforms. I thought he was doing well by catching the trend, but he complained bitterly about being scolded by a 90s buyer and facing fines and freezes. The article advises distributors to stay calm, focus on core competencies like product selection and promotion, and not fear the new model."
author: "秦淮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-03-14"
language: "en"
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# Community Group Buying Is Here, Distributors Don't Be Afraid!

> Scan the QR code in the image to register. Recently, I talked with a distributor named Wang Hua (pseudonym) who supplies to community group buying platforms. I thought he was doing well by catching the trend, but he complained bitterly about being scolded by a 90s buyer and facing fines and freezes. The article advises distributors to stay calm, focus on core competencies like product selection and promotion, and not fear the new model.

**Scan the QR code in the image to register**
Recently, I talked with a distributor named Wang Hua (pseudonym) who supplies to community group buying platforms. I initially thought that someone like him, who had caught the trend of community group buying, would be doing well.
But that was not the case. When talking about his experiences, Wang Hua was full of complaints.
Wang Hua grumbled, "You can't imagine that I, a post-70s boss who has been in the trading business for over 20 years, was scolded mercilessly by a post-90s buyer from a community group buying platform. Even the KA stores back then were not so arrogant."
He added, "My fellow distributors have been fined 70,000 yuan by the platform, banned from selling for 7 days, or had 190,000 yuan frozen by the platform. These are common occurrences. Penalties are imposed for various reasons, such as incorrect product specifications, failure to meet delivery deadlines, or failure to replenish stock in time."
Wang Hua lamented that many people only see the "glamour" of surging sales when cooperating with community group buying platforms, but what is not seen is the "brutality" behind it.
This truly validates the saying: **Those outside the city want to come in, while those inside want to get out!**
Of course, the purpose of the above cases is not to discourage distributors who have not yet entered community group buying from doing so, nor to urge those already in to exit immediately.
Instead, it is to remind distributors to stay calm: **If you don't have the right tools, don't take on the job!**
**Distributors must understand that whether community group buying is a trend or will last, it is no longer possible to simply supply goods and make money easily in the current market environment.**
Making money is one thing, but more importantly, many distributors are worried that their business will be lost because of community group buying.
The community group buying model can not only do C-end business but also reach small stores for B-end business. A more efficient new business model will inevitably reshuffle the industry. But the ones being reshuffled are definitely those distributors whose business was already struggling and barely surviving. Community group buying just accelerates the process.
I believe: **The emergence of community group buying will give rise to some distributors with ideas who can overtake on the curve; some distributors with core competitiveness will continue to thrive; and others who merely supplied goods in the past will disappear.**
The emergence of Taobao and Tmall gave rise to a large number of "Taobao brands" whose sales skyrocketed exponentially, enjoying great popularity at the time. But looking back now, very few brands have truly survived and thrived. Once the traffic trend passed, the main force in the market remained mainstream brands.
The same applies to distributors. **Community group buying is here, don't be afraid!**
What exactly is the core competitiveness of distributors?
I believe there are two key points: **1. Upstream product selection; 2. Downstream promotion.**
Regarding upstream product selection. In the early years, distributors did not have a problem with product selection capability. If they latched onto a major brand and the brand grew rapidly, their business would basically take off. But now it's different. To continue growing, distributors cannot rely on just one brand. At the same time, the diversity and fragmentation of retail formats require distributors to have the ability to combine multiple products.
**Based on local retail formats, local consumption characteristics, and future changes in consumer demand, distributors must shift from passive product agency to active product selection.**
Especially for product selection within a specific category, such as snacks or condiments.
Whether it's RT-Mart or Yonghui Superstores, they are already national retailers, but many categories still need local distributors to supply. This is not only due to logistics efficiency and capital advance considerations, but also because distributors are most familiar with and understand local customs and consumption characteristics.
The same applies to community group buying. Whether it becomes an oligopoly or regional fragmentation in the future, when it comes to a local area, community group buying must be based on local business, especially for fresh produce categories.
If distributors have the ability to select products on a large scale, rest assured, cooperation with community group buying platforms locally will be plentiful.
Once distributors have selected good products, the next step is downstream promotion. In the past, promotion was done in physical stores, whether through shelf displays or promotional booths with salespeople, all to attract traffic and drive conversions.
**When community group buying arrives, physical stores shift to online screens, but promotion still needs to be done, and the goal remains the same: attract traffic and drive conversions. Only the means and forms have changed.**
Currently, some of the tactics used in community group buying may be relatively new to distributors, and some may even be incomprehensible. But if you study them carefully, the tactics of community group buying are just a migration of previous B2C e-commerce tactics.
The skills and methods are just a bit unfamiliar and require some thought and time to study; they are not complicated. I believe the core of promotion is: **fully understand the needs of the channel, and on the basis of meeting those needs, combine product characteristics to perfectly execute relevant promotional activities.**
What does that mean?
Take the relatively mature KA retail stores as an example. For instance, during a certain period, the supermarket's goal is to increase gross margin and increase the proportion of private label products. At this time, can distributors collaborate with their private labels for joint promotions to drive performance? If their need is to attract traffic, then distributors should consider how to help them attract traffic.
**Whether it's a channel or a platform, behind it are people, and behind people are KPIs. If you help them achieve their KPI goals, you will naturally get more promotional resources and more cost-effective resources.**
The same applies to cooperation with community group buying.
Therefore, with community group buying here, distributors can be anxious in the short term, but in the long run, they must stay calm. Return to the value of your own business, and focus on how to improve product selection capabilities and refine promotion capabilities.


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