Click 'Read Original' for details. Yesterday, while consulting on some information, I chatted with the general manager of a lesser-known brand. I asked him how 2018 had been. He told me it was quite good! I was surprised—wasn't everyone saying the 2018 economic environment was poor? How could it be good? He explained that thanks to cooperation with B2B, sales had exploded. Previously, they mainly relied on traditional offline recruitment and distributor agency distribution. In July 2018, they partnered with a domestic B2B platform, and from an initial monthly sales of 1 million, by the end of 2018 they reached 20 million per month. In just half a year, sales grew 200-fold and were still rising. "That doesn't add up," I said. "According to normal marketing logic, B2B doesn't have the ability to promote new products. How could there be such growth? Is it because the B2B platform helped the brand increase store coverage? With more outlets, sales naturally go up." That sounded plausible. But my friend explained that early growth was indeed due to increased store count. Later, however, it was the platform's data that gave them a new understanding of product design. Previously, a product had over a dozen SKUs. Through small-scale testing and store repurchase data, combined with the platform's store tagging, they cut the SKUs down to just three, upgraded them, and differentiated packaging and specifications. Without data, they had relied on experience. Now, with precise data support, they could assist in product development. For example, on the ordering app, they tested which product selling points and phrases could increase sales opportunities. Once testing was complete, they passed these phrases to the sales department to standardize product messaging... Mr. Zhao Bo, founder of New Distribution, said, "Mistaking B2B for a channel is the biggest misconception brand owners have!" B2B's value is not simply as a product distribution channel, but as a 'database' that brand owners can reference before formulating marketing strategies. It is also a 'test field' for real-time observation after strategy implementation. In China, the vast majority of FMCG manufacturers lack mature, standardized marketing strategy systems, especially small and medium brands. Some say small brands survive mainly by 'gambling.' Gamble on the right category and enjoy the growth dividend; gamble on the right channel and achieve explosive growth; gamble on the right person—a marketing director who completes annual sales. Success relies on personal experience and expertise, plus the demographic dividend. B2B's value is to make product distribution and marketing strategies more scientific. Recently, a well-known B2B platform collapsed, leaving many lamenting. Many say B2B is a disruptor that broke the stable market distribution system, disrupted prices, and eroded profits. But from a dialectical perspective, the above example shows B2B's value is more like an enabler. New Distribution has been discussing transformation because of the full arrival of the internet, the disappearance of the demographic dividend, and the upgrade of consumer demand. Industry transformation is never a 'good thing.' Without it, everyone stays in their comfort zone, calm and undisturbed. Transformation breaks the calm surface, eliminates comfort zones, and naturally brings chaos. There is a widely circulated saying: "Kill a thousand enemies, lose eight hundred of your own." Though derogatory, looking at the outcome, the side that loses eight hundred is at least the victor. Transformation is the same. New Distribution defines 2019 as the first year of digital transformation in FMCG channels. For B2B, after the model debate and land grabbing, platforms are entering an era of efficiency competition and refined operations. The iterative upgrade of B2B platforms deserves industry-wide attention. For brand owners, once they have a basic understanding of industry transformation, they must consider how to self-transform. This is not only due to B2B's emergence, but also because of diversified demand and fragmented channels—when distribution channels become ubiquitous, how should brands break through each one? For traditional distributors, as early product distributors, when facing industry-wide transformation, how should they seek transformation to achieve irreplaceable value? Of course, the goal of transformation is not necessarily to switch businesses, but to do distribution well with low cost, high efficiency, and more profit. From March 15 to March 18, New Distribution, with 'Break the Deadlock' as the core theme, invited over a hundred guests and organized 13 themed forums. We hope that through this exchange, brand owners, distributors, and supply chain enterprises can find a way out of transformation. These guests are not only industry experts, but more importantly, founders, general managers, and operators of excellent brand owners, distributors, and supply chain enterprises. New Distribution hopes that through the sharing of 'practitioners,' attendees can gain insights and see the essence and way out of transformation. Review of Previous Conferences -END-
Brand Marketing · Dealer Operations · Management & Methods · Supply Chain & B2B
Countdown 5 Days | How Should Distributors, Brand Owners, and B2B Break the Deadlock Amid Channel Transformation?
A brand owner shares how partnering with a B2B platform led to explosive sales growth, highlighting B2B's value as a data source and testing ground for marketing strategies. New Distribution defines 2019 as the first year of digital transformation in FMCG channels and invites industry players to its 'Break the Deadlock' conference.
