It's no longer new for distributors to build regional B2b platforms, but nine years ago it was hard to imagine. With no experience, no case studies, and uncertain prospects, in 2015, Yijia Star embarked on the path of regional B2b transformation, becoming one of the earliest trading companies in China to independently transform. After four years of losses and near abandonment, they persisted. Now, Yijia Star covers 20,000+ outlets in Nanning, with 5,000+ monthly active outlets and 8,000+ SKUs, spanning categories such as beverages, snacks, grain and oil condiments, daily chemicals, and more, with annual sales exceeding 300 million yuan. Moreover, Yijia Star has systematized its model into a complete implementation plan, successively opening warehouses in Guilin, Beihai, Fangchenggang, Guigang, Binyang, Pingle, Xing'an, Quanzhou, and other places in Guangxi, aiming to complete full coverage of Guangxi by 2025.

The "root" of distributors in regional markets is small and medium-sized stores

Hu Wei, founder of Yijia Star, entered the traditional trading industry in 2001, mainly operating paper hygiene products, covering local supermarkets and small and medium-sized supermarkets. After more than a decade of agency business, Hu Wei clearly felt that supermarket fees were increasing and manufacturers' sales pressure was growing day by day. In August 2015, Yijia Star officially attempted a B2b platform, running both trading and B2b, but due to lack of experience, they suffered losses for four consecutive years. In 2019, Yijia Star cut off the traditional trading business entirely, concentrating resources and energy on B2b operations. Why persist with B2b despite losses? Hu Wei told New Distribution that no regional supermarket is not declining or anxious. The future "root" for distributors in local cities lies only in small and medium-sized stores. B2b brings changes in market dominance and operational capability.

Traditional trading business is dominated by brand owners, selling specified goods in specified areas and places. What to sell and how to sell is largely dictated by manufacturers. In B2b, the dominance is in your own hands: the product portfolio is yours, the terminal relationships are yours, and how to operate and run is your decision. At the same time, B2b requires stronger operational capabilities, such as product management, extreme warehouse and distribution efficiency, refined store management, and platform-based operations.

From 0 to 1

Pitfalls and paths in B2b

From the transformation in 2015 to now, Yijia Star has taken nine years to go from exploration to maturity. Hu Wei told New Distribution that five modules are important: system, organization, products, stores, and operations.

1. System: Find a system service provider with successful cases

The system is the foundation for platform operations. For distributors doing B2b, it's best to find a system service provider with successful cases. Choosing the right system will avoid many detours.

2. Organization: Focus on products and business

B2b and traditional trading have different operational logics, so organizational structures differ. Yijia Star's organizational structure is divided into system commerce department, procurement department, sales business department, warehouse logistics department, and finance department. Let's share the procurement and business aspects. The procurement department is mainly responsible for product selection, delisting, and activity planning, divided by category: beverages, snacks, grain and oil, daily chemicals, with 2 people per group and 2 managers coordinating. The sales business department is mainly responsible for information transmission, store development, ordering, and service, gaining insights into small store needs and building good customer relationships. Currently, there are 23 business personnel, divided by area, each following up on about 200 outlets. Sales staff compensation is mainly divided into two parts: 40% base salary + 60% incentive bonus. The incentive core is divided into customer activity bonus + customer level bonus + brand execution reward.

3. Products: Product structure based on store needs

In product organization, the core principle is: the product structure must be based on store needs. Yijia Star's pitfalls in product organization: 10,000 SKUs → 6,000 SKUs → 8,000 SKUs. Where does the product structure come from? Based on data from surrounding convenience stores, find the top 2,000-3,000 single items as the initial product structure. Then, based on surrounding needs, gradually add and delist products.

4. Stores: Focus on increasing store productivity

Distributors doing B2b easily fall into the trap of price wars. One point to emphasize: price competition has no end; there are many competitors, and you can't be cheaper than all platforms, nor can you outcompete capital. For stores, the market lacks low-priced goods; B2b has them, distributors have them, wholesalers have them, and e-commerce has them. In any market, B2b will not dominate alone; the key is to do comprehensive capabilities well. If you score 70 points in each dimension—product supply, product price, logistics distribution, and store service—your overall score will definitely be higher than scoring 90 points in only one dimension.

5. Operations: Price wars are not the solution to competition

Yijia Star's regular activities are usually divided into three parts: Fixed flash sales: select 40 SKUs that store owners directly perceive prices on as traffic items, mainly beverages, supplemented by snacks, all high-frequency ordering categories, to attract customers to place orders. Category specials: 10%-20% of each category at special prices, involving first-, second-, and third-tier brands, balancing sales and profit. Brand discounts: mainly brand activities, such as discounts or gifts on a certain brand series, mainly to increase brand sales.

Final Thoughts

When distributors do B2b, they all face a problem: Yijiu Pi, JD.com, etc., are all local. How to deal with external competitors?

Hu Wei believes that facing competition objectively, the market is large, and no single enterprise can finish it; just do your own job well. When distributors doing B2b lack the capability to fight mature B2b platforms, focus on doing what you should do. If products are not rich enough, expand products; if store numbers are insufficient, expand stores; seek internally, then externally.

Price wars are definitely not the solution to competition. Due to space limitations, we cannot elaborate on all aspects.