On March 21, 2017, on the eve of the Chengdu Sugar Fair, the 2017 FMCG + New Retail Conference, hosted by the renowned B2B industry media New Distribution, was held as scheduled in the Crystal Hall on the 5th floor of the Century City International Conference Center. Over a thousand industry leaders and attendees gathered to discuss the industry's future, the collision and integration of the internet, FMCG, and B2B. As a leading new retail + internet enterprise, DianDa Mall was invited to attend. CEO Feng Bo delivered a keynote speech titled "2017 - The Spring of New Retail Sharing Economy," which was highly recognized by the over a thousand industry guests present.

Feng Bo believes that for the FMCG industry, this is an era of both anxiety and excitement. According to the "2017 FMCG B2B Industry Blue Paper" released by New Distribution, the industry's overall data growth has been sluggish for years. Many KA (key accounts) and supermarkets have seen store closures, and distributors are facing the strange phenomenon that the bigger the brand they represent and the larger their scale, the less money they make. These severe conditions are the root of everyone's anxiety. However, the data for convenience store retail is like a clear stream amidst the chaos, showing good vitality and maintaining decent growth over the years. Combined with the advanced concepts of new retail and the internet, this opens a window for all anxious FMCG practitioners, making them more excited because of hope.

However, for distributors, capturing the traffic of offline retail small stores is by no means as simple as buying a system and building an online mall. They still need to consider several issues:

First, do they have the necessary internet talent and technical advantages? Introducing internet tools is simple, but subsequent maintenance and technological iteration require professional talent to ensure. The problem is that cultivating a professional internet team, in an FMCG industry where marginal costs are increasing, is like adding frost to snow.

Second, the retail model based on small stores has existed for many years. Why hasn't it been covered before? Efficient coverage of the small store network requires a platform channel, which is also what internet companies like Meituan and Ele.me, known for their aggressive ground promotion teams, are best at, but distributors find it difficult to achieve.

Third, distributors do not have advantages in market operations and warehousing and distribution. Assuming that distributors can really achieve small store coverage through hard work, market operations and warehousing and distribution are undoubtedly indispensable.

"The most critical thing is whether your enterprise has achieved informatization and digitalization internally. If not, you are still far from taking this step. After all, cross-border transformation always coexists with high opportunities and high risks," said Feng Bo.

Feng Bo said he strongly agrees with the view that the most fundamental driving force of new retail comes from technological change. When many industry predecessors began to venture into the FMCG B2B field a few years ago, concepts, visions, and models began to converge rapidly. If technology cannot be implemented, everything becomes empty talk. Technological upgrading and innovation have always been one of DianDa's core advantages.

At the conference, Feng Bo shared a set of DianDa's data: serving over 50,000 small stores and more than 600 distributors, with annual sales exceeding 600 million yuan, a 2-hour delivery time, warehousing and distribution costs of less than 3%, a retention rate of 70%, and a repurchase rate of 90%. Since its inception, DianDa has constantly asked itself: what value can DianDa bring to the industry? Can it achieve excellence in efficiency, cost, user experience, and other aspects? The efficiency, cost, scale, and user experience reflected in these data form a virtuous cycle: service advantages increase user experience, good user experience leads to a sharp rise in user scale, and the continuous increase in the user system makes DianDa's technology and services better and better.

"What value can we provide for distributors?" Feng Bo concluded, "I think it is to open up the effective model that DianDa has explored over three years and the full platform polished by dozens of R&D personnel over more than three years, so that distributors can easily have a city-wide small store coverage network, a same-city warehousing and distribution system with costs below 3% and delivery within 2 hours, an aggressive ground promotion team, and financial support for business expansion. At the same time, DianDa also manages construction and maintenance, providing one-on-one full-platform operation support for partners. In general: successful model output + system construction + system and operation support."

Attached: DianDa CEO Feng Bo's "2017 - The Spring of New Retail Sharing Economy" presentation slides.

For more on-site highlights, click the 'Read Original' link below.

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