Introduction— Recently, a message in my peer exchange group was like a bombshell, sparking lively debates. What was the message? On January 16, Liu Qiangdong revealed at JD.com's annual meeting that in 2016, they would launch the "New Channel Business Unit" to become a supplier to traditional retail outlets, bypassing distributors and second-tier wholesalers. Using their self-built logistics, they would deliver manufacturers' goods directly to retail stores. Store owners could simply open an app at home to place orders. This follows Alibaba's 1688 launching the "Hundred Cities, Ten Thousand Stores" plan at the end of October 2015, adopting an offline B2B model. Now another internet giant is disrupting traditional marketing models. Coincidentally, some friends in my circle are joining a company called Beijing yjg. They are piloting a store ordering app in Yangquan, Shanxi, integrating local distributors' or manufacturers' products onto an online platform for retail outlets to order directly, with yjg's local branch handling delivery.

Author's View— E-commerce giants are disruptors; when facing consumers, they disrupt retail stores; When online shopping consumers calm down, they disrupt distributors by targeting stores; To find topics, projects, and attract venture capital, they keep disrupting; E-commerce itches to disrupt! In my article "FMCG Companies Should Not Be Fooled by Internet Marketing" written in December 2015, I clearly stated:

  1. Consumers have calmed down after the initial novelty of internet shopping. The tangibility and experience of the physical economy cannot be replicated online, so the physical economy will eventually return.
  2. Focus on solidly managing current physical stores and channels. Do not completely overturn your mature business model. Innovation means optimizing on existing success, not disrupting and breaking it. Once broken, the company will be like a nest overturned.

Reasons— 1. The impact of e-commerce direct sales on consumers is over; consumers have fully returned: When e-commerce faced consumers directly, retail stores suffered greatly (taking away their business), especially in clothing and hypermarkets. But gradually, consumers are becoming more rational. The shopping experience cannot be replicated by internet direct sales, so consumers are returning to physical stores. Look around—aren't hypermarkets and clothing stores bustling again? Haining is not dead, and Yiwu is even less dead!

2. E-commerce continues to disrupt to maintain their so-called "innovative enterprise" label: Because the dividends of e-commerce direct sales have diminished, e-commerce companies tout themselves as innovative high-tech firms. They need to find new targets to disrupt, continue luring venture capital, and maintain their "innovation." Thus, they trace back up the traditional marketing chain and find at least 10 million retail stores scattered across urban and rural areas, thereby taking away the livelihoods of millions of distributors nationwide. However, I believe this model cannot last long, based on the following doubts:

1. Where is customer relationship? Local distributors have deep roots in the market for years. Business cannot be sustained without face-to-face interaction; customer relationships are crucial, closely tied to Chinese characteristics. So, one must first be a good person before doing business. Distributors have been building relationships locally for years—can you turn that around overnight?

2. How to settle payments? How do retail stores pay for orders? If the goods are state-controlled monopolies like salt or tobacco, payment can be made before delivery. But traditional goods like beverages and snacks often involve credit sales and payment terms. How can e-commerce B2B solve this?

3. How to promote? As everyone knows, FMCG offline promotion includes floor displays, impactful merchandising, pillar wraps, sales guides, free tasting, roadshows, and other activities. It's not just about placing an order; in the FMCG industry, this is called distribution, but it doesn't mean the product is sold.

In summary, I firmly believe that e-commerce B2B is pure disruption, just fooling investment institutions. Finally, I'd like to offer our traditional distributors a poem by Mao Zedong, "Xijiang Yue · Jinggang Mountain," to suggest what they should do:

"Xijiang Yue · Jinggang Mountain" Author: Mao Zedong Below the mountain, banners in sight; atop, drums and horns resound. The enemy surrounds us thousands-fold, but steadfastly we stand our ground. Already our defenses are strong, and our unity is our might. On Huangyangjie, cannons roar, reporting the enemy's flight by night.

This article represents the author's personal views; peers are welcome to correct me.

Hu Wei, from Jiujiang, now living in Beijing, graduated from Nanjing University of Finance and Economics, a practical FMCG marketing expert with 15 years of experience in the FMCG industry. He has held positions including Product Director at Huiyuan Juice Group, General Manager of Guangdong Region, Marketing Director at Hunan Taizinai Group, Marketing Director of North China, General Manager of Marketing at Jiangxi Gaozheng Group, and Deputy General Manager of Marketing at Duoduo Runer. He specializes in differentiated marketing for food and beverages, channel incentives, and breaking into regional markets.

Welcome peers to communicate and exchange ideas.

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