On November 8, at the 2018 World Internet Conference · Cross-Strait, Hong Kong and Macao Internet Development Forum held in Wuzhen, Yang Qianhui, Chairman of Master Kong Holdings China, attended the forum and delivered a keynote speech titled "Reconstructing Digital Channels - Master Kong Accelerates Integration, Moving Towards a New Internet Ecosystem", proposing that Master Kong actively embrace the Internet and initiate its smart business strategy. Just last week, on November 2, Master Kong announced a partnership with Alibaba Retail Link, leveraging its technological advantages to fully launch digital transformation of offline channels. Through digitization of stores, supply chain, marketing, and decision-making, it aims to connect a "central processing unit" to traditional offline sales channels, leading distributors and millions of retail small stores into the digital era, achieving a new retail that comprehensively enhances efficiency and upgrades. The two events occurred within less than a week, with Master Kong "sounding twice in a row," actively embracing the Internet and joining the wave of channel digital transformation. Its significance is far-reaching. I. Only by Embracing the Internet Can One Grasp the Future Yang Qianhui pointed out in his forum speech: "Now every enterprise is a node in a networked organization. Connecting to the Internet may yield unlimited resources. Facing challenges in the real economy, only by actively and openly embracing the Internet, integrating, coexisting, and achieving digital upgrades can we grasp the future through sharing and win-win." With the growing development of the Internet economy and the upgrading of consumer demands, the traditional FMCG industry faces challenges under the Internet+ trend, including channel fragmentation, diversified consumption scenarios, and diverse demands. Among these, the rapid rise in labor and store rental costs in traditional retail channels has made these challenges even more severe. How should FMCG enterprises respond to these challenges? Master Kong's approach is to actively embrace the Internet. In his speech, Yang Qianhui outlined Master Kong's smart business strategy blueprint from three aspects: First, establish "smart channels" by reforming channels through Master Kong's self-developed open platform for channel digitization, implementing responsive distribution; second, Master Kong will leverage big data + artificial intelligence to create "smart marketing", using targeted marketing methods to interact deeply with consumers; third, in manufacturing and production, achieve digital upgrades to realize the goal of "smart manufacturing", ultimately bringing consumers more suitable products and services. In fact, this partnership with Alibaba Retail Link is a key part of Master Kong's establishment of "smart channels." In the past, Master Kong maintained its leading position in FMCG through its "intensive distribution" model. Now, foreseeing that retail and distribution models are rapidly iterating in the digital era, Master Kong deeply understands that only by combining past experience and accelerating the layout of digital channel upgrades can it continue to stand firm, or even lead the industry's channel digital transformation. As an "aircraft carrier" in the FMCG industry, Master Kong's active embrace of the Internet will promote channel reform across the entire FMCG industry and drive more FMCG enterprises to join B2B during the channel transformation period. II. B2B, Whether You Like It or Not, Is Here! As an industry observer, New Distribution believes that Master Kong, once the "originator" of intensive distribution in the industry, seems not confident enough to achieve full-channel distribution through its own efforts alone, which fully demonstrates the momentum of channel digital transformation. Behind Master Kong's "sounding twice in a row" lies the fact that: channel digital transformation and B2B have become important strategies that every FMCG brand must consider and implement. If Master Kong needs to undergo channel digital transformation and upgrading, other brands should do the same. It also proves: B2B, whether you like it or not, is here! At the meeting between Master Kong and Retail Link, Lin Xiaohai, Vice President of Alibaba and General Manager of Retail Link Business Unit, stated that 2019 will be the first year of channel digital transformation. In New Distribution's view, 2019 will not only be the first year of channel digital transformation, but also a year of deep cooperation and integration between brand owners and B2B. Previously, Mr. Zhao Bo, founder of New Distribution, expressed his view: With the help of B2B, brand owners can achieve diversified product layouts and distribution that meet the diverse needs of consumers. In his view, China's consumer market has begun to show significant stratification of consumer demands, such as satisfaction-oriented, catering-oriented, and creation-oriented demands. In the past, brand owners blindly pursued consumers' satisfaction-oriented demands, hoping to cover all channels through a single brand, using industrial mass production of batch SKUs, and then through a nationwide high-density deep distribution system and intensive distribution system. Now, this approach has basically failed. In today's environment of personalized consumption, fragmented information, and fragmented channels, for brand owners, their marketing model must shift from the past deep distribution that only satisfied a single consumer group to a multi-distribution coexistence model (multiple distributions) that serves different groups. For example, by leveraging B2B to connect millions of small stores, achieving dataization and visualization of product inventory and sales, and conducting tracking and analysis, brand owners can understand the purchasing preferences of surrounding consumers through sales data of different products, achieving responsive distribution (precision distribution); through data, they can manage stores with labels, distributing different products to different stores, and then carry out precision marketing. -END-