---
title: "Framework for Distributors to Break Through in Local B2B Markets"
description: "This article discusses the overall framework for distributors to break through in local B2B markets. The business model is not limited to a single link in the supply chain but starts from the perspective of the entire market ecosystem, using capital, data, and logistics to integrate the links of the local consumer goods supply chain, achieving low cost, high efficiency, and a highly data-driven and financialized vision."
author: "赵波"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-07"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/framework-for-distributors-to-break-through-in-local-b2b-markets-bff301c0.md"
original_source: "https://mp.weixin.qq.com/s/S4QyQpsdrx5LwFFKunCa5g"
translation: "https://xinjignxiao.com/zh/articles/%E7%BB%8F%E9%94%80%E5%95%86%E6%9C%AC%E5%9C%9F%E5%B8%82%E5%9C%BAb2b%E7%A0%B4%E5%B1%80%E5%9F%BA%E6%9C%AC%E6%80%9D%E8%B7%AF%E6%A1%86%E6%9E%B6-bff301c0.md"
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# Framework for Distributors to Break Through in Local B2B Markets

> This article discusses the overall framework for distributors to break through in local B2B markets. The business model is not limited to a single link in the supply chain but starts from the perspective of the entire market ecosystem, using capital, data, and logistics to integrate the links of the local consumer goods supply chain, achieving low cost, high efficiency, and a highly data-driven and financialized vision.

This article discusses the overall framework for distributors to break through in local B2B markets. The business model is not limited to a single link in the supply chain but starts from the perspective of the entire market ecosystem, using capital, data, and logistics to integrate the links of the local consumer goods supply chain, achieving low cost, high efficiency, and a highly data-driven and financialized vision.

First, it is certain that the probability of a single distributor successfully promoting B2B in the local market is very low. Many distributors previously joined some B2B platforms, but basically ended in failure. The reason is that there are too many links in the regional market involving interest chains, leading to problems such as brand owners not being able to go online, small shops not placing orders, and no traffic online.

So, can distributors build B2B platforms? The answer is yes! But we are already a distributor alliance, why can't we still succeed?

The answer has been written in previous articles: the platform has three major problems that cannot be solved:
1. Existing distributor inventory cannot be moved online;
2. New product increments cannot be developed;
3. Small shops have no rigid demand for online orders.

From factory to small shops, distributors and second-tier wholesalers carry out functions such as logistics warehousing, capital accumulation, service, sales, and public relations. Whether the platform is matching or self-operated, it needs to carry the core parts of the above functions. Since most B2B platforms only integrate one link of the supply chain, contradictions and game conflicts in the chain still exist.

If distributors want to do B2B, they must fully integrate the entire supply chain in the regional market and break through the bottleneck with scale.

How can distributors integrate the supply chain system in the local market? The best way is not warehousing and distribution, but capital! Using financial holding is the best way. See the figure below:

1. Local distributors themselves should unite to form a group company aimed at controlling the supply chain. Its function is to inject capital into the supply chain, hold controlling stakes in key links, and finally connect all links.
2. Distributors establish logistics companies to achieve unified warehousing and distribution of local goods, quickly reducing logistics costs.
3. Establish a supermarket chain franchise platform for centralized procurement and distribution, standardized management, and value-added services, laying the foundation for future O2O.
4. After the logistics and supermarket chain platform entities are established, data is connected through the B2B platform, and supply chain finance is carried out using data flows.
5. The above logistics, B2B, and supermarket franchise platforms are all controlled by their upstream supply chain companies, which coordinate and operate accordingly.

Only when the platform fully grasps the entire supply chain and transaction data can there be more possibilities for business extension. However, to grasp the supply chain, the way is not to cut off the connections between them, but to control them, controlling the entrance and exit, through unified warehousing and distribution, incorporating small shops, and moving transactions online. Only then can regional B2B be successful.

Logistics, chain franchise platforms, and B2B platforms are three independently accounted entities, each uniting all forces in its own chain, but connected through capital and data. Thus, they comprehensively integrate the local consumer goods supply chain in the regional market.

For distributors, the business map should not only be the existing warehousing, distribution, and sales, but also swallow the entire local consumer goods supply and marketing system. The increment and imagination space are the core that truly drives distributors.

In China's consumer goods supply chain, regional market integration is an inevitable trend in the future. In fact, many domestic convenience store systems already have this prototype, such as Dongguan Meiyijia, but the convenience store system is closed and has a game relationship with upstream, without further opening and sharing the supply chain through the Internet. However, I believe that in the near future, the consumer goods supply chain in the Chinese market will definitely be completely rewritten by the Internet!

**At the request of many distributor friends, the third B-end e-commerce inspection class of this public platform will visit three platforms: Wanshang Yizhan, Yunbao Shangmeng, and Weijie City Distribution from July 9-12. Distributor friends with transformation intentions can come and inspect with us on the spot:**

**Organization Form**
1. Company visit
2. Actual market case visit
3. On-site explanation
4. One-on-one communication

Participating distributor friends only need to pay a registration fee of 200 yuan. Time: July 9-12, 2016. Location: Changsha, Xiamen.

**Interested distributor friends can register by long-pressing the QR code below.**

**When adding friends, please reply "Third Phase Registration".**

**Previous inspection enterprise cases:**

**Yishang Logistics Model Inspection**
(Second B-end e-commerce inspection group Yishang Logistics)

**Caiba Model Inspection**

**Jinhuobao Model Inspection**

**Beiquan Model On-site Inspection**

**Piduoduo Model On-site Inspection**

-END-

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