During a recent visit to Changsha's B2B platform Wanshang Yizhan, the author was impressed by its model. The platform enters the FMCG sector through the still fast-growing snack food industry, leveraging a robust warehousing and distribution system to partner with distributors nationwide, jointly expanding the market and helping distributors complete their B2B internet transformation. Wanshang Yizhan's business logic is clear: it combines distributor partnerships, unified warehousing and distribution, and supply chain finance into one internet platform. It has already established standard warehouses in 17 key cities in partnership with distributors, providing one-stop solutions for FMCG supply chain warehousing and logistics needs. Currently, the platform's monthly turnover in a single city approaches 20 million yuan, with over 2,000 SKUs. Business Model: For first-tier, high-frequency, essential goods, it provides an open third-party software platform and warehousing logistics services, and cooperates with qualified distributors to build warehouses together. For second- and third-tier supplementary products, such as those from new manufacturers, it offers distribution services. For products with distinctive categories, it opens access to over 1,700 self-owned retail stores across 15 provinces to help them grow rapidly. For small-scale markets below the county level, small and medium distributors can join the platform as franchisees. Wanshang Yizhan provides technology and support to assist them in their internet transformation. Notably, Wanshang Yizhan has invested heavily in building the platform and warehouses, first demonstrating its effectiveness, then entering into shareholding cooperation with distributors to jointly expand the platform. The CEO of Wanshang Yizhan is Wang Shaomin, also chairman of Changsha Xiaozui Snacks, who has years of capital and industry accumulation in the snack food sector, with deep resource reserves in the entire snack food supply chain. These resources have been successfully converted into industry advantages, allowing rapid entry into the industry. From the Wanshang Yizhan model, which is more likely to succeed: B2B platforms partnering with distributors or self-operating? 1. Should platforms partner with distributors rather than self-operate? China's consumer goods market has a huge existing market. In 2015, total retail sales of consumer goods reached 30 trillion yuan. This is not a market that one or two platforms can capture. In every city across the country, there are three to four distributors with annual sales exceeding 100 million yuan, holding agency rights for a large number of first-tier brand products locally. For a platform to succeed, it must first obtain products from them, or face direct conflict by sourcing from other regions. Traditional distributors have advantages in local people, vehicles, warehouses, and products, making it difficult to rewrite the local market in the short term. Once they awaken, their transformation will be very fast. Some platforms with 300-500 million yuan in funding think they can revolutionize distributors, which is unrealistic. Even with 30-50 billion yuan, relying solely on their own strength would hardly shake this massive market. For manufacturers, although they are actively embracing the internet, they hope platforms will create new increments without disrupting their existing local market. If channel conflicts arise, manufacturers will prioritize protecting distributors with stable sales. This determines that platforms cannot obtain agency prices from first-tier brands; they can only get second-tier or special channel prices. For a platform, self-operating without partnering with distributors may show impressive GMV and frequent funding news, but when it reaches a certain scale and begins to significantly encroach on distributors' interests, it will face enormous resistance. Some platforms share common interests with distributors: the platform provides technology, brand, and finance, while distributors provide products, channels, and customer relationships. Together, they can develop the market much faster than self-operating platforms and are more likely to succeed. 2. Why is entering through a niche category more likely to succeed than entering through all categories? First, it is clear that not all industries are suitable for directly entering the consumer goods market. The core reason lies in industry concentration. Generally, there are several situations:

  • Upstream and downstream extremely fragmented (information asymmetry, low customer acquisition cost, high logistics cost, most suitable)
  • Upstream concentrated, downstream fragmented (information symmetry, high customer acquisition cost, high logistics cost, suitable)
  • Upstream fragmented, downstream concentrated (information asymmetry, low customer acquisition cost, low logistics cost, not suitable)
  • Upstream and downstream highly concentrated (information symmetry, low customer acquisition cost, low logistics cost, not suitable) The original purpose of B2B platforms is to improve information asymmetry; the more fragmented both ends, the greater the value. However, in some categories where upstream and downstream are highly concentrated, platforms will encounter great resistance. Wanshang Yizhan enters from the snack food category, using unified warehousing to provide basic services for brand-concentrated categories and helping cover blank channels and markets. This model, leveraging accumulated industry resources, starting from the easiest and most suitable industry for B2B, then gradually extending to other industries, is the most feasible path. 3. Why partner with multiple distributors rather than go it alone? This year, many B2B platforms have begun to withdraw from various local markets. The reasons are either self-operation facing competitive resistance, or the platform's recruited city partners operating alone locally, not partnering with local distributors but only wanting to sell their products. The result is obvious: trying to take business from others before establishing their own local business. For distributors, unless they are willing, it is almost impossible to put their categories online. For a platform, only with full sincerity, genuinely partnering with more distributors, sharing risks and jointly creating new prospects, can it succeed in the local market. Otherwise, success is extremely difficult. 4. Why is Wanshang Yizhan's model more likely to succeed? Wanshang Yizhan starts from the snack food industry and enters the consumer goods industry like a thumbtack: deep entry through a single channel, then extending through warehousing and distribution, combining self-operation and third-party entry, partnering with FMCG distributors, offering free use, not encroaching on distributors, identifying industries and quality products, and jointly transforming the market. Only in this way is it possible to rewrite the industry. In terms of direction, the B2B transformation trend is basically set. Although many distributors currently don't know how to transform and are dazzled by various B2B platforms, fundamentally, this is a catalytic process: educating small stores, educating distributors, and cultivating the market. When volume accumulates to a critical point, China's FMCG market will rapidly explode. What distributors should do is find a platform with genuine sincerity, willing to invest in the market together, helping distributors provide solutions, helping distributors increase sales and channel increments, rather than cutting into existing volumes or charging franchise fees. Undoubtedly, B2B is not something a single distributor can handle. Many distributors who previously joined platforms encounter numerous problems: local brands cannot be brought online, small stores don't order, no online traffic, etc. Only platforms with the following conditions are likely to succeed:
  1. Platforms that can improve distributors' logistics cost structure and increase efficiency through unified warehousing and distribution.
  2. Platforms that ally with distributors and are willing to share weal and woe.
  3. Platforms with deep industry understanding and the ability to truly understand B2B at the industry level. Undoubtedly, Wanshang Yizhan meets all the above conditions. Moreover, since distributors in different regions have different conditions and resources, Wanshang Yizhan offers multiple cooperation options. To learn more about the Wanshang Yizhan platform, you can long-press the QR code below to add Mr. Ren Xiaodong, the company's operations director, on WeChat for communication: Of course, you can also join us for an on-site inspection on the 10th: The third B-end e-commerce inspection class of this public platform will visit three platforms from July 9-12: Wanshang Yizhan, Yunbao Shangmeng, and Weijie Chengpei. Distributors interested in transformation can join us for on-site inspection: Organization Format
  4. Company visit
  5. Actual market case visit
  6. On-site explanation
  7. One-on-one communication Participating distributors only need to pay a 200 yuan registration fee. Time: July 9-12, 2016. Location: Changsha, Xiamen. Interested distributors can long-press the QR code below to register. When adding friends, please reply "Third Registration". Previous Inspection Enterprise Cases: Yishang Logistics Model On-site Inspection (Second B-end e-commerce inspection group Yishang Logistics) Caiba Model On-site Inspection Jinhuobao Model On-site Inspection Beiquan Model On-site Inspection Piduoduo Model On-site Inspection -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales volume improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new sales | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]