Click the image for details Text | Liu Chunxiong / Teacher Liu's Forum (ID: liuchunxiong1964) What does it mean for a path to be successfully traversed? It means no more trial and error. B2B has been hot for two years, yet models are still constantly shifting. Every shift brings cheers from some, and each time a new ideal is painted. I know that as long as there are shifts, it's a negation, indicating the original path hasn't been successfully traversed. 01 The original path B2B wanted to take was to start from the source, from manufacturers. Now manufacturers haven't been mentioned for a while; instead, they talk about "one million small stores," with JD rebranding and Alibaba covering. What does this indicate? It shows the source path is blocked, so they're switching to the other end—the terminal. This is a major shift in thinking! What's there to cheer about? 02 B2B initially had grand visions. Eliminate distributors, products go directly from source to terminal. B2C eliminated two links (distributors and retail), so B2B eliminating one link should be a piece of cake, right? B2B's weapons were big data, high efficiency, and the finance behind big data. Of course, all this was fueled by burning money. But strong manufacturers didn't buy it, and those who did were looked down upon by B2B. 03 Chinese marketing is typically channel-driven; even strong brands need channel drive. Channel drive relies on obedient distributors. If distributors are disobedient, they are decisively replaced. "Managing customers" is a term only found in China. Strong manufacturers don't treat customers as gods but as extensions of internal management. Controlling the channel is something strong manufacturers must insist on. 04 Once you abandon the channel and enter B2B, is the channel still controllable? When the platform isn't strong, the ideal is "making business easy for everyone." Once the platform becomes strong, policies like this emerge: during Double 11, any merchant that doesn't cooperate gets cleaned out. There's no way around it; a platform is "one-to-N," so the one controls the N, and the N has no voice. If manufacturers lose their channel voice, they might as well surrender. 05 China's major FMCG brands have probably all tried partial entry into B2B. The result was naturally even more unsettling, because there was only one outcome: losing voice and disrupting prices. Strong manufacturers won't comply, so they engage in channel stuffing. Channel stuffing is like being a second-tier distributor. How can B2B have an advantage as a second-tier distributor? So, rebranding small stores became a popular B2B practice. 06 Rebranding small stores is a way to force the channel and force manufacturers. Large stores are already directly supplied by manufacturers, so only small stores remain to be forced. Who would refuse a freebie? Small stores naturally accept. Rebranding isn't hard; the problem is it's too easy. If you can rebrand, others can too. Today you rebrand, tomorrow someone else continues. In fact, small stores have been rebranded countless times, but many in the internet industry don't know this. Rebranding to force change is just a dream. Dreams are always worth having, just in case they come true! 07 I'm puzzled why it's one million stores, not 100,000 or two million. The answer might be: one million has a communication effect. If rebranding could truly succeed, 300,000 should be the critical point. Once you reach 300,000, you can go straight to two million or three million, since China has 5.8 million small stores. One million is precisely an awkward number. One million, I think, was just said casually. Once the boss says it, the PR department will justify it. 08 Having said all this, I want to convey one message: B2B isn't done this way. First, envision the future structure of the channel. The internet's characteristic is: dimensionality reduction forms platforms, and around platforms, ecosystems form. The future channel structure should have three major platforms: distribution platform, order platform, and promotion platform. Distribution and order platforms will definitely become large, specialized platforms. Distribution as an independent third party should be uncontroversial. The key is whether the order platform will force the promotion platform out of existence. Mastery of the channel lies not in distribution or orders, but in promotion. Distributors' non-core functions can be completely stripped away, such as distribution and orders, and handed over to large platforms without issue. Only channel promotion is something manufacturers must control and cannot hand over to large platforms. Channel promotion is also the core function of distributors and their last value for existence. Distributors won't die, but they must change. No matter how they change, they can't lose their core function. 09 How should B2B be done? I think first, we must admit we're not omnipotent. Don't have the idea of making manufacturers submit; instead, help manufacturers and distributors. Have a mindset of platform collaboration, not a greedy desire to monopolize. Don't have the idea of destroying those who don't cooperate; instead, have an attitude of helping those with weaknesses.

  • Zhao Bo's Comment: Teacher Liu's views are sharp, accurate, and profound. Here are my thoughts:
  1. The era of salespeople carrying goods and fortune-telling for bosses is definitely over.
  2. Loose franchising is just a transitional form; ultimately, these B2B platforms will adopt tight franchising.
  3. B2B is valuable, but not for serving existing stock; it serves incremental growth. From another angle, it's also the innovator's dilemma.
  4. B2B will ultimately be a distribution platform for small, new, individual, and fast-moving categories.
  5. Agents won't die; restructuring is also a trend. We need to view this in layers and stages. Honestly, the penetration speed is already fast enough. Remember, the last consumer goods channel reform in China took nearly 20 years. Click the image for details The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1000+ distributors, 500+ brand owners, founders of 200+ B2B platforms, and 100+ investment and financing institutions to participate. The conference theme: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics: Core Topics of the Conference:

  • How can the FMCG industry leverage B2B to achieve new growth opportunities

  • How to build a new supply chain behind new retail

  • How can intra-city logistics help B2B achieve leapfrog development

Highlights of the Conference:

  • The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"

  • Case studies of excellent transforming and upgrading distributors

  • Conference + Exhibition upgrade: Hall 6 Internet Technology Exhibition strengthens networking

  • Alibaba Retail Link, GLPS Finance, Eternal Asia Supply Chain, Best Store Plus, YiJiuPi, Unilever, Haiding Technology, Yunmei Co., Ltd. — leaders from various fields will deliver keynote speeches and share pioneering insights.

October 17-18, 2017 Chongqing International Expo Center Registration is now open. Long-press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend with note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" High-Level Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" High-Level Forum -END-