After several years of development, brand owners' attitudes towards B2B have generally shifted from rejection to acceptance, and then to proactive embrace. So, what is the actual state of cooperation between brand owners and B2B? What problems have arisen during the cooperation? To address these issues, New Distribution, together with 52 well-known FMCG brand owners nationwide, conducted an in-depth survey on their cooperation with B2B platforms. The surveyed brands cover 10 categories: water and beverages, snacks, hygiene products, alcohol, convenience foods, daily chemicals, dairy products, grain and oil, frozen foods, and seasonings. From a small sample, we hope to provide a more comprehensive and clear understanding of the development of the entire FMCG B2B industry through the cooperation between brand owners and B2B. It is evident that after several years of market cultivation and development, B2B has become a force that brand owners cannot ignore. Among the 52 surveyed brand owners, all have some understanding of the B2B new business model, with 87.5% having already engaged in varying degrees of cooperation with B2B. However, the transaction volume generated through B2B accounts for only 4.7% of the overall brand transaction scale. In terms of product structure, mineral water and beverages remain the largest category for brand owners' cooperation with B2B, accounting for 30.77%, followed by snacks at 21.54%, daily chemicals and washing at 16.92%, instant noodles and ham at 15.38%, and dairy products at 15.38%. Note: Yatang Xiaochao has been liquidated and closed; the survey includes B2B platforms that have cooperated before. This survey counted a total of 20 B2B platforms. Brand owners have adopted a broad approach in cooperating with B2B platforms, with each brand owner typically cooperating with 4-5 B2B platforms, all of which are top-ranked platforms with comprehensive competitiveness at the national or regional level. It is worth noting that Alibaba Retail Link and JD New Route remain the preferred platforms for brand owners to cooperate with, with 89.23% and 83.08% of surveyed brand owners cooperating with these two platforms, respectively. They are followed by Best Dianjia, Zhongshang Huimin, Meicai, RT-Mart e-Lufa, Hui Xiadan, Meituan Kuailv Fodder, Yijiupi, Furong Xingsheng, Yatang Xiaochao, Lianshang Yougong, Zhongyan Xinshangmeng, Yunmayi, Youdehuo, Dianda Mall, Xingaoqiao, Caihua Trading, Meiyijia (cold chain department), and Diandan Jidao. The main motivations for brand owners to cooperate with B2B platforms can be summarized into the following five points:
Provide inventory and sales data, open up data links, and achieve digitalization of distribution channels.
Expand distribution coverage, increase store network radiation, and expand sales boundaries.
Enhance control over business and profits.
Provide warehousing and logistics support to improve supply chain and operational capabilities.
Integrate and optimize the distributor system. Among the key factors in brand owners' cooperation with B2B platforms, achieving digitalization of the distribution chain is the most concerned factor for surveyed brand owners, while the focus on integrating and optimizing the existing distributor system is relatively lower. In the actual cooperation process, the greatest value of B2B for brand owners is further strengthening their deep distribution channels, specifically reflected in the improvement of single-store efficiency in existing markets and store coverage in blank markets; secondly, B2B can simplify distribution processes, thereby improving channel efficiency and channel digitalization and visualization. It is worth mentioning that for brand owners, B2B performs relatively poorly in store execution, price control, and cargo flow controllability, leaving significant room for improvement. In terms of organizational structure, to adapt to cooperation with B2B platforms, about 74% of surveyed brand owners have established dedicated B2B departments, with 67.31% having fewer than 10 people in the B2B department, and 32.69% having more than 10 people. In terms of operation mode, 75% of surveyed brand owners' B2B business is uniformly operated or led by the headquarters; in terms of department division, 56% of brand owners have placed the B2B department under the sales department, 21% under the channel management department, and 13% under the e-commerce department. It is not difficult to see that although most brand owners have realized the importance of channel digitalization and channel transparency, they have maintained a positive yet cautious attitude in the process of cooperating with B2B platforms. On the one hand, the traditional distributor circulation system remains the main way for brand owners to distribute products, with a large existing market, and B2B platforms currently contribute a relatively low proportion of sales; on the other hand, the informatization level of distributors in traditional circulation channels is low. As distribution deepens, data black holes and sales distortion often occur, which cannot effectively guide brand owners in refined operations such as product and marketing strategies. B2B can compensate for this to a certain extent. In terms of the current development of brand owners with B2B, B2B still has many areas for improvement, specifically in the standardization and control of the price system, execution and comprehensive service capabilities at the terminal, and data empowerment capabilities, including transparency, granularity, timeliness, and accuracy; while the concern about impacting the existing offline channel structure and distribution system remains the main reason why brand owners are unwilling to cooperate with B2B platforms. Technological changes as infrastructure often bring about huge changes in various industries. For traditional FMCG, the digitalization and visualization of distribution channels are an inevitable trend. B2B can effectively optimize the distribution structure of the existing distributor system, reduce the distribution cost of deep distribution, and to a certain extent improve the execution efficiency of terminal stores. However, we should not ignore the problems that arise during the development of B2B. Correctly handling the relationship between offline existing volume and B2B platforms, on the basis of ensuring the existing market, fully embracing and iterating ideas, and using technology to empower traditional distribution channels, can we win in B2B. At the operational level, this is manifested in cross-matching stores in areas where B2B platforms overlap, using coupons and package combinations to get products into uncovered stores, and using precision marketing to achieve full-category product entry in covered stores, thereby improving single-store efficiency; in weak markets, regional or vertical category B2B platforms can be used to achieve full distribution in blank outlets. At the product level, to reduce the impact of B2B on existing circulation channels, differentiated product strategies can be adopted, such as differentiated packaging and capacity, and setting product, price, quantity, and channel to avoid conflicts with traditional channels. -END-