---
title: "Heavyweight: Analysis Report on Major Same-City Logistics Companies Including JD Logistics, Cainiao Logistics, KYD, and Wanchaobang"
description: "The emergence of specialized division of labor has enabled collaboration among participants in the FMCG supply chain, with the separation of warehousing and distribution functions widely regarded as the beginning of industry transformation. This report analyzes the development opportunities in the FMCG warehousing and distribution logistics industry and profiles key players in the same-city warehousing and distribution sector, including Cainiao, JD Logistics, Weijie, Fengwang, Wanchaobang, Zhoupuyuncang, Yishang, KYD, and Wangcang, evaluating their strengths and weaknesses."
author: "新经销刘少德"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-10-17"
language: "en"
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# Heavyweight: Analysis Report on Major Same-City Logistics Companies Including JD Logistics, Cainiao Logistics, KYD, and Wanchaobang

> The emergence of specialized division of labor has enabled collaboration among participants in the FMCG supply chain, with the separation of warehousing and distribution functions widely regarded as the beginning of industry transformation. This report analyzes the development opportunities in the FMCG warehousing and distribution logistics industry and profiles key players in the same-city warehousing and distribution sector, including Cainiao, JD Logistics, Weijie, Fengwang, Wanchaobang, Zhoupuyuncang, Yishang, KYD, and Wangcang, evaluating their strengths and weaknesses.

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The emergence of specialized division of labor has made it possible for participants in the FMCG supply chain to collaborate through division of work, and the separation of warehousing and distribution functions is widely considered the beginning of industry transformation and upgrading. Against this backdrop, a large number of city distribution logistics companies have emerged. So what are the future development trends of the city distribution industry? Who are the players in the FMCG same-city warehousing and distribution sector? And what are their strengths?

1
**Development Opportunities in the FMCG Warehousing and Distribution Logistics Industry**
The rising operational costs of manpower and materials have led more trading companies to shift from pursuing scale to pursuing profits. In this process, focusing on core functions while outsourcing non-core functions has become the primary choice for many enterprises seeking transformation.
In addition, for B2B enterprises, the huge upfront investment in warehousing and distribution costs has become a major constraint on their market expansion. How to reduce the cost pressure of warehousing and distribution has also become a question that many B2B enterprises must consider.
In the FMCG field, the core functions of traditional distributors are capital advance and market services. More and more traditional distributors are choosing to cooperate with professional third-party warehousing and distribution service companies to separate warehousing and distribution functions, which has created a new blue ocean market in the industry.
**Looking at the current participants in the city distribution logistics field, they can be divided into the following categories based on their origins:**
> **C-end logistics companies penetrating into B-end city distribution,** such as Cainiao Logistics, City Distribution Logistics, and Best Logistics;
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> **Traditional B2B companies spinning off their logistics modules,** such as Eternal Asia, Yijiupai, and Bangbianli;
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> **Traditional distributors transforming into city distribution businesses,** such as Meiyitian, Yantai Yishang, and Yunbang;
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> **Native city distribution startups,** such as Zhoupudata, Weijie City Distribution, and Wanchaobang.
Unlike the consumer-end logistics distribution, which is basically divided among companies like Sutong Yida, SF Express, and EMS, the B-end city distribution field has not yet seen a dominant player with a leading market share, leading a large number of companies to rush into this track.

2
**Analysis of the Development Status of Some City Distribution Logistics Companies**
1. Cainiao Logistics
Cainiao Network Technology Co., Ltd. was established on May 28, 2013, jointly founded by Alibaba Group, Intime Group, Fosun Group, Fuchun Holdings, and S.F. Holding (including STO, YTO, ZTO, and Yunda). Cainiao's business logic is to build a platform that enables efficient connections among different service providers, merchants, and consumers in the logistics supply chain, thereby improving logistics efficiency and service quality while reducing logistics costs. Through the efforts of Cainiao and its partners, the global smart logistics network has covered 224 countries and regions, and has penetrated into more than 2,900 districts and counties in China, with consumers in over 1,000 districts and counties able to experience same-day and next-day delivery.
**Evaluation:** Cainiao's city distribution business mainly refers to Lingshoutong Logistics. As of now, Lingshoutong Logistics has established professional warehouses and front warehouses covering 270 cities nationwide, serving 600,000 traditional grocery stores. In 2018, Lingshoutong business grew rapidly. Currently, Cainiao is fully responsible for the warehousing and distribution business of Lingshoutong, mainly through self-built central warehouses and cooperation with city partners (distributors) to establish front warehouses and virtual warehouses. The main delivery is still through virtual warehouses, i.e., distributor delivery, while the physical front warehouse work is progressing slowly.

2. JD Logistics
JD has been building its own logistics since 2007. Relying on JD Group's years of warehousing and distribution management experience, JD Logistics has established 521 professional logistics centers nationwide, with warehouse area of 11.6 million square meters, 250,000 self-owned logistics delivery vehicles, and effectively serving 300,000 end outlets. In April 2017, JD Logistics announced its independent operation. On December 1, 2017, JD Logistics CEO Wang Zhenhui revealed that JD Logistics' SKU count had expanded to over 5.3 million, with revenue approaching 30 billion yuan, and it had achieved profitability.
JD Logistics' B2B business refers to the smooth flow of goods over 30 kg between factories, warehouses, and stores, meeting online and offline distribution, replenishment, transfer, and reverse needs. The Xintonglu city distribution business is also undertaken by JD Logistics. It is worth noting that in February 2018, JD officially launched the Xintonglu Cloud Warehouse distributor franchise plan: Xintonglu's own products are distributed from the central warehouse to the franchise warehouse, and the franchise warehouse's second-stage delivery to stores is subsidized with 3% logistics costs. Distributors' own products sold on the Xintonglu platform receive a 0.5% bonus (qualification requirements: A-class FMCG beverage first-level wholesaler, with 100 square meters for JD's own products).
**Evaluation:** The launch of JD Logistics' cloud warehouse business indicates that its 2B city distribution network is not yet complete and cannot provide competitive services. It also means that JD Logistics is temporarily unable to break through, and has chosen to give up deep cultivation of the FMCG city distribution business in the short term. Since the second half of 2018, independently financed JD Logistics has been burning cash too quickly, leading to increasing revenue assessment requirements for JD Cloud Warehouse. As the core warehousing and distribution work of Xintonglu, once JD Cloud Warehouse demands revenue, it is bound to conflict with Xintonglu's rapid expansion. How to balance this will be the key to coordination between the two sectors.

3. Weijie City Distribution
Weijie City Distribution was established in 2014, with its management and operations headquarters established in Shanghai in July 2015. Weijie City Distribution focuses on integrated warehousing and distribution services, targeting two main lines: catering and supermarkets, serving three types of clients: brand owners, channel providers, and chain terminals.
Image source: Logistics Insight
Weijie City Distribution completed Pre-A and A round financing in December 2015 and December 2016 respectively, and completed a B round of 116 million yuan on June 12, 2018. As of June 2018, Weijie City Distribution operates in more than 30 cities including Shanghai, Xiamen, Guangzhou, Hangzhou, Nanjing, Ningbo, Suzhou, Changsha, Zhengzhou, Dalian, and Hefei, with abundant warehousing and vehicle resources. Among them, multi-temperature warehouse area exceeds 300,000 square meters, with over 1,500 core transport vehicles and 7,500 outsourced vehicles. Weijie City Distribution's current main markets are in East China and Central China, serving mainly chain supermarkets, chain restaurants, B2B platforms, brand owners, and distributors.
**Evaluation:** Through years of market cultivation and strong technical strength, Weijie City Distribution has strong capabilities in fulfilling large client orders and has built a strong industry reputation in the city distribution field. However, its current shortcomings are also obvious: low retention of large clients, heavy reliance on traditional supermarkets, and limited scale of unified warehousing and shared distribution model implementation.

4. Fengwang
Fengwang was established in 2007, formerly known as Wuzhou Online, a well-known e-commerce operations service provider in China. Fengwang developed the then most advanced warehousing and distribution operation management system in China, managing and operating more than 200 warehouses nationwide for Alibaba's e-commerce platforms. This system later became the core and foundation of Alibaba's Cainiao Network's "Sky Net." In January 2017, Fengwang officially became independent, and the following month, Fengwang officially launched its new retail business, building a fourth-party supply chain sharing service platform based on the S2B2C model.
Image source: Logistics Insight
In its early development, Fengwang used the ambient FMCG industry as the entry point for its overall business, and will continue to expand into other industries such as fresh food cold chain, digital home appliances, home building materials, auto parts, and clothing textiles, serving urban residents' daily needs while supporting the construction and upgrading of urban infrastructure.
**Evaluation:** Relying on capital investment from internet giants, coupled with its operational experience accumulated in traditional industries, Fengwang has completed basic technology development and has certain talent advantages. However, its immature business model has led to poor customer reputation in the early stages, and R&D investment is relatively large.

5. Wanchaobang
Wanchaobang is a warehousing and distribution plus matchmaking B2B trading platform, established in 2016. It connects upstream brand owners, downstream retail terminals, distributors, warehouse operations personnel, and delivery teams, aiming to help first-level FMCG distributors solve goods warehousing and distribution problems.
After nearly two years of development, Wanchaobang has 2 directly operated warehouses nationwide, with a warehouse area of about 20,000 square meters. It has achieved a monthly GMV of 40 million yuan, serving major brands such as Uni-President, Wong Lo Kat, Nongfu Spring, and Yinlu.
**Evaluation:** Wanchaobang's advantage lies in its core team's comprehensive understanding of FMCG B2B and informatization, with a focus on refined single-warehouse operations. It has strong large-client capabilities, having signed strategic cooperation agreements with China Tobacco New Commercial Alliance, Wangxin Xinyunlian, and Yunlian Jinfu. The team is basically mature, and cost control and operational capabilities are on track. However, its overall operational scale is relatively small, and limited financing may become a major factor hindering its growth.

6. Zhoupuyuncang
Zhoupudata was established at the end of 2015. In 2016, Zhoupuyuncang officially launched its cloud warehouse project and settled in Lianyungang. Cloud warehouse projects in Haizhou, Xuzhou, Yancheng, and other places are being implemented successively, with warehouse area of tens of thousands of square meters. Zhoupuyuncang currently mainly serves distributors, and may extend its business scope to brand owners in the future.
**Evaluation:** Zhoupuyuncang's core advantage lies in its strong technical team, with core founders from well-known internet companies such as Microsoft, Facebook, and Google, possessing deep technical accumulation. At its inception, Zhoupuyuncang focused its market on the northern Jiangsu region, deeply cultivating the regional market, with good customer reputation and satisfaction. Its self-developed management system has good flexibility, and it has strong support from local government in Jiangsu Province. Zhoupuyuncang's disadvantage is that its founding team lacks a background in the FMCG industry, requiring in-depth understanding and磨合 with the distributor segment, and its market coverage is relatively small.

7. Yishang Logistics
Yantai Yishang Logistics Co., Ltd. was established in 2002, mainly engaged in warehousing, loading and unloading, and distribution services for daily necessities such as food, beverages, and alcoholic drinks. As of now, Yishang Warehousing serves more than 230 trading companies, covering more than 10,000 products including food, alcoholic drinks, beverages, daily necessities, home appliances, grain and oil, and dried goods, covering more than 6,000 supermarkets, with an annual outbound value of about 6 billion yuan.
In the first half of 2014, Inspur Group and Yishang established a partnership, jointly investing to establish a joint-stock company and jointly launched the "Wanshanggou" B2B e-commerce platform. The Yishang model has become a replicable business model of "warehousing + loading and unloading + distribution + sales + e-commerce + financing," with 4 cloud warehouses and a warehouse area of about 70,000 square meters, mainly covering the Yantai and Weifang markets.
**Evaluation:** Yishang Logistics is one of the earlier warehousing and distribution enterprises in China engaged in same-city cloud warehouse distribution business. In its early development, it made good use of local government, brand owner, distributor, and supermarket resources. However, its single profit model and difficulty in large-scale replication are the main reasons affecting its growth.

8. KYD
KYD was established in 2006 and is one of the earlier city distribution service providers in China. In 2015, it was officially listed on the New Third Board, becoming the first city distribution stock in China. Currently, KYD has established a nationwide city distribution network, on which it has built its own FMCG K56 supply chain management platform, providing four basic services: distribution, warehousing, distribution, and brand maintenance, as well as value-added services such as circulation processing, collection on behalf, solution design, supply chain finance, and big data.
KYD has 8 central warehouses nationwide, with each warehouse area ranging from 30,000 to 70,000 square meters, and a total warehouse area of about 300,000 square meters. Its transport capacity structure mainly consists of self-owned vehicles + third-party logistics company orders + outsourced social vehicles, mainly covering Guangzhou, Dongguan, Fuzhou, Shanghai, Changsha, Tianjin, and other places.
**Evaluation:** KYD has long been deeply cultivating the South China and East China markets, with strong large-client capabilities, having maintained cooperative relationships with China Resources' brands in South China and East China for many years. It has transformed from a pure logistics intermediary platform to an FMCG unified warehousing and distribution platform. Moreover, through listing on the New Third Board, its financial processes are relatively standardized, with strong capital increase and financing capabilities. KYD's current shortcomings are also obvious: heavy reliance on large clients, its new unified warehousing and distribution business is in its infancy, with a very small market share and a lack of obvious core competitiveness.

9. Wangcang Technology
Wangcang Technology was established in June 2011. In its early development, it mainly provided fourth-party warehousing services for COFCO, NetEase Kaola, Suning, Tmall big sellers, etc. Its self-developed information management system has a high degree of standardization in warehousing and distribution daily management, giving it strong comprehensive competitive advantages in the C-end warehousing and distribution field. Wangcang's independently developed Wangcang No. 2 warehousing and distribution system is still commonly used by many warehousing and distribution enterprises.
As of now, Wangcang has a warehouse area of 400,000 square meters nationwide, serving hundreds of clients across multiple categories including maternal and infant products, food, clothing, and cosmetics, covering millions of SKUs.
**Evaluation:** Wangcang has accumulated rich warehousing and distribution management experience during its development, and its multi-SKU management capability enables it to handle warehousing and distribution situations across different categories and multiple SKUs. However, its current clients are mainly concentrated in the large-client segment, and fulfillment is mostly outsourced to third-party express logistics companies. In the B-end FMCG city distribution field, its software is not yet mature, and it appears relatively weak at the client level.

**On October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Industry big names have sent their blessings; click the video to watch. For more conference details, see below.**
**2018 China FMCG City Distribution Logistics Conference** At that time, New Distribution will invite industry big names, FMCG warehousing and distribution experts, and distributors who have transformed into unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution, under the theme "New Distribution, New City Distribution." We hope it will bring you different inspiration and thinking! The specific conference agenda is as follows:

**List of Participating Companies**
In no particular order
Hunan Zonglan Diandan Network Technology Co., Ltd.
Jingbang (Wuhan) International Freight Forwarding Co., Ltd.
Mengniu Dairy
Qinghai Hanxiang E-commerce Co., Ltd.
Unilever Service (Hefei) Co., Ltd. Shanghai Branch
Huicong
Hunan Xuan'ang Food Co., Ltd.
Guangzhou Tongdaoren Information Technology Co., Ltd.
Qingdao 888 Trading Co., Ltd.
Uni-President Enterprises (China) Investment Co., Ltd.
Hunan Province Zhongxiang Gongpei Logistics Co., Ltd.
Shenglong Ingredients
COSCO Shipping Logistics Warehousing and Distribution Co., Ltd.
Guangxi Yongpai Liquor Co., Ltd.
Shangqiu Kangrong Trading Co., Ltd.
Jinan Dingzhong Trade Co., Ltd.
Liaoning Bimai Agricultural Technology Co., Ltd.
Kunming Xiongjia Trading Co., Ltd.
Shaanxi Houheng Trading Co., Ltd.
Guangzhou Dingwo Enterprise Information Consulting Co., Ltd.
Shaodong Jiajiale Commercial Firm
Boda Trading
Industrial Bank Changsha Branch
Wuhan Muchen Convenience Store Chain Co., Ltd.
Fujian Fuxing Yuncang Logistics Co., Ltd.
Guizhou Yilimi E-commerce Co., Ltd.
Jiangxi Xiao Laoer E-commerce Co., Ltd.
Jinshankoufu
Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd.
Shanxi Dezhu Supply Chain Management Co., Ltd.
Shaoyang Tongdeli Trading (Xiangbang Logistics)
Huanfu
Tongda Express City Distribution
Beijing Xinjingxiang Food Co., Ltd.
Wuhan Huizhong Tianhong Liquor Co., Ltd.
Changsha Paide Biotechnology Co., Ltd.
Chaoan Tuqiang
Guizhou Yihe Bopin Supply Chain Management Co., Ltd.
Jiangxi Kang'en Industrial Development Co., Ltd.
Xiangtan County Yisuhe Town Yuhua Paper Store
Luoyang Yuanlang Trading Co., Ltd.
Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd.
Hunan Yongfu Jiujiu Trading Co., Ltd.
Zhejiang Chengchengtong Logistics Co., Ltd.
Chongqing Kaiguo Materials Trading Co., Ltd.
Beijing Xianmaixianmai Data Technology Co., Ltd.
Hanchuan Qixing Trading Co., Ltd.
Tongxin Jiuzhi Trading Co., Ltd.
Guizhou Meiguo Guoguo Network Technology Co., Ltd.
Hubei Anjie Logistics Co., Ltd.
Hubei Kuaixiao Hulian Technology Development Co., Ltd.
......
**Representatives of Distributor Transformation (Proposed)**
In no particular order
Rong Jun, Chairman of Jiangsu Huashang City Distribution Network Co., Ltd.
Wang Bo, Chairman of Hubei Yijiaren Logistics Co., Ltd.
Jiang Shuming, General Manager of Sichuan Chengdu Xingrenxing Trading Co., Ltd.
Liu Jichen, Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd.
Tu Mingyu, Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd.
Yang Su, Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd.
Yuan Xia, Chairman of Sichuan Bajie Supply Chain Management Co., Ltd.
Li Qiangyun, Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd.
Zhang Jianyong, Chairman of Henan Xuchang Jiulegou E-commerce Co., Ltd.
Ma Haichao, Founder of Hebei Changyi Logistics Co., Ltd.
Meng Yucun, General Manager of Hebei (Chengde) Wulian Yuncang Co., Ltd.
Zhang Xun, Chairman of Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd.
Zhang Hailing, Chairman of Jilin Sanxing Lian'gou
Qiang Huitao, Founder of Hebei Dunjie Supply Chain Management Co., Ltd.
Liao Lei, General Manager of Hunan Damei Supply Chain Management Co., Ltd.
......
-END-


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