---
title: "How Can Distributors Achieve Sustainable Development Under the Impact of B2B Platforms?"
description: "Traditional distributors face intense competition from B2B e-commerce platforms, and to hold their ground and seek growth, they must address five key elements. These include adjusting business models, leveraging digital tools, embracing internet operations, refining logistics management, and adopting internet marketing thinking."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-06-21"
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# How Can Distributors Achieve Sustainable Development Under the Impact of B2B Platforms?

> Traditional distributors face intense competition from B2B e-commerce platforms, and to hold their ground and seek growth, they must address five key elements. These include adjusting business models, leveraging digital tools, embracing internet operations, refining logistics management, and adopting internet marketing thinking.

Introduction:
Traditional distributors, under the impact of B2B e-commerce, must hold their ground and seek development, with five key elements to address.
With the rapid development of the internet, B2B platform giants have entered the traditional retail industry, making the market environment complex and competition increasingly fierce. Led by Alibaba, JD.com, Zhongshang Huimin, and Zhanghe Tianxia, they have begun nationwide layouts, and every city they enter creates direct competition with local distributors.
According to statistics, there are 6.5 million FMCG store terminals nationwide, of which fewer than 300,000 are branded chain supermarkets, convenience stores, hypermarkets, or specialty stores. The vast majority of retail terminals are still traditional mom-and-pop stores. In the past, these small stores mainly relied on distributors for goods and services, but now, every small store owner has 4 or 5 ordering apps on their phones. Internet giants are leveraging their technological advantages and abundant capital to forcefully enter the channel market of offline distributors.
Under the impact of B2B e-commerce, traditional distributors must upgrade and transform. Where exactly are the future business models and development space? The author believes we must focus on the following key points:
**1. Store supply is no longer the key issue; distributors' business models need adjustment.**
The advent of the mobile internet era has brought about the flattening and transparency of information, making it difficult for distributors to maintain stickiness with merchants through the traditional model of selling products based on information asymmetry. **The digital window for small stores has opened, and many store owners with business awareness have begun to seek transformation,** either by joining branded convenience stores or by linking to B2B platforms to find high-quality, low-cost goods. Distributors must think at the business level about how to provide more valuable services to small stores and create new profit spaces in the future.
**2. Distributors need to use digital means to unite and build barriers.**
The rapid development of the internet brings both new impacts and new opportunities to the retail market. For traditional distributors, they can also combine their years of channel resources and product advantages with internet technology to build their own B2B platforms. By uniting with local distributors to develop together, they can integrate resources, improve resource utilization efficiency, and reduce overall operating costs. In terms of products, one distributor's resources may not be sufficient, but several distributors combined can support it. **Using the data analysis of a self-built B2B platform, they can manage suppliers, channels, inventory, logistics, and distribution, building their own digital fortress, effectively improving efficiency, and having overall control at all times.**
**3. Implement internet operations transformation for instant communication and real-time processing.**
Many traditional small stores use primitive management methods, with handwritten ledgers and memory-based inventory. Some traditional distributors have not yet undergone digital transformation in their business operations. Currently, they must use internet tools to improve digital operational capabilities, making accounting management, order processing, and inventory management more intelligent. First: Build a B2B ordering platform where terminal stores use an app for ordering, and the platform system automatically completes inventory checks, order generation, payment, and logistics distribution, improving overall operational efficiency. Second: Help stores introduce store management systems to improve mastery of store inventory, intelligently guide store ordering, reduce the probability of expired products, reduce reverse logistics, and improve overall supply chain efficiency.
**4. Refined logistics management is an essential capability for future development.**
As the intermediate link in the supply chain, warehousing and logistics are the highest operating cost for distributors and the most difficult to manage. The long-standing extensive management model is increasingly becoming an obstacle to distributor transformation. **Many distributors, focusing on their existing stock and local advantages, are already thinking about transforming into urban distribution logistics, which undoubtedly places higher demands on warehousing and logistics. How to meet the needs of multi-format, multi-scenario customers becomes the next key point.**
**5. Introduce internet marketing thinking; value-added services must keep up.**
In the end, when we talk about ways out, transformation, and internetization, it all comes down to changing mindsets. For terminal stores such as community small stores, micro convenience stores, and mom-and-pop stores, compared to e-commerce giants, traditional distributors better understand what services they need most and what problems they urgently need to solve. On the basis of a certain stickiness, they can help terminal stores create greater revenue. In today's retail market, distributors are no longer just selling goods but selling services. Many value-added services have been loaded onto platform products. While using platforms for promotional activities and advertising, distributors can help terminals access more diverse services, such as finance, wealth management, community, logistics, advertising, membership, and marketing, creating revenue for both themselves and their customers.
In the market turmoil, those who can plan ahead and adjust direction in time to follow market trends are the winners. To provide distributors with more reference cases and understand more service providers, the B-end distributor inspection team organized by "New Distribution" will conduct an in-depth visit to Shanghai Hiding Company on June 21 for comprehensive inspection and exchange. We hope this exchange activity will also bring some inspiration to everyone in the transformation process.
Hiding Company is a first-class retail information service provider in China, serving many national chain convenience stores, supermarkets, and shopping center projects, with rich industry experience.
In 2016, based on more than 20 years of retail informatization experience, Hiding Company proposed the construction of the "Qianfan Platform." The Qianfan Platform is a comprehensive collaborative platform connecting physical merchants and various social resources, providing a series of software and hardware products and value-added services for the vast physical business community.
For distributors, the Qianfan Platform can provide a complete solution, including the inventory management system needed by distributors themselves, warehousing and logistics systems, and information tools for quickly building B2B platforms, aiming to help distributors quickly respond to market changes and upgrade and transform existing operation and management models.
Currently, the Qianfan Platform has launched two major informatization solutions:
**1. Qianfan Youhuo:** A one-stop solution for distributors, including ordering platforms, ordering apps, field salesperson apps, inventory management systems, logistics systems, etc., freely combined by module and used on demand.
**2. Qianfan Zhanggui:** A ready-to-use store management software for small and medium merchants, including cashier and accounting, purchase registration, inventory management, data analysis, membership marketing, and other full functions, and has integrated multiple mainstream mobile payment methods.
In the future, the Qianfan Platform will continue to add more useful tools, products, and partners to help distributors find new ideas for operation and development in the new retail environment.
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