---
title: "How Can the FMCG B2B Matchmaking Model Create Value?"
description: "The matchmaking model faces challenges because B2B transactions in regional markets are frequent and stable, making it easy for both parties to bypass the platform. Unlike B2C, where short supply chains offer price advantages, B2B matchmaking lacks such advantages and often targets existing stock, reducing supplier motivation. To succeed, matchmaking platforms should span longer supply chains with sufficient margin incentives, integrate and restructure offline intermediaries into infrastructure, and offer a wide range of products for one-stop shopping."
author: "赵波"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-08-16"
language: "en"
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# How Can the FMCG B2B Matchmaking Model Create Value?

> The matchmaking model faces challenges because B2B transactions in regional markets are frequent and stable, making it easy for both parties to bypass the platform. Unlike B2C, where short supply chains offer price advantages, B2B matchmaking lacks such advantages and often targets existing stock, reducing supplier motivation. To succeed, matchmaking platforms should span longer supply chains with sufficient margin incentives, integrate and restructure offline intermediaries into infrastructure, and offer a wide range of products for one-stop shopping.

The Problem with Matchmaking
B2C platforms like Tmall and JD.com see high purchase frequency from individual consumers, but transactions per store are infrequent, discontinuous, and unstable—one day buying a computer, the next day clothes, with no necessary connection. In contrast, B2B within regional markets involves high transaction frequency between buyers and suppliers, continuous and stable, making it easy for both parties to bypass the matchmaking platform.
First reason: Why do people buy on Taobao/Tmall instead of at their local stores? The core factor is lower prices! Tmall stores sell directly from factory to consumer, defeating a chain from factory to distributor to secondary wholesaler to retail store to consumer. The online chain is short, the offline chain is long, and the short chain saves significant intermediate costs, thus eliminating the long chain. A matchmaking platform from distributor to retail store has no margin advantage online, so no price advantage.
Second reason: For brand owners, every B2C order is incremental, but B2B for first-tier brands touches the existing stock of suppliers, so suppliers lack motivation and see no need to move transactions online.
Summary: One-to-one transactions are discontinuous and unstable, and the short online chain defeats the long chain, so matchmaking succeeds in B2C.
However, FMCG B2B lacks both of these conditions, and many matchmaking platforms start by cutting into existing stock markets with short chains, making such B2B matchmaking models difficult to succeed.
**So where should matchmaking-type FMCG B2B start to succeed?**
## **1. The chain to cross must be long enough to provide sufficient margin incentives.**
Traditional supply chain: Factory → Distributor → Secondary wholesaler → Retail store
Matchmaking supply chain: Factory → Platform → Retail store
The chain from distributor to store has no value or necessity for the platform, but if it goes from factory to store, bypassing distributors and secondary wholesalers, and the platform delivers goods directly from factory to store, as long as efficiency is high enough and the online chain is short enough, there will be enough margin to defeat the traditional supply chain. Thus, the shorter the platform's chain compared to traditional channels, the more obvious the advantage of the matchmaking model.
## **2. Integrate and restructure existing offline intermediaries to become sufficient infrastructure to ensure supply chain efficiency.**
Although matchmaking transactions bypass distributors, goods still need to flow offline. The value-added services originally provided by intermediaries must be completed by the platform through sufficient third-party infrastructure.
At the current stage, when China's infrastructure is not fully developed, the platform needs to utilize existing distributor resources, decompose and restructure their functions, and divide roles by capability. The role originally played by one distributor can be split into warehousing and distribution, ground promotion services, financing, OEM suppliers, etc., making these restructured roles the local market infrastructure for the platform.
Warehousing and distribution:
The platform cannot do everything itself; logistics can be outsourced to third-party city distribution providers like Yishang and Weijie, involving distributors.
Ground promotion services:
Whether JD's ground staff or Alibaba's city partners, they help companies with product ground promotion. However, due to the platform's extensive SKU count, ground promotion staff find it hard to serve a specific brand deeply. This requires matchmaking platforms to cooperate with companies, helping them find brand agents in local markets to handle after-sales service and some channel promotion.
The platform helps some secondary wholesalers and distributors transform into ground promotion service providers for online companies, helping complete tasks like product placement, shelving, and inventory management.
Of course, some distributors can also use the platform to transform into OEM brand owners, moving upstream.
## **3. Products must be abundant enough for stores to purchase everything in one stop.**
As mentioned earlier, A-category product manufacturers and distributors have no motivation to go online, but for matchmaking platforms, A-category products are still an indispensable resource. In some key markets, the platform may appropriately acquire some high-quality large distributors to achieve "control of goods" for important resources.
Although first-tier products have excessive existing stock online and cannot be listed, second- and third-tier brands, as well as numerous unknown but high-quality small and medium brands, face huge competitive pressure and have strong market expansion motivation. If the platform's market coverage is wide and store installations are numerous, it will be highly attractive to any brand lacking nationwide sales expansion capabilities. If the matchmaking platform can list enough high-quality selected SKUs from small and medium brands, stores can simply click a mouse to purchase everything in one stop, making it an excellent preferred purchasing channel for any store.
Therefore, matchmaking differs from self-operated models. Self-operated focuses on A-category products, warehouse turnover, and product margins, but matchmaking should focus more on product richness and deep service to companies and stores, making suppliers and purchasing stores recognize the platform's unique value and providing services beyond products.
**Summary**
Whether self-operated or matchmaking, the ultimate result is to reconstruct channels, replace inefficient distributors with a platform + logistics model, and achieve the platform's commercial goals.
-END-
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