---
title: "In the Second Half of Internet Entrepreneurship, Do Distributors Still Have a Chance in B2B?"
description: "The frenzy of Double 11 has just ended, and the shoes I bought on Tmall have not yet been shipped. Seeing the delivery points across the country, campus playgrounds, community convenience lockers, and various couriers shuttling through office buildings, one can feel how vibrant e-commerce is in China. With Tmall's Double 11 sales reaching 120.7 billion yuan and JD.com's over 57 billion, the data is staggering, reflecting Chinese consumers' enthusiasm and the prevalence of e-commerce. I can't help but ask: Is there still an opportunity for internet entrepreneurship in China? Many say the first half of internet entrepreneurship is over, so is there still a chance in the second half?"
author: "望远"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-11-21"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/in-the-second-half-of-internet-entrepreneurship-do-distributors-still-ha-6bc9f1f1.md"
original_source: "https://mp.weixin.qq.com/s/KBQilyBtf9zatjwnwBuXTw"
translation: "https://xinjignxiao.com/zh/articles/%E4%BA%92%E8%81%94%E7%BD%91%E5%88%9B%E4%B8%9A%E4%B8%8B%E5%8D%8A%E5%9C%BA-%E7%BB%8F%E9%94%80%E5%95%86%E5%81%9Ab2b%E8%BF%98%E6%9C%89%E6%9C%BA%E4%BC%9A%E5%90%97-6bc9f1f1.md"
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---

# In the Second Half of Internet Entrepreneurship, Do Distributors Still Have a Chance in B2B?

> The frenzy of Double 11 has just ended, and the shoes I bought on Tmall have not yet been shipped. Seeing the delivery points across the country, campus playgrounds, community convenience lockers, and various couriers shuttling through office buildings, one can feel how vibrant e-commerce is in China. With Tmall's Double 11 sales reaching 120.7 billion yuan and JD.com's over 57 billion, the data is staggering, reflecting Chinese consumers' enthusiasm and the prevalence of e-commerce. I can't help but ask: Is there still an opportunity for internet entrepreneurship in China? Many say the first half of internet entrepreneurship is over, so is there still a chance in the second half?

> The frenzy of Double 11 has just ended, and the shoes I bought on Tmall have not yet been shipped. Seeing the delivery points across the country, campus playgrounds, community convenience lockers, and various couriers shuttling through office buildings, one can feel how vibrant e-commerce is in China. With Tmall's Double 11 sales reaching 120.7 billion yuan and JD.com's over 57 billion, the data is staggering, reflecting Chinese consumers' enthusiasm and the prevalence of e-commerce. I can't help but ask: Is there still an opportunity for internet entrepreneurship in China? Many say the first half of internet entrepreneurship is over, so is there still a chance in the second half?

Looking at the entire history of internet entrepreneurship in China, you'll find that early internet projects were very light. Whether it's Taobao, QQ, Baidu, JD.com, WeChat, Alipay, 360, or iQiyi, they were all pure online companies with information as the main body and matchmaking as the primary business model. As a connecting tool, the internet helped people transcend time and space, allowing 1.3 billion Chinese to access information and news at extremely low cost, enjoy convenient shopping, and engage in barrier-free cross-regional communication.

China's huge population base has created a large number of high-quality internet companies. BAT (Baidu, Alibaba, Tencent) controls every aspect of our lives, like three superpowers, but they also face the demographic dividend fading and the slowdown in internet penetration growth. As Robin Li said at the Third World Internet Conference: Mobile internet has ended. There is not much room for growth in Chinese netizens.

In the past 20 years of rapid development, China's traditional economy has been built on labor-intensive industries supported by an inexhaustible supply of cheap labor. However, with rising labor costs and an aging population, companies find it increasingly difficult to sustain the path of expansion through scale and manpower. Therefore, **using tools and internet means to improve efficiency becomes very valuable.**

Of course, many internet giants have realized this. Alibaba invested in Intime, Suning, and KFC; JD.com acquired Yonghui; Tencent invested in South China City. More and more internet companies are combining with offline entities. By leveraging online information advantages and integrating with offline industries, they aim to make traditional business more efficient and better meet consumer demands.

Whether it's the State Council's "18 Guiding Opinions on Promoting Innovation and Transformation of Physical Retail" launched on Double 11, or the "Online-Offline Integration and Innovation" proposed at the Third Global Internet Conference, it reflects that the entire industry recognizes the need for traditional industries to integrate with the internet. So, I dare to make a bold guess: the next decade will be the era of the industrial internet.

**So, do FMCG distributors still have a chance in B2B?**

**The answer is definitely yes.** First, despite e-commerce's prevalence for so many years, it still accounts for a small proportion of total retail sales in China, currently around **12%**. In the FMCG industry, **e-commerce penetration is even less than 5.3%**. Such a small market share indicates that the industrial internet still has significant room for growth.

Second, **most traditional industries in China are currently facing oversupply**, especially the FMCG industry. Manufacturers are still pushing inventory onto distributors, while terminal sales are severely sluggish. Additionally, with consumption upgrading, manufacturers are increasingly unable to meet consumer demands. This industry urgently needs information technology transformation to achieve industry upgrading.

**Furthermore, the FMCG industry is a huge stock market. Traditional FMCG manufacturers have cultivated their channels for many years and have perfect control over them. As supply chain leaders, they do not want their products to be "exclusively sold" by a certain platform, but rather hope for more transparent channels and more efficient distributors. Therefore, if internet giants try to get involved in this industry, manufacturers will find it hard to agree. But if distributors do it themselves, manufacturers will definitely welcome it.**

**Having been immersed in the FMCG industry for many years, I know the difficulties of this industry well. Reconstructing this industry is urgent. However, FMCG distributors are generally older and have lower education levels. The biggest characteristic of this group is that they are closer to warehouses and farther from the internet.** In recent years, sales have declined, business is tough, and the internet impact makes them want to transform and use the internet to improve themselves, but they lack good methods.

If distributor friends want to transform, you might as well scan the QR code below. The business philosophy of Kuaixiao Bang is to make FMCG business technological. It allows distributors to easily achieve internet transformation.

-END-

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