---
title: "Industry Leaders Gather: A Regional Distributor Development Alliance Event Just Beginning!"
description: "The FDIC2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the China E-Commerce Association FMCG Industry Branch, was held grandly at the Shanghai Baohua Marriott Hotel Conference Center from August 22 to 24. It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. On the afternoon of August 22, four parallel forums were held: the New Distributor Forum, the Deconstructing New Marketing Forum, the Brand Innovation Growth Forum, and the Interpreting Regional Dominance Forum. The following content is an excerpt from the 'Interpreting Regional Dominance Forum' hosted by Zhongke Shangruan and New Distribution."
author: "New Distribution"
publisher: "New Distribution"
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published: "2018-08-22"
language: "en"
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# Industry Leaders Gather: A Regional Distributor Development Alliance Event Just Beginning!

> The FDIC2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the China E-Commerce Association FMCG Industry Branch, was held grandly at the Shanghai Baohua Marriott Hotel Conference Center from August 22 to 24. It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. On the afternoon of August 22, four parallel forums were held: the New Distributor Forum, the Deconstructing New Marketing Forum, the Brand Innovation Growth Forum, and the Interpreting Regional Dominance Forum. The following content is an excerpt from the 'Interpreting Regional Dominance Forum' hosted by Zhongke Shangruan and New Distribution.

The FDIC2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the China E-Commerce Association FMCG Industry Branch, was held grandly at the Shanghai Baohua Marriott Hotel Conference Center from August 22 to 24. It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale.

On the afternoon of August 22, four parallel forums were held: the New Distributor Forum; the Deconstructing New Marketing Forum; the Brand Innovation Growth Forum; and the Interpreting Regional Dominance Forum.

The following content is an excerpt of the wonderful speeches from the guests at the 'Interpreting Regional Dominance Forum' hosted by Zhongke Shangruan and New Distribution, compiled for our readers.

Moderator: Wang Jun

The forum's theme was '**Interpreting Regional Dominance: How They Defend Their Existing Stock and Capture a City's Traffic Entrance through Platform Transformation**', providing a platform for participating distributors, enterprise service providers, and retail enterprises to communicate and exchange ideas. It aims to help FMCG manufacturers and regional distributors gain practical experience in supply chain operations and best application practices, while also bringing together brand owners and regional major distributors who stand at the forefront of new retail and drive the digital transformation of the FMCG supply chain, sharing case studies of digital transformation from industry enterprises and partners to advance the digital transformation and upgrading of the FMCG industry.

**Guest Speeches at 'Interpreting Regional Dominance'**

1. Shang Puhe, Co-founder of Zhongke Shangruan
**▶ Speech Topic: 'Distributors Facing Transformation: There Is No Common Path, Only Your Own Path'**
Retail industry owners must clearly recognize that to empower the entire supply chain, integrate resources, and adapt to new retail development trends, building a B2B platform is one of the important pathways.
In this process, they need to transform channel models through thinking, build a supply chain-centric system that links distributors and terminal stores to improve marketing efficiency, and provide full-chain information services. Distributors also need to take steady steps and work diligently, as there is no shortcut on this path.

2. Yan Lu, CEO of Tao Daqing
**▶ Speech Topic: 'Resisting External Platforms and Penetrating 8,000 Local Terminals: What Did I Do?'**
It's not that business is hard; it's that the market environment for doing business has changed. The upgrading of traditional distributors is an inevitable trend, and the application of Internet+ is everywhere. The thinking of 'Internet + traditional supermarkets + convenience stores' is indispensable. So, how effective is internet commerce? Let the data speak: Tao Daqing currently covers over 8,000 terminal stores in Daqing City, with 30% independent orders, 48% active stores, a daily maximum of over 1,000 orders, and a daily maximum amount of 1.28 million yuan!
So, with a team, distribution network, goods, vehicles, and warehouses, as a distributor you have so many advantages—you just lack a platform!

3. Qiang Huitao, CEO of Shijiazhuang Dunjie Supply Chain
**▶ Speech Topic: 'Resisting External Platforms and Penetrating 8,000 Local Terminals: What Did I Do?'**
Most of our distributor partners here have goods, warehouses, vehicles, people, channels, and even their own terminals. So what are we missing? Distributors know that to integrate the entire industry chain, a platform is necessary. Whether or not to build a platform, frontline service personnel are the core competitiveness of offline distributors rooted in regional markets. From visit-based to consultant-based, Dunjie's advantage lies in product organization and customer relationships, empowering small stores, serving the C-end, creating store-in-store concepts, where the store is the warehouse and the warehouse is the store, increasing store owners' additional income. The platform is all about altruism, user first, just like our Dunjie slogan: 'Your success is our success.'

4. Zhao Yan, CEO of Wuqianjia Supply Chain
**▶ Speech Topic: 'Resisting External Platforms and Penetrating 8,000 Local Terminals: What Did I Do?'**
The Wuqianjia Supply Chain Platform is the first fully digital FMCG supply chain platform in Liaoning Province and the first in Yingkou. With professional intelligent warehouses, a complete logistics supply system, three-story ambient temperature warehouses, nearly 10,000 square meters of product display, and over 10,000 products, it can meet the supply needs of the entire B-end market in the Yingkou region. Why do we want to build an FMCG supply chain platform? For a simple reason: wherever there are stores, there is a need for supply chains.
And how big is this market? There are 6.5 million small mom-and-pop stores nationwide waiting for upgrades; the three northeastern provinces have a population of about 100 million, with about 300,000 small stores, and a market of about 300 billion yuan, with 100,000 stores needing transformation and upgrading. In the future where supply chains and ecosystem enterprises are gradually reshaping retail, Wuqianjia will empower terminal small stores to become regional kings, deeply cultivating the region versus integrating the whole province, converting and opening existing supply chain capabilities, privatizing, and keeping brand data local.

5. Ma Haichao, CEO of Changyi Logistics
**▶ Speech Topic: 'Resisting External Platforms and Penetrating 8,000 Local Terminals: What Did I Do?'**
Here, I would like to share the entire operation model of Changyi Logistics' unified warehousing and distribution. Changyi Logistics implements full-line circulation control from headquarters controlling stores to cargo owners, salespeople, then to WMS warehousing, and circulation to terminal small stores; optimizing inventory, reducing returns, separating people from vehicles, reducing hidden cost waste, regional sharing, flexible orders, enabling new product promotion, wider network coverage, higher salesperson visit rates, timely delivery, and bank cooperation. The warehousing and distribution link is the core foundation of the entire supply chain system and the prerequisite for supply chain construction. Therefore, in building the entire supply chain system, logistics company construction should be placed in the primary position.

6. Pei Xueliang, Operator of Jiulegou
**▶ Speech Topic: 'Resisting External Platforms and Penetrating 8,000 Local Terminals: What Did I Do?'**
During Jiulegou's successful transformation from agent to B2B, the focus was placed on small stores because traditional distributors focus on large stores and neglect small stores, leaving them to second-tier distributors! Jiulegou used the B2B platform to solve the four major problems of small stores: difficult ordering, high prices, slow delivery, and high inventory. For example, through omni-channel ordering, shared salesperson ordering, transparent and open platform pricing, eliminating second-tier distributors, using a mix of large and small vehicles by store and route, enabling delivery beyond challenges, encouraging fewer orders but more frequent ordering and multi-SKU ordering. Development bottlenecks are inevitable for everyone; unified warehousing and distribution is the best way to solve our current bottleneck by putting partner goods into the warehouse and selling them. Finally, Jiulegou successfully won over 50 agents in 5 months by solving labor, warehousing, distribution, and sales issues. Through online operations such as high-low gross margin matching, fast-slow matching, WeChat promotions, and joint brand promotions, they increased customer attention, quickly drove platform traffic, and improved overall gross margins.

7. Wang Shenbing, Founder of Zhongke Shangruan
**▶ Speech Topic: 'Exploring Ways to Enhance Competitiveness for Regional Distributors!—Efficiency Does Not Equal Competitiveness'**
If the industry chain is compared to a pyramid, then warehousing and logistics must be the base. The speed of goods storage and distribution determines the fate of stores. Distributors often know this well, so building their own warehousing and stores undoubtedly saves operating costs, which is unquestionable. In the domestic market, many distributors are trying this, and there are many successful cases.

**On-site Highlights of Industry Leaders' Gathering**

Conclusion: At Salon Forum 4 of the 2018 China FMCG Digital Innovation Conference, invited guests shared their views on how to become regional kings and, under the influence of the retail trend, defend existing stock and become regional major distributors. Attendees exchanged and learned from each other.

Zhongke Shangruan looks forward to more open discussions and sharing of wisdom with more industry experts in the future. Adhering to the principle of 'providing users with business operation model guidance and building technology platforms,' it will provide industry representatives with more conferences for learning, inspection, and exchange, sharing the retail wisdom accumulated by Zhongke Shangruan over decades!

Click **Read Original** to view more exciting moments from the conference...

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