Click the image for details Before the spring of 2019 even began, B2B suffered another unexpected blow. The matchmaking B2B platform Huixiadan, which claimed to have received investment from Tencent, shut down, marking the end of an era. Since the second half of 2018, FMCG B2B platforms have been failing one after another; I won't list them all. It is said that surviving B2B platforms are also struggling, with many undergoing "contraction" or "transformation." But, There's always a "but." Is B2B about to die? Are there no successful players in the market? There are.
First: Yilufa, a B2B platform incubated by RT-Mart, with annual revenue approaching 5 billion yuan.
Second: Platforms like Meiyijia, Furongxingsheng, and Xingaoqiao, with annual GMV ranging from 1 to 3 billion yuan.
Third: Platforms like Yijiupi and Kuaile Zhanggui.
Fourth: Platforms like Alibaba's Ling Shou Tong and JD's New Channel.
Fifth: Eternity (Yiyatong). The above classification may not be rigorous, but it is quite illustrative. Analyzing the survivors, Ren Xiaodong noticed a phenomenon. That is, platforms that provide solutions to manufacturers or solutions to terminals tend to survive better. The criteria for "surviving better" are: Being able to endure and having a profitable business model. Those that don't serve either side are in trouble. Recently, the New Distribution B2B research team published a comparative article on B2B supply chains in China and the U.S. The research found that the reason B2B grew in the U.S. is that the market infrastructure was gradually perfected over 200 years. Only B2B built on complete infrastructure can last long and be valuable. In China, perfecting infrastructure is still a process. China is a commercial world where agricultural civilization, industrial civilization, and information civilization coexist, and it is also a populous country covering markets from first to sixth-tier cities. Therefore, the development of B2B over the past four years has just completed the digital enlightenment of various roles and nodes in the supply chain. There is still a long way to go. From the perspective of the innovation diffusion curve, it has just entered the growth stage. With the digital integration of brand manufacturers, the improvement of third-party urban distribution, the tax costs brought by the launch of the third phase of the Golden Tax Project, the relocation of urbanization supporting facilities, and changes in national population policies, labor relations policies, and financial policies, the Chinese FMCG B2B track will surely usher in new hotspots and an explosion. When will the lotus leaves in a pond cover the entire surface? Answer: On the 29th day. So, for FMCG B2B, "endurance is the basic strategy." Returning to the value proposition of the market, think: What service value can we provide for brand manufacturers' digital channels and terminal stores' new retail solutions? B2B is not a business model; it is merely a digital tool. Revolutionizing the supply chain and optimizing its efficiency is the key. Build high walls, delay claiming kingship, focus on density, and provide value solutions (for retail stores, consumers, and manufacturers). It can become a digital distribution partner and empowerment platform for brand manufacturers (e.g., Ling Shou Tong, New Channel, Yijiupi, etc.)
It can become a new retail solution empowerment platform for terminal retailers (e.g., Caihua Commercial, Xingsheng, Xingaoqiao, Meiyitian, etc.) These are the two best benchmark directions I have observed. Of course, it is also good if some partners eventually sell themselves to large platforms. Alternatively, they can cooperate with third-party logistics and outsource all non-cost-reducing activities. Finally, I would like to share a poem to encourage fellow travelers: Avalanche At first Quiet and beautiful scenery Gradually Seemingly insignificant innovations Then a crisp cracking sound Innovation's effect becomes unstoppable In an instant A huge energy field gathers Disruption begins Old enterprises are covered wave after wave Then, the collapse of the entire industry Next, it impacts the wider world with irresistible force... This is the survival environment for enterprises in the mobile internet era: overwhelming, survival of the fittest. Any enterprise that cannot adapt to the mobile internet will face an environmental impact like an "avalanche." New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar and Wine Fair from March 15 to March 18. This conference will focus on the theme "Breakthrough" and engage in in-depth discussions with brand manufacturers, supply chain service providers, distributors, and retailers. Compared to previous conferences, this summit will be fully upgraded. In addition to original topics such as channel innovation, urban distribution logistics, and distributor transformation, it will add multiple parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail. Through three days of ten high-density, high-quality expert sharing sessions, we believe every brand manufacturer and distributor can learn the latest business models, expert insights, and practical methods, finding new tools and approaches for their own breakthrough in 2019 and returning to a path of high-speed growth. Review of Previous Conferences -END-