Click the image for details. New Distribution is currently conducting a national FMCG B2B competitiveness survey, covering the top 40 cities by economic ranking. The research has uncovered an interesting phenomenon: alongside familiar platforms like JD New通路, Alibaba Retail Link, Zhongshang Huimin, Yi Jiupi, and Dianshang Hulian, there are numerous localized e-commerce platforms that are performing remarkably well in the market. Examples include Tao Daqing in Heilongjiang, San Sheng Lian Gou in Jilin, Lian Pin Wang in Liaoning, Xiao Lao Er in Jiangxi, Mei Yi Tian in Hubei, Kuai Lai Ding and Chao Ku in Shanghai, Yi Sheng Huo in Chongqing, Niu E-commerce in Jiangsu, Rong Cheng Yi Gou and Hui Jin Huo in Chengdu, and Yun Shang Tong in Kunming. The founders of these platforms are mostly FMCG industry veterans or distributors, with a few internet professionals who returned to their hometowns to start businesses in collaboration with local distributors. In terms of operational models, the majority adopt a unified warehousing and distribution approach, achieving shared logistics and building an order trading platform on top of that foundation. New Distribution has found that these local distributor-founded platforms fully leverage their "local snake" advantages in coverage, penetration, delivery capability, and terminal service, earning widespread recognition and praise from small shop owners. This has sparked considerable reflection for me; I suddenly feel that the power of localized B2B e-commerce is gradually rising. Why do I say this?

  1. After education and guidance from major platforms, most small shops have generally accepted the B2B ordering model.
  2. National platforms are far less familiar with local conditions and environments compared to distributors.
  3. When distributors transition to B2B, a significant portion of traffic comes from migrating offline existing business online. For example, Nanjing's Niu E-commerce first moved its offline transactions online, then gradually expanded categories.
  4. After two years of market education, distributors have generally accepted third-party warehousing and distribution models, making the migration of existing business online much easier than for national e-commerce platforms to acquire new users.
  5. As mentioned earlier, major platforms often have operational management deficiencies in local branches, but distributor entrepreneurs manage their operations with much greater precision.
  6. The salespeople for customer acquisition are often the distributors' own staff, so customer relationships are well-established. The transformation of the industry by B2B cannot yet be separated from the migration of existing business online, but that existing business is in the hands of these distributors. If local distributors awaken, reach consensus, and jointly embrace change to rapidly upgrade their business models, I believe the difficulty for distributors to succeed in e-commerce will be far lower than for national e-commerce platforms. Furthermore, in terms of business extension, distributors have significant room to expand into convenience stores, B2C, supply chain finance, and related convenience services. Of course, I am not deliberately praising localized e-commerce, as there are still many problems at this stage:
  7. Business model issues: Distributors entering with a single product may face competitors who don't go online, and the matching model may not involve existing business migration.
  8. Multiple distributors collaborating often encounter various cooperation issues.
  9. There is a lack of professional e-commerce operations talent.
  10. Financial resources are limited.
  11. Founders' cognitive ceilings.
  12. Lack of monetization paths.
  13. They are not favored by the capital market.
  14. Expansion is difficult. Of course, these problems are not insurmountable. In terms of business models, many distributors have found suitable models through exploration. For information system support, there are numerous third-party e-commerce systems available nationwide, such as Haiding Qianfan, Dinghuobao, Zhongke Shangruan, Chengpu, and Dianxiaohuo. Regarding monetization paths, I believe that as long as you do e-commerce well locally, there will always be value. Through regional platform alliances, mergers, and integrations, you can become a regional leader. Moreover, some capital parties have begun to notice localized e-commerce platforms that are performing well, and some are willing to provide support. The integration of traditional industries with the internet is an inevitable trend. If you don't do it, someone else will come to your locality to do it for you. Looking at the development trends of supply and distribution channels, scale, informatization, public transit, integration, and closure are already very obvious trends. Over the past 20 years, brand owners have dominated China's consumer goods channels, but in the next 20 years, supply chains serving the retail system will dominate. The way retail stores purchase goods is becoming increasingly closed. If distributors do not change, the final result will be that JD.com secures 1 million stores, Alibaba secures 1 million stores, and other platforms gradually cover several million more. How many stores will be left for distributors? So, it's not about eliminating distributors, but rather B2B upgrading retail stores, making distributors who don't serve retail unnecessary. Click the image for details. The Third (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. The conference will closely revolve around the theme "New Forces, New Ecology," inviting 1,000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to jointly explore a new chapter of cross-industry integration! Core topics of this conference:

  • How can the FMCG industry leverage B2B to achieve new growth opportunities?

  • How should the new supply chain behind new retail be built?

  • How can intra-city logistics help B2B achieve leapfrog development?

Highlights of this conference:

  • The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"

  • Case studies of outstanding distributors' transformation and upgrading

  • Upgraded conference and exhibition: Hall 6 Internet Technology Exhibition strengthens networking

  • Leaders from Alibaba Retail Link, GLP Finance, Eternal Asia Supply Chain, Best Dianjia, Yijiupi, Unilever, Haiding Technology, and Yunmei Shares will deliver keynote speeches and share pioneering insights.

November 8-9, 2017 Chongqing International Expo Center Registration is now open. Long-press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend with note "Conference Registration" Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum 2017 (Second) China FMCG + Internet Conference Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum -END-