---
title: "Jiapin Yunshi Achieves Annual Sales of 1 Billion in 6 Years: What Did They Do Right?"
description: "In six years, Xi'an Jiapin Yunshi reached annual sales of 1 billion yuan. At the 9th China FMCG Innovation Conference, founder Fan Qi shared the company's journey, emphasizing that choosing the right path is more important than doing things right, and highlighting the importance of determination, patience, and perseverance."
author: "樊奇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-04-08"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/qq_pT0eIfPJeuzZonjoA1A"
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---

# Jiapin Yunshi Achieves Annual Sales of 1 Billion in 6 Years: What Did They Do Right?

> In six years, Xi'an Jiapin Yunshi reached annual sales of 1 billion yuan. At the 9th China FMCG Innovation Conference, founder Fan Qi shared the company's journey, emphasizing that choosing the right path is more important than doing things right, and highlighting the importance of determination, patience, and perseverance.

In six years, annual sales reached 1 billion yuan! This is Xi'an Jiapin Yunshi. Many of you may have seen New Distribution's previous reports on Jiapin Yunshi.
At the 9th China FMCG Innovation Conference & the 2nd China FMCG Hard Discount Conference & the 2nd China FMCG Distributor Conference, **Fan Qi, founder of Jiapin Yunshi**, delivered a重磅 sharing on **"What Did Jiapin Yunshi Do Right to Achieve Annual Sales of 1 Billion in 6 Years?"**, personally narrating the company's six-year development history.
I am Fan Qi from Jiapin Yunshi. What I want to share is: How did Jiapin Yunshi achieve 1 billion in six years? What exactly did we do right?
The key points of this topic are: first, short time; second, quick results. Here, I'd like to share with readers the entrepreneurial journey of Jiapin Yunshi, including what we thought and did during the process.
**About Jiapin Yunshi**
Jiapin Yunshi was established in March 2017. This year marks our 7th year. Currently, we cover four cities: Xi'an, Xianyang, Weinan, and Tongchuan.
This Spring Festival, we distributed about 650 welfare packages, covering delivery drivers, warehouse staff, and company personnel. Our warehouse area totals 24,000 square meters, including an 18,000-square-meter main building and an additional 6,000 square meters. We operate 7,000 SKUs. Importantly, among these 7,000 products, nearly 4,000-5,000 are products we exclusively distribute.
Many brand distributors are present here. I might be a collection of category brands. From having zero SKUs to almost distributing all first-tier brands in the market, we now serve 27,000 small shops across Xi'an, Xianyang, Weinan, and Tongchuan.
**Choosing Right Is More Important Than Doing Right**
Next, let me share the journey of Jiapin Yunshi over the years.
If I had to say what we did right, I still believe that **choosing right is more important than doing right.**
When I started the business in 2017, I had no idea that my model was called B2B. In 2018, when I shared, I didn't dare say I was doing B2B because at that time, B2B meant price chaos and channel disruption, which was despised and hated.
One day, Mr. Liu Chunxiong said, "You're not B2B; you're a 'platform-type distributor'." I was immediately delighted. An expert said I was a platform-type distributor, giving me a formal name. I want to say I am a supply chain service provider, serving the mom-and-pop shop channel.
Looking back over these six years, **the first thing I want to share is "entrepreneurship with three lacks"**.
First, lack of capital: 8 shareholders pooled together less than 10 million yuan.
Second, lack of products: I didn't have a single product I exclusively distributed; all goods were purchased wholesale from the Xi'an market, piece by piece.
Third, lack of industry experience: I was originally an obstetrician-gynecologist, then did pharmaceutical sales for ten years. By chance, I partnered with Mr. Zhang from "Everyday Convenience Store" and built the largest "Everyday Convenience Store" chain in Xi'an. In 2017, I left to start Jiapin Yunshi.
Regarding the above experience, I want to express that doing B2B is not that complicated. Xiao Fan started with "three lacks," gathered a group of people, pooled 10 million, and just started.
**The second thing I want to share is "respect for the industry"**.
In B2B, many think about eliminating others, but extinguishing others' lamps doesn't necessarily light your own path.
In Xi'an, there are many tycoons with more money and strength than us. Why have we survived to this day? I think it's largely due to respect for the industry.
First, respect peer suppliers. Without their support and credit terms, we wouldn't have survived.
Second, respect brand manufacturers. It's their trust and support that brought us here.
Third, respect the industry itself. It's not a place where money solves everything.
Fourth, and most importantly, respect the 27,000 small shops. These shops are the livelihood of a family of two or three. You must provide them with better category structures, better prices, and better delivery and after-sales service. Otherwise, you're wasting resources and disrupting their happy lives.
So respect is a very important principle for us.
**The third thing I want to share is "leading by example"**.
Many brand manufacturers, like Mr. Fu, the Central China regional leader of Carlsberg, visited our company and asked a question many friends have asked: In Xi'an, there are players like DianShang HuLian, JD New Channel, Alibaba Retail Link, Bestore Plus, YiJiuPi, and local platforms. They have more money and better technology. Why have you survived?
I said, because Jiapin Yunshi is my life. I'm risking my life and money. So, are you more afraid of losing your life or losing money? Doing B2B is a business with extremely fine granularity, and it's extremely torturous on the entrepreneurial journey. In the early stages, peers don't like you, employees don't like you, brand manufacturers don't like you. You disrupt others' channels and businesses. Only with your tough bones can you persist.
Moreover, B2B is a business that you must stick to until the end. You must persist and not retreat when facing difficulties, nor hire a professional manager to do the hardest work. That's unrealistic. Because the one who ultimately guards the fort is you, not a professional manager. Only by leading by example can you solve difficulties in development.
**Doing Right Is More Important Than Thinking Right**
**First, you need determination.** Under the influence of New Distribution, Jiapin Yunshi may be somewhat famous nationwide. Over the years, about 500 distributor friends from various regions have visited Jiapin Yunshi for inspection, and over 100 have had face-to-face exchanges with me. They came with enthusiasm, exchanged ideas with enthusiasm, and wished to start the next day.
I often remind them: Don't get hot-headed when you go back. First, discuss with your family whether they agree to invest 10 million to start anew. Can you afford to lose it? Second, discuss with your team, especially those who have worked in KA hypermarkets or special channels. Can your team accept serving mom-and-pop shops after previously making money in other businesses? Third, you already have initial capital and social status. Do you have the energy to leave the card table and the drinking parties, return to the warehouse, and personally delve into the mom-and-pop shop channel?
If you can't figure this out, you definitely won't do well. Because B2B is against human nature and against traditional distributors. Previous businesses made money on every item and every truck. This business requires continuous investment before returns, and the investment must be large. It's not something you can do on a whim. You need determination.
**Second, you need patience.** Over seven years, we switched systems five times and moved warehouses three times. Of the 29 employees who started with me, 19 remain. People come and go, tides rise and fall. Every day there are price issues, delivery issues, product issues, team issues. Sometimes I feel frustrated. In such situations, I really ask myself: Why am I doing this? So patience is the second most important.
**Third, you need perseverance.** I am a loyal fan of New Distribution. Since I attended the New Distribution conference, many industry leaders have shared on this stage, including Alibaba, JD, YiJiuPi, etc. They constantly say that regional B2B has no future, that regional B2B is doomed, that regional B2B can't survive.
In such circumstances, I faced continuous losses and pressure, but also many temptations. For example, community group buying was booming, and many peers earned tens of millions a year; Douyin was hot, and many colleagues became internet celebrities overnight, earning over 10 million from lectures.
Many investors approached me: "Xiao Fan, stop. Merge into my team, and I'll take you public." But I never gave up. I always believe that B2B is regional dominance. We're just facing temporary difficulties. Only by persisting can we become the big fish in a small river! 1 billion is just the beginning. In Xi'an, we should at least reach 3 billion!
**Cost and Efficiency Are Core**
Recently, I've been thinking about reducing total operating costs to below 6% and gross margin to 8%. Why?
Snack supply chain costs can be reduced to below 3%, making the entire chain highly efficient. What everyone is fighting for now is actually those 2 percentage points. Why?
Currently, everyone's break-even point is around 10%. Below 10, you can't survive; above 10, you have no sales. So we need to think about reducing operating costs to 8, operating costs to 6, and net profit margin to 2. Only then can distributors live with dignity.
Our cost competition is actually about these 2 points. Within these 2 points, I believe there are 4 things that are very important for us now.
**First, system iteration capability is the most important.** Many people ask me: What system do you use? I've changed 5 systems and still haven't found one I'm satisfied with. Because I've realized that system iteration capability is the core of platform capability.
When you're doing 100 million, you can't imagine how to manage over 100 salespeople. When you're doing 500 million, you can't imagine what the data architecture logic looks like at 1 billion.
So you need to choose a reliable system service provider to accompany your business development. As the business grows, the system's iteration capability should also grow. That's a good system service provider and a good system.
**Second, be a "good student" of brand manufacturers.** I focus on serving small shops of 100-300 square meters. What are the characteristics of a 300-square-meter shop? No end caps, no displays, not much tasting scene creation. Customers don't have much leisure to come to your store for impulse purchases. It's more about purposeful buying. White-label and OEM products can only be supplementary. So you need to sell brand manufacturers' products well and combine them well. That's the core.
In this channel, Jiapin Yunshi hasn't received full attention from brand manufacturers. Maybe my prices aren't as low as others', or my prices are the same, or the support and investment I get from brand manufacturers aren't as good as others'.
Most manufacturers are paying attention but haven't yet made clear plans or investments in this channel. So we still need to build good relationships with brand manufacturers, get them to invest more in us, and promote the market well. I think that's the core.
**Third, deeply cultivate the BC cash-on-delivery channel.** Cash-on-delivery is a powerful thing for distributors. For example, with 1 billion in sales, you can't do it without 100 million in capital. So cash-on-delivery is the most efficient and has the greatest leverage effect. Distributors should deeply cultivate this channel and do it well.
**Fourth, have the organizational capability for summarization, review, and execution.**
B2B is a model with heavy management systems. The bigger you get, the higher the demands on the organizational system. You need continuous review, summarization, and execution capabilities. Because the focus changes at each stage: at 300 million, you need to do things that are registered and effective; at 500 million, you need to do things that are stable; at 1 billion, you need to do things that are quality-oriented.
Each stage has different tactics, summaries, executions, and reviews. These are all very important for overall organizational efficiency. So leading a good team and strengthening your organizational capability is a very important thing.


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