--- title: "Kantar: 2016 China FMCG Internet B2B Market Report" description: "On December 22, the launch of the \"2016 China FMCG Internet B2B Market Report\" was held in Beijing, hosted by Kantar Retail and co-organized by Jinhuobao and New Distribution. The report is the first bilingual industry report on FMCG B2B in China, analyzing the current status and trends from the perspectives of brands, distributors, retail terminals, and B2B platforms." author: "凯度咨询" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2016-12-22" language: "en" canonical: "https://xinjignxiao.com/en/articles/kantar-2016-china-fmcg-internet-b2b-market-report-db2dece5/" markdown: "https://xinjignxiao.com/en/articles/kantar-2016-china-fmcg-internet-b2b-market-report-db2dece5.md" original_source: "https://mp.weixin.qq.com/s/DG-powIgIaG9W8VG2bgVsw" translation: "https://xinjignxiao.com/zh/articles/%E5%87%AF%E5%BA%A6-2016%E5%B9%B4%E4%B8%AD%E5%9B%BD%E5%BF%AB%E9%80%9F%E6%B6%88%E8%B4%B9%E5%93%81%E4%BA%92%E8%81%94%E7%BD%91b2b%E5%B8%82%E5%9C%BA%E6%8A%A5%E5%91%8A-db2dece5.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/kantar-2016-china-fmcg-internet-b2b-market-report-db2dece5/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Kantar: 2016 China FMCG Internet B2B Market Report > On December 22, the launch of the "2016 China FMCG Internet B2B Market Report" was held in Beijing, hosted by Kantar Retail and co-organized by Jinhuobao and New Distribution. The report is the first bilingual industry report on FMCG B2B in China, analyzing the current status and trends from the perspectives of brands, distributors, retail terminals, and B2B platforms. On December 22, the launch of the "2016 China FMCG Internet B2B Market Report" was held in Beijing, hosted by Kantar Retail, a leading international retail consulting firm, and co-organized by Jinhuobao and New Distribution. Many manufacturers including Coca-Cola, Unilever, Mars, Nestlé, COFCO, Yili, and Hengan, as well as media, attended the event. Zhao Bo, chief editor of this official account, served as the special host and presided over the meeting. Zhang Chi, Insight Director of Kantar Retail, delivered a speech on site. Wang Cheng, CEO of Jinhuobao, shared the transformation path for FMCG enterprises, and Shen Fei from Tubito also gave a wonderful presentation to the guests. The "2016 China FMCG Internet B2B Platform Industry Report" (hereinafter referred to as the "Report") is the first bilingual industry report on FMCG B2B development in China. The report provides a comprehensive and in-depth view of the current status and development trends of the FMCG Internet B2B industry from the perspectives of brand owners, distributors, retail terminals, and B2B platforms. At the same time, the report also selects five representative Internet FMCG B2B platforms for in-depth discussion. The theme of this launch event was "Transformation: Channel Revolution in the First Year of FMCG B2B." The traditional trade of China's FMCG market, with a scale exceeding one trillion yuan, is highly fragmented. The goal of Internet B2B is precisely to integrate resources, transform traditional distribution models, and help millions of mom-and-pop stores upgrade and evolve. Despite the encroachment of e-commerce and modern trade, the status of traditional trade remains difficult to replace. Although market share continues to decline, traditional trade remains significant to China's FMCG market. In the FMCG market, although modern trade and e-commerce channels have developed rapidly in the past, traditional trade, with 6.8 million small stores widely distributed across markets at all levels and covering a huge shopper base, remains an important component of China's FMCG circulation. In addition, small stores in traditional trade are often important social nodes in communities, playing a social role that modern trade and e-commerce cannot replace in the short term. 2014-2016 China FMCG Market Channel Shipment Value Share Multi-level, low-efficiency, and fragmented distribution severely restrict the development of traditional trade. In traditional trade, the high fragmentation of small stores and excessive supply chain levels make brands highly dependent on multi-level distribution models, ultimately leading to low channel efficiency, brand distribution, and channel profits being consumed layer by layer, with poor terminal execution and difficult management. According to the survey by Kantar Retail on FMCG manufacturers' traditional trade business and Internet B2B development (hereinafter referred to as the "Survey"), currently more than half of manufacturers rely on more than 200 distributors to achieve existing market coverage, and for the food and beverage category, this proportion reaches nearly 70%. Brand Traditional Distribution Model Number of Distributors Used by Brands in Traditional Trade Distributors, who play a key role in the entire circulation chain, also face enormous capital and inventory pressure in traditional business, while rising costs of various types also lead to increasingly compressed profit margins. For the end of the chain, many small store owners face cumbersome and inefficient traditional purchasing methods, weak bargaining power, and difficulty in guaranteeing product quality. Moreover, they lack professional guidance in product selection and operation, resulting in low store competitiveness. The Rise of FMCG Internet B2B Against this background, the FMCG Internet B2B industry gradually emerged in 2013. Some Internet platforms focusing on the FMCG field began to make efforts in traditional trade, committed to using Internet thinking to reshape channel routes, reduce distribution levels, and upgrade small stores. This trend reached a climax with the influx of a large amount of capital and the rise of platforms from last year to this year. As of November 2016, there were more than 70 FMCG B2B platforms in the market, and these platforms received a total investment of over 5 billion yuan in 2016. In terms of regional distribution, the FMCG Internet B2B industry is most developed in the Beijing-Tianjin-Hebei region. 2016 FMCG Internet B2B Platform Geographic Distribution Competition between Two Different Models under Internet B2B Currently, FMCG Internet B2B is mainly divided into two business models: self-operated and matching. The self-operated B2B model is characterized by buying out goods, conducting unified warehousing and distribution, and earning the price difference from selling goods to small stores at low prices and selling high. Self-operated platforms usually build their own field service teams and warehousing logistics, ensuring service and delivery quality, helping brand owners achieve deeper distribution and improve channel coverage efficiency. Representative platforms include Zhongshang Huimin, Jinhuobao, and JD New Channel. The matching B2B model provides a trading platform for both suppliers and small stores, and achieves profitability by charging service commissions, advertising, and other value-added services. The matching model does not change the original distribution model, brand owners have more control over prices, and can obtain transparent information and data from the platform. Representative platforms include Zhanghe Tianxia and Alibaba Retail Link. Brand Owners' FMCG Internet B2B Business is Still in Its Infancy Current Status of FMCG Brand Owners' Internet B2B Development At present, FMCG B2B is still in its infancy. According to the Kantar Retail survey, there are still relatively few manufacturers that have launched Internet B2B distribution business, but through this business, the distribution of brand products has improved to a certain extent, and distribution costs have also decreased. However, the incremental business contribution brought by B2B platforms to brand owners is still very small. The role played by platforms is mostly limited to store development and selling in, and they lack the ability for terminal marketing, execution, and sales promotion. In the short term, it is difficult to completely replace the service capabilities of existing distributors to brand owners. However, most brand owners are still in a wait-and-see state regarding this model, with main concerns including: the impact of the new model on existing business; the unclear competitive landscape of platforms, making them unwilling to invest prematurely; and the risk of difficulty in controlling Internet B2B platforms once they grow larger. Development Prospects and Trends of FMCG Internet B2B Forecast of FMCG Internet B2B Market Prospects Although the penetration of FMCG Internet B2B into small stores is still relatively low, with only 16% of small stores having tried ordering through B2B platforms, with the rapid expansion of platforms and the influx of large amounts of capital, small store owners are gradually increasing their Internet awareness, and the further electronization of ordering channels is definitely a major trend. At the same time, Internet B2B platforms are strengthening their service capabilities across the entire industry chain while expanding the market. In the future, B2B platforms will rely on big data accumulation to provide deeper services to all links of the supply chain to improve channel efficiency, provide supply chain financial support to channel participants, and extend to 2C (to consumer) business. B2B platforms will also be committed to direct cooperation with more brand owners and create close relationships. In addition, developing private labels to enhance competitiveness is also one of the future trends of Internet B2B platform development. At this windfall, the overall development prospects of the Internet B2B industry are very promising. Kantar Retail predicts that by 2018, 44% of small stores will become beneficiaries of Internet B2B, the ordering frequency will increase from an average of once every 4-7 days to twice a week, and the average order value will increase from 950 yuan to 1,500 yuan. The entire business generated by Internet B2B platforms will account for nearly 20% of the shipment value of traditional FMCG trade, which will be a market of hundreds of billions of yuan waiting to be further developed. Conclusion: Although the FMCG Internet B2B model still has a long way to go in transforming the traditional distribution model, brand owners also need to fully recognize the trend and inevitability of low-efficiency models being replaced by high-efficiency models, deepen their understanding from a strategic level, and make proactive arrangements: 1. Currently, B2B platforms are flourishing. Brand owners can choose platforms under different models, select areas with weak market coverage for pilot projects, and conduct regular business reviews. 2. Select some advantageous platforms, expand the scope of regional cooperation; at the same time, carry out more refined regional operations and sales control, and try to invest in marketing resources for pilot projects and evaluate the results. 3. Conduct sufficient research on the market and store owners, combine order data to understand the needs of store owners and the market, provide exclusive products to cooperating platforms, form differentiation, and strengthen marketing resources and activity investment. 4. Gradually upgrade and replace the traditional distribution network. For FMCG brand owners, opportunities and challenges coexist under the Internet trend. How to proactively transform the traditional distribution model and embrace new models will become the key to winning in the future Chinese market. [About Kantar Retail] Kantar Retail specializes in retail and shopper research and is a leading company in retail and shopper insights, consulting analysis, and tool application development. Kantar Retail is part of the Kantar Group, a branch of WPP's data investment management business. We serve many well-known manufacturers and retailers, helping them improve sales efficiency and expand profit margins. Globally, Kantar Retail continuously tracks more than 1,200 retailers, provides market forecasts for them, and we also have consumption data on more than 200 million shoppers. Every year we publish industry-leading benchmark studies, including the PoweRanking® Retail Power Ranking and FMCG E-commerce Power Research. To date, Kantar Retail has cooperated with more than 400 clients and has 26 offices in 15 markets around the world. For more information, please visit the company's official website www.kantarretail.com Media Contact Bill Li Kantar Retail Bill.Li@KantarRetail.com -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and useful tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly **The most professional and practical knowledge base in the FMCG industry** Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | **001** Excellent article selection | **002** Distributor market operation | **003** Terminal visit management | **004** Sales supervisor skills | **005** Sales improvement techniques | **006** Channel expansion | **007** Managing distributors | **008** Distributor development | **009** Distributor internal operation management | **010** Team management | **011** Efficient distribution techniques | **012** Sales manager's eighteen skills | **013** KA operation methods and strategies | **014** First lesson for new salespeople | **015** Internet, brands | **016** Distributor B2B transformation | [Long press QR code to follow] --- ## Copyright and AI use This article is sourced from New Distribution. 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