---
title: "Major Move: RT-Mart Officially Enters B2B Sector with 'RT-Mart e路发'"
description: "The B2B sector is witnessing intense competition. As e-commerce giants like Alibaba and JD.com aggressively expand, RT-Mart, the leading hypermarket chain in China, has announced its full-scale entry into the B2B field. At the China Business Innovation Conference in Beijing on November 14, RT-Mart's Feiniu.com co-CEO Yuan Bin declared that the B2B platform 'RT-Mart e路发' would be RT-Mart's No.1 e-commerce project, with plans to recruit 10,000 town agents and open 10,000 Feiniu convenience stores."
author: "逝风"
publisher: "New Distribution"
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published: "2017-11-17"
language: "en"
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# Major Move: RT-Mart Officially Enters B2B Sector with 'RT-Mart e路发'

> The B2B sector is witnessing intense competition. As e-commerce giants like Alibaba and JD.com aggressively expand, RT-Mart, the leading hypermarket chain in China, has announced its full-scale entry into the B2B field. At the China Business Innovation Conference in Beijing on November 14, RT-Mart's Feiniu.com co-CEO Yuan Bin declared that the B2B platform 'RT-Mart e路发' would be RT-Mart's No.1 e-commerce project, with plans to recruit 10,000 town agents and open 10,000 Feiniu convenience stores.

The B2B sector is witnessing intense competition. As e-commerce giants like Alibaba and JD.com aggressively expand, RT-Mart, the leading hypermarket chain in China, has announced its full-scale entry into the B2B field.

**RT-Mart's No.1 E-commerce Project**

At the China Business Innovation Conference held in Beijing on November 14, Yuan Bin, co-CEO of RT-Mart's Feiniu.com, announced that the B2B platform **'RT-Mart e路发' would be RT-Mart's No.1 e-commerce project, with full force, planning to recruit 10,000 town agents and open 10,000 Feiniu convenience stores.**

According to Lianshang.com, **'RT-Mart e路发' is a full-category B2B ordering platform launched by RT-Mart Feiniu.com for small and medium-sized retailers. It went live nationwide in January 2017, has since undergone 8 iterations, and currently has 200,000 users.**

The product categories include beverages, snacks, grains and oils, fruits and vegetables, chilled foods, cleaning and personal care, baby products, seasonings and dried goods, imported foods, daily necessities, stationery and sports goods, and small and large appliances, with over 12,000 SKUs. Customers include enterprises, retail, mother-and-baby, wholesale, entertainment and accommodation, and catering businesses.

In terms of operational model, **'RT-Mart e路发' adopts a self-operated model. Products are procured and sold by RT-Mart, leveraging its 400 stores nationwide as warehouses, with business radiating to 200 cities across the country.** With RT-Mart's strong supply chain advantages, it delivers quality, low-priced goods to third- and fourth-tier cities, building bridges for brand channel expansion, helping small stores procure accurately and efficiently, and assisting in their upgrade and transformation.

The target customer group is primarily community convenience stores. Merchants can place orders 24/7 on the platform, and goods are delivered to the store within 24 hours of ordering.

**Advantages of 'RT-Mart e路发'**

RT-Mart Chairman and Feiniu.com CEO Huang Mingduan once told Lianshang.com that Feiniu.com entered the market a bit late, as consumers had already formed entrenched online shopping habits. However, the transformation still revolves around consumers: identifying their true pain points and needs. According to Sun Art Retail's 2017 interim report, as of June 30, 2017, Feiniu's gross merchandise volume reached RMB 1.8 billion, double that of the same period in 2016, with losses continuing to narrow. Based on this trend, Feiniu.com is expected to turn profitable between 2019 and 2020.

But the e-commerce market has undergone major changes in the past two years: the C-end market is saturated, while the B-end market has become a blue ocean for major e-commerce players. RT-Mart Feiniu.com's foray into the B-end market, and its designation as RT-Mart's No.1 e-commerce project, aims to seize the initiative in this wave of opportunity. In the view of Xu Lei, project leader for 'RT-Mart e路发', the platform will have the following major advantages:

On the supply chain, RT-Mart already has supply chain advantages and fixed asset advantages (stores), so there is no need to rebuild.

**'RT-Mart e路发's supply chain will be integrated with RT-Mart's supply chain, leveraging RT-Mart's over 20 years of deep cultivation in the mainland market and its good relationships with nearly a thousand brands.** This foray into B2B also marks a departure from the norm, breaking the retail industry's long-standing closed control over supply chains, opening up and sharing quality resources, and truly empowering the supply chain.

In terms of stores, 'RT-Mart e路发' ships from RT-Mart's 400 stores nationwide. Each store in every city serves as a forward warehouse for 'e路发'. The national store network involves 3,000 B2B personnel responsible for warehousing, distribution, and ground promotion.

In addition to using stores as warehouses, 'e路发' has large warehouses in each region. Combined with RT-Mart's existing distribution teams, it only needs to add incremental business on top of the existing operations. Xu Lei stated that RT-Mart stores already have distribution teams; now they are simply adding to existing business. Warehouses and service personnel are already in place, so there is no need to reorganize teams, incur additional personnel costs, or generate additional rent. This is a significant advantage over other B2B platforms that need to build their own warehouses, logistics, and supply chains. RT-Mart can keep costs very low and pass the savings on to customers.

It is understood that **'e路发's current logistics and distribution is daily delivery, with orders delivered within 24 hours. If store inventory is insufficient, the DC (distribution center) large warehouse supplies, with delivery within 48 hours.**

Secondly, in terms of technology, Feiniu.com has accumulated considerable experience over the years, making app development relatively straightforward. RT-Mart possesses the people, technology, capital, and national resources, with ample inherent conditions to fully match the business.

Finally, in terms of efficiency and cost, RT-Mart has sufficient advantages. What RT-Mart needs to do is utilize previous resources to the fullest.

In the industry, the main customer group for 'RT-Mart e路发' is mom-and-pop stores. With RT-Mart's strong retail DNA, it has a deep understanding of the retail industry.

Xu Lei told Lianshang.com, "We are offline retailers. Unlike other enterprises that are purely online or purely wholesale, we better understand our merchants' needs. We are also closer to merchants. For example, in Shanghai we have 17 stores, meaning 17 shipping warehouses. Other competitors cannot establish 17 warehouses in Shanghai." With store advantages and industry understanding, 'e路发' can more effectively conquer regions.

**In fresh produce, 'RT-Mart e路发' can launch fresh delivery services nationwide.**

Currently, online B2B full-category platforms do not have full confidence in fresh produce, partly due to the regional nature of B2B platforms. According to 'RT-Mart e路发' personnel, fresh procurement varies greatly by region, and the storage structures for fresh produce differ. Supply chain and cold-chain distribution also pose management challenges. These issues make it difficult for B2B platforms to offer fresh products nationwide.

In Xu Lei's view, a major feature of 'RT-Mart e路发' is its fresh produce offering, which other full-category B2B platforms lack, including frozen and refrigerated items. These are very attractive to small stores, many of which are located near communities, making it convenient for residents to buy fresh produce without making special trips to fruit stores or wet markets. Demand is high. RT-Mart's logistics uses full cold chain, and each store is equipped with a 'six-star' fresh warehouse. The even distribution of stores ensures that distances from store to shop are within a controllable range, ensuring logistics timeliness. Long-term stable logistics service providers also ensure a good logistics experience.

**'RT-Mart e路发's Attack Strategy**

According to Lianshang.com, the B2B platform 'RT-Mart e路发' is no longer using a regional occupation then national expansion approach, but is launching a full-scale attack on the B2B sector. To this end, RT-Mart Feiniu.com has prepared three major initiatives.

**New Iteration, Service Upgrade:** 'RT-Mart e路发' recently released version 1.0.8, the 8th version since its launch, adding three new features:

**1) 'Member Points Double Rebate':** When a merchant's cumulative monthly purchase amount exceeds a certain threshold, the rebate points on purchased goods double. Merchants get more rebates and more discounts.

**2) 'Scan' Function:** If a merchant finds a product out of stock on the shelf, they don't need to manually search in the app. Using the 'Scan' function, they can directly scan the product's barcode, and the app will display the product page. Merchants can order directly as needed, making operation and management easier.

**3) 'Spend and Save' Function:** Customers who purchase a certain amount of goods can receive a corresponding instant discount.

After the upgrade, 'e路发' also offers nanny-style services for small stores. Store owners can order by phone, and 'e路发' will deliver. It will also regularly send professionals to provide on-site guidance on product selection, assist with display, provide promotional guidance, and help improve store image and efficiency.

**Recruit 10,000 Town Agents:** Currently, 'RT-Mart e路发' is mainly expanding its retail market by recruiting 10,000 town agents nationwide.

RT-Mart stated that to push 'e路发's resources down to various retail stores, it needs the cooperation of allies. **'Town agents' are partners of 'RT-Mart e路发' responsible for providing services to small retail stores.**

Yuan Bin, co-CEO of RT-Mart Feiniu.com, explained: "'Town agents' are regional agents in a light-asset model. On one hand, they hold RT-Mart's RMB 100 billion procurement chain and resources from thousands of brands; on the other, they can serve millions of retail stores. They form a stable link with dozens or hundreds of retail stores in their region or those they can reach." As a bridge between 'e路发' and small stores, 'town agents' can easily enjoy RT-Mart resources, sell hundreds of products without representing hundreds of brands, and help small stores obtain lower-priced, quality, genuine goods through 'e路发', with one-stop shopping for all needed items. At the same time, 'town agents' also serve as consultants for small stores in product selection and inventory management, guiding them to improve performance and achieve transformation and upgrading.

**Open 10,000 Feiniu Convenience Stores:** 'RT-Mart e路发' will open franchise cooperation for 'Feiniu Convenience', with an initial target of 10,000 stores. Store owners can selectively choose business modules to upgrade their stores.

According to Lianshang.com, on August 8 this year, RT-Mart's first 'Feiniu Convenience' store opened in Pinghu, Jiaxing. Its products are all purchased from the e路发 platform, sourced entirely from RT-Mart, with purchase prices far lower than other local channels.

**The 'Feiniu Convenience' brand cooperation plan will rely on RT-Mart's RMB 100 billion supply chain advantages, based on the 'Feiniu' brand cooperation and store sign renovation. Orders are placed through the RT-Mart e路发 APP, and 'RT-Mart e路发' provides a series of services including supply and distribution for retail stores.**

Next, store owners can choose to cooperate as 'Feiniu Convenience' or 'XX Supermarket Feiniu Store'. Stores with an area of 300-2,000 square meters can operate as town or community lifestyle supermarkets called 'Feiniu Lifestyle Supermarket'. 'e路发' will supply convenience stores and provide soft services such as display guidance. Thanks to RT-Mart's nationwide store advantages, 'e路发' can serve small stores conveniently, and years of hypermarket retail experience can provide professional guidance, including shelf display design, product category structure adjustment, store upgrades, and regular on-site guidance from business personnel. Based on store owners' needs, 'e路发' can offer customized services and suggestions, reducing franchisees' operating costs and increasing store sales performance.

Yuan Bin stated, "Recruiting 10,000 town agents and opening 10,000 Feiniu convenience stores is not just a casual slogan. We estimate that in the initial phase, each store can cover 30 Feiniu convenience stores within a 20-30 km radius, with 30 town agents. RT-Mart's nearly 400 stores nationwide can radiate to 10,000 Feiniu convenience stores, requiring 10,000 'town agents'. The areas covered around these stores may also include townships, industrial parks, and even nearby cities, all of which can be reached." These are just the first steps for RT-Mart Feiniu.com to go deeper into the B2B sector; to cultivate the market, it needs to move steadily step by step.

Next, 'e路发' will develop products specifically for small stores and convenience stores, introducing specific and internet-famous products. Service models will become more segmented, allowing small store and 'Feiniu Convenience' franchise owners to truly become 'hands-off bosses' who earn money easily through 'e路发's services.

Source: New Retail (ID: ixinlingshou)
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