In China, what is the current state of the FMCG B2B industry? What problems exist in the current market development? How much room for growth does the FMCG B2B market have in the future? To answer these questions, New Distribution recently invested manpower and financial resources to conduct a survey of the FMCG B2B industry in more than 20 typical cities across the country. The survey was conducted by field researchers walking the streets and visiting small shops, city by city, shop by shop, filling out questionnaires on-site. Through the combination of shop owners' on-site responses and researchers' interviews, we obtained the most authentic data and information from the front-line market. Through this in-depth and comprehensive market survey, we have gained a thorough understanding of the development of the FMCG B2B industry in various city markets, including first-tier, second-tier, and some third-tier cities. We have a basic grasp of the local market development of various platform companies, and we have received genuine feedback from shop owners about the problems existing on the platforms. The survey also provides a more accurate judgment on the future development of B2B. At present, the development of the FMCG B2B industry across cities is very uneven. There is a large gap between cities with good development and those with poor development, between well-performing platforms and poorly performing ones, and even within the same platform, there are significant differences between regions that perform well and those that do not. In cities with good development, FMCG B2B has indeed shown outstanding vitality, has had a significant impact on FMCG channel reform, and has demonstrated the potential and space for future growth of the new model. Changsha is one of the typical cities for FMCG B2B development and is currently a relatively mature market for the FMCG B2B industry. From the survey of the Changsha market: there are many platform companies, many major platforms, the B2B industry is gradually maturing, platform market coverage is relatively high, small shops have a high degree of recognition for platforms, and B2B has become the main FMCG channel model in the Changsha market. From the perspective of industry development in the Changsha market, B2B has indeed achieved healthy and rapid growth by leveraging the internet's advantages of improving efficiency and reducing costs, and the overall industry market has entered a stable development period. The survey results from the Changsha market show the following characteristics: Many platform companies, active market: In the Changsha market survey, the research team surveyed 300 small shops. The number of platform companies identified reached 23, far higher than the average provincial capital city (Jinan 15, Changchun 8, Chengdu 17, Guangzhou 16, Xi'an 12). Among these, there are the two giants Alibaba Retail Link and JD掌柜宝, as well as cross-regional platforms such as 中商惠民惠配通, 易久批, 店商互联—订货宝, 百世店加—店加, 云蚂蚁, 掌合天下, and others. There are also many local platform companies, among which 快乐惠—新高桥 and 芙蓉兴盛 have become the main platform companies in the Changsha market. There is also the local chain retail leader 步步高, which has transformed into the B2B industry, and other innovative platform companies. Just from the number of platform companies, it can be seen that B2B in the Changsha market has entered a period of rapid development and intense competition. Through the joint market promotion of various platform companies, the overall B2B market coverage has reached a high level, exceeding 80%. From the field survey results: 80.3% of small shop owners said they have ordered from B2B platforms, while only 17.7% said they have never ordered from platforms. This coverage rate is higher than other similar cities (Guangzhou 64.6%, Jinan 77.1%, Chengdu 70%, Changchun 59.5%, Dalian 41%, Xi'an 73%). This shows the huge potential and space for industry development. High acceptance of platforms among small shops, gradually forming dependence: More importantly, in the Changsha market, small shops have become dependent on platforms for ordering. Shop owners say: no need to go out, no need to make phone calls, just look at the phone and order, it's very convenient. Moreover, platforms have continuous promotional activities, making ordering on platforms very cost-effective. The survey results in the Changsha market show that 60.9% of small shops believe that ordering on platforms is more convenient. This rate is much higher than other cities (Guangzhou 38.3%, Chengdu 33.9%, Jinan 21%, Xi'an 43%, Changchun 27.4%). From the survey data, in the Changsha market, the proportion of small shops' orders from platform companies out of their total orders reached 40% or more for 71.6% of shops, with the proportion of purchases reaching 60-80% and above 80% at 24.8% and 18.3%, respectively. According to this ratio analysis, small shops have basically developed the habit of ordering from platforms, and platform companies have basically formed a pattern of controlling shops. More importantly, the activity of small shops ordering from platform companies is very high, and the order amounts are very high. In the Changsha market, the daily order user rate on platforms reached 35.1%, and the weekly order user rate reached 55.9%. This rate is also much higher than other cities (Xi'an: 5.5% and 42.1%, Jinan: 12% and 49%, Changchun: 6.6% and 35.2%, Guangzhou: 24.7% and 52.5%, Wuhan: 22.2% and 50%). In the Changsha market, the proportion of monthly orders from platform companies reaching 10,000 yuan or more is as high as 73.8%, with 36.9% reaching 50,000 yuan or more. This rate is much higher than other cities (Jinan 3.1%, Wuhan 15.8%, Changchun 0.9%, Guangzhou 21.8%). From these three figures, it is clear that in the Changsha market, platform companies have become the main choice for small shop supply. Monthly purchase amounts exceeding 50,000 yuan indicate that platform ordering basically achieves full-category and full coverage. The core competitiveness of platform companies is gradually improving: The core competitiveness of platform companies ultimately reflects transaction efficiency (convenience of transactions), supply chain organization capability (meeting one-stop ordering needs), product delivery efficiency, and service capability. In the Changsha market, compared with the dealer model, platform companies are surpassing dealers in terms of ordering convenience, supply chain organization, and price advantages. In the Changsha market, 60.9% of small shops believe that B2B ordering is more convenient, a rate far exceeding other cities (Jinan 21%, Xi'an 43.4%, Changchun 27.4%, Wuhan 46.9%, Chengdu 33.9%). In terms of product completeness and price advantages, platform companies are also surpassing the dealer model and gaining recognition from small shops. From the Changsha market, 新高桥—快乐惠 has obvious advantages: in terms of market coverage, 新高桥 ranks first, and in terms of product advantages, 新高桥 is also prominent, with its supply capability covering 42.5% of the market. The above is the analysis and sharing of data from the New Distribution research team's survey in the Changsha market. The detailed national survey report will be released at the Chongqing conference on November 8-9, the 2017 China FMCG B2B Industry Development Report White Paper. From the above data, it can be seen that B2B, as a brand-new FMCG channel model, will inevitably achieve rapid development with its powerful advantages of changing efficiency, cost, and transaction models. The future market space for FMCG B2B is very large, and the potential is enormous. Manufacturers and distributors should quickly understand B2B, comprehensively study B2B, and participate in B2B innovation practices in a timely manner. If they don't understand B2B, there may really be problems. The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecology" and invite 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to jointly explore a new chapter of cross-border integration! November 8-9, 2017 Chongqing Yuelai International Conference Center, Xinyue Hall Registration is now open. Long press the QR code below or click "Read Original" to register. Add friend and note "Conference Registration" Click the link below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum -END-
Supply Chain & B2B
Market Competitiveness Analysis of FMCG B2B Platforms in Changsha
This article analyzes the current state of the FMCG B2B industry in China, focusing on the market in Changsha. Based on a field survey of 300 small retailers, it reveals that Changsha has a mature B2B market with high platform coverage, strong retailer acceptance, and significant growth potential, highlighting the competitive landscape and the advantages of B2B over traditional distribution.
