Meipinshu was founded in 2019 as a platform enterprise providing global small commodity supply chain services to small and medium retailers. Founder Zha Jiulan is a renowned serial internet entrepreneur, former co-founder and COO of Zhangxia Tianxia, and a leading figure in China's FMCG B2B industry. According to founder Zha Jiulan, Meipinshu received investment from China Small Commodity Group strategic capital, Lakeside Shannan Capital, K2VC, and Zhongding Venture Capital in its early days. With core competencies of 'big data product selection + global supply chain + new retail empowerment', it aims to build China's most professional and large-scale small commodity supply chain platform. This is Meipinshu's first participation in the National FMCG Digital Conference. Sharing at the conference is Meipinshu's co-founder and renowned new retail expert, Wang Jun. Today I will share our case study on empowering community stores to enhance vertical category operations, as well as methods for supply chain transformation. As a newly emerging channel brand, we started from zero in 2019 and quickly achieved profitability in our direct-operated model market. How did we break through and build the entire industry chain system? -01- Track – A Traditional and Overlooked Trillion-Yuan Market In retail channels, there is a category that is very traditional and often overlooked. It exists in all major B2B platforms, but it is not considered FMCG. We collectively call it 'small commodities', also known as daily necessities or general merchandise. The biggest characteristic of this category is the enormous number of SKUs. For example, in the offline display at Yiwu Market, there are 75,000 merchants and nearly 2.2 million SKUs, which is very diverse, and brand awareness is low. Upstream manufacturers are very small and fragmented, with 70% of the world's small commodities produced in China. The annual transaction volume at Yiwu Small Commodity City alone is nearly 300 billion yuan. So where is the opportunity? How big is this market? Should we tap into existing volume or create incremental volume? Does our business model create value for the entire industry chain?

  • The business logic of a category consists of production - brand - supply chain - marketing - channel. In such a long chain, our first breakthrough point is the channel. -02- Pain Points in Traditional Retail Channel Operations Let's look at the overview and pain points of retail channels. The downstream market has a complex industry chain, with over 7 million channel terminals, incomplete supply chains, many intermediate links, low warehouse and distribution efficiency, and poor product selection capabilities in traditional channels, unable to keep up with internet iteration. Offline small stores have long faced fierce competition from chains, large and medium supermarkets, e-commerce, and food delivery, along with operational difficulties such as high costs, low gross margins, and many external constraints. (This year's black swan pandemic may have led 5% to 10% of people to be transferring their stores, in the process of transferring, or already out of business, showing the significant impact of the pandemic.) With 6 million small stores nationwide, known in the industry as traditional trade, what is truly lacking in this vast market? It's not products; what is truly lacking is products suitable for each store's sales. Solving the pain points of small stores is our chosen path to break through in the channel. The second breakthrough point is marketing. Traditional marketing methods for stores include category promotions, holiday promotions, joint manufacturer activities, member discounts, etc. These are difficult to control in terminal small stores. In contrast, large supermarket chain systems can use big-box displays to achieve 30% or even 40% of annual sales. In 2020, on the basis of traditional marketing models, a new era of digital store marketing models has emerged. First, digital store marketing in the new era must have data and analysis. Including Alibaba, Tencent, and some B2B platforms have used various methods, such as providing POS machines and using face-scan payment to obtain sales data, but small stores have low cooperation rates. Nevertheless, this remains very important. Meipinshu empowers stores with a digital membership system, using precise user profiles and online links to build private domain traffic. It also expands store product categories, introduces online products, optimizes offline displays, and reduces inventory rather than simply piling up goods. Additionally, it expands sales channels by establishing social e-commerce and live-streaming e-commerce systems for small store members. Finally, it expands delivery formats. The 10-year digital transformation journey of retail terminals can be represented as 'real-time + pre-sale = self-pickup + delivery + drop-shipping'. Real-time retail is the most traditional way small stores operate: consumers see the display and purchase; without display, there is no transaction. Pre-sale is the gameplay of membership e-commerce. For example, pre-sale + self-pickup is the community group buying model we see now. -03- Meipinshu's Business Logic Supply Chain: Starting from Changing a Store's Shelf The change in the new supply chain starts from a store's shelf. Traditional daily necessities shelves are messy and dirty. We use professional butler-style services to transform the display. It may seem like a small change, but it is actually a full category switch. Through one-stop operation of the entire daily necessities category, we handle display - planning - product selection - pricing in one go. After solving this problem, we need to solve the second: how to accelerate sell-through. In our model city, we use a comprehensive business model to provide one-stop category supply and channel display to enhance the single-category operations of small stores. After store transformation, the store-in-store model achieves an average monthly repurchase amount of about 2,300 yuan from the platform, with 3-4 repurchases per month, and initial purchase amounts ranging from 5,000 to 30,000 yuan. Compared to traditional B2B ordering models, the average monthly order amount increases by more than 4 times. After store transformation, the daily necessities category's operating revenue increases by more than 50%. -04- Supply Chain is the Core Meipinshu's strategic investor is Zhejiang Small Commodity City Group. With support from Alibaba Lakeside, Zhongding Venture Capital, and K2VC, we have built a global preferred supply chain based on the 2.2 million SKUs of Yiwu Small Commodity City. In less than 2 years of development, Meipinshu has grown into a new supply chain platform enterprise that connects online and offline, covering all channels and multiple scenarios, with business coverage across multiple cities nationwide. Big data product selection is Meipinshu's core advantage. With sales data from all categories in operating stores, we have strong data support for which categories are suitable for different store profiles, communities, community business districts, and special channels. At the same time, we engage in reverse customization: for a specific category, we can integrate partners nationwide and directly customize from factories. Currently, Meipinshu has over 5,000 preferred global small commodity SKUs.
  • In offline traditional channels, we create an offline channel brand by upgrading and transforming offline stores.
  • In online channels, we use a B2B trading mall for small commodities, a B2C distribution mall, and a store-group live-streaming e-commerce platform as entry points to empower offline channels. One of our core competencies is a very complete and advanced information system built through years of retail and supply chain practice, which has formed a closed loop. This information system plays an important linking and empowering role across the four links of brand - distributor - store terminal - consumer.
  • In terms of city operation model, we use city operators to achieve comprehensive empowerment from small B to C in a region. -05- Meipinshu's Future Development and Cooperation After completing the business model's implementation in the model market, we will empower city operators nationwide with the complete supply chain and system, jointly building a national supply chain network and channel sales system. We welcome brand owners, distributors, and retailers nationwide to cooperate with us. Our current core competencies:

1. National channel digital organization capability;

2. Non-standard commodity supply chain capability;

3. Terminal operation capability; Founder Interview

  • Founder Zha Jiulan's original intention: 'We gather a group of people with passion and righteousness, towards a common ideal, to do a great cause!' Meipinshu's mission: To create a sense of happiness in life for hundreds of millions of families. Where are our products used? It's the toothbrush you pick up in the morning, the towel that wipes your skin, the slippers you change into at home, the paper and pen you pick up when writing, the pots and pans in the kitchen... Although they are all small commodities, have you noticed that they are inconspicuous but always around us in life. We aim to provide quality products for every moment of every family's life, allowing users to inadvertently experience the beauty of design, convenience of use, personalized creativity, comfortable five senses, and efficient operation. In short, it's about creating happiness in the little moments of life. There is a kind of commodity called 'small commodities', and there is a kind of happiness called 'small but certain happiness'. Our mission is big: to bring globally preferred, genuine, and affordable small commodities to hundreds of millions of families. Our mission is small: to bring a little happiness to every family through our products. Meipinshu's vision: To become China's most professional and large-scale small commodity supply chain platform, creating the last-mile daily necessities consumption scenario. When we want to try innovative things, how can we do it in the shortest path and pay the least tuition? Based on Liu Chunxiong's views, I have summarized a few insights: 'Change circles, hug big thighs, stay grounded, and know methods.' What we are doing here is thoroughly implementing methods in the model market, making innovation land well, and forming a standard model for nationwide promotion and replication. Tips will be paid 400-2000 yuan once adopted.