From August 17 to 18, the second phase of the 'New Distribution National Benchmark Distributor Study Tour' visited Tangshan Yihe, concluding successfully. The tour focused on two key topics: How can traditional distributors start B2b from 0 to 1? and How should distributors respond to the impact of snack discount stores on local business? Following the overwhelming registration for the first phase, the venue was again packed. Over 60 distributor owners from across the country, together with Yu Xiuwei, founder of Tangshan Yihe Trading, and instructors from New Distribution, engaged in in-depth discussions on the tour topics.
Visiting Tangshan Yihe This study tour continued the format of 'classroom sharing + on-site visits + interactive Q&A', transforming the traditional study tour that often focuses on sightseeing rather than learning, truly achieving goals such as 'on-site experience, on-site learning, learning from others, and deep connections'.
Yuan Lai, Chief Content Officer of New Distribution, elaborated on the path choices for distributor transformation and upgrading under the current situation. Yuan Lai pointed out that the evolution of FMCG distributors can be divided into six stages: 1.0 Stall doctrine; 2.0 Warehouse and distribution doctrine; 3.0 Brand doctrine; 4.0 Category doctrine; 5.0 Channel doctrine; 6.0 Consumerism. He emphasized that the ultimate outcome for local distributors will be to deeply bind with downstream stores through various forms of cooperation such as alliances, associations, and joint operations, extending their business reach to local consumers.
Ren Wenqing, Dean of the New Distribution Digital Research Institute, conducted an in-depth analysis and breakdown of the currently popular hard discount snack format. Ren Wenqing noted that hard discount snack stores integrate distribution and retail, which will disrupt the entire chain and accelerate the evolution of local supply chains. Different distributors will feel this impact to varying degrees; some are already hurting, while others have not yet noticed, as the process is gradual. Based on in-depth research, he summarized and analyzed the coping strategies adopted by different types of distributors. He pointed out that single-channel distributors are the most vulnerable, while those with multi-channel, cross-category, and cross-regional operations have more room to maneuver.
Yu Xiuwei, founder of Tangshan Yihe Trading, the Jiadiantong B2b supply chain platform, and the proactive snack store, systematically shared his journey of starting B2b from 0 to 1, as well as his practical experience and thoughts on entering the snack store sector from trading. Yu Xiuwei made several judgments about offline trends:
**Established chain stores will expand and source directly from manufacturers; those without scale will form joint procurement alliances.****The overall sales decline of large supermarket systems is inevitable.****More mom-and-pop stores will see declining sales, and some will even close. More manufacturers will support hard discount chain stores.****The lightning warehouse model with 24-hour delivery will continue to develop.**More category-specific hard discount stores will emerge, and the vast majority will be operated by intermediaries.
In this context, what should distributors do? Yu Xiuwei's analysis of the current survival state of distributors and his exploration of future directions resonated with the attending distributors and inspired them deeply.
Beyond the classroom, participants also toured Tangshan Yihe's warehousing and logistics system, where staff provided detailed explanations of each step in warehousing, picking, and distribution, and answered questions on-site. Additionally, participants visited the 'Proactive Snack Store' to experience the shopping environment of a hard discount snack store and observe the current development of local snack stores.
Why Visit Tangshan Yihe Tangshan Yihe began its transformation in 2020 and became the largest B2b supply chain platform in Tangshan within three years. It currently operates with zero payment terms, serving over 2,000 small stores with more than 4,000 SKUs. Meanwhile, Yu Xiuwei started a snack discount store in 2021, and by next month, 16 stores will be operating simultaneously, with the highest monthly sales per store reaching 600,000 RMB. Yu is one of the few distributor owners with rich practical experience and deep industry insights.
There are two reasons for organizing the Tangshan Yihe study tour: First, his experience in transforming from trading to B2b from 0 to 1 provides valuable practical reference for many distributors looking to transition to B2b. Second, with the trend of hard discount chains encroaching on mom-and-pop store business, it is crucial to explore whether traditional trading companies transforming to B2b still hold value and what the feasible path might be.
In the final session of the tour, 'Discussion and Exchange', Yu Xiuwei provided thorough answers to the questions raised by the attending distributors. Through this format of 'sharing + visiting + Q&A', distributors could see the operational processes and also hear and learn from the insights and understanding of the visiting company regarding distributor business. The FMCG distribution industry is undergoing accelerated reshuffling; only distributors who think deeply, discern trends, and dare to revolutionize themselves can carve out a path. The two topics of this study tour may seem unrelated, but they are actually key issues concerning the future fate of distributors! Some distributors expressed that this tour resolved many of their doubts. Others said it changed their perceptions. One friend remarked that this tour was undoubtedly his best consumption of 2023...
The 'New Distribution National Benchmark Distributor Study Tour' series will continue to identify more excellent distributor practice cases and provide opportunities for distributor members to engage in deep exchanges with peers in the field.
Please continue to follow the New Distribution official account, and we look forward to your active participation!