Click the image for details The following is a transcript of the speech by Tang Guangliang, founder of New High Bridge, at the Second China "Internet + FMCG" Summit Forum on July 15-16. Five New Thoughts on the Future of FMCG B2B VS Speech | Tang Guangliang Recorded by | Ren Xiaodong Photos | Tobey.com I. Introduction Sharing at this point is actually awkward. First, everyone is tired after two days of meetings; it's not that my content is problematic, but that everyone is exhausted. Second, yesterday, Yijiupi, Bestore Plus, and just now Zhanghetianxia have all said what needed to be said. What should I, from New High Bridge, say? If I share the same content, you'll say I'm plagiarizing; if I share different content, I can't just make it up. Yesterday, Lao Wang from Yijiupi gave a brilliant presentation. Today, I wish I could go backstage and modify my slides. Some of the content overlaps. Personally, I think if he came, I didn't need to come, and if I came, he didn't need to... Let me explain the theme again. It's the same as last year's 2016 conference, but with a "2" added in the top left corner. Using Alibaba's new concept, it's the "Five New." In total, that makes ten thoughts. Since they are called thoughts, they are for your reference, and I'm not responsible for their correctness. Last year, a friend criticized me for having too few PPT slides. This year, I've made a few more, two of which are from last year, and most are advertisements. The core is that my spoken content is more important. First, let's review last year's five thoughts. They were basically in sync with the market, with no major deviations... II. I Like How You Can't Stand Me, Yet Can't Get Rid of Me Before sharing the "Thoughts," let me share a feeling. Many people think that those who share on stage are very impressive. Actually, it's the opposite. Only three types of miserable people give speeches: first, B2B companies that have raised large funds and are forced by capital to come out and boast to find a successor; second, those who come to endorse their brand for fundraising; third, those forced by their superiors to speak. Basically, these three types. Of course, there are also many who come for the sentiment of Brother Er, some who come to dig pits for competitors, and some who share years of experience for the industry's development. My reason for coming includes a bit of all that. But I need to add two points: one is to prove that New High Bridge is still alive, and the other is "I like how you can't stand me, yet can't get rid of me." I don't know who said this, but I've been liking it recently. Of course, when I see this sentence, I also want to slap myself. Isn't that asking for trouble? But I must use the 716 conference to explain why: A competitor went to Hunan and created a "New High Bridge Happy Hui Exclusive Customer Group," which includes New High Bridge's customers. The competitor claimed they must increase promotional intensity, specifically targeting New High Bridge with special actions. I'm sorry to say that our real competitors at this stage are still traditional wholesale departments (secondary distributors) and traditional large markets. If competitors knock New High Bridge down, I wonder how you'll raise your next round of funding. When Sanlu milk powder had an incident, it wasn't the Sanlu brand that failed but the milk powder. If New High Bridge is knocked down, it's a problem with the FMCG B2B business model. So I remind competitors to have a bigger vision, and besides, you can't get rid of us. I think this is a problem with the competitor's senior management; the juniors need more training. III. Convenience Store + FMCG B2B: New High Bridge's Nationwide First Model I've never advertised on stage before. Today, allow me to do a little advertising and briefly introduce New High Bridge. New High Bridge was established in 2014, operating on a self-operated model. Happy Hui was established in 2008, operating on a pure franchise model. At its inception, it charged a 20,000 yuan franchise fee, but starting in 2014, it became free to join, aiming for better development of New High Bridge. Happy Hui convenience stores currently number over 10,000, and New High Bridge convenience stores over 800. Both brands belong to New High Bridge, so New High Bridge's model is the nation's first "convenience store + FMCG" model. The purpose of introducing New High Bridge is not just simple advertising but to convey a signal: the content I'm about to share is not theoretical or boastful but insights gained from stepping on landmines and falling into countless pits... IV. Entering the Theme: Five Thoughts for 2017:

  1. Whose existing market does FMCG B2B disrupt, and who does it replace?
  2. Should FMCG B2B use multi-channel distribution or vertical focus?
  3. How do brand manufacturers and FMCG B2B love and hate each other?
  4. How does the crazy expansion of convenience stores affect FMCG B2B?
  5. What is the core competitiveness in the ultimate showdown of FMCG B2B? First Thought: It's now clear that 1.0 will replace traditional wholesale departments and traditional wholesale markets, 2.0 becomes a super first-level distributor; 3.0 enters some private label OEM; 4.0 becomes a comprehensive FMCG service platform or China's largest channel provider. Second Thought: It's currently difficult to supply through multiple channels. My personal suggestion is to focus first. The price systems, categories, and transaction scenarios for restaurants, bars, and KTVs are all different. Third Thought: Most manufacturers, I think, have gradually moved from initial rejection to gradual openness, embracing B2B platforms step by step. Only a small number of brand manufacturers are still waiting. Yesterday, Lao Wang from Yijiupi made it clear: Isn't B2C the biggest cross-channel seller? I strongly agree, and I also agree that regional protection is the most shameful practice. It violates the laws of economic development and is not beneficial to the people. It's indeed shameful to prevent consumers from buying high-quality, low-priced goods... Let's revisit the industry's evolution: 1.0 goods before payment; 2.0 payment before goods; 3.0 agency period; 4.0 supermarket KA; 5.0 circulation B2B. No manufacturer can control development trends. Large supermarkets can force manufacturers to establish a 4.0 KA era. Similarly, B2B companies can change the existing distribution system, and there's nothing wrong with that. Let me focus on the last two thoughts:
  6. How does the crazy expansion of convenience stores affect FMCG B2B?
  7. What is the core competitiveness in the ultimate showdown of FMCG B2B? Fourth Thought: When talking about convenience stores, I must mention unmanned convenience stores. First, I personally embrace unmanned convenience stores and new species. They will have their market in the future. Aren't they just an enhanced version of vending machines? They have their consumption scenarios and will divert some existing customers from manned convenience stores. But let me also share the shortcomings of unmanned convenience stores...
  • Undoubtedly, the consumer experience in unmanned convenience stores is inferior to manned ones.
  • The richness of categories is naturally incomplete; many immediate goods cannot be sold normally.
  • Bottle exchange and prize redemption are major drawbacks.
  • Shopping scenarios for children and the elderly basically disappear.
  • The upfront technology development and trial-and-error costs are higher than the rent and labor costs of manned stores, and efficiency and cost cannot be improved in the early stages.
  • How to deal with vicious competition? Immature technology doesn't rule out that a manned store could hire 50 people every day to visit your unmanned store, causing system paralysis and preventing normal operation. This could happen. I hope unmanned convenience stores succeed, but don't get too excited. Once unmanned convenience stores succeed, a new model will emerge: the "no-store" model. Alibaba likes to create new concepts and terms. Today, I'll also create one: "no-store." Two companies are suitable for the no-store model: Meituan and SF Express, run by Wang Xing and Wang Wei. Since unmanned convenience stores don't need consumer experience, we can boldly imagine a more thorough no-store model. If I'm right, it's a coincidence. Ma Yun and Ma Huateng are fighting fiercely over mobile payment, and they've also started to lay out unmanned convenience stores. But it never occurred to them that in the convenience store business, they might be outflanked by the two Wangs... I also have a feeling that the entrepreneurs in unmanned convenience stores are the same group that was once in O2O. When O2O funding became difficult, they changed their clothes and started new ventures, basically entering through technology. Wouldn't it be better for Lawson and FamilyMart to do unmanned convenience stores? Capital could also invest in Happy Hui. Capital might ask if technology is the core. I would counter: How did all retailers solve their technology before? The core is operational capability. Finally, let me share: "What is the core competitiveness in the ultimate showdown of FMCG B2B?" Fifth Thought: First, let me sort out some important parts. On the left are the five rigid demands of terminal small stores: "delivery speed, complete categories, affordable goods, after-sales service, and help with store sales." On the right are the more important competitiveness factors: "delivery efficiency, technology-driven, product price, store control, goods control, data control, transaction control, supply chain finance, value-added services, etc." So what is core competitiveness? My personal view is "product power"! From manufacturers to logistics distribution centers to terminal small stores and finally to consumers, isn't it all about selling goods? How to sell goods to consumers? No matter what marketing methods or tools are used, the entire process is about selling goods. The product itself is the core. Since it's the core, it's the core competitiveness. Core competitiveness is product selection... All five thoughts have been shared. To summarize New High Bridge's understanding of the greatest mission and value of FMCG B2B in one sentence: "Let convenience stores worldwide easily open, easily stock, and easily make money." Let's open our minds! Yesterday, everyone was talking about empowerment. Today, I officially announce that "Happy Hui Convenience Stores" is open to all FMCG B2B companies, with free licensing. I take this opportunity to reiterate that it's not about changing signs but about operational technology output. It's consumers who force small stores to join. Brand franchising has advantages. Don't think you can do everything yourself. Our eight-year brand can help competitors better develop their B2B business. If interested, scan the QR code. Finally, let me end today's sharing with a quote from Lao Cui: "In FMCG B2B, Li Dazhao has appeared, but Mao Zedong has not yet." I hope that next year at 716, we are still alive. If you're alive, you might be Mao Zedong. Disclaimer: This speech transcript was published immediately and has not been revised by Mr. Tang. There may be omissions or misunderstandings. Please forgive. -END-