---
title: "Outperforming Internet Giants: How This B2B Platform Became a Regional Champion"
description: "In 2017 and 2018, New Distribution conducted two consecutive nationwide surveys of core markets, systematically investigating the coverage, penetration, product organization, platform operations, and service visits of various FMCG B2B platforms. A notable shift is that as the industry deepens, the Matthew effect from internet giants like JD New Route and Alibaba Retail Link is emerging, leaving fewer opportunities for startups. However, this doesn't mean latecomers have no chance; Fujian's Wanquan Network is a prime example, outperforming national B2B platforms in both penetration and competitiveness."
author: "新经销刘少德"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-03-14"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/ShDuOIu_DFtknsp9ncgqEA"
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# Outperforming Internet Giants: How This B2B Platform Became a Regional Champion

> In 2017 and 2018, New Distribution conducted two consecutive nationwide surveys of core markets, systematically investigating the coverage, penetration, product organization, platform operations, and service visits of various FMCG B2B platforms. A notable shift is that as the industry deepens, the Matthew effect from internet giants like JD New Route and Alibaba Retail Link is emerging, leaving fewer opportunities for startups. However, this doesn't mean latecomers have no chance; Fujian's Wanquan Network is a prime example, outperforming national B2B platforms in both penetration and competitiveness.

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In 2017 and 2018, New Distribution conducted two consecutive nationwide surveys of core markets, systematically investigating the coverage, penetration, product organization, platform operations, and service visits of various FMCG B2B platforms.
A notable shift is that as the FMCG B2B industry develops in depth, the Matthew effect brought by internet giants such as JD New Route and Alibaba Retail Link has begun to emerge, leaving fewer and fewer opportunities for entrepreneurs. However, this does not mean that latecomers have no chance for development; Wanquan Network in the Fujian market is a typical example.
During New Distribution's two consecutive years of FMCG B2B platform surveys, Wanquan Network outperformed national B2B platforms like Alibaba Retail Link in both penetration and overall competitiveness in the Fujian market. So what kind of company is Wanquan Network?
Recently, New Distribution exclusively interviewed Mr. Zhang Erjun, COO of Wanquan Network, hoping that through our interview, everyone will have a clearer and more comprehensive understanding of Wanquan Network, and also hoping to provide reference and inspiration for everyone's transformation.
**01**
"The prices of daily necessities for Chinese people are much higher than similar products globally, and there is still a gap in quality and product quality, with issues like substandard and counterfeit products. This not only mismatches the income level of Chinese people but also fails to meet the demand for food safety and product quality in consumption upgrades. The market, policies, and regulations all call for change. **For enterprises, a period of change is a huge opportunity.** " Zhang Erjun told New Distribution that this was the original intention for establishing Wanquan Network and the main reason for positioning the company as a supply chain service platform.
Under the influence of the internet and the call of new retail, consumers' demands for consumption experience are becoming more diverse, which in turn drives the acceleration of the restructuring of product sales channels and logistics service models, triggering another round of major integration and transformation in the FMCG and fresh food industries.
We believe that the traditional deep distribution system for FMCG and fresh products, from the perspective of product circulation, involves tiered agency from manufacturers to terminal customers, with high agency fees, low gross margins, and uncontrollable prices, leaving distributors unable to support enterprise development.
From the perspective of product quality and reputation, manufacturers, under pressure from sales performance, market share, and product placement rates, need to invest substantial funds and manpower to maintain this distribution system, preventing them from focusing on product quality and R&D, thus weakening product competitiveness.
From the logistics perspective, multiple links and multiple handling not only fragment the warehousing and distribution process but also increase costs in the circulation chain, thereby increasing consumer costs and poor experience.
Therefore, the traditional distribution system is the main reason why consumer goods prices in China are much higher than the international average, and it can no longer adapt to the major changes in the consumption era and the demands of consumption experience.
Against this industry background, Wanquan Network was officially established in July 2016. In April 2017, after restructuring and introducing new shareholders, it officially launched operations. After more than two years of development, **as of now, the Wanquan Mall APP covers all counties (districts, cities) in Fujian Province and 90% of townships, with 75,000 service points. To better serve convenience stores and restaurants, Wanquan Mall directly connects manufacturers, distributors, and suppliers, offering 3,500 SKUs covering all categories except major appliances, maternal and infant products, and tobacco, basically meeting terminal customer needs. In 2018, the commodity transaction volume reached 1 billion yuan, and logistics distribution volume reached 5 billion yuan; it is expected that in 2019, commodity transaction volume will reach 2 billion yuan, and logistics distribution volume will reach 6 billion yuan.**
At the business level, in addition to the Wanquan Mall B2B business, Wanquan Network also has core businesses such as Wanquan Speed Distribution (a logistics mobile B2B co-distribution platform) and Yonghui Micro Payment (a small loan mobile B2B financing platform).
In terms of warehousing and distribution, Wanquan Network has established 9 warehousing and distribution centers and 46 distribution stations in Fujian Province, and 3 large logistics distribution centers in Shanghai, Jiangsu, and Zhejiang, with 130,000 square meters of warehousing space and 500 vehicles.
**02**
Small and scattered is the most typical characteristic of traditional retail stores in China, and it is precisely because of this that the FMCG B2B industry has the soil to survive and develop rapidly.
"Against the backdrop of significantly increased store rent and labor costs, diversified sales channels, oversupply, and diverse demand, retail stores still bear the functions of repeat business and auxiliary sales channels, with relatively low costs and flexibility advantages. They have strong vitality and remain the preferred business model for mass entrepreneurship. Based on the data we have from Fujian Province, the number of store closures and openings is roughly balanced on an annual basis," Zhang Erjun revealed to New Distribution.
"Currently, most retail store owners can accept purchasing from B2B platforms and reduce purchases from secondary wholesalers or wholesale markets. The main reasons are: good B2B platforms generally offer low prices, complete categories, and good service, making it simpler, more convenient, and more profitable for store owners. In the future, B2B platforms need to leverage big data, keep up with market changes and pace, and develop empowering and win-win products to create complete stickiness for stores."
It is worth noting that while most B2B platforms are venturing into retail and opening offline stores, Wanquan Network has not followed the trend but instead focused its development on warehousing and logistics.
Zhang Erjun told New Distribution that choosing this development path is closely related to the company's development strategy:
> **1. Adhere to the "regional champion" strategy, taking a provincial administrative region as an operation area, through intensive cultivation, sinking to cities, counties (districts), and townships, forming high-density networks, and building a shared warehousing, distribution, and sharing commercial and logistics network.**
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> **2. Adhere to the "mutual support of commercial flow and logistics" model.** On one hand, commercial flow feeds logistics: through the Wanquan Mall APP, goods are integrated, gradually promoting the socialization of logistics network services and driving the operation of the Wanquan Speed Distribution APP; on the other hand, logistics feeds commercial flow: through service outsourcing, actively undertaking integrated warehousing and distribution projects for large supermarkets and manufacturers, gradually extending the logistics network and embedding it into the Wanquan Mall APP project; based on the different conditions of each region, we choose different models to promote, and through intensive cultivation, achieve a positive interaction between commercial flow and logistics.
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> **3. Adhere to the "stacking and iteration" concept.** After completing the layout of commercial and logistics networks, to achieve value-added services and avoid repeated investment, we use the concept of stacking and iteration to continuously expand product sales channels and broaden product width. For example, after completing supermarket development and maintenance, we expand to the restaurant channel. Based on channel expansion, we iteratively upgrade the product sales and logistics distribution network to achieve functional stacking, meeting the ever-changing market demands and consumer experience needs for more, faster, better, and more economical.
**03**
The 2018 capital winter made the entire FMCG B2B industry feel a chill. The closures of Dian Shang Hu Lian, Yatang Xiaochao, and others are frequent, prompting more industry practitioners to think about the future direction of B2B.
In response, Zhang Erjun told New Distribution that B2B platforms are one of the ways to reform the traditional distribution system in line with the development trends of the new economy and new retail. They change the fragmented, multi-tiered, and high-cost status of traditional product distribution, achieving intensive and organized product distribution, and are definitely a trend and direction for future industry development. Currently, the successive closures of B2B companies are partly due to the extension of C-end concepts that focus only on capital and traffic rather than real business, and partly due to normal elimination by industry development laws.
The development direction of B2B platform companies should fully consider the needs of upstream manufacturers and downstream stores, and what they can empower upstream and downstream customers with. It should be industry + internet, not simply subsidizing to gain traffic and win capital recognition. We adhere to the concept of being responsible and serving upstream and downstream customers, through the integrated integration and operation of commercial flow, logistics, capital flow, and information flow, providing downstream customers with more convenient and efficient one-stop services, providing upstream customers with more comprehensive product distribution services, and providing more accurate market information services through data.


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