---
title: "Public Platform or Private Platform: Which One Belongs to You?"
description: "When FMCG B2B companies attempt to transform and embrace the internet, should they choose a public or private platform for building their information systems? Today, I'll explain it simply and directly. Both public and private platforms cater to different market needs, with the core goal of solving information asymmetry and efficiency issues. The advantage of public platforms is their extremely low cost and ease of use, making them suitable for small and micro distributors. However, their functionality is limited—you can only use what the platform offers—and all data resides with the platform, just like opening a store on Taobao."
author: "胡小印"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-11-18"
language: "en"
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---

# Public Platform or Private Platform: Which One Belongs to You?

> When FMCG B2B companies attempt to transform and embrace the internet, should they choose a public or private platform for building their information systems? Today, I'll explain it simply and directly. Both public and private platforms cater to different market needs, with the core goal of solving information asymmetry and efficiency issues. The advantage of public platforms is their extremely low cost and ease of use, making them suitable for small and micro distributors. However, their functionality is limited—you can only use what the platform offers—and all data resides with the platform, just like opening a store on Taobao.

> When FMCG B2B companies attempt to transform and embrace the internet, should they choose a public or private platform for building their information systems? Today, I'll explain it simply and directly.
**Both public and private platforms cater to different market needs, with the core goal of solving information asymmetry and efficiency issues.**
**Public platforms** have the advantage of extremely low cost and simple, rapid deployment, making them suitable for small and micro distributors.
Their disadvantages include limited functionality—you can only use what the platform offers—and all data resides with the platform, just like opening a store on Taobao: without the platform, you are nothing, let alone having any stake in the platform's value.
**Building a private platform** has the advantage that once it's built, you are the landlord, and you can customize it to your requirements. Both tangible and intangible value belong to you, but you must create an empire on your own. The disadvantages are high construction costs and even higher operational costs, requiring an adventurous spirit, strong will, and the right timing, location, and people to realize your dream.
Whether you choose a public or private platform, it is an inevitable path for traditional enterprises to connect with the internet.
**1. When you choose to use a B2B public platform,** you decide to place all your company's product, channel, and operational data on someone else's platform, as if opening your front door and inviting visitors in. It seems you are connected to the internet, but it's merely buying and selling products, transferring your traditional operations to online transactions. You earn limited product margin profits, but this loses long-term significance and value for you.
When public platforms obtain your product data, transaction data, and channel terminal data, it's like "Didi" hijacking taxis—you are firmly trapped. Public platforms mean putting your fate in someone else's hands.
**2. When you choose to build a B2B private platform,** and you control the data of information flow, capital flow, and product flow, then derived brand value, financial services, media advertising, new product introductions, capital accumulation, and payment revenues become possible. Otherwise, how can you talk about financing? Building a private platform is an essential condition in your financing process.
> **In summary:**
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> Using a public platform is running a traditional business, earning product price differences.
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> Building a private platform is operating an innovative venture, living for your dreams.
In this November's study tour, Hu Xiaoyin, founder of Beijing Zhongke Shangruan, will focus on revealing "How Deep Are the Pitfalls of System Development?" We welcome everyone to actively participate!


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