On April 25-26, 2016, our platform organized over 130 distributor friends from across the country to visit and study the Yishang model in Yantai. During the visit, we received a warm reception from General Manager Liu Zhongmin, who patiently answered questions raised by the visiting distributors.
After six years of exploration, Yantai Yishang Logistics has gradually developed a new model that can effectively respond to the impact of the internet. The Yishang model is based on warehousing and logistics, integrating B2B and B2C e-commerce platforms to create a closed loop for FMCG warehousing, logistics, and sales, saving costs for manufacturers and distributors and effectively countering the impact of the internet wave on traditional consumer goods.
Mr. Liu Zhongmin, Chairman of Yishang Logistics Co., Ltd., provided a comprehensive 360° analysis of the Yishang model. The Yishang model abandons the traditional area-based warehousing fee structure in favor of a volume-based fee, saving warehousing costs for distributors. Through B2B and B2C platforms, it expands sales channels for distributors. By combining revenue growth and cost reduction, the model addresses the anxiety of distributors who face the internet without a clear approach, feel unable to enter the field, and fear being marginalized. These concerns found resonance and answers in the classroom.
(Study tour visits Yishang Logistics warehouse)
(Yishang Logistics Chairman Liu Zhongmin explains the Yishang model on-site)
(Group photo at the warehouse center)
(Participants actively ask questions)
(Yishang Logistics General Manager Xu Guodong answers participants' questions)
As the saying goes, "Seeing is believing." After visiting the site, listening to Chairman Liu's interpretation, and engaging in in-depth communication, the distributor friends in the B2B e-commerce study tour gained a deeper understanding of the Yishang model. We also hope that after a thorough understanding, the Yishang model can help more distributor friends escape the predicament of being marginalized.
Appendix: Reflections by Guo Huixiong from Jiangxi
I am very grateful for the trip to Yantai, thanks to Teacher Zhao Bo, the two General Managers Liu and the Yishang colleagues, and the friends from all over the country who accompanied us!
I felt Teacher Zhao Bo's professional expertise and his influence and appeal in the industry!
I felt the spirit and youthful vitality of the Yishang colleagues! I also felt General Manager Liu's enthusiasm and passion! And I felt the great learning enthusiasm of friends from all over the country!
Let me briefly share a few of my humble opinions:
1: Redefining interests.
During the visit, shrewd distributors from all over the country were engrossed in calculating various costs and numbers, using mathematical logic to verify whether Yishang was profitable or not! This certainly reflects the business acumen of the bosses, but as I discussed with the distributors, the biggest shrewdness of traditional distributors is that they always only calculate visible interests, while ignoring invisible or even difficult-to-quantify interests! Yishang's interests are definitely not just the size of the calculated profit figures; its value is reflected in six years of deep cultivation in warehousing and distribution, confirming the successful implementation of "centralized warehousing and joint distribution," providing more standardized, professional, and sustainable value for Yantai's circulation, distributors, terminals, delivery personnel, and customers! Because of this value foundation, it will inevitably gain more premium space! For example, government support, capital support, talent joining, and driving more value creation! In other words, the interests of Yantai Yishang should not be measured by the visible and quantifiable interests of the past or a certain month or year! It is just beginning!
2: How far is it from traditional distribution to modern distribution?
Yishang Logistics can be said to have achieved the highest level of traditional distributors, serving more than 9,000 offline outlets in Yantai. Many friends often ask what proportion of orders are placed by physical stores? Even if 9,000 outlets order online now, what does it matter? I don't think this is of great significance; this is a matter of time and will happen naturally. There is no need to pursue these 9,000 terminals to place orders on the system at the moment.
The hottest and highest-growth areas in the future are three modules: B2C, cross-border e-commerce, and rural e-commerce.
These three areas are all ones where Yishang has the foundation and conditions to make great strides! And these three modules are areas where traditional distributors are willing but unable!
The biggest growth point for B2C lies in the online presence of traditional FMCG brand products. This is also the weakest and most powerless area of e-commerce at present.
The biggest growth point for cross-border e-commerce lies in the pursuit of quality, safety, and health brought about by the consumption upgrade of traditional FMCG products. The hardest part is the lengthy management challenge of connecting overseas supply chains to the domestic market.
Many people say that the current third-tier and fourth-tier distributors are all doing township markets, so the rural market is not a problem. In fact, it is the opposite; what needs to be eliminated are those traditional distributors who represent third- and fourth-tier brand products and seriously fail to meet the upgraded consumption demand.
In my view, modern distributors are those who, with warehousing and distribution capabilities, can possess any one of the above three modules. In this regard, Yishang should more vigorously attract young teams to cooperate!
3: A brief discussion on Yishang's vision.
General Manager Liu mentioned the vision: "Same-city life operator."
I feel this vision does not highlight Yishang's core capabilities and business characteristics.
Would "City commerce operator" or "Same-city commerce operator" be more appropriate?
2016-4-26, on the D6076 bullet train
- END-
The best domestic learning platform for FMCG distributors
Focused on providing professional, practical, and actionable tutorials for enterprises and distributors
Committed to helping Chinese FMCG distributors grow rapidly
The most professional and practical knowledge base in the FMCG industry
Reply with the red number below to get the corresponding content
Reply with number 1 to view the complete knowledge base
| 001 Selected excellent articles | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales volume improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation |
[Long press QR code to follow]