---
title: "Ren Wo Xing Zhou Bin: Case Sharing on Brand Channel Digitalization"
description: "Channel digitalization is a key focus for many brand owners, with more attempting or undergoing digital transformation. However, a lack of reference cases for the correct path leads to numerous difficulties. Zhou Bin, Co-founder and COO of Ren Wo Xing Technology, shared insights on brand channel digitalization cases at the China FMCG Channel Innovation Conference, offering valuable guidance for readers."
author: "周斌"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-05-25"
language: "en"
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# Ren Wo Xing Zhou Bin: Case Sharing on Brand Channel Digitalization

> Channel digitalization is a key focus for many brand owners, with more attempting or undergoing digital transformation. However, a lack of reference cases for the correct path leads to numerous difficulties. Zhou Bin, Co-founder and COO of Ren Wo Xing Technology, shared insights on brand channel digitalization cases at the China FMCG Channel Innovation Conference, offering valuable guidance for readers.

Channel digitalization has always been a key focus for many brand owners, with more and more beginning to attempt or already undergoing channel digital transformation. However, the correct path for channel digitalization lacks reference cases, leading to numerous difficulties in the transformation journey.
Mr. Zhou Bin, Co-founder and COO of Ren Wo Xing Technology, shared insights on the topic "Case Sharing on Brand Channel Digitalization" at the China FMCG Channel Innovation Conference, which is believed to be of great help to many readers.
Today, I will share topics related to brand owners implementing digitalization. I will not discuss theory, only implementation.
"A good wife at home, a housekeeper in the enterprise"—many friends may know or even use the Guanjiapo system. We have been engaged in enterprise informatization for 26 years, serving mainly distributors, with over 1 million genuine ERP customers and a 70% share in the ERP market.
How to transform and upgrade? Distributors have demands, and so do brand owners.
For the past 9 years, we have been researching digitalization. Initially, it was not so high-end; we simply helped distributors transform and upgrade online, connecting the upstream and downstream of brands. Since 2016, we have fully launched digital solutions and implementation products for brand owners, now serving over 30 leading enterprises.
****-01-******Three Keywords for Digital Transformation**
For the implementation of digital systems, I believe there are three keywords:
**First, implementable:** Channel digitalization must empower channels and distributors. If distributors cannot use it, it is the brand owner's problem.
**Second, scalable:** Distributor levels are extremely complex. If a tool cannot bring existing physical channels online and only aims to eliminate intermediate links, then digital transformation will be difficult to promote.
We noticed an interesting phenomenon: this year, there are no pure internet B2B platforms sharing on digital topics. Why?
Because their original intention was to eliminate intermediate links and distributors, going directly from manufacturers to terminals, but in reality, it is not that easy. **Centralized platforms work in the 2C era, but in the 2B era, they do not align with the underlying logic of business.** The recent anti-monopoly law is a signal, and this is also the spring for brand owners to build private domain digital platforms.
**Third, sustainable:** Terminals must be willing to use, like to use, and use well, so that brand channel digitalization can be implemented.
Regarding the definition of digitalization and informatization, in the past, it was more about internal optimization management, business process standardization, and informatization. Now, it is more about external connection and empowerment. In the past, we talked about ERP, CRM, SFA, and other informatization management tools; now, we talk more about business model reconstruction and upgrading.
**In the past, we relied on salespeople and distributors for extensive offline ground promotion, which is a characteristic of Chinese business. Now, business is about the integration of three networks: sky network, ground network, and human network. However, most physical economies currently lack the sky network, and the social fission of the human network is also absent.**
****-02-******How to Achieve It?**
So, how to achieve digitalization?
I know many brand owners are undergoing digital transformation, but many are fragmented. For example, OA systems, CRM systems, SFA systems, etc., are separate. The goal of digitalization is to integrate and connect these fragments. This is a headache for all enterprises because many problems arise in the process.
To be more specific, the goal of digitalization is three things: "Two Transformations and One Innovation" (channel online, business data, new channels and new ecosystems).
Channel online mainly includes connection and reach, from brand directly to C-end, even from F2C to C2F. After channel online, it is like building an information highway between brand owners, distributors, and stores, with data intercommunication among roles, forming business data, empowering each role, and finally achieving dual online and offline channels, new channels, new ecosystems, using existing stock to drive incremental growth.
Internet giants now want to cooperate with physical enterprises, mainly because they value offline resources and want to use data to empower. However, from our experience with many brand owners who have cooperated with internet giants in the past, there are many obstacles and problems because Chinese e-commerce has stronger 2C logic penetration, but too little research on 2B.
We have been studying 2B logic. How to help distributor stores play 2C based on 2B logic? The answer is the digital path.
**First, channels must be online.**
**Second, with channels online, how to efficiently distribute digital marketing expenses through online channels.**
Many enterprises spend at least 10% to 20% of their annual brand marketing budget, or even higher. Some leading enterprises spend billions annually. Originally, expenses were invested in distributors, but a considerable portion might be consumed by intermediate links, not truly reaching terminal outlets or members.
**Finally, through terminal online, help distributors expand stores and consumers, achieve supply chain from F2C to C2F, and ultimately form a brand private domain digital platform.**
Why is China rising so fast now? An important point is that China is a country with ideals. Guanjiapo has always practiced doing things with ideals. **The country advocates a community with a shared future. Digitalization is the same; we must build a community with a shared future, playing together upstream and downstream, not just thinking about our own interests.**
****-03-******Detailed Explanation of the "54321" Digital Implementation Plan**
For this digital implementation plan, we are the first in the industry. As early as 2016, we proposed the "54321" digital solution and implemented it through the Yunliushui system.
The core capability is to connect online and offline, which is a pain point for many enterprises.
You will find that people doing B2B find it difficult to connect with distributors. Can we ask distributors to replace their ERP? That is impossible. How to connect upstream and downstream to the C-end? How to connect store POS cash registers and software and hardware? How to connect whole-network marketing and home delivery business? How to connect warehousing, logistics, and supply chain finance, and how to collect and settle payments?
There is so much knowledge and so many things to do.
Next, two channels and one platform will be formed. **Future business must be integrated online and offline; there is no pure online or pure offline.**
This diagram is our business model and system architecture. On the far left is the brand owner, with various regions and provinces. The second part is distributors, also old customers of Guanjiapo. The third part is terminal outlets, and finally, C-end members, including community group buying and nationwide distribution.
How to connect with distributor ERP, store inventory, warehousing and logistics, payment credit, and BI data, and how to provide respective data to brand headquarters, distributors, and stores—this is what we have been doing.
Everyone talks about concepts, but many are not implemented. Some brands either develop in-house or hire a seemingly high-end software supplier, but in the end, they spend a lot of money without implementation. I want to tell brand owners that money is not the issue; the most important is time cost. Here are some difficulties to share.
**First, distributor connection.** How to make distributors feel they can use the brand's system while promoting their own products, achieve online-offline integration, and real-time inventory online is very challenging. We have been deeply involved for a long time.
**Second, decentralization.** Everyone must be willing to use it. If not, no matter how good the system is, it is useless. So, decentralization is essential. Do not say that the brand owner builds the backend and distributors must follow.
How to connect multi-level business forms? An important point is to solve human nature. Why should they use your system? Will using your system take away data? Will they be kicked out later? Distributors will definitely think this way.
**Third, usability.** Brand owners are now developing various systems. Whose system will distributors and stores use? This is another challenge.
How to make distributors willing to use (decentralization aligns with human nature), easy to use (good connection and experience), and use long-term (implementable and brings growth)?
Now let me talk about how we actually do it.
**First, channel online**
From headquarters' ERP and other systems, to distributor B2B and store connection, and helping stores with new retail O2O.
**Second, terminal online**
Why should terminals be online? To quickly push new products, one-click push all products to stores nationwide in seconds. **In the past, marketing expenses were distributed to all distributor stores; in the future, distribution can be selective, and each person sees different content.**
For example, if I select a product, I can push it to distributor mobile phones with one click. When brand owners have new product launches, they no longer need to organize meetings at five-star hotels; it can be done online.
Moreover, brands, distributors, and stores can all play live streaming. Short videos and live streaming are very popular now, including video accounts. In the future, we must use digital connections well to connect all levels, each doing their own business. This is the empowerment brand owners should provide.
**Third, price online**
Brand owners emphasize regional control. How to solve issues like price, authorization, and channel category authorization?
**Purchase authorization (channel protection and supply-demand designation)**
Designate retailers to purchase from specific distributors within their region to avoid cross-region transshipment, making channel control more flexible and effective.
**Business authorization (distributor business scope)**
Authorize distributors to operate in specific industries, categories, brands, and regions; distributors can only operate within the authorized scope.
**Price authorization (different pricing for different channels)**
Support different level pricing, different type pricing, specified selling prices, and tiered pricing based on purchase quantity, and introduce multi-unit sales to achieve personalized pricing and price control.
**Fourth, marketing expenses online**
Most brand expense distribution is done offline and then reimbursed, with many loopholes and efficiency issues.
Now, with one click, you can push products, coupons, and cash to specific recipients. The distributor backend immediately displays it, and the store's mobile phone also shows it. They can immediately use the coupon to order, without reimbursement.
**Fifth, personnel online**
This is the currently widely used solution based on SFA systems and pure informatization management systems. This part is a functional module in our entire supply chain platform.
For example, one of our products, Kuaima Digital Marketing Management System, not only solves B2B ordering but also customer management SCRM, marketing interaction SOA, salesperson behavior management SFA, ERP inventory connection, WMS and TMS warehousing and logistics connection, and supply chain finance integration.
**Sixth, full-domain connection**
As a software supplier, Guanjiapo has always advocated long-termism. We particularly care about creating value for customers.
We have a Quanchengtong software that can synchronize all ERP data online within one minute, and online orders are transmitted to ERP in real-time. This saves distributors a lot of labor costs annually. No need for salespeople to handwrite orders, then backend staff to enter them, and then backend sorting; accuracy and efficiency are greatly improved.
In the future, just push this mini-program or official account to store owners. No need to travel to counties; managing orders, marketing, customers, personnel, goods, and money can all be handled by one system. One system manages everything, completely liberating the boss.
**Seventh, empowering stores**
In addition to connections between manufacturers and distributors, distributors may also want to unite, like in computer cities, where everyone transfers goods to each other. Whatever goods you need, they are available. In the future, this can be done through the system.
Originally, distributors built their own platforms, sharing customers and supply sources among several distributors, which was unrealistic because they only wanted to share supply sources, absolutely not customers. **Sharing customers is not possible, but sharing supply sources is possible.** Everyone puts goods in together, then empowers terminal stores to achieve one-stop procurement, faster, better, and more economical.
In addition to peer connections, connections with upper and lower levels, stores, and other dimensions can also be achieved. The future business ecosystem will definitely be complex and diversified.
Also, through omni-channel empowerment, in addition to offline ordering, orders from Taobao, Tmall, Pinduoduo, and other platforms can be aggregated.
Help stores achieve digital upgrading, connecting offline POS systems, online B2C malls, small stores, mini-programs, store distributor management, home delivery business, and Meituan and Ele.me integration.
As everyone knows, under the epidemic last year, community group buying preferred platforms were very popular. I know this has impacted many distributors. They give community stores a mini-program code and an online inventory, then send the mini-program code to owner groups or member groups, with backend delivery. Stores serve as traffic diversion, profit sharing, and pickup points, sweeping in a large number of consumer customers, and this year it has fissioned rapidly.
In fact, distributors can do this too; they just need appropriate solutions and system tools.
In addition to helping stores achieve online-offline and O2O integration and upgrading, we also help stores with social fission. Store managers and staff can be online 24/7, and consumers can help spread the word. The logic of community group buying is to help you import more supply sources and empower terminal stores to achieve community marketing and fission.
**Eighth, empowering distributors**
Besides tool value, the value of marketing upgrading is even greater.
**The benefit of channel digitalization for marketing is that bosses can see growth at any time, see when customers logged in, how many orders they placed, their debt situation, when they visited, visit frequency, and how long since their last visit.**
Using backend tools for timely reach, reminders, and activation is the goal of new marketing. Original marketing may have focused more on solving inventory management issues; now it is about solving customer acquisition and digital marketing issues.
Digitalization will provide such BI to distributors, brand owners, and stores, but each sees different things. For example, brand owners, distributor headquarters, and regions will all see such BI, with real-time data and online data, allowing real-time adjustment of marketing strategies.
****-04-******Six Advantages of Ren Wo Xing Yunliushui SCM New Business Technology Platform**
To summarize, what value does our Yunliushui bring to brand owners and distributors?
**1. System architecture: physical + internet platform**
Connect, integrate, scalable; not just a tool but a platform; not a pure e-commerce system, nor an ERP front-end extension mall.
**2. Human nature: centralization + decentralization combination**
Decentralized merchants are more willing to use and promote the system; centralized empowerment of channels, bringing existing stock online and creating incremental growth.
**3. Empowerment: supply-demand relationship/price authorization protection**
Protect physical distribution regions, relationships, prevent transshipment and price chaos; use tools to reduce costs and increase efficiency while protecting physical information asymmetry.
**4. Practicality: seamless connection with Guanjiapo ERP**
60-70% of merchants in the trade and circulation field use Guanjiapo; in addition, Yunliushui comes with a simplified ERP and supports other ERP interfaces. Many of our customers come through distributor referrals or after learning that distributors use it, because if we cannot connect with distributors, the entire upgrade and transformation cannot be completed.
**5. Expansion: seamless business model upgrade and iteration**
New business model iteration and upgrade without starting over; PaaS system one-time independent deployment suitable for brand owners: data ownership, custom secondary development, no user number limits.
**6. Implementation: nationwide technical service network**
Guanjiapo has 2,000 service providers, with 7*12 hour nationwide response. Headquarters will provide solutions for brand owners and distributor partners.
We are always moving forward, hoping to create long-term value for customers, hoping to use our tools to help brand owners with digital transformation, upgrading, and implementation. We also hope brand owner friends maintain a long-term mindset, remain patient, and together empower channel distributors and terminal outlets. Helping others is helping oneself. That is my sharing. Thank you!
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