Following Alibaba's '11.11' and JD.com's '6.18', Zhanghe Tianxia has launched the '818 Supermarket Festival', now in its third year. Unlike consumer-focused events, this festival is a dedicated promotional occasion for 6 million small and medium supermarket terminals across China. It is arguably the only large-scale promotional event in the domestic B2B sector. What is the real purpose behind Zhanghe's push for '818'?
Before diving into that, let's first understand what kind of platform Zhanghe Tianxia is.
1. Pioneer of the 'Self-operated + Matching' Hybrid Platform Model in FMCG
Founded in July 2013, Zhanghe Tianxia has received investments from Alibaba-affiliated Hushan Shannan, Huaxia Yusheng, and HNA Group's Gongxiao Daji in Series A, A+, and B rounds, totaling over 1 billion RMB. Initially, Zhanghe entered the FMCG B2B sector through a matching model, using franchise arrangements where franchisees paid a technology usage fee for local exclusive rights. This asset-light approach enabled rapid regional expansion. With scale growth and leveraging HNA Group's supply chain resources, it gradually evolved into a hybrid self-operated and matching platform.
I have previously expressed two core views on FMCG B2B platforms: First, one cannot solely rely on self-operated or matching models. Category characteristics determine the supply chain service model; only a hybrid model can maximize distribution efficiency. Second, since matching models struggle to create professional barriers in technology and model, the Matthew effect is pronounced. Looking at the current landscape, besides Alibaba's Retail Link, Zhanghe stands out. However, Zhanghe also incorporates self-operated attributes, giving it greater flexibility and growth potential compared to Retail Link and Xintonglu.
The above highlights the advantages of Zhanghe's platform model. In terms of business expansion, the hybrid platform's leading momentum is evident. According to the latest data, Zhanghe's business now covers 28 provinces and over 800 cities, spanning Northeast, North, Central, Northwest, and South China.
Given such a nationwide FMCG B2B platform, what is the significance of creating an '818 Supermarket Festival'? Such a large-scale event is unlikely to become a national carnival like '11.11' or '6.18'.
Let me interpret the connotation and significance of the '818 Supermarket Festival' from several dimensions:
2. The Significance of the '818 Supermarket Festival' in Driving Full-Industry-Chain Linkage
1. Low-Price Promotions Are Just the Surface; Platform Drill Is the Essence
Undoubtedly, the '818 Supermarket Festival' benefits supermarkets on the surface, but internally it represents a platform drill. Why call it a drill? Because operating a B2B platform is challenging: companies need to manage upstream supply chains, midstream franchise coordination, and downstream supermarket demand, along with infrastructure like warehousing, logistics, delivery, and services.
To compare with B2C, an example makes it clearer: B2C takes money from consumers' pockets, while B2B digs money out of business owners' pockets...
Therefore, for Zhanghe, understanding the complexity behind the platform model, the platform needs a full-chain linkage exercise to test operational efficiency and establish a benchmark position in the B2B sector.
2. Awakening of a Million Supermarkets, Boosting the B2B Industry's Formation
As mentioned, it may not become a national carnival, but it could become a procurement festival for all supermarket owners. Since 2015, supermarket owners have gradually encountered various B2B platforms. From initial excitement (being able to compare prices online and offline for the first time, enabling selective ordering) to current disappointment (price fluctuations, lack of categories and services), the disadvantages of B2B platforms compared to offline distributors have eroded terminal confidence and patience.
However, this round of large-scale promotional activities like the '818 Supermarket Festival' might make terminals realize for the first time: you can dislike B2B platforms for missing categories and failing to meet one-stop procurement needs; you can reject periodic price fluctuations; you can ignore ground promotion staff; but you cannot refuse online ordering. Eventually, you will get used to filling your shelves with a few taps on your phone...
For supermarket owners, this '818 Supermarket Festival' is an awakening of consciousness.
3. A Profound Warning to Supply Chain Entities: Cooperation Is Key to Survival
Beyond the awakening of supermarket owners, let's look at the backend: how will brand owners and distributors change? It's easy to see that the '818 Supermarket Festival' is not just a festival or a promotional event. Brand owners need to think beyond whether to cooperate: What about the existing offline sales? What about offline distributors? At this point, brand owners need to sit back and observe the platform's revenue and think: How to cooperate! How to balance online and offline! How to safely manage this transition period! Meanwhile, distributors also need to reconsider: B2B platforms are not far away; don't wait and see... Distributors have only two options: transform or die.
The awakening of supermarkets and the shift in attitudes of brand owners and distributors signal the rise of the entire B2B sector.
3. Data-Driven Strategy in the New Retail Context
The third '818 Supermarket Festival' will last a full month. Let's speculate ahead. The festival will generate a series of numbers, large and small. These numbers, beyond occupying server resources, have little use unless organized, categorized, and analyzed. Even then, they remain numbers, but their value far exceeds the event itself because they provide strategic decision-making basis for companies: identifying problems, adjusting and optimizing, improving internal efficiency, and reducing operational costs.
Some might say, how can one day's data provide strategic decisions? But don't forget, the platform generates continuous data daily. Comparing today's data with tomorrow's, or activity data with non-activity data, and organizing and categorizing them... Data is the core driver of new retail.
It's conceivable that the transactions behind the '818 Supermarket Festival' will form valuable B2B big data, not only aiding the platform's decisions but also helping brand owners achieve more precise marketing...
In my view, this is the true meaning and value behind Zhanghe Tianxia's creation of the '818 Supermarket Festival'.
Conclusion:
The rapid development of FMCG B2B platforms is an inevitable result of consumption upgrades and internet intelligence. Of course, capital has accelerated this process. Since 2015, various platforms have received capital injections. After two years of development and growth, 2017 can be seen as the practical implementation after capital hype. Setting aside model innovation and technological innovation, what kind of feedback will it bring? Let's wait and see for the '818 Supermarket Festival'!
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