---
title: "The Internet \"Wolf\" Has Come, Where Are the Dealers' \"Guns\"?"
description: "After the Lantern Festival, the New Year has passed, but the mood remains unsettled. Before the holiday, while everyone was considering how to do business in 2016, Alibaba and JD.com announced their entry into the FMCG sector, adding fuel to the fire. The industry is now discussing countermeasures, with efficiency improvement and transformation being common concerns for millions of dealers. As a software developer in the FMCG field, we offer our perspectives from another angle."
author: "张贤鑫"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-03-01"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/the-internet-wolf-has-come-where-are-the-dealers-guns-255ea780.md"
original_source: "https://mp.weixin.qq.com/s/aqCwymBbu3htsN59RYpjqw"
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---

# The Internet "Wolf" Has Come, Where Are the Dealers' "Guns"?

> After the Lantern Festival, the New Year has passed, but the mood remains unsettled. Before the holiday, while everyone was considering how to do business in 2016, Alibaba and JD.com announced their entry into the FMCG sector, adding fuel to the fire. The industry is now discussing countermeasures, with efficiency improvement and transformation being common concerns for millions of dealers. As a software developer in the FMCG field, we offer our perspectives from another angle.

The Lantern Festival has passed, and the New Year is over, but the mood has not calmed down.
Before the holiday, when everyone was thinking about how to do business in 2016, agonizing over investments in KA and terminals, and worrying about agency brands and gross margins, Alibaba and JD.com successively announced their foray into the FMCG sector, adding fuel to an already restless year.
Suddenly, the industry is abuzz with discussions and countermeasures. How to improve efficiency, transform, and upgrade is a common topic of concern for the tens of millions of dealers in China.
As a software developer in the FMCG field, we offer some views from another angle for your consideration.
**Why are internet giants entering the FMCG sector?**
China's internet has been around for over 16 years and has affected every aspect of people's lives. In 2015, total retail sales of consumer goods reached 30,093.1 billion yuan, up 10.7% year-on-year, with offline retail accounting for 87.1% of total national retail sales. However, the operating methods in this field remain primitive, barely touched by the internet.
For terminal retail stores, owners still rely on good memory and a pen for bookkeeping, communicate with suppliers by phone, have no inventory management, and only realize they are out of stock when customers ask. There is no financial management; at year-end, they count the money in the drawer to see if they made a profit or loss. For distributors and wholesalers in circulation, procurement and transaction processes still follow old habits from over twenty years ago, with very low informatization and systematization. Inventory turnover is slow, product information is non-standard, and a lot of manpower and time is spent on the road for transactions. Larger dealers may use traditional software like Guanjiapo, but it is limited to bookkeeping and cannot achieve interconnectivity, let alone assist in management decisions. When business is good, they are overwhelmed with phone calls and busy to the point of exhaustion, with constant human errors; when business is bad, they rely on luck, working a year without profit, either adding staff to increase volume or cutting brands to shrink, extremely passive.
Internet people see this opportunity and believe they can use internet models to improve efficiency and reduce costs, thereby revolutionizing the entire industry.
So the question arises: can they really revolutionize it?
**Advantages and Disadvantages**
The advantage of internet giants is internet technology; their disadvantage is that they are internet companies.
Are manufacturers willing to abandon dealers?
Dealers do not only undertake warehousing and distribution in the circulation chain; they also serve as the manufacturer's capital platform, handle KA supermarkets and hypermarkets, and manage terminal customer relations and displays. From a competitive standpoint, manufacturers are also reluctant to give their products to a single super-dealer, preferring to have multiple dealers check and balance each other.
Will terminal retail stores accept it?
For retail stores, the two most important issues are price and after-sales service. Regarding price, even if terminals directly connect with manufacturers, manufacturers cannot set the lowest price, as that would disrupt the market—something they least want to see. After-sales service is critical, such as returns and exchanges for near-expiry products. If JD.com were to handle after-sales well, the resources invested would be no less than the manpower of multiple full-category dealers. Clearly, JD.com is not prepared for this task.
Conversely, the advantage of traditional dealers is that they come from the traditional industry; many have been immersed in the industry for over 10 years, and no one understands it better than they do. Their disadvantage is that they lack internet technology, or even completely understand the internet. Without the "gun" of the internet, they cannot embrace Internet+, let alone compete with internet giants.
**Where are the "guns"? We'll build them!**
**Who We Are**
Gongtianxia - The most professional FMCG internet SaaS platform
  * Our team comes from internet giants like Tencent, Sina, and JD.com;
  * In October last year, we received our first venture capital investment;
  * Dozens of dealers nationwide are using the Gongtianxia SaaS platform;
System Features
  * 10 major system modules, 1000+ functional details, including dealer management platform, salesperson end, driver end, convenience store end, and full coverage across PC, iOS, Android, and WeChat
  * The platform embodies the management wisdom of dozens of dealers, truly helping dealers improve efficiency, reduce costs, and embrace Internet+
  * Carefully crafted interaction details, simple and smooth user experience, easy to get started even for those unfamiliar with computers
More importantly
  * Cloud-based SaaS. Just one account gives you access to the entire platform, no need for professional staff or server hardware investment
  * Data-flow-based security. All data is stored in the cloud, every interface is algorithmically encrypted, data security is our life
  * Internet-based product upgrades. Weekly product iterations, new versions every week
**Now that we have the "gun", how do we use it?**
Through seven core systems—transaction, operations, order flow, warehousing and distribution, salesperson management, CRM terminal customer management, and after-sales management—we achieve a comprehensive, three-dimensional supply chain operations platform.
**Strategy: Platformization**
Dealers are the link connecting upstream and downstream resources. From this perspective, dealers themselves are platforms, but they have not systematically realized platformization, leaving them long suppressed by manufacturers and retail chains, becoming their appendages. With the Gongtianxia platform's upstream and downstream management, order and distribution workflows, role-based personnel management, and various data report analyses, dealers can fully leverage their platform attributes, gradually transforming from a trader role into the regional FMCG supply chain operator, becoming a true platform player.
**Market Operations to the Next Level**
For dealers, what is lacking is not ideas and strategies for market development, but advanced tools to implement these ideas. Gongtianxia provides a series of powerful market development tools, from sales strategies to promotional rules. With simple settings, you can implement full reduction, free gifts, flash sales, bundled gifts, retail piece sales, low-price bundling, and tiered pricing. All promotional policy information is instantly communicated to terminals, making your deployment truly effective.
**First, Improve Personnel Efficiency**
Salesperson management has always been a challenge for dealers. Salesperson turnover is high, leading to significant customer loss. Especially some veteran salespeople start resting on their laurels, and their motivation to develop new markets seriously declines.
Gongtianxia's salesperson management module covers visit records, customer data aggregation and analysis, performance appraisal, etc. All historical communications with customers are recorded, greatly reducing the cost of salesperson turnover and training.
**Reduce Terminal Expansion Costs, Keep Customers Firmly in Hand, Terminal is King**
Traditional transactions are one-way, meaning there is only a buying and selling relationship between dealers and terminal stores, ignoring service. The future reconstructed transaction rules will include both service and transaction, and CRM customer relationship management is designed for this.
CRM has been introduced to China for many years. Its core concept is that customers, as the most important asset of an enterprise, will generate competitive advantage and improve customer loyalty, ultimately increasing the company's profitability. We use map-based visualization of terminal store management and multi-dimensional data analysis, combined with various cross-functions in the marketing system, to help maintain customer relationships, comprehensively improve customer management to reduce costs, and provide faster and more thoughtful quality service to attract and retain more terminal customers.
**Reduce Distribution Costs with Intelligent Route Algorithms**
Regional logistics distribution is a very important part for dealers and also a significant cost. Every dealer has their own fleet. Even with extreme cost-saving measures, distribution costs still account for about 2%. Can distribution costs be reduced further? How?
With the high prevalence of mobile internet today, it is entirely possible to optimize using GPS, LBS, and other means. Through in-depth research on dealers' distribution habits and routes, combined with internet technology, we have achieved intelligent dispatch of drivers, automatic avoidance of congested sections, and calculation of optimal delivery routes.
**Introduce E-commerce ERP Processes, Move from Semi-Automatic to Fully Automatic**
From order receipt to printing delivery notes, from picking to completing delivery, this conventional order process seems problem-free, but it hides significant optimization potential. Looking at e-commerce companies, they run online promotional activities with daily order volumes often reaching tens of thousands. How do they efficiently handle these orders, automate order processes, and intelligently sort goods?
Gongtianxia team members previously served in information development at large e-commerce companies and have rich experience in efficient order platform ERP. We attempt to replicate the efficient, high-concurrency order processing flow of e-commerce ERP into the dealer SaaS platform, helping dealers achieve fully automated process management in orders.
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**The only constant in this world is change. The industry is about to undergo a full reshuffle. Through efficient internet tools, dealers who cannot keep up will be quickly eliminated, and those with awareness and capability will survive to share the cake. Dare to disrupt, break the old, liberate the mind, and let us embrace Internet+ together.**
**-END-**
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