---
title: "The Time Has Come for Brand Manufacturers to Enter B2B!"
description: "The topic of FMCG B2B has been discussed for over four years, evolving from the first phase of startups entering, to the second phase of traditional distributors and chain retailers, to the third phase of internet giants. The author believes that now is the prime time for a fourth force to enter FMCG B2B: brand manufacturers. Store owners' ordering habits are quietly changing, and manufacturers cannot afford to hand over terminal stores to B2B platforms."
author: "刘昭"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-12-16"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/the-time-has-come-for-brand-manufacturers-to-enter-b2b-d9790325.md"
original_source: "https://mp.weixin.qq.com/s/MOS4E99iFIuWC215gmT0wQ"
translation: "https://xinjignxiao.com/zh/articles/%E5%93%81%E7%89%8C%E5%95%86%E5%85%A5%E5%B1%80b2b%E7%9A%84%E6%97%B6%E7%82%B9%E5%B7%B2%E7%BB%8F%E5%88%B0%E6%9D%A5-d9790325.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/the-time-has-come-for-brand-manufacturers-to-enter-b2b-d9790325/"
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---

# The Time Has Come for Brand Manufacturers to Enter B2B!

> The topic of FMCG B2B has been discussed for over four years, evolving from the first phase of startups entering, to the second phase of traditional distributors and chain retailers, to the third phase of internet giants. The author believes that now is the prime time for a fourth force to enter FMCG B2B: brand manufacturers. Store owners' ordering habits are quietly changing, and manufacturers cannot afford to hand over terminal stores to B2B platforms.

The topic of FMCG B2B has been discussed for over four years, from the earliest first phase when startups entered, to the second phase when traditional distributors and chain retailers entered, to the third phase when internet giants entered. The author believes that now is the prime time for a fourth force to enter FMCG B2B: brand manufacturers.

**Store owners' ordering habits are quietly changing**
Some companies may feel that the traditional methods of field sales and telephone orders are sufficient for daily operations. However, user habits are gradually changing, and this is a formidable shift that must not be underestimated. Nowadays, store owners born in the 80s and 90s are everywhere, and many have started using apps to place orders. According to research by New Distribution, in some regions, store owners now have three or four ordering apps installed on their phones. But for manufacturers, there is still no app of their own brand. In internet parlance, companies are losing this traffic entry point. When a store owner swipes through apps in the morning, the first thing they think of is not the manufacturer.

**Brand manufacturers cannot hand over terminal stores to B2B platforms**
Currently, Zhongshang Huimin, Yijiupi, Alibaba, and JD.com are all building their own B2B ordering platforms, with the goal of controlling terminal stores. No manufacturer wants its terminals to be completely controlled by a third party. When a third party fully controls the terminals, manufacturers will inevitably be constrained. Paying a toll might be tolerable, but if negotiations break down and products are delisted, the losses could be immeasurable. Many major brand manufacturers have established strategic partnerships with Alibaba and JD.com, but in reality, they do not expect to gain much from B2B; rather, they fear missing out and thus quickly align themselves. In the home appliance industry, the oppression of manufacturers by Suning and Gome is still vivid. Currently, manufacturers urgently need to fight a defensive battle to hold their terminals.

In internet e-commerce, internet giants have achieved absolute victory, and almost no manufacturer's e-commerce platform can survive. However, in B2B platforms, this may not necessarily be the case. Internet giants hold C-end user traffic but lack B-end store resources. Moreover, B-end users are long-term business partners, and the stickiness and loyalty between them and manufacturers are solid. It can be said that manufacturers hold the advantage.

**Distributors' self-built B2B platforms urgently need manufacturer support**
Many distributors are now spontaneously building regional B2B platforms, but they are not going smoothly because operating such a platform involves a combination of IT informatization, operations, and offline factors. It can be said that if a distributor is not large-scale or lacks management expertise, it is difficult to handle it alone. This is precisely the best time for manufacturers to step in and join forces with distributors to build such platforms together.

In this battle for offline terminal stores, who is a friend and who is an enemy? Rational manufacturers should be able to see clearly.

**Refined operations of stores**
Why are giants beginning to covet offline sales? Besides the fact that online traffic has hit a ceiling, it is also because traditional enterprises' offline sales efficiency is low, leaving much room for improvement. Alibaba and JD.com are IT-first, with rich data and reports; many people are stunned after visiting them, while traditional enterprises are relatively weak in this regard.

Many manufacturers do not pay much attention to stores and do not control them; typically, distributors directly handle the flow of goods and logistics with stores. But this does not mean manufacturers do not need refined operations of terminal stores. Many manufacturers treat distributors as customers and also treat end consumers as customers, but they overlook the most important link in the entire chain: terminal stores.

Manufacturers need to classify and grade their terminal stores, provide care, make friends with store owners, listen to their voices, and offer different marketing policies and pricing strategies for different stores. These are all crucial tasks. It is not enough to rely on distributors paying display fees to stores to ensure loyalty. A store-based operation system must be established, and the power of new retail will soon bring surprises to manufacturers. And manufacturers building their own B2B mall is precisely the perfect opportunity for refined store operations!

**Needs of their own business management**
Originally relying on salespeople to visit stores inevitably means that stores in remote areas may not be visited or visited in a timely manner. The number of lost orders from these stores is immeasurable. Salespeople have high turnover; when they leave, it inevitably leads to a decline in sales for some stores. Therefore, companies need to consider how to add an extra lock to customers while salespeople maintain store relationships: that is, to have store owners install the brand's own app and establish a direct connection.

For companies, having a large sales force should be a competitive advantage, not a burden. Salespeople should be tasked with expanding more offline stores, more distribution channels, and assisting stores with sales promotion activities, rather than just asking store owners, "Boss, do you need goods?" Let store owners order on their own, and let salespeople unleash greater energy. Only then can companies climb to a higher level in offline sales.

Having said that, many might think that if every manufacturer has its own B2B platform, a small store owner would need to install many apps. On this point, I think people's thinking tends to be limited. When we travel frequently, we install Ctrip and Qunar on our phones, but we also install apps for various airlines and hotels. Having multiple apps on your phone is not a problem at all. What matters is which one has a good reputation and which one operates well; when we want to book flights or hotels, choosing which app is key! Many people also like to compare discounts before making a choice. This is also a fundamental user need; not giving users the option to choose means missing out on their needs.


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