This is an era of "chaos and upheaval." Internet technology, as an engine driving commercial progress, is continuously entering the traditional offline distribution sector. Under the backdrop of consumption upgrading, changes in demand have become "bewildering." Coupled with internet-based entrepreneurs gradually building retail scenarios closer to consumers, traditional distributors seem somewhat at a loss in this volatile era. Many distributors lament, "Business changes too fast now. In the past, distributors only needed to coordinate with upstream manufacturers and downstream small shops and KA stores. Now, not only do we have to coordinate with them, but we also have to be wary of national B2B platforms. Even former peer distributors may have started B2B operations, leaving us in a dilemma of whether to cooperate or not. Smart unmanned vending machines and office unattended shelves sell products within our territory (under exclusive offline agency agreements with manufacturers), yet the goods are not sourced from us..." 01 A Transformation Approach Applicable to Most Distributors In the past, traditional distributors were diligent, following brands, working hard, and striving to help brand owners manage their own small plots. Life was manageable; they expanded channels by adding personnel and vehicles, establishing a modest distribution scale. But now, continuing with traditional methods seems ineffective; no matter how many people and vehicles are added, the decline cannot be halted. Transformation and upgrading have become a definitive topic that distributors no longer need to discuss. The paths for transformation can be broadly divided into two categories: First, innovative and disruptive. For example, transforming into B2B regional distribution platforms or urban distribution logistics providers. These are innovations that overturn the original business model of traditional distributors, essentially "revolutionizing themselves," with inherent risks. Second, steady micro-innovation. For instance, outsourcing warehousing and distribution to third parties, focusing on product distribution and promotion as marketing service providers; some distributors in high-end markets keenly perceive changes at the retail end, actively embrace them, and boldly experiment. Through multi-dimensional horizontal and vertical micro-innovations, they achieve sustained business revenue growth. This "painless" transformation is more applicable to most distributors compared to the first type. The guest interviewed in this issue is Mr. Li Yong, Chairman of Shenzhen Yataixuan Industrial Co., Ltd. By extending and upgrading certain business units, he has achieved cost reduction and volume increase without affecting the original business. Through gradual micro-innovation, even with a 10% decline in traditional channels, he maintains an overall 20% revenue growth. How does he do it? 02 Insight into the Market, Active Embrace, Bold Experimentation Yataixuan was established in 2003 and currently represents nearly dozens of domestic and international brands, including Mondelez, Yili, Panpan, Xiangpiaopiao, Dongpeng Special Drink, Mi Laotou, Glico, Richeese, and Calbee, with over 1,000 SKUs and annual sales close to 300 million yuan. The micro-innovations in Yataixuan's operations are specifically reflected in the following five aspects: 1. Joint establishment of business district partners. Local wholesalers are united as strategic partners. Yataixuan provides corresponding resource support: for distribution of 100-200 SKUs with monthly sales of 500,000 yuan or more, Yataixuan offers personnel, capital, product support, etc. A deposit system is established, enjoying the policy of shipping first and settling payment later. 2. Fully embracing new retail platforms. Actively following various distribution platforms and innovative retail scenarios. Currently, Yataixuan cooperates with B2B platforms including Alibaba Retail Link, Zhongshang Huimin, Zhidianbao, and JD New Channel. In terms of innovative retail channels, it provides product support to many retail platforms such as Hema Fresh, Miss Fresh, SF Preferred, and Aixianfeng. According to Li Yong, in 2018, Yataixuan achieved 30% business growth in new channels. 3. Cross-industry distribution, stepping out of the FMCG circle. Introducing mobile phone data cable products and distributing them to 400 Walmart KA stores nationwide. Although data cables are durable goods, in Li Yong's view, mobile phones are now the most frequently used devices in people's lives, and charging data cables are no longer traditional durable goods. In cars, offices, homes, and when going out, everyone basically has more than two data cables; they are "FMCG" among durable goods. It is understood that Yataixuan's distributed data cable products currently peak at nearly 2 million yuan in monthly sales. 4. Jointly launching customized exclusive products with brand owners. For example, combining Yili milk tablets with the popular game "Great luck, eat chicken tonight" to launch customized toy gift boxes, which were released in June this year for the summer season, with average monthly sales of 200,000 yuan. During the World Cup, they launched regional exclusive products with Dongpeng Special Drink. They cooperated with Danone Yili and Yizhan Chain Convenience Stores to launch Danone Yili mineral water exclusively for Yizhan. They also customized "Zhongbao" hand-torn bread for Panpan Food, distributed to Walmart stores nationwide, with annual sales close to 10 million yuan. 5. Upgrading internal backend operational efficiency. In 2015, Yataixuan upgraded all 30 vehicles to new energy electric vehicles and set up independent charging piles outside the warehouse. This single upgrade saves nearly 30% of logistics costs annually. Additionally, they introduced a professional business information system to help Yataixuan achieve internal digital operations. In addition to the above micro-innovations, Yataixuan extends its business upstream by investing in factories, establishing a joint venture with Hunan Mi Laotou Food; trying promotional robots for shopping guidance; introducing imported internet-famous products, and more. Li Yong told New Distribution that during the current channel transformation period, traditional distributors can no longer just work with their heads down. They must always pay attention to changes in the external environment, keenly perceive the market, actively embrace it, and boldly experiment. Grasp both ends: one end is products, the other is channels. To this end, Yataixuan has specially established a brand department to strictly control product quality. In addition to initial selection, Yataixuan will also test-sell some new products in specific channels or stores for observation. Regarding channels, Yataixuan actively contacts new retail channels. For example, entering Hema Fresh, even if early sales are low, Hema Fresh is a benchmark for new retail, so Yataixuan must position itself in advance. Besides these horizontal and vertical micro-innovations, how does Yataixuan position its distribution business for the future? 03 The Trend of "De-intermediation" Will Become Increasingly Obvious The future survival space for traditional distributors will become smaller and smaller. Internet giants, with capital and advanced technology, are entering the offline sector, shortening supply chains, reducing intermediate levels, and improving the efficiency of commodity circulation. With the disappearance of online dividends, more and more innovative enterprises with internet thinking are trying to get infinitely close to consumers and intercept them by empowering offline operations. Li Yong frankly stated, "De-intermediation" is becoming a consensus in the industry. Brand owners are increasingly willing to cooperate with online platforms to participate in offline digital transformation, and the space for traditional distributors is gradually being squeezed. In this wave of change, only distributors who truly think clearly can survive. "Keenly perceive the market, discover market opportunities, quickly learn and integrate, and occupy a favorable position." This is Yataixuan's business philosophy. Li Yong believes that more and more first-tier brands will cooperate with internet platforms to bypass distributors for digital distribution. For big brands' "direct sales," Yataixuan has little opportunity. In the future, Yataixuan will focus its core business on serving small and medium-sized brand owners, selecting more high-quality and reputable products, and building a multi-brand distribution matrix, making Yataixuan a local FMCG platform service provider, linking diverse local retail scenarios through product clusters. Not only providing capital and logistics services for brand owners, but also combining different types of retail scenarios to develop differentiated and customized products with enterprises. Of course, in addition to these, Yataixuan will also actively contact other trading companies to establish market distribution barriers in its region through integration and mergers. Final Thoughts

  1. Compared to completely overturning the original distribution business model, such as transforming into B2B platforms or urban distribution service providers, micro-innovation and steady transformation like Yataixuan's are more applicable to most distributors. Pay attention to changes in downstream retail channels, and for corresponding consumption scenarios, cooperate with upstream brand owners to launch differentiated and customized products. Compared to drastic reforms with high risks, it is better to gradually follow market trends and continuously seek opportunities in the distribution business.
  2. From a distribution perspective alone, the stronger a distributor's ability to connect upstream and downstream and integrate resources, the easier it is to survive in this "chaotic" era. The ability to connect refers not only to one's own business management and market cultivation capabilities but also to keen market insight and the courage to try.
  3. Future distributors will definitely not be individual-business-style distributors but enterprise-level distributors. Through various forms such as resource integration, strategic alliances, and merger cooperation, they will establish local FMCG distribution service platforms. In this process, they must pay real-time attention to changes in consumer demand, retail scenarios, and the application of internet technology. The 10th B-end E-commerce Inspection -- "From Products to Scenes" Event Time: December 10-13 Event Location: Wuhu, Nanjing, Changsha Event Schedule:

Morning of December 10: Visit Three Squirrels Headquarters + Investment Store

Afternoon of December 10: Visit Nanjing Squirrel Small Store

Evening of December 10: Visit Nanjing Master Gao Beer Workshop Store

All day December 11: Nanjing-Changsha, or free arrangement

Morning of December 12: Community Group Buying Exchange Salon

Afternoon of December 12: Koala Selection Heroes League Launch Event

Evening of December 12 to early morning of December 13: On-site inspection of Koala Selection Logistics Center -- This time period is the peak sorting period in the warehouse, allowing direct observation and learning of the backend operation process of community group buying e-commerce Welcome interested distributor friends to join us for understanding and on-site inspection : Organization Forms 1. Big-name exchange salon 2. Company visit

  1. On-site explanation
  2. One-on-one communication 5. Actual market case visit Friends who want to participate If you are interested in a specific day's content, you can register separately Long press this QR code or click "Read Original" to register in one click! When adding friends, please indicate the purpose -END-