---
title: "Uncovering Weijie City Distribution: Logistics is the Indispensable Infrastructure for Any B2B Platform"
description: "In the FMCG B2B industry, logistics is widely considered the core infrastructure for all B2B platforms; without an efficient system for unified warehousing and distribution, regional B2B operations cannot effectively function. This article examines Weijie City Distribution, a company that has successfully implemented a profitable and replicable business model in the city distribution sector, expanding to over 25 cities across China."
author: "吴梅新"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-08"
language: "en"
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# Uncovering Weijie City Distribution: Logistics is the Indispensable Infrastructure for Any B2B Platform

> In the FMCG B2B industry, logistics is widely considered the core infrastructure for all B2B platforms; without an efficient system for unified warehousing and distribution, regional B2B operations cannot effectively function. This article examines Weijie City Distribution, a company that has successfully implemented a profitable and replicable business model in the city distribution sector, expanding to over 25 cities across China.

**Editor's Note:**
Currently, in the FMCG B2B industry, there is a relatively unified view: logistics is the core infrastructure for all B2B platforms. If a regional market lacks an efficient logistics system that can support unified warehousing and distribution, then local B2B operations cannot effectively conduct business.
Based on this consensus, I have been intentionally observing city distribution logistics companies in China that are performing well and are willing to cooperate with distributors. In Yantai, Shandong, there is a company called Yishang Logistics that many of you may know, but what you may not know is that in southern Fujian, there is a city distribution logistics company called Weijie. This company is also very influential in China's city distribution system, and they have already laid out plans in more than 20 markets nationwide. The author recently made a special trip to Xiamen to visit this company and had an in-depth exchange with its Xiamen head, Mr. Wei. Their professionalism impressed the author greatly. Today, the author has reposted an article from Logistics Times Weekly analyzing Weijie City Distribution's business model, hoping that through this article, everyone can have a more comprehensive understanding of this city distribution logistics company that has already performed excellently in China's B2B field.

**Enterprise Observation | Uncovering Weijie City Distribution**
**Source: Logistics Times Weekly**
From online materials, Weijie City Distribution is a growth-stage startup with two founding dates: one in 2013, established in Xiamen, and another in July 2015, established in Shanghai. According to Weijie City Distribution's official explanation, **it is an innovative warehousing and distribution integrated logistics service provider relying on a nationwide platform, focusing on three major customer groups: chain restaurants, chain retail, and B2B e-commerce platforms. Its core advantage is its ability to provide professional supply chain operation diagnosis and consultation based on the supply chain attributes of different business types, design customized solutions for customers, and provide corresponding integrated warehousing and distribution value services.**

Weijie City Distribution's founding team (co-founders) consists of four members, with the other three also being senior logistics industry professionals. The youngest, Wang Qi, is the CEO of Weijie City Distribution. According to publicly available information, Wang Qi worked at COSCO Logistics for 8 years, and before resigning, he served as General Manager of Xiamen COSCO Logistics Supply Chain Company. After resigning for personal reasons, he leveraged his professional capabilities and operational experience to enter the city distribution field, which has historically been a low point in the logistics industry, and founded Xiamen Weijie City Distribution Co., Ltd. Within two years, he created tens of millions in output value, with the company's average gross margin exceeding 20%, and achieved profitability, becoming a dark horse in the city distribution industry in southern Fujian.

Xiamen Weijie has a good reputation in the local same-city logistics market. According to public information, in July 2015, Weijie independently developed and launched version 1.0 of its proprietary city distribution information system. As a startup less than two years old, it invested heavily in information technology construction, showing early signs of long-term vision.

**As Weijie's business began to show promise, it started seeking rapid development in the domestic city distribution market:**
- In March 2015, with the support of the other three co-founders, Wang Qi moved north, using Shanghai as a base, intending to replicate the Weijie model nationwide.
- In May 2015, the first East China city distribution nationwide platform member enterprise recruitment meeting was held, hoping to join hands with more city distribution or logistics companies to implement Weijie's business vision. It is reported that more than 50 city distribution or logistics companies registered for this closed-door meeting, and ultimately 12 companies partnered with Weijie.
- On July 1, 2015, Weijie's Shanghai headquarters officially began operations, taking the first step into the domestic city distribution market.

**The Logic of Expansion**
According to the agreement between Weijie and its contracted member enterprises, Weijie allows contracted enterprises to use the "Weijie" trademark and brand in their respective cities, assists member enterprises in improving their informatization and operational capabilities, and jointly expands local markets. At the same time, Weijie "copies" standard business and operational modules into member enterprises, conducting localized transformation and systematic construction for contracted enterprises.

The "copy" content includes company structure, organizational management, market positioning, customer screening, operational design, and informatization construction.

The "transformation" methods include centralized training, project training, management consulting, and one-on-one on-site assistance.

On one hand, through strong market development and business introduction, Weijie stimulates the enthusiasm of member enterprises, while also dispatching core teams to the member enterprises in each contracted city to provide comprehensive support, including advancing core business.

On the day Weijie's Shanghai headquarters was established, a new SLOGAN was adopted: **Nationwide Platform, Professional City Distribution.** Literally, after arriving in Shanghai, Weijie's operational mainline was to build itself into a nationwide platform enterprise, so it must be understood from a brand perspective. Brand output, management, and value derivation will be the behavioral logic. Additionally, creating professional city distribution services, maximizing service and product value, linking brand development, appreciation, and premium, and using the inherent self-driving force of business, aligns with business laws.

It is worth noting that from the perspective of the main relationship, the relationship between Weijie and the contracted platform member enterprises is not a typical buyer-seller relationship, but rather somewhat like a strategic alliance, with idealistic overtones. Therefore, it is not surprising that when Weijie first started its network in Shanghai, it briefly used the term "Weijie City Distribution Alliance," which included integrating the Weijie system into contracted enterprises. It can be seen that the fine-tuning of its promotional slogans reflects further focus and improvement of its business model.

**A Market Without Unicorns**
Returning to the city distribution market, city distribution belongs to logistics but differs from general logistics, and also differs from express delivery in service scenarios. Common logistics (LTL) and express delivery are mostly B2C. **City distribution is a type of third-party logistics or contract logistics.** In this field, there are no quasi-oligopolistic enterprises like express delivery (SF Express, S.F., YTO, ZTO, STO, Yunda) or logistics (Deppon, Huayu, Aneng). City distribution is a market where B2B transactions are the main volume (of course, in the past two years, B2C business volume has also increased sharply). Both parties are enterprises, and due to fragmented demand, short order time windows, complex scenarios, and other reasons, the city distribution market has typical non-standard characteristics; non-standard is also one of the main reasons why no unicorn enterprises have emerged in the city distribution market in the past.

**Profitability Achieved in Two Years**
**The starting point of Weijie's business model is that it achieved profitability in Xiamen, having already taken all the detours, and through its own practical experience, it has developed systematic experience, making it one of the more feasible models in the current city distribution market.** Data shows that Chinese startups generally do not survive more than two years, and those that can persist for three or four years are extremely rare. In the city distribution industry, achieving profitability requires at least five years of effort for most companies. Weijie not only achieved profitability in its first two years but also successfully entered the vision of several senior logistics professionals, and within less than half a year after establishing its headquarters, it secured tens of millions in Series A funding, which itself indicates its value.

There is a famous saying in the technology field: core technology is like a window paper. It is infinitely close to you, within reach, but you cannot discover it. Those who truly discover it must be more diligent, harder working, or more perceptive than you. You might say, "I was infinitely close at the time, but I was a step too late, and someone else discovered it first." In fact, you are only exaggerating the contingency of success, but never reflecting on the inevitable genes of success.

Therefore, there is reason to believe that Weijie's team has put in hard work and effort.

Unfortunately, there is too little public information about Weijie in this regard. I would rather attribute this to the fact that Weijie's PR team has not made much use of this point in market promotion. However, low-key promotion may also be based on self-protection, because in the market, those who truly pay attention to you are not only customers but also peers.

There is not much information about founder Wang Qi online. Public information shows that in an interview article, Wang Qi mentioned that no matter how big Weijie did in Xiamen, when customers in other cities in Fujian had needs, he said he could not satisfy them, and customers were puzzled and even complained. Assuming Weijie had contracted enterprises elsewhere in Fujian, how to enhance the operational capabilities of contracted enterprises in local cities and whether they could fulfill the platform's service commitment of "professional city distribution" to customers is also difficult to answer.

First, limited funds do not allow Weijie to open direct-operated branches across the country. Therefore, even if a city distribution brand thrives locally, if it wants to replicate its model to others, when the service radius expands, it must solve the problem of how a city distribution brand can succeed after leaving its place of origin. In short, if you make money, your partners must also make money.

**On May 16, 2016, at Weijie's first partner meeting, a total of 12 city distribution companies joined hands with Weijie. On December 19, 2016, Weijie held its second partner meeting, and a total of 12 companies signed contracts with Weijie before and after the meeting. After understanding, none of the first batch of 12 companies withdrew after the contract period; all chose to renew.**

**This event gives us a hint: speed-limited development**
24 companies a year is not many, but by setting thresholds, such as selecting one or two companies with good foundations in each city to partner with, and from the platform's perspective, targeted development of contracted enterprises, this can be seen as strategic patience. Additionally, when the number of contracted enterprises rapidly expands, it greatly tests the platform company's operational and optimization capabilities. Originally, an average of 5 people served one contracted enterprise; due to the increase in the number of service targets, now an average of 2 or 3 people serve one member enterprise. The management and service team has not increased, but the management and service radius has expanded from south to north across dozens or even hundreds of cities, and the service to contracted enterprises will also be greatly reduced. When the platform's service team grows sufficiently, the talent reserve and follow-up quality of a startup become another issue. The vicious cycle of management loss of control and disorderly development, and the breeding of large enterprise disease, are not the appropriate pace for a startup. Therefore, Weijie City Distribution's team must have a very clear understanding of this and has not fallen into the trap of one-sidedly pursuing quantity.

Articles pushed by Weijie's official subscription account are mostly professional articles on enterprise management and organizational improvement. I think this should also be a hint from Weijie's senior management. Although news about the company's latest developments (even Weijie's own industry honors and commendations) rarely appears, this should not be the fault of the new media operations specialist. It is precisely in these few corporate news articles that the most frequent high-frequency words, besides "customer," are "service."

The latest article on company business shows that the current business radiation radius covers more than 25 cities. As of May 2016, the entire network's revenue month-on-month growth rate exceeded 60%, and each contracted enterprise added more than 10 new customers per month. I specifically checked Weijie's company group photo and found that the number of people is less than 100. If this is true, then Weijie's per capita efficiency is refreshing.

**Several characteristics of Weijie are already very obvious:**
**First, asset-light.** It did not adopt large-scale direct operation but sought contracted enterprises for integrated expansion.
**Second, operation-heavy.** The heaviest part here is people, especially those dispatched to the local areas of contracted enterprises for service.
**Third, customer-focused.** For a platform, contracted enterprises and customers are in a strategic symbiotic relationship. By deeply cultivating business, it grows together with contracted enterprises.
**Fourth, speed-limited development.** It does not rush to expand scale but first lays a solid foundation. The decision-making paths behind these points all reflect the company's valuable strategic vision. B2B customer development requires a certain periodicity, and adding more than 10 new customers per month on average is also very rare.

**Weijie has its own unique weapons in the city distribution market: a profitable and replicable business model, market methods for developing and serving customers, and choosing to enter through a platform approach. On one hand, it is due to customers' nationwide needs; on the other hand, it is due to the growth space of the city distribution market, namely the existence of many low-level peers. Regarding the latter, deep industry insight is required.**

According to official external materials, Weijie currently serves restaurant clients such as Ajisen Ramen, Xibei, Ji Xiang Wonton, Starbucks, COSTA, Ele.me, Liaoji Bangbang Chicken, Jiumaojiu, Dukang, KOI, Linjia, Xin Kejia, Lao Zhiqing, etc. Chain retail clients include Century Lianhua, Meiyijia, Yuanchu Foods, Laiyifen, Unilever, Hsu Fu Chi, Six Walnuts, etc. E-commerce platforms include Yuanlai Xian, Youcai Wang, SF Preferred, Dushi Caiyuan, Xiashang New Life...

**Official Introduction of Weijie City Distribution:**
Weijie City Distribution (GDS), i.e., Weijie City Distribution Co., Ltd. (Gallop Delivery Service Co., Ltd), was established in Xiamen, Fujian Province in 2013. As a national third-party logistics enterprise, Weijie City Distribution has long been committed to providing high-quality and efficient warehousing and distribution integrated logistics services to B2B enterprise customers such as chain restaurants, retail, and e-commerce platforms.

In July 2015, Weijie City Distribution moved its headquarters to Shanghai, with the corporate vision of "Nationwide Platform, Professional Service," providing customers with high-quality and efficient services and helping more city distribution peers improve service levels and profitability.

In December 2015, the company completed tens of millions in Series A financing. With the support of capital, Weijie City Distribution's nationwide platform developed rapidly. As of June 2016, the nationwide business covered 25 cities in China, including Xiamen, Shenyang, Harbin, Dalian, Tangshan, Qinhuangdao, Zhengzhou, Hefei, Zhenjiang, Suzhou, Shanghai, Changsha, Chengdu, Kunming, Guangzhou, Haikou, etc., serving hundreds of contracted customers. More and more chain restaurants, retail, and platform-type customers are developing rapidly and healthily with the help of Weijie City Distribution.

Weijie City Distribution introduces business development and operational systems through member enterprises, assists them in designing service products, building operational resources, implementing information systems, and guides and helps member enterprises improve rapidly. Member enterprises in Changsha, Shenyang, Dalian, Chengdu, etc., within 3 months of joining Weijie, not only achieved a breakthrough from zero to one in business, but also achieved an average monthly revenue compound growth rate higher than 20%. Enterprises rapidly grew and achieved standardized service operations, with significantly increased profitability. Each member enterprise also received widespread customer recognition, initially demonstrating Weijie City Distribution's business model and value.

Weijie City Distribution is a professional domestic warehousing and distribution integrated logistics service and operator, mainly engaged in cold chain and ambient temperature warehousing and distribution services, serving three types of customers with ambient or cold chain logistics needs: 1. Chain restaurants 2. Chain FMCG retail 3. B2B e-commerce platforms.

Weijie City Distribution's nationwide platform is powerful, with a complete quality service system and professional service capabilities, establishing business cooperation relationships with hundreds of domestic customers. Currently, cooperative customers cover major fields such as chain restaurants, chain retail, and B2B e-commerce platforms. Benchmark customers include Meituan, Ele.me, Ajisen Ramen, Xibei, Ji Xiang Wonton, Yuanchu Foods, Zhenghe Haonong, Yuzhi Sushi, Andreasen, Xin Kejia, Dukang, Xingdou, Xiashang Group, Laose Coffee, Lao Zhiqing, Taoxiang, Yunbao Shangmeng, Meiyijia, Fenny Bay, Hengda Ice Spring, Hsu Fu Chi, Dove, etc.

As a professional third-party warehousing and distribution integrated logistics solution provider and operator, Weijie City Distribution starts from providing customers with economical and suitable warehousing and distribution logistics solutions, until terminal delivery is completed and effective receipts and summary reports are provided. In between, it adopts a fully visualized approach to complete processes such as inspection, repackaging, warehousing, shelving, relocation, inventory counting, sorting, merging, loading, in-transit, transfer, delivery, inventory checking, and receipt return. Through Weijie City Distribution's powerful information platform, customers can query and grasp relevant information during the cargo flow process in a timely manner, achieving cargo traceability. At the same time, during operations, customers can learn about real-time order status through the internet or the 400 customer service hotline.

**In response to the requests of many distributor friends, the third phase of the B-end E-commerce Inspection Class of this public platform will visit three platforms from July 9-12: Wanshang Yizhan, Yunbao Shangmeng, and Weijie City Distribution. Distributor friends with transformation intentions can come and conduct on-site inspections with us:**

**Organization Form**
1. Company visit
2. Actual market case visit
3. On-site explanation
4. One-on-one communication

Participating distributor friends only need to pay a registration fee of 200 yuan. Time: July 9-12, 2016. Location: Changsha, Xiamen.

**Interested distributor friends can register by long-pressing the QR code below.**

**When adding friends, please reply "Phase 3 Registration".**

**Previous Inspection Enterprise Cases:**
- Caiba Model Inspection
- Jinhuobao Model Inspection
- Beiquan Model On-site Inspection
- Piduoduo Model On-site Inspection

-END-

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