---
title: "Under the Impact of the Pandemic, How Has FMCG B2B Become a Mainstay for Ensuring Livelihoods and Promoting Development?"
description: "Under the pandemic, how has B2B become a mainstay for ensuring livelihoods and promoting development? What opportunities has the pandemic brought to the development of digital supply chains? The sudden outbreak caught all FMCG companies off guard at the start of 2020. During the Spring Festival, 'fast-moving' turned into 'slow-moving,' with all categories under immense inventory pressure, and FMCG manufacturers facing unprecedented operational strain. Amid the heavy blow, many consumer goods companies actively 'fighting the pandemic' also began to reflect: What deficiencies exist in the current market channel layout? In response to future uncertain 'black swan' events, how should companies respond?"
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2020-05-03"
language: "en"
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# Under the Impact of the Pandemic, How Has FMCG B2B Become a Mainstay for Ensuring Livelihoods and Promoting Development?

> Under the pandemic, how has B2B become a mainstay for ensuring livelihoods and promoting development? What opportunities has the pandemic brought to the development of digital supply chains? The sudden outbreak caught all FMCG companies off guard at the start of 2020. During the Spring Festival, 'fast-moving' turned into 'slow-moving,' with all categories under immense inventory pressure, and FMCG manufacturers facing unprecedented operational strain. Amid the heavy blow, many consumer goods companies actively 'fighting the pandemic' also began to reflect: What deficiencies exist in the current market channel layout? In response to future uncertain 'black swan' events, how should companies respond?

**Under the pandemic, how has B2B become a mainstay for ensuring livelihoods and promoting development? What opportunities has the pandemic brought to the development of digital supply chains?**
The sudden outbreak caught all FMCG companies off guard at the start of 2020. During the Spring Festival, 'fast-moving' turned into 'slow-moving,' with all categories under immense inventory pressure, and FMCG manufacturers facing unprecedented operational strain.
Amid the heavy blow, many consumer goods companies actively 'fighting the pandemic' also began to reflect: **What deficiencies exist in the current market channel layout? In response to future uncertain 'black swan' events, how should companies respond?**
**-01-**
**Under the pandemic, business is tough, tougher than climbing to the sky!**
**As we enter April, the impact of the COVID-19 pandemic on the FMCG industry is weakening, but most manufacturers' market sales have yet to fully recover.** Traditional trade and distribution companies, due to their inherently weak risk resistance, are bound to face a new wave of attrition under the pandemic. Analyzing the reasons why some distributors may struggle to survive the pandemic, New Distribution believes the main points are as follows:
**1. Capital**
**During the pandemic, most distributors saw sales blocked, but cash expenditures did not stop.** Employee wages, warehouse rents, vehicle maintenance, and depreciation of fixed assets all consume the already limited cash flow of distributors. Applying for bank loans is difficult due to the lack of online data support, forcing them to seek private lending and bear high interest costs, further eroding operating profits.
**2. Poor organizational capability and insufficient risk resistance**
Under the pandemic, although some retail stores closed, many remained open. However, **most distributors were unable to organize effective resumption of work during the pandemic, leading to a large number of orders not being delivered, severe out-of-stock situations in stores, and ultimately losing a large number of business opportunities and market share.**
**3. Limited service capability, unable to help stores 'sell goods'**
Affected by the pandemic, home delivery services became a necessity. **As the physical retail units closest to consumers, community retail stores were unable to develop home delivery services due to a lack of effective operational tools and business guidance. Traditional distributors also lacked the tools and capabilities to empower stores to reach the C-end, only able to help stores efficiently 'stock up' but not help them sell goods or solve the problem of inventory turnover.**
**These factors all led to distributors being unable to grow their business during the pandemic, and under the pandemic, they even became the last straw that crushed many distributors.**
**-02-**
**Advantages of Digital Supply Chains Highlighted**
**In stark contrast to the difficult development of traditional trade enterprises, digital supply chain companies demonstrated unparalleled advantages during the pandemic.**
As one of the earliest and most influential FMCG B2B platforms in China, Zhongshang Huimin has taken on the social responsibility of ensuring people's livelihoods and supplies since the outbreak, receiving widespread policy support from governments in Beijing, Shandong, and other regions.
Zhongshang Huimin's big data system, intelligent warehousing and distribution system, and other advantages were further highlighted during the pandemic, which are precisely what most traditional trade enterprises lack.
**1. Group prevention and control, balancing resumption of work and epidemic prevention**
In the early stages of the outbreak, some employees were unable to return to work promptly, causing order backlogs. To ensure efficient sorting of goods and timely delivery of orders, Zhongshang Huimin, through its years of accumulated third-party labor company management ledger system, immediately absorbed redundant labor from industries such as retail and catering during the pandemic. This not only solved employment issues for some people but also fully guaranteed backend supply and achieved normal order delivery.
**With its unique Huijing big data system, Zhongshang Huimin implemented tag-based management for merchants in different business districts and types, used CRM tools and customer service systems for remote communication with customers, accurately identified pandemic-affected communities, and used the TMS system to pre-arrange delivery times and locations with merchants, achieving contactless delivery throughout the process, ensuring efficient delivery during the pandemic and guaranteeing the normal supply of goods to stores.**
**2. Efficiently coordinating with manufacturers, uniformly allocating materials, and ensuring sufficient supply of goods during the pandemic**
After rapid development in recent years, most brand owners have cooperated with B2B platforms to varying degrees, and the digital capabilities of FMCG B2B platforms have become one of the most important considerations for brand owners in choosing partners.
To ensure that retail stores do not run out of stock during the pandemic, Zhongshang Huimin actively coordinated with manufacturers for materials while also using its own inventory management system to uniformly allocate and limit purchases of hot-selling products in different regions, preventing hoarding and ensuring that all merchants have goods to sell during the pandemic.
**3. Empowering stores to develop 2C business**
**During the pandemic, consumers were confined to their homes, making retail home delivery a necessity.** To help stores move inventory and solve the problem of product sales under the pandemic, Zhongshang Huimin leveraged the natural community service entry point of stores, using WeChat groups and Moments to guide consumers to place orders online and pick up goods at designated locations, thereby ensuring the normal operation of stores during the pandemic.
**-03-**
**During the pandemic, B2B gradually became a mainstay for ensuring livelihoods and promoting development**
In addition to ensuring normal supply during the pandemic and comprehensively empowering retail stores, B2B enterprises represented by Zhongshang Huimin also actively undertook the social responsibility of ensuring people's livelihoods and promoting development, using their large-scale and digital supply chain advantages to guarantee the supply of daily necessities.
**In response to the tight capital and operational difficulties faced by small and medium-sized merchants after the pandemic, Zhongshang Huimin innovatively launched a financial service product for small B-end users—Huili Loan—to solve the urgent needs of the vast number of small and medium-sized merchants.**
Thanks to the rich data accumulated by merchants on Zhongshang Huimin's ordering platform, Huili Loan has maintained a low bad debt rate since its launch, which has become a unique advantage for B2B platforms in developing finance for small and micro enterprises.
In addition, after the pandemic, transportation was blocked, and the circulation and sales of agricultural and sideline products suffered an unprecedented blow. To help farmers fight the epidemic and accelerate the circulation of consumer goods, Zhongshang Huimin, starting in March, also launched Huimin public welfare live streaming activities in conjunction with well-known artists such as Eric Tsang, Jordan Chan, and Michael Tse. To date, the Huimin live streaming activities have attracted over one million viewers and helped sell nearly ten million yuan worth of various products.
On the brand side, to help brand owners with product distribution and placement during the pandemic, Zhongshang Huimin also partnered with Unilever to pilot live streaming sales in Beijing. The activity quickly received responses from 8,208 stores, and Unilever's sales that day increased by 1,300% compared to the same period last year.
**Zhongshang Huimin is just one example of FMCG B2B platforms leveraging digital supply chain advantages to join the 'anti-epidemic' effort during the pandemic.** During the pandemic, JD New Channel, Meicai, Alibaba Retail Link, Kuaile Guizhang, and Liancai Net all ensured the normal operation of basic livelihoods in their own ways, actively fulfilling the social responsibilities of digital supply chain enterprises.
As the pandemic subsides, regions across the country have begun to resume work and production. **After several years of rapid development, B2B has once again highlighted the enormous value and significance of digital supply chains during the pandemic.** We have reason to believe that after the pandemic, FMCG B2B will attract increasing attention from brand owners and will usher in a new round of rapid development.
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