A couple of days ago, I looked at a set of 2016 survey data. Data from over 700 traditional distributors who participated in the survey showed that 75% of FMCG distributors had stagnant or declining sales revenue, more than 80% saw profits decline compared to last year, and over 70% experienced significant increases in operating costs. This seems to confirm the expectation of a "winter is coming." I am a relatively optimistic person and prefer to look at the numbers on the other side: 25% of distributors saw sales growth, 20% made more money, and 30% optimized or reduced expenses... Behind these numbers, the 20% of FMCG distributors who succeeded all, without exception, moved ahead of the trend in the internet environment and made positive changes, thus blooming brightly even in the so-called "winter."
When we explore the stories behind these successes, we find that similar behaviors influenced the final results. Almost all distributors with excellent performance actively participated in e-commerce construction, including close cooperation with various e-commerce platforms, building their own or partnering platforms, diversifying channels, optimizing product structures, optimizing sales teams, and integrating warehousing and logistics. In the end, it came down to improving efficiency and optimizing business processes.
The core of B2B is using internet tools to fully enhance the efficiency of every operational link. This is the warm coat for the "winter." Efficiency improvements mainly come from the following aspects:
Improvement in Transaction Efficiency
The traditional FMCG business has a fixed process, from cold visits, building customer relationships, price negotiation, trade terms negotiation to closing a deal, which takes considerable time to complete a single transaction. In the internet context, transaction prices and promotional mechanisms are transparent; payment methods are entirely chosen by customers, such as prepayment, cash on delivery, installment payments, or using internet financial products; in terms of customer relationship maintenance, various social tools and platform customer service are effective supplements to face-to-face visits, and may even replace them in the future.
Improvement in Supply Chain Efficiency
Whether it is Jinhuobao's one-stop procurement platform or Jinhuobao's "Cloud Warehouse," both aim to achieve unified warehousing and distribution, centralized management, and improved supply chain efficiency. The traditional supply chain model not only struggles to optimize warehouse idle rates but also has pain points in logistics efficiency. I believe many distributor friends have had the experience of delivering goods to customers in their own private cars.
Improvement in Personnel Efficiency
Personnel costs have been an unavoidable factor in cost increases in recent years. This is not only reflected in traditional positions like sales and logistics but also in the development and maintenance costs of personnel brought about by distributors building their own platforms in recent years. Jinhuobao has also considered these issues for distributor upgrades, not only offering free use of the Jinhuobao platform in regional markets but also developing the "Jinhuotuan" platform for business crowdsourcing and the "Cloud Warehouse" to optimize warehousing personnel costs.
Improvement in Capital Utilization Efficiency
Currently, internet finance has become one of the important profit sources in the B2B industry. Under the traditional model, this was impossible to achieve. Internet big data and blockchain are the foundation for providing financial products to upstream and downstream customers. Using money well and improving capital efficiency is key to profitability.
After winter comes spring, this is a natural law. Although the rapid changes of the internet, product upgrades, consumption upgrades, and the overall economic environment make this winter feel particularly cold, only if we prepare, take action, and embrace change will next spring be even more beautiful.
New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum ——
This is a grand event focused on how the FMCG industry channels will transform under the trend of internet+ transformation
Conference Agenda
08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Waiqin365 10:35-11:05 Reconstructing Distribution Channel System, Promoting Urban Retail Upgrade - Tian Yuan, General Manager of Alibaba Retail Link's Backend 11:05-11:25 Channel Efficiency in the Internet Era - Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: Trends in Urban Distribution - Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum - Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Can Take Off with the Internet - Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance: The Lubricant for B2B Driving Traditional Business - Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecosystem - Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Approaches - Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner
For manufacturers and friends who want to transform, this grand event is not to be missed. Interested friends can long-press the QR code below or click "Read Original" to register.
Registration Method: Long-press the QR code below or click "Read Original"
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