Formerly known as "FMCG Distributor Professional Management Consulting," now renamed to New Distribution Click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gathering in Fuzhou to jointly explore the path of Internet transformation for the FMCG industry. Distributor transformation is a hurdle that must be crossed in the new era. Continuing to run a business with old thinking is like a frog in warm water; even if your company still sees 10%-35% growth in the first half of the year, such growth cannot withstand changes in the overall environment. As trends arrive, a new business model is quietly taking root and growing in every city. Once it takes shape, it will be a devastating blow to traditional distributors. This new business model is called the "platform-based distributor!"
Core Differences Between Traditional Distributors and Platform-Based Distributors******************************************************************************************************************************************** Many distributors are full of confidence when they first start transforming. Relying on years of experience in the distribution field, they believe they can quickly transform into platform-based distributors. But in reality, they find it harder than imagined. Because whether it's traditional or new things, whether in the industrial era or the Internet era, all changes are aimed at making consumers' experience "better than before." Only when consumers feel more comfortable, and this comfort comes from the heart, can it gain market recognition. The basic function of a traditional distributor is to "sell goods," along with distribution, service, capital, etc., but these all exist to support selling. If someone can preserve this basic function while making the terminal store (consumer) "experience better," the terminal store will be willing to pay for the "better experience." Platform-based distributors have the basic functions of traditional distributors, but also have several essential highlights that make terminal stores willing to follow them closely: "more savings, faster, more variety, and smarter" — lower purchase prices, more product items, faster delivery, and intelligent operations. This new thing that makes terminal stores "experience better" can destroy traditional things. But to make terminal stores "experience better," several important links must be opened up. Only then can "more savings, faster, more variety, and smarter" be achieved, and only then will terminal stores abandon tradition. This means transformation is successful. However, it is a systematic project that requires a process, which may take 2 years, 3 years, or even longer.
5 Key Links for Traditional Distributors to Transform into Platform-Based Distributors******************************************************************************************************************************************** 01. Rich Product Variety A distributor's product categories are limited, and limited categories are not enough to make terminal stores spend too much time paying attention to you. There are many ways to enrich categories, but the best is to ally with other distributors. But in the early stage, they may not trust you. At this time, what you need to do is first use other effective means to make the platform popular and lively. Once it's lively, other distributors, manufacturers, and banks will come to you, because no one wants to miss out on new things, but they need to see signs that you can make it work. By then, the product items on the platform will naturally become rich. There are many ways to make the platform popular. The most common in the market is "burning money," but whether popularity remains after burning money is questionable. The best method is to use a "combined punch," using different methods at different time points, in different scenarios, and according to different customer moods. 02. Timely Delivery Delivery must be timely. If you only treat the platform as an online ordering mall, it will basically not succeed. The platform is just an entry point for upgrading from a traditional distributor to a platform-based distributor. Break the "route" management set by traditional distributors. Originally, visits and deliveries were made every 3-7 days. Now, you need to deliver whenever orders are placed. Over time, this experience makes terminal stores "very happy." But if this experience is achieved by investing more vehicles and labor costs, it is unhealthy and a money-burning model. It is better to achieve it through vehicle alliances, enriching products to increase order items, improving vehicle loading rates, and using financial services. When terminal stores can order anytime and receive delivery anytime, they will be tempted by this "better experience"! 03. Cost Reduction Traditional distributors have existed in the market for decades. Through continuous management improvement, costs that could be reduced have been reduced, and links that could be optimized have been optimized. Enterprise development has reached the "ceiling," especially for distributors ranked among the top in their local area. The space for cost reduction is very small. Every traditional distributor feels that warehousing and distribution costs are getting higher and higher, and the cost proportion is increasing. By upgrading traditional distributors to platform-based distributors, through centralized warehousing and unified warehousing and distribution, logistics costs can continue to drop by 30%-50%, an improvement that traditional distributors cannot achieve. Passing on part of the cost reduction to terminal stores can achieve lower purchase prices for them. Lower procurement costs will make terminal stores "experience better." 04. Better Service Traditional distributor services rely more on "people," on salespeople. Without salespeople, terminal stores basically have no other services. Platform-based distributors, through the ordering platform, build an "air service team" for terminal stores. While retaining the original "people" service, they add an "air force" service. For example: within a 3-kilometer radius, which products are bestsellers in other stores but slow-moving in this store, and inform this terminal store immediately? If there is a promotional activity for a product, all terminal outlets need to see it within 1 minute; let all outlets grasp new product information within 1 minute; when out-of-stock goods arrive at the warehouse, notify terminal stores within 1 minute... There are more services that were originally impossible for salespeople to complete, but through the "air service team," you can achieve what you never imagined! Imagine a platform-based distributor retaining the original "people" service and adding the above "air force" service. I believe terminal stores will definitely "experience better." 05. More Benefits Terminal stores can order without capital, and distributors sell for cash, benefiting both parties; terminal stores can not only make money by selling products but also earn other income, such as community activities, manufacturer advertising, etc.; terminal stores can learn knowledge about how to run a small store business every day. These experiences are things that traditional distributors cannot provide to terminal stores. Conversely, these are the key points where new things make terminal stores experience better. Platform-based distributors are definitely the direction for traditional distributors to transform and upgrade, because they can make terminal stores experience better. Transformation and upgrading require a process, because any new thing must go through a process before it is popularized. So if you are not successful now, it is just a matter of time. "With the right direction, persistence will win." Overcome difficulties in transformation through various methods, open up the above key points, and success is just around the corner!
Source: Youshang Software New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will change 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 Fast-Moving Consumer Goods 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 Waiqin 365 10:35-11:05 Reconstructing Distribution Channel System, Promoting Urban Retail Upgrade — Tian Yuan, General Manager of Alibaba Retail Link 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: Urban Distribution Trend Development — Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum — Why Should Distributors 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 as a Lubricant for B2B to Drive 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 Ecology — Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Thinking — 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 distributors 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: Long-press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register] ↓↓↓