Yang Lixiang of Zhanghe Tianxia: Zhanghe Cloud Factory Will Become an 'Online Sugar & Wine Fair' to Help Upgrade 'Traditional Distribution'

On October 16, the "New Food Era · New Distribution 2016 'FMCG + Internet' Summit" was held in Fuzhou, with more than 30 industry leaders, over 100 B2B enterprise CEOs, and more than 1,000 brand owners and distributors in attendance. Yang Lixiang, founder and CEO of Zhanghe Tianxia, a benchmark enterprise in the FMCG B2B field, attended the event and delivered a keynote speech.

Traditional manufacturers and distributors need to change their thinking and concepts

The pain points faced by traditional manufacturers and the problems faced by distributors are nothing more than significantly increased costs, intensified competition, declining profits, and reduced income. In the process of a shrinking incremental market, product upgrades, circulation, and deep distribution, costs have not been effectively optimized, leading to lower profits and reduced income.

B2B platforms can actually solve such problems. The essence of these problems lies in the traditional thinking and concepts of manufacturers and distributors.

Keep up with the trend and seize opportunities

In an era of rapid iteration and upgrading, if we cannot keep up with the development trend, we will be left further behind. The decline in the existing volume of traditional industries is not only due to the enterprises' own problems but also the impact of the external environment, including the overall national industry trend, the entire market environment, and the impact of e-commerce.

However, at the same time, some new brands are experiencing rapid growth in market share and sales. For example, dozens of Taobao brands are queuing up for IPOs, and some newly launched enterprises have achieved transaction volumes of tens of billions within a few years. Why can these companies escape difficulties? They have been continuously breaking through and improving, allowing their sales to grow rapidly! For example, Three Squirrels, besides selling well online, is also rapidly expanding offline, using the O2O model to quickly seize the market. The companies that successfully broke through did so because they kept up with the "Internet+" trend, seized the transformation opportunity, and achieved rapid growth.

Distributors and traditional manufacturers in the new era must be prepared for a change in thinking. With the help of the "Internet+" tailwind, seize the opportunity and trend of "Internet+" to secure a stable position; otherwise, they will be hit hard by Internet platforms.

Transformation is an inevitable trend and cannot be reversed

Transformation has become an inevitable trend. Either we actively adapt to the situation to evolve and upgrade, or we will be revolutionized and eliminated. The Internet promotes the rapid development of B2B e-commerce, and B2B e-commerce platforms play a certain role in promoting traditional manufacturers and distributors. As a leading FMCG supply chain e-commerce platform in China, Zhanghe Tianxia, through its platform, can interact with more manufacturers and distributors, helping them optimize and upgrade in the process. However, in any case, such external forces are meant to encourage manufacturers and distributors to conform to the times and connect with the era. If they do not connect with this era, they are destined to be disrupted. Therefore, we must seize this opportunity.

Either actively upgrade and transform, or be reformed and revolutionized

Under the Internet trend, there are two paths: one is Internet + industry, and the other is industry + Internet. Whether it is the upgrading and transformation of traditional industries, industry + Internet, or using the "Internet+" model to disrupt and evolve, I believe that being proactive is always better than being passive.

Passive: Traditional manufacturers and distributors are passively integrated with the Internet, and Internet and e-commerce companies reform them. Active: Traditional manufacturers and distributors proactively embrace the Internet, turning it into a tool and weapon, making it the wings of manufacturers and distributors!

As traditional manufacturers and distributors, we must be proactive, actively embrace the Internet, better integrate with it, and continuously upgrade and transform.

Zhanghe Cloud Factory helps manufacturers achieve nationwide distribution

Since its inception, Zhanghe Tianxia's business has covered 27 provinces and more than 600 cities, with over 50,000 suppliers and more than 600,000 supermarkets trading on Zhanghe Mall. Relying on the foundation laid over three years of efforts nationwide, Zhanghe Tianxia provides high-quality services to upstream and downstream partners. To better help traditional manufacturers and distributors quickly embrace the Internet, Zhanghe Tianxia established Zhanghe Cloud Factory, which mainly combines Zhanghe Tianxia's channel and terminal advantages with local thousand-person operation teams to provide services and support for manufacturers' nationwide channel distribution and terminal market distribution.

The value of Zhanghe Cloud Factory to manufacturers: First, for first- and second-tier brand owners, Zhanghe Tianxia's value lies in helping manufacturers better control terminals, providing better data support based on backend big data, and forming a complete closed loop. Second, Zhanghe Tianxia can support first- and second-tier brand manufacturers in implementing better market sales and promotional policies at the terminal. Third, for some third- and fourth-tier or even local brands, it can support them in bringing more products to the national market and provide overall services for the national layout of their products.

Aiming to be a year-round 'online sugar & wine fair' to help national small and medium brand owners

Zhanghe Cloud Factory is a year-round online sugar & wine fair. Currently, the cost of channel construction is very high, and many manufacturers hope to rely on events like the "Spring Sugar" and "Autumn Sugar" fairs to promote their products nationwide. Zhanghe Cloud Factory has the strong support of Zhanghe Mall, Zhanghe Logistics, Zhanghe Finance, and Zhanghe Convenience. Positioned as an online sugar & wine fair, Zhanghe Cloud Factory has tens of thousands of manufacturers and distributors, and all products are visualized and platform-based, allowing users to view products without leaving home. Merchants and distributors can not only promote products and discover business opportunities through the annual "Spring Sugar" and "Autumn Sugar" fairs, but also use Internet channels like Zhanghe Cloud Factory to achieve their goals at low cost. The advantage of Zhanghe Cloud Factory's "online sugar & wine fair" is that it can provide manufacturers and distributors with support for product promotion, distribution, and market sales, including data, network, and market promotion.

In the future, many single, vertical supermarkets will be replaced by convenience stores, and the O2O trend will become more obvious. This is also the huge value that Zhanghe Tianxia has always been committed to in the FMCG supply chain. Zhanghe Tianxia's business philosophy is to build a platform that provides a high-quality platform to more partners. On the Zhanghe Tianxia platform, we share resources and create more value. Use the Internet as a tool to connect with the times and catch the next wave of Internet development.

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