---
title: "Zhongke Shangruan Wang Shenbing: How to Build a Regional FMCG Platform"
description: "In the current era, consumption, brands, supply chains, and small stores are all undergoing transformation and upgrading. Consumption upgrading means consumers have changed, the main purchasing force has changed, and what they buy is different. This also means that if we still operate according to the old distribution model, it won't work. Distributors are in an awkward position, caught between supply chains and small stores, and manufacturers may abandon us because with various opportunities emerging, the temptation of 'better deals' is very strong. Platforms like Alibaba, JD, and Huimin are providing brand services directly to brand owners, so if brand owners are all connected to them, where will our point be in the future?"
author: "王神兵"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-11-12"
language: "en"
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# Zhongke Shangruan Wang Shenbing: How to Build a Regional FMCG Platform

> In the current era, consumption, brands, supply chains, and small stores are all undergoing transformation and upgrading. Consumption upgrading means consumers have changed, the main purchasing force has changed, and what they buy is different. This also means that if we still operate according to the old distribution model, it won't work. Distributors are in an awkward position, caught between supply chains and small stores, and manufacturers may abandon us because with various opportunities emerging, the temptation of 'better deals' is very strong. Platforms like Alibaba, JD, and Huimin are providing brand services directly to brand owners, so if brand owners are all connected to them, where will our point be in the future?

In the current era, consumption, brands, supply chains, and small stores are all facing transformation and upgrading. Consumption upgrading means consumers have changed, the main purchasing force has changed, and what they buy is different. This also means that if we still operate according to the old distribution model, it won't work. **We are caught between supply chains and small stores, hesitating between turning left or right. It's clear that distributors are in an awkward position, and manufacturers may abandon us because with various opportunities emerging, the temptation of 'better deals' is very strong.** **Platforms like Alibaba, JD, and Huimin are providing brand services, and they directly connect with brand owners. If brand owners are all connected to them, then in the future, where is our point?**

The 3rd FMCG + Internet Conference was held from November 8 to 9, 2017, at the Yuelai International Convention Center in Chongqing. The conference focused on the theme 'New Forces, New Ecology' to discuss cross-border integration, explore deep topics such as 'model innovation and supply chain services' from a forward-looking perspective, and attracted thousands of industry elites, including distributors, manufacturers, and internet companies from all over the country. The venue was packed, and the event was unprecedented. As a B2B system solution provider and service provider, Zhongke Shangruan was invited to attend the conference.

Wang Shenbing, CEO of Zhongke Shangruan: Hello everyone, I am Wang Shenbing from Zhongke Shangruan. Zhongke Shangruan has always advocated the concept of 'Regional King', and we have persisted in this for ten years, accumulating a large amount of resources and successful experience in this industry. **Today, at the 3rd 'FMCG + Internet Conference' hosted by New Distribution, I will talk about the exploration and insights of the 'Regional King' on the road to kingship.**

1. Seize the positioning
**Many people, through such transformations, will establish their own platforms, but what is the positioning of their own platform? The four elements of a platform: more, fast, good, and economical.** Here is my understanding of these four elements: 'more' is definitely not about having as much as possible, but rather being comprehensive. 'Fast' means fast delivery speed and high efficiency. 'Good' means good shelf life and good products. 'Economical' means saving money while maintaining profits. As a platform, or a distributor-operated platform, you need to find the most critical and core highlight. I believe that 'fast' should be the highlight. Distributors don't have money to engage in price wars; they can only build such a platform under the premise of profit, so only speed can win. **Therefore, I believe that improving efficiency is the most core and powerful weapon for distributors transforming into platforms. Efficiency is not provided by one link, but by all links in the entire chain. This is a process of links: order entry, warehouse management, logistics distribution, financial settlement, and terminal sales promotion.**

**I propose a concept called 'order lifecycle management'. From the moment an order is placed to its completion, many people may not have paid attention to this concept, but it is the most authentic reflection of your efficiency. How long it takes to complete an order represents how high your efficiency is. The faster the time, the higher the efficiency.** Between these links, there are various people arranged for each link, and people correspond to various systems. Throughout the entire chain, all personnel play different roles, apply different systems to manage their own processes, and strive to make each link perfect. This is what we should observe and inspect daily as a platform.

2. Distributors building their own platforms have advantages over internet people building platforms
Store expansion speed is very fast; you might cover all stores in a month. Stores respond enthusiastically to activities, they trust you, and are willing to participate in your activities. Locally, you can become the largest second-tier distributor, with fast capital turnover. Once goods arrive, they turn into cash through one or two activities. Based on this, when we were exploring a few years ago, we formed such a management system.

**Then, in our self-operated B2B + warehouse + logistics + matching model, we built information channels without much warehouse control, product control, or price control. We didn't manage anything; we just built information channels and added information increments on the platform. Along the way, we encountered many problems and pitfalls.** Most of those willing to come on the platform were second-tier distributors; first-tier distributors were hard to bring on. But second-tier distributors pursue profit, order amount, and customer quantity, each with their own agenda. If you don't have profit, they won't deliver. If you don't give them large orders or additional customers, and if the customers are within their circle, they won't sincerely follow the platform. There are many pitfalls here. **From this, we concluded that a pure matching platform alone won't work; it can only be an auxiliary product of the platform. We also gained some experience and launched some derivative systems of the platform.**

**Later, we explored again. With distributor resources, we must develop accordingly based on our own resources. We rebuilt the platform with the idea of joint and sharing. All the blue small modules are subsystems to be applied, and the yellow ones are the roles to be connected. In the order lifecycle mentioned earlier, these roles will be connected.**

3. Key points for 'new supply chain' upgrading in the new retail era
**The key point for 'new supply chain' upgrading in the new retail era is 'sharing'. What do we share? We share products, logistics, platforms, and also stores.**

After being on the platform, stores belong to no one and to everyone. Stores that can purchase goods on the platform definitely belong to everyone, because they are willing to be on the platform, whether it's yours or Alibaba's or JD's. So in this regard, everyone must recognize that stores are not yours; stores belong to everyone. Products should be multi-channel. The circulation of products in a region must be multi-channel, allowing them to enter different channels for circulation to maximize value. **Logistics must achieve large-scale circulation to earn more money and be profitable; this is the basic function of the platform. The platform is definitely not playing alone; it must coexist and share with others.**

4. 'Joint' is the starting point for regional kings
Regarding joint, we have also explored for a while. First, we unite our friends, because as distributors, we definitely have partners, and we can bring them in. Second, we unite third parties: local government resources, warehousing resources, and logistics resources. **What is shared is things, infrastructure; what is united is people, resources.** **I will use a simple diagram to explain the joint and sharing model. Through sharing, we can load all stores onto the platform; through joint, we convert the stores loaded onto the platform into the basis for improving our efficiency. Our goal is to improve the efficiency of the entire chain.**

**In the new era, new supply chains boost new retail. Without a strong supply chain as support, there is no so-called strong retail terminal. I believe there is a sequence here, and only then can we achieve the regional king.**

In terms of retail empowerment, we have also made some attempts. We launched small store POS management, allowing owners to see behavioral data of their stores. Through data collection, distributors can convert it into decision-making data. **For example, which products sell well, how competitors are performing, and what products the platform needs to introduce. Based on the distributor's own local resources—vehicles, people, warehouses, or existing business systems, reputation, etc.—they may become one of three local directions: either the largest local supply chain, the largest local same-city logistics company, or the largest local chain store.**

5. The future landscape for distributors
**In the future landscape, these two opponents are ones you can never ignore. When they succeed in one place, they will replicate nationwide because they have endless money to burn; they have more money than us. But I also believe that in every region, there will definitely be a distributor, a distributor group, or a chain convenience store enterprise that will stand up, integrate local resources through joint and sharing, and fight against them.** **Where are we? We are here, the software company behind the platform, silently supporting them. This is our positioning: we help customers succeed, help you build your own regional platform, and become the regional king.**

Click **Read Original** to see more highlights of the 3rd FMCG + Internet Conference...
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