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Articles by 袁来
Browse 256 New Distribution articles by 袁来.
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256 articles · Page 10 of 11
Transforming into Local Logistics: Platforms Indeed Can't Replace Distributors, But They Can Swap Them Out!
In the early days of B2B, it seemed all-powerful, making distributors fear for their survival. Now that B2B has cooled, distributors take comfort in their irreplaceable value, but when local logistics platforms emerge, they resist change. At a recent New Distribution conference, we interviewed dozens of distributors and found that while they tout local relationships and service as core strengths, they are reluctant to outsource warehousing and distribution, fearing loss of control. This article explores why, using the case of Changyi Logistics, which successfully consolidated 38 distributors in Dingzhou within a year, and argues that platforms may not replace distributors but can certainly replace them with new ones.
袁来Transforming to Unified Warehousing and Distribution: Cutting Out Secondary Distributors to Help Some Distributors Get Rich First!
Warehousing and distribution are to FMCG distribution what express delivery is to e-commerce. Without express delivery, e-commerce would not have developed so rapidly. Therefore, for the digital transformation of FMCG distribution, the importance of transforming warehousing and distribution functions is self-evident. Looking back at the rise of express delivery, it was a process from 0 to 1; before e-commerce, there was no such thing as 'express delivery.' Warehousing and distribution, however, have been present since the market economy, when commodity circulation shifted from supply and marketing cooperatives to individual dealerships. There are nearly 800,000 distributors nationwide, corresponding to nearly 800,000 FMCG warehouses, each equipped with varying numbers of vehicles.
袁来In-depth | How Can Distributors Break the "Curse" of Difficulty in Making a Profit from Unified Warehousing and Distribution?
Chinese FMCG distributors are traditionally small but complete "four-in-one" operations, combining commerce, logistics, information, and capital flows. As market growth slows and costs rise, many are turning to unified warehousing and distribution (统仓统配) to reduce costs, but profitability remains elusive. This article explores why the model often fails and offers strategic pivots, such as expanding beyond FMCG, restructuring distribution layers, and leveraging platform influence to partner with individual entrepreneurs.
袁来Is It True That Transforming into a Unified Warehouse and Distribution Platform Can Save Distributors Money?
The article discusses whether transforming into a unified warehouse and distribution platform can save distributors money. It presents a case study of a distributor in Jingzhou, Hubei, who transitioned to such a platform and shares insights on the challenges and potential paths forward.
袁来In the Digital Era, Should Brands Still Do Deep Distribution?
Despite rising costs and the rise of B2B platforms, deep distribution remains essential for brands to compete at the retail level. The future lies in collaborative models where brands partner with new types of distributors, such as individual entrepreneurs, marketing distributors, or regional self-operated B2B platforms, leveraging digital tools for efficiency.
袁来Will Same-City Unified Warehousing and Distribution Platforms Kill Fellow Distributors?
Traditional distributors transitioning to unified warehousing and distribution platforms may seem unrelated to your distribution business, but these platforms could actually disrupt your operations. While they promise efficiency gains, cost reduction is questionable, as seen in Jingmen where platform logistics costs are higher than traditional delivery methods.
袁来How Big Is the Impact of Social Security Reform on the FMCG Industry?
Starting from January 1, 2019, all social security taxes will be uniformly collected by the tax authorities, signaling a new harsh winter for FMCG companies and trading firms. On August 27, the State Taxation Administration issued the latest notice that from 2019, social security will be uniformly collected by the tax authorities, and the handover of social security premiums and the first batch of non-tax revenue collection responsibilities must be completed by December 10 this year. The news has caused a stir online. In short, in the past, most companies paid social security at the minimum standard rate, and it was uniformly collected by the human resources and social security departments. This time, the shift to tax authorities will directly affect social security payments.
袁来The Transformation and Counterattack of Dali and Want Want Distributors: How Did He Grow from 20 Million to 200 Million in 3 Years?
“Traditional distributors will have no future if they don't transform, because being traditional means no way out.” This is the view expressed by Qin Xian at a meeting regarding the transformation period of FMCG channels. In Qin Xian's view, in the field of FMCG distribution, the distributor link has gone through three generations: from the initial supply and marketing cooperatives, to wholesale market merchants, to itinerant merchants who directly supply terminals for logistics and distribution. Nowadays, the internet brings more advanced technology and tools to distributors. Every distributor should actively embrace it, proactively seek change during the turbulent market competition and the transformation period of distribution channels...
袁来How a Distributor Turned City Distribution Convinced a 'Big Distributor' with Annual Sales of 200 Million to Join Her Warehouse?
A distributor who transitioned to unified warehousing and distribution shares her experience in recruiting other distributors to join her platform. Despite the challenge of convincing larger distributors, she successfully persuaded major local distributors of brands like Yili, Arawana, and Red Bull to join within six months of founding her company.
袁来No First-Tier Brands, No Logistics Fees—How Did He Achieve Annual Sales Over 100 Million and Profits Over 10 Million?
In the FMCG distribution sector, dealers have generally gone through three generations: 1.0 era, before reform and opening up, dominated by department stores and supply and marketing cooperatives, mostly 'official merchants'. 2.0 era, after reform and opening up, some left the state-owned system and formed wholesale markets, known as 'sitting merchants'. 3.0 era, as competition intensified, some 'sitting merchants' began to go out, doing delivery, business visits, and terminal execution, known as 'traveling merchants'. However, Li Xintao believes that today's 'traveling merchants' are essentially still doing what 'sitting merchants' do, just delivering goods to stores instead of waiting for orders. He argues that a true 'traveling merchant' is one who has the ability to promote new products and operate the market. As a dealer focusing on non-first-tier brands, he outsourced warehousing and distribution to focus on sales promotion, and also invested in over 120 vending machines in Zhengzhou, all profitable.
袁来Exclusive | Following Mengniu and Wahaha, Dali Group Officially Enters WeChat Business, Aiming to Seize the Short-Shelf-Life Snack Market!
New Distribution has exclusively learned that Dali Group's WeChat business project, the new brand 'Frota', has entered platform internal testing. The first phase of testing began on August 13, 2018, and the first product, 'Fuxiaoxian Cake', is set to launch online on August 18. This move follows other major FMCG brands like Mengniu and Wahaha into social e-commerce, as Dali aims to capture the growing short-shelf-life snack market.
袁来Heavyweight | Hema Fresh Skips the Middleman to Make 50% Private-Label Products—Where Does Its Confidence Come From?
Recently, Hou Yi, Vice President of Alibaba Group and CEO of Hema Fresh, shared his vision for the future of supplier-retailer relations at Hema's zero-supply conference. His views sparked heated debate in the retail and FMCG sectors, focusing on two points: abolishing all channel fees such as entry fees, promotion fees, and new product fees to explore new zero-supply relations, and launching 50% private-label products. Many industry insiders dismiss this as unrealistic, arguing that the current zero-supply relationship cannot be changed and that canceling fees merely shifts back-end margins to front-end margins. Is this really the case? Can 50% private-label products truly be achieved?
袁来Uni-President's Secret Vending Machine Strategy: 1 Year In, Significant Results, Another 450 Million RMB This Year!
Uni-President China is accelerating its vending machine business in mainland China, with 2018 capital expenditure up nearly 90% to RMB 1.3-1.5 billion, 30% of which will expand vending operations. After a year of pilot testing, the company is now aggressively entering the market, facing competition from Nongfu Spring, Wahaha, and others.
袁来Three Squirrels Leverages Retail Link for Offline Distribution: Can It Overtake on the Curve with the B2B Expansion Dividend?
Three Squirrels, the internet-famous snack brand, is expanding offline via Alibaba's Retail Link platform, achieving over 4.5 million yuan in sales on its first day. With rapid penetration into hundreds of thousands of small stores, the move aims to address over-reliance on online channels and leverage B2B growth to accelerate its IPO prospects.
袁来Yili and Master Kong Distributor, with Annual Sales in the Hundreds of Millions, Becomes a Local Powerhouse, Now Pivoting to B2B!
Distributor transformation has become a hot topic in the FMCG distribution sector, but there is no one-size-fits-all answer. In the view of New Distribution, the path depends on various factors such as regional market conditions, accumulated resources, and the boss's mindset. This article features an interview with Zhang Hang, general manager of Meizhou Xiduoduo Supermarket Chain Co., Ltd., who has been deeply cultivating the regional market for 20 years and proposed a 'full embrace of the internet' strategy in 2018, including building a B2B platform.
袁来Post-85s Takes Over as Second-Generation Distributor: He Says, 'Second-Generation Successors Should Observe More, Do More, and Change Less!'
Xu Zhouming, general manager of Taizhou Haoxiang Trading Co., Ltd., believes that second-generation distributors should observe more, do more, and change less, maintaining a respectful attitude towards their parents' distribution business. As China's first-generation FMCG distributors age, succession has become an unavoidable topic, and Xu is exploring new possibilities by combining traditional business with community-based micro-commerce.
袁来30 Years in Distribution, 800 Million in Annual Sales, She Says: There Are No Old Distributors, Only Those Who Fall Behind the Times
Zhang Meilan, general manager of Shijiazhuang Zhongshan Daily Chemicals, shares how her company, founded in 1985, has thrived through decades of industry changes by embracing transformation and maintaining a customer-centric approach. In 2017, the company achieved sales of 800 million yuan.
袁来From a Traditional Small Wholesaler to the Southwest's Largest Distributor with Annual Sales of 1.6 Billion: What Did He Do?
The article details how Chongqing Lingyu Consumer Goods Supply Chain Co., Ltd. grew from a small traditional wholesaler to the largest FMCG distributor in Southwest China, with annual sales of 1.6 billion yuan, through meticulous management, particularly in warehousing and distribution, and by partnering with Alibaba's Retail Link.
袁来A Well-Known Domestic FMCG Distributor with Annual Sales of 2.5 Billion and 15 Branch Companies Says: Without Transformation, There Is No Way Out
Zhongshan Wanrong Marketing Co., Ltd., founded in 1992, has 15 branch companies, achieved sales of 2.5 billion yuan in 2017, covering over 24,000 offline retail outlets, and represents more than 40 brands including P&G, such as Head & Shoulders, Pantene, Rejoice, Vidal Sassoon, Gillette, SK-II, Whisper, Pampers, Safeguard, Olay, Tide, and Ariel. Recently, New Distribution exclusively interviewed Yang Su, Chairman of Zhongshan Wanrong Marketing Co., Ltd., to see what measures this FMCG veteran with nearly 30 years of distribution experience has taken to support Wanrong's growth, and how Wanrong is thinking about the digital transformation of FMCG distribution channels.
袁来Masterstroke by Master Kong: A Hidden Strategy!
On June 26, the launch ceremony for the 'Space Spirit China Tour and Master Kong's Inclusion in Xinhua News Agency's National Brand Project' was held in Beijing, marking Master Kong's initiation into the project. As a leading FMCG company, Master Kong's every move attracts attention. This time, the focus is on Master Kong's partnership with China's space program to promote space science education and the space spirit, a strategic move with profound implications for its present and future.
袁来Exclusive | Interview with Jili Founder Huang Xiongwei: How Can a Traditional FMCG Company Secure Three Rounds of Financing Totaling Over 100 Million Yuan in Two Years?
Zhejiang Jili Food Co., Ltd., founded in May 2016, has secured three rounds of financing within two years, including a Pre-A round from Hongtai Fund (investors Yu Minhong and Sheng Xitai) and an upcoming A+ round exceeding 100 million yuan. Founder Huang Xiongwei explains why venture capital favors a traditional offline distribution company and shares Jili's unique business strategies.
袁来Niche Products in Vogue: Are Big Brands Doomed?
As more beverage and snack companies launch personalized products, some industry insiders claim that the future FMCG market will be dominated by niche products, signaling the end of the big-brand era. However, Chen Siting, founder of Wanchaobang, argues that big-brand strategy remains key to success, and that all niche products either grow into big brands or die.
袁来Jiangsu Niulanshan Distributor Builds Its Own B2B Platform, Onboarding 50,000 Outlets in One Year, with Annual Sales of 300 Million!
Caizi Trading Company, located in Nanjing, Jiangsu, is the brand operator for Niulanshan, covering five cities in Jiangsu: Nanjing, Yangzhou, Taizhou, Zhenjiang, and Yancheng. In addition, Caizi Trading has actively developed the 'Niudianshang' B2B platform, which now has nearly 50,000 registered outlet users. Recently, New Distribution interviewed Zhu Guorong, Chairman of Caizi Trading, to learn about his operational insights as a regional 'Niu merchant' and how he responded to the rise of the internet.
袁来Dunjie CEO Qiang Huitao: 5x Growth in 3 Years but Lost Direction; Sales Dropped 50% in First Month of Transformation, Yet Still Confident
Dunjie Supply Chain Management Co., Ltd., based in Shijiazhuang, Hebei, is a localized B2B platform. Before November 2017, it was a traditional secondary distributor, but within six months, it transformed into a well-known local FMCG B2B platform. In a recent exclusive interview with New Distribution, CEO Qiang Huitao shared how he, with nearly 20 years in traditional trading, disrupted his original business model and pivoted to a B2B platform, hoping his journey offers insights to readers.
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