China FMCG online B2B market, targeting traditional trade retail stores, will grow to 330 billion yuan (US$48 bn) in 2018 from 40 billion yuan in 2016 according to Kantar Retail.
The five major FMCG B2B players in China include Huimin.cn, JD.com Xintonglu, Jinghuobao, Lingshoutong and ZhangHeTianXia.
Most brand manufacturers in China have focused their business on modern trade and e-commerce; but, traditional trade is still the biggest channel of China’s retail market. Traditional trade provides a place for residents to socialize since most customers are regular and familiar with each other in the community.
Highly fragmented FMCG traditional trade comprises nearly 7 million local stores across all city tiers.
Nearly 55% of the manufacturers has more than 200 distributors to operate traditional trade.
FMCG B2B companies in China grow rapidly with capital support. However, the industry is still at its beginning: