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- Teaching & the Case Method
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WinChannel's Digital Gambit to Revitalize Rural China (B)
內容大綱
This case aims to help students understand how digitization is enabling and shaping the transformation of the traditional FMCG industry in China. It introduces Andrew Cui's response to the challenges posed in Case (A)-i.e., how WinChannel could improve the reach and efficiency of the traditional trade channel when online/mobile B2B FMCG platforms were emerging in the market. In May 2015, Cui launched Huixiadan, a mobile-based B2B FMCG ordering platform, connecting a select group of leading FMCG companies and their numerous distributors and wholesalers with potentially millions of mom-and-pop stores in China. Huixiadan has used mobile technologies to develop an inclusive and collaborative business model linking most players in the existing traditional trade channel. However, it faces fierce competition from many online competitors seeking to disrupt the FMCG industry, including Chinese e-commerce giants Alibaba and JD.com. Cui is wondering how competitive and sustainable Huixiadan's business model is and what he should do to withstand the competitive threats even as he tries to exploit opportunities in the traditional FMCG industry in China.