On June 23, “Chinese Liquor Heroes Alliance” established under the leadership of Wu Xiangdong, the Chairman of VATS Group and founder of Jindong Capital, went to Fuzhou, which attracted participation of over 300 dealers whose business scale is over RMB10 million in Fujian Province. 291 new members signed the contract, signing rate reaching 95%.

Since “Chinese Liquor Heroes Alliance” was founded in January this year, the liquor industry has overcome lots of difficulties and 16 sessions have been successfully held. But when “Chinese Liquor Heroes Alliance” developed fast, Wu Xiangdong announced Dida Science & Technology, a B2B platform which bears the task of over RMB1 trillion business scale of “Chinese Liquor Heroes Alliance” entered the stage of internal test. This news made a stir in the liquor industry where B2B has become a common practice, and became one of focuses to which dealers in Fuzhu paid most attention. 

Follow the trend and lead B2B tide in the liquor industry

The liquor industry has made profound adjustment for over three years. E-commerce platforms have flourished in this period. Various new modes have been explored in the industry- from vertical B2C at the beginning, big third-party platforms to O2O. Finally B2B is considered to be the “lighthouse” for E-commerce platforms in the industry.

When B2B mode gradually got developed, “Chinese Liquor Heroes Alliance” went ahead in the industry again. It proposed the establishment of a B2B platform whose scale is over RMB1 trillion. The establishment of Dida Science & Technology marks that the alliance’s business system has entered a substantial stage.

About the origin of the name of Dida Science & Technology, Wu Xiangdong explained that “Dida” is a homophone for “tick” and “arrival” in Chinese and the key of B2B is logistics time and space exchange so “Dida” implies “safe arrival”. Insiders think the name directly indicates the nature of B2B business mode and can be easily remembered.

The “blueprint” for over RMB1 trillion will possibly re-define B2B

“Chinese Liquor Heroes Alliance” has made the industry shocked again and again from the proposal of creating the “No. 1 Ecological Circle of the Liquor Industry” to the blueprint of establishing an E-commerce platform whose scale is over RMB1 trillion. This one is no exception. Wu Xiangdong said the goal of Dida Science & Technology is to realize business volume of over RMB1 trillion- this is the first time that such a goal has been put forward in the industry where various B2B modes emerge one after another.

Wu Xiangdong said the nature of B2B mode is to achieve sucesss by relying on scale instead of making profit from product price differential. So it is worthless if business volume on the platform does not reach hundreds of billion yuan or even over 1 trillion yuan.

About B2B business system of Dida Science & Technology, Wu Xiangdong has his unique business mode. He said, “There are two reasons why I emphasize scale. First, product trading and circulation link based on B2B platform is not the core profit-making point, so large-scale cost apportionment is needed. Second, the core profit-making point of the platform is financial service and large logistics demand produced by large-scale trading and even customized service based on big data of the platform.”