Hipac.cn

About Hipac.cn

Hipac.cn, registered as Hangzhou Yangtuo Network Technology Co., Ltd., operates a significant B2B2C platform in China's mother and baby products sector. Founded in 2015 by Zhao Chen, a former senior executive from Alibaba who was instrumental in establishing Tmall International, the company emerged during a boom in cross-border e-commerce. The founding team shares a strong background from Alibaba, including a Chief Technology Officer who was a technical leader for Juhuasuan and a Chief Operating Officer who founded Taobao's Taobao coin.

The firm's strategic focus is on China's lower-tier cities and rural areas, a vast market that major international brands often find difficult and uneconomical to penetrate directly. Hipac.cn addresses this market inefficiency by connecting upstream brands, manufacturers, and distributors directly with a vast network of downstream brick-and-mortar baby and mother care stores. This model streamlines the traditional multi-layered distribution chain, offering stores better pricing through nationwide supplier competition and providing brands with an efficient channel for deep market penetration. As of late 2024, the platform connected approximately 4,200 suppliers with a network of around 290,000 registered retail stores across China.

Hipac.cn's business model generates revenue through multiple streams. It charges commissions, ranging from 2.3% to 2.6% of the gross merchandise volume (GMV), on transactions facilitated through its platform. Additionally, the company provides marketing and brand incubation services, commanding higher commission rates of 5% to 10%. This dual approach allows it not only to act as a distribution channel but also as a launchpad for new and smaller brands seeking to establish a physical retail presence. The platform has also developed its own private-label products in collaboration with manufacturers, offering over 1,000 SKUs by the end of 2024. Beyond product distribution, Hipac.cn offers value-added services to its retail partners, including store digitalization tools and operational support, to enhance their efficiency and customer engagement.