Explosive low-end consumption, endless sales growth. In that era, all Chinese enterprises, whether manufacturers or merchants, were growth-dependent. As long as sales grew, profits grew. All problems were masked by sales growth. That era ended in 2013. In 2013, most industries in China reached their historical peak in sales. In 2014, leading companies in most industries saw their first sales decline. Everyone thought it was abnormal. In 2015, industry leaders continued to see sales decline, and everyone thought it was basically normal. By 2016, people had become accustomed to declining sales. When sales decline, what do manufacturers do? In 2014 and 2015, the normal work for manufacturers was to "rescue sales." How to rescue sales? There are roughly three methods: First, launch new products, but few did this because new products "cannot quench immediate thirst," and the marketing system lacked the energy to launch new products. Second, intensify channel stuffing, such as increasing promotional efforts, which most companies did. Third, some grassroots marketing personnel, in order to save sales, opened new accounts and tacitly encouraged cross-regional selling. In 2014 and 2015, distributors had no choice but to endure these practices. First, manufacturers had long been dominant; second, everyone believed the decline might be temporary. In the past, manufacturers and distributors believed in one principle: sales are squeezed out. Channel stuffing and promotions could always squeeze out sales. After 2014, manufacturers and distributors still hoped to squeeze out sales, and their work revolved around that. But gradually, they found that sales could no longer be squeezed out. By 2016, distributors generally saw that the decline was not temporary; it was a turning point. Distributors could not see the future. In October, this public account conducted a survey on the survival status of distributors. A total of 2,559 distributors participated. The data basically reflects the current survival status of FMCG distributors in China: 47.3% of distributors saw a decline in sales revenue compared to the same period last year, 64.7% saw a decline in net profit, and 71.7% saw an increase in operating expenses. 70% of distributors said their capital was tighter than last year, and 62.9% said e-commerce had impacted their business. Everyone is finding it hard to make money this year. While the external operating environment for manufacturers and distributors is becoming increasingly harsh and difficult, the internal operating and labor costs for distributors are continuously rising. Nearly half of the distributors reported declining sales, while 70% saw their overall expense ratio increase. Whether large or small, labor costs are the largest monthly expense for distributors. Paying wages and bonuses has become a major test at the end of each month for FMCG distributors. We sincerely invite you to participate in this "2016 Distributor Labor Cost Survey." The purpose of this survey is to understand the basic situation of labor costs and operational pressure for FMCG distributors, and to provide a reference for distributors nationwide. The results will be published and shared soon. How to participate: Long press the QR code below or click "Read Original" Please long press the QR code above to participate in the survey. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Eighteen Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brand | 016 Distributor B2B Transformation | [Long press QR code to follow]