--- title: "2016 Survey on the Survival of Distributors" description: "Since 2015, almost all FMCG manufacturers in China have been struggling. In the first half of 2016, Kangshifu's revenue fell 13.9% year-on-year, and net profit dropped 64.8%. Wahaha's revenue plummeted from 72 billion to 49.4 billion yuan, the lowest in years. Distributors are facing even harsher conditions, with pressure from manufacturers to stock up, leading to despair and abandonment." author: "赵波" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2016-10-08" categories: "Dealer Operations" language: "en" canonical: "https://xinjignxiao.com/en/articles/2016-survey-on-the-survival-of-distributors-e9f215bf/" markdown: "https://xinjignxiao.com/en/articles/2016-survey-on-the-survival-of-distributors-e9f215bf.md" original_source: "https://mp.weixin.qq.com/s/GpPR-hBQqFDBWUIg_l47Ww" translation: "https://xinjignxiao.com/zh/articles/2016%E5%B9%B4%E7%BB%8F%E9%94%80%E5%95%86%E7%94%9F%E5%AD%98%E7%8A%B6%E5%86%B5%E5%A4%A7%E8%B0%83%E6%9F%A5-e9f215bf.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/2016-survey-on-the-survival-of-distributors-e9f215bf/" citation: "赵波. “2016 Survey on the Survival of Distributors.” New Distribution, 2016-10-08. https://xinjignxiao.com/en/articles/2016-survey-on-the-survival-of-distributors-e9f215bf/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # 2016 Survey on the Survival of Distributors > Since 2015, almost all FMCG manufacturers in China have been struggling. In the first half of 2016, Kangshifu's revenue fell 13.9% year-on-year, and net profit dropped 64.8%. Wahaha's revenue plummeted from 72 billion to 49.4 billion yuan, the lowest in years. Distributors are facing even harsher conditions, with pressure from manufacturers to stock up, leading to despair and abandonment. Since 2015, almost all FMCG manufacturers in China have been having a hard time. From January to June 2016, Kangshifu's revenue was 27.990 billion yuan, down 13.9% year-on-year; net profit was 614 million yuan, down 64.8% year-on-year. Wahaha's performance declined sharply, from 72 billion to 49.4 billion yuan, a drop of 22.6 billion yuan in revenue. 49.4 billion yuan is the lowest revenue in years! It was the worst year in recent times. Super century-old company P&G's global sales in the first quarter of 2016 still fell sharply, with a 12% decline, the largest in the past seven quarters. Behind this series of declining data, a large number of distributors are suffering through the cold winter with brand owners. Unlike manufacturers, distributors face a harsher survival environment and more difficult circumstances. **What distributors find most unbearable is not declining sales or losses, but manufacturers forcing them to stock up. In the past, forcing stock might have led to sales growth, but now distributors are not growing, and forcing stock cannot bring sales growth, but it may crush distributors. Distributors can't hold on anymore.** **The reason distributors quit is that they see no hope. Moreover, manufacturers' pressure to stock up pushes them to despair, and transformation seems hopeless. It is reasonable for them to quit.** **A previous distributor survey found: the larger the scale, the less profit distributors make; the stronger the brand, the less profit distributors make; corporate operation is less profitable than mom-and-pop stores.** **I call this phenomenon distributors' "overall confusion" and "collective helplessness." Because expanding scale, building big brands, and corporate operation are both our advocacy and the goals distributors strive for. The phenomenon of distributors giving up because they can't hold on will really become more and more common.** **If it weren't for despair, most would continue to endure.** **We sincerely invite you to participate in this "2016 Survey on the Survival of Distributors." Through this survey, we want to understand the real survival status of distributors in China.** Please long-press the QR code below or click "Read the original" to participate. This survey is anonymous. After the survey, we will randomly select 20 participating distributors based on your contact information to attend the "New Food Era · New Distribution, FMCG + Internet Summit Forum" held during the Autumn Sugar Fair. We will also publish the survey results on the official account after the survey ends. **How to participate: Long-press the QR code below or click "Read the original"** Please long-press the QR code above to participate in the survey. -END- New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— **This is a grand event focused on how the FMCG industry channels will transform under the trend of Internet+ transformation** **Conference Agenda** 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Waiqin 365 10:35-11:05 Reconstructing Distribution Channel System, Promoting Urban Retail Upgrade - Tian Yuan, General Manager of Alibaba Retail Link Backend 11:05-11:25 Channel Efficiency in the Internet Era - Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: Urban Distribution Trend Development - Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum - Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off - Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecosystem - Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Thinking - Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum - Who is the King in FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner --- ## Citation metadata - Publisher: New Distribution - Author: 赵波 - Published: 2016-10-08 - Canonical: https://xinjignxiao.com/en/articles/2016-survey-on-the-survival-of-distributors-e9f215bf/ - Original source: https://mp.weixin.qq.com/s/GpPR-hBQqFDBWUIg_l47Ww ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671