Click the image for details As the new year begins, the FMCG industry enters the phase of rallying the troops and strategizing for the year ahead. Most companies complete the allocation of annual sales targets and marketing budgets for each branch before the new year. After the new year, branches focus on breaking down sales targets and deploying budgets. This article focuses on how distributors should plan their annual layout to maximize output in their markets.

Data Support, Strategy First In the mobile internet era, data-driven management for distributors is inevitable. Besides data collected by manufacturers, distributors should proactively collect market data regularly to inform business decisions and deepen market understanding. The most critical data for annual planning include: secondary inventory data, distribution data for core channels, and distribution data for core retail outlets. By comparing year-over-year cumulative data, you can identify sales increases or decreases for secondary customers, channels, and core outlets, and pinpoint the main time periods of change by breaking down into quarters and months. Analyzing the proportion of sales from secondary customers, channels, and core outlets helps identify the key supporters. Compare these proportions with last year to observe trends. This analysis reveals marketing highlights and gaps, as well as channel and terminal changes, providing a solid data foundation for the new year's plan.

Strategy first involves two aspects: First, the manufacturer's annual promotion plan. Know what key activities are planned for each month, such as launching new products in March, launching scan-to-win promotions in June, or special channel promotions in October. Get details from manufacturer sales reps as early as possible. Many manufacturers hold annual meetings before the new year to summarize and announce next year's strategy, which is crucial for annual planning. Adjust your sales rhythm accordingly and align resources to create synergy. Second, the local government's planning, such as economic circle plans, industrial park construction, or old city redevelopment. Stay informed through government websites, official accounts, or local sales offices to anticipate market opportunities or threats ahead of competitors. For example, if the government plans to attract a Foxconn industrial park, the market opportunity includes a large number of young production line workers with strong purchasing power. They have fixed routines, with large canteens, dormitories, and supermarkets in the park, and they frequent internet cafes and entertainment venues. These outlets can generate significant sales. Coordinate with the manufacturer to place display cabinets in employee canteens, plan stock for park supermarkets and internet cafes, secure display positions, and strengthen visit frequency and relationship maintenance. Conversely, if old city redevelopment involves gradual demolition, reduce investment in that area, settle rebates with small shops, and learn about their new store locations to maintain goodwill and future cooperation.

Benchmark and Define Priorities Know yourself and know your enemy, and you will never be defeated. After identifying last year's execution issues, compare with distributors in similar markets and competitors. Learn from their strengths and leverage their experience. Arrange market research, get insights from manufacturer reps, or communicate with peers at industry events. Quickly identify key issues and incorporate solutions into your annual plan. Marketing has no fixed rules; continuous optimization is essential to stay ahead. For instance, if a vegetable wholesale market has been neglected and surrounding outlets' sales are declining, but competitor sales are rising, investigate. You might find that competitors launched a "night visit expansion plan" because the market peaks around 11 PM when energy drink demand is high. Through proactive promotion and buy-one-get-one offers, they cultivate consumption habits and boost outlet confidence. Seize this opportunity by developing a comprehensive sales plan, and explore other closed channels for similar untapped potential.

Stabilize Core Customers, Maintain Bottom Lines Every market has key drivers—core wholesale and retail customers—that must be reinforced year after year and never easily lost. Beyond regular communication and visits, pay attention to their perceptions and expectations of your product category. They might notice new competitors offering higher margins or better support, or find your pricing or delivery efficiency inferior to e-commerce. Address these concerns in your annual plan. For example, before peak season or competitor promotions, offer core secondary wholesale customers profit compensation to boost cooperation, but carefully manage the scale to avoid overstocking, which can harm relationships and destabilize pricing. Mitigate risks by adding performance metrics like abnormal stock flow and distribution timeliness, and defer payment settlements. For core retail outlets, secure annual contracts for prime display positions, offer priority participation in new product launches and consumer promotions, and consider a point system where purchases accumulate points redeemable during peak season. Choose innovative gifts and incentives that appeal to different store owners and convey brand value.

Keep Pace with the Times, Innovate Stable economic growth and rising consumer trends support FMCG market growth. In 2018, the FMCG market grew 14%, showing trends like universal consumption, rational spending, and social connections reshaped by interests and acquaintances. Modern channels like hypermarkets and convenience stores are seeing closures and acquisitions. Meanwhile, millions of mom-and-pop stores are embracing digital transformation, with 8% of surveyed owners partnering with online sales, delivery, or social platforms to strengthen ties with regular customers. These online sales account for about 13% of daily revenue. In the B2B era, small store owners demand more from brands and distributors in terms of trade support, new product support, and sales rep visit frequency. Change brings progress; progress brings longevity. Distributors must stay attuned to industry trends, position themselves correctly, and adapt management and marketing methods. Especially long-established distributors must overcome fixed mindsets and stay active in the market, or risk being left behind while basking in past glory. Start with data, conduct horizontal and vertical comparisons, and align with manufacturers you believe in. Maintain regular communication, like Nongfu Spring's model, to analyze monthly and quarterly performance, leverage strengths, and gain early access to pilot projects.

Team as Foundation, Talent First Many distributor teams lack discipline, but execution is key. Without strong execution, strategies are empty. Assess whether core management members have the capability and responsibility, whether there is a talent pipeline, whether last year's KPIs were effective, and whether bonus systems truly motivate. Plan team development at the start of the year. Team assessments should offer hope. Adjust bonuses annually, but ensure they are attainable—at least 20% of staff should earn bonuses. Don't focus solely on sales; include process metrics like distribution count, activation rate, visit frequency, and SKU per store. Focus resources and sales efforts to create synergy. FMCG sales staff turnover is high, and losing key talent impacts markets and teams. To maintain team vitality and professionalism, invest in annual incentive plans like outdoor training and professional development. The mobile internet offers abundant learning resources, including professional platforms hosting offline exchanges. Send core team members to these events as both a reward and a way to broaden their perspectives and enhance management skills.

As 2019 begins, industry players are expanding their territories. In an era of diverse consumer needs and rational spending, those who dare to change first, progress steadily, and anticipate market shifts will dominate and achieve greatness.

New Distribution will host the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar Fair from March 16-18. This conference will focus on "Breaking the Game" , with in-depth discussions among brands, supply chain service providers, distributors, and retailers. Compared to previous editions, this summit is fully upgraded. In addition to topics like channel innovation, city distribution logistics, and distributor transformation , we've added parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail . Through three days and ten high-density, high-quality expert sessions, every brand and distributor can learn the latest business models, expert insights, and practical methods to find new tools for breaking through in 2019 and return to high-speed growth.

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