The former "FMCG Distributor Professional Management Consulting" has been renamed to New Distribution Long press the QR code or click "Read Original" to register.

30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to discuss the path of Internet transformation for the FMCG industry. Whenever manufacturers launch new products, some always fool a batch of distributors, touting products that lack sincerity as if they were extraordinary. How can distributors tell whether manufacturers truly have confidence in their new products or are just fooling them? The tricks that fooled us over the years Let's first look at what manufacturers typically do when launching new products:

  1. Emphasize product quality: carefully selected raw materials, superior quality to the market, zero harmful additives, etc.
  2. Emphasize product novelty: new processes, new formulas, new materials, new concepts, new claims.
  3. Emphasize market potential: blue ocean, unique, market necessity, huge development space.
  4. Emphasize strong manufacturer support: e.g., advertising investment, hiring celebrities for endorsements.
  5. Emphasize high profit margins: gross margin starting at 20-30 points.
  6. Emphasize market order: exclusive distribution, regional protection, strict control of cross-region sales and price chaos. Are these tactics gradually failing? The fact that these tactics have persisted for so many years also indicates another issue: manufacturers' top management still insists on standing from their own perspective, unwilling to put themselves in others' shoes, unwilling to deeply understand distributors, and for years have positioned distributors as sales tools rather than partners. They also simplistically define distributors' development direction as purely profit-driven. Unfortunately, the effectiveness of these tactics has been declining year by year, and manufacturer bosses have not deeply studied the root causes. Then they start complaining that business is hard, distributors are hard to manage and uncooperative, and distributors don't recognize good products. In reality, the root cause is still the manufacturer bosses' own stubbornness. The 5 major tricks manufacturers use to fool distributors: Trick 1: The product is the best This is the first thing manufacturers emphasize, such as good raw materials (also boasting about the raw material production base), good processes, good quality control, good nutrition, good taste, good packaging, good brand... In short, all kinds of good. It seems comprehensive, but in the eyes of distributors, it contains a serious problem: no product can be perfect; there must be shortcomings. If manufacturers list a bunch of advantages but refuse to mention disadvantages, they are definitely hiding something, or they themselves don't know what problems will arise after the product hits the market. This shows that manufacturers haven't fully understood their own product. In fact, there is no best, only better. Wouldn't it be more reliable and authentic to have fewer tricks and more truth? Trick 2: High product profit On the basis of good product, manufacturers further emphasize good profits. The basic logic is that because the product is good, plus various manufacturer support, it will sell well. Good sales bring profits, and they even do the math for distributors, such as how high the gross margin space is, how much better it is than old products, how advantageous it is compared to competitors, and high purchase rewards and year-end rebates. Distributors with a bit of experience can see that manufacturers are fooling children! Just raise a few practical questions:
  7. This is only a theoretical value, which requires assumptions that the product really sells well, no returns or exchanges at terminals, no cross-region sales, no market price chaos, no new distributors added locally, manufacturer sales staff don't take bribes, and manufacturers keep their promises.
  8. Without sufficient sales volume as support, high per-unit profit is meaningless.
  9. To achieve purchases and sales, distributors need to invest various resources and energy, and solve various problems, all of which involve costs. What are these costs, and how much gross profit will they eat? Manufacturers may not know! Profits are generated later, but the risks of early operational investment are borne by distributors!
  10. What manufacturers calculate is only gross profit, not net profit. In other words, take the advertised gross profit point and remove a zero. Trick 3: Strong manufacturer support Emphasize manufacturer support for the market and distributors: various advertising plans, ground promotion activities, lots of novel gifts, supporting display materials, etc. If you pay and order today, or order a certain quantity, there are purchase rewards, sales rebates, reimbursement for customer round-trip airfare, arrangements for overseas travel, and even luxury cars... On the surface, manufacturers seem to be making a huge investment! But for distributors, only the buyer is wrong, not the seller. Where do these so-called investments ultimately come from? The wool comes from the sheep! All investments are ultimately factored into the product price, which must be inflated. That is, all manufacturer investments are ultimately paid for by distributors themselves. Claims like manufacturers sacrificing current profits, saving money from scale profits, or having investors burn money are mostly lies. Another issue: with such large investments, if manufacturers can still sustain, it means they are still making money, indicating the actual product cost is very low. This contradicts their claims of high-quality raw materials, advanced equipment, and quality assurance. Does such a thing as good and super cheap really exist in this world? Trick 4: Industry leadership They often claim to be the first in the industry, even rising to the level of industry reshuffle! Distributors! Seizing this business opportunity is seizing the chance to shake hands with wealth! Advantages are relative; what others don't have, you have—that's an advantage! Manufacturers' so-called advantages inevitably raise several questions in distributors' minds:
  11. If it's a product-level advantage, don't they consider competitor imitation? What methods do manufacturers have to ensure competitors won't imitate? Patented technology? Special confidential processes? Unique raw material sources?
  12. If it's a market strategy-level advantage, in the current market environment, the effect of repeating innovative market strategies is hard to guarantee. To continuously launch brand-new market strategies, they need a strong marketing department or choose an experienced third-party market strategy company. However, only a few dozen Chinese companies can claim to have strong marketing departments. Without a strong marketing department or strong third-party support, how can market strategies have advantages?
  13. If it's an execution team-level advantage, some manufacturer bosses like to bring the sales team on stage to perform loyalty dances, shout slogans, and run. But how can manufacturer bosses guarantee that team members won't resign, won't be poached, and will always maintain passionate work enthusiasm? Trick 5: Sales team quality When manufacturers launch new products, do old employees sell the new products or a new team? Most manufacturers do not configure a new team for new products, which seems normal to them. But in the eyes of distributors, it's not the case:
  14. Choose people first, then choose products. No matter how good the product, without the full follow-up of the manufacturer's sales staff, it won't sell well; ordinary products can be successful if everyone is dedicated and hardworking.
  15. Distributors are familiar with the manufacturer's old sales team, knowing their work attitude, execution ability, stability, and professionalism (if not familiar, it means the manufacturer has no position in the distributor's mind). If the existing impression is negative, will distributors believe these salespeople have the ability and attitude to do well with new products?
  16. If the manufacturer's sales staff's work ability is average, then in the early stage of new product launch, have distributors seen obvious changes? If nothing has changed, the requirements for new products are certainly much higher than for old products. How to cope? In summary, distributors indeed need new products, and continuously. However, if manufacturers do not consider the actual situation of distributors in introducing and operating new products, they should not complain that distributors don't pay and order. The so-called maturity is the ability to put oneself in others' shoes; the so-called stupidity is everything based on "I think." If manufacturer bosses don't change their stubborn minds, the survival rate of new products will be hard to improve. 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 Waiqin365 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 Ideas——Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum——Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register. Registration: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]