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 Internet transformation of the FMCG industry. I started working in the beverage industry in 1997, and two years later, I switched to a well-known domestic company, where I have been ever since. In recent years, the company's sales have declined significantly, but profits and taxes are still decent. What's more exaggerated is the ratio of taxes to net profit, which has been increasing year by year. Last year it was 1:1, and in the first half of this year, taxes exceeded net profit. Speaking of beverages, the gross margin is indeed very high. Take a 600ml sports drink, for example, like "Mai*", with a retail price of 4 yuan per bottle, while the factory production cost is less than 1.4 yuan per bottle. (Contents 0.5 yuan, bottle 0.3 yuan, cap 0.1 yuan, water/electricity/steam 0.1 yuan, label 0.05 yuan, carton equivalent 0.1 yuan, labor 0.05 yuan, plant and equipment depreciation 0.05 yuan, factory-to-distributor freight 0.1 yuan, other expenses 0.05 yuan). Generally, 15 bottles per case, 15 bottles * 1.4 yuan/bottle = 21 yuan/case. The factory supplies to distributors at 40 yuan/case. Distributors sell to wholesalers at 43 yuan/case, wholesalers to retailers at 45 yuan/case, equivalent to 3 yuan per bottle, retail at 4 yuan. Rough calculation: factory cost is 21 yuan/case, but the ex-factory price is 40 yuan/case, so the gross margin is high. However, sales expenses are also high, generally 30% of sales, including advertising, sales discounts, display fees, personnel costs, etc. So the profit rate is: 40 yuan/case * 70% - 21 yuan/case = 7 yuan/case, 7 yuan/21 yuan = 33.3%. After deducting VAT and income tax, based on the 1:1 ratio mentioned earlier, the net profit margin is 16.7%. Nowadays, beverage companies generally adopt a three-tier channel: distributor-wholesaler-retail terminal. But with various costs rising, the profit margin across the three tiers is insufficient to distribute, so they are gradually considering a two-tier channel, where distributors deliver directly to retail terminals. Take a beverage company with an investment of 100 million yuan and covering 50 mu of land as an example. It has one production line with fully imported equipment, mainly HUSKY preform machines, KRONES blow molding machines, KRONE filling machines and UHT, with an hourly output of 40,000 bottles for 500ml products. Total staffing is 96 people, including 1 factory director, 5 department heads, and 20 key staff, as follows:

  1. General Affairs Department (15 people): external reception, government coordination, low-value consumables procurement, drivers, canteen, security, sanitation, dormitory, safety, training, HR recruitment. Including 1 department head, 3 office staff, 5 canteen/dormitory/sanitation staff, 5 security guards, 1 driver/purchaser.
  2. Management Department (15 people): storage and transportation, finance, wages and bonuses, consumption accounting, production planning and scheduling, raw material supply. 1 department head, 1 cashier, 1 accountant, 1 dispatcher, 11 warehouse staff.
  3. Equipment Department (10 people): equipment maintenance and repair, spare parts, energy and machine room. 1 department head, 3 maintenance engineers, 1 spare parts, 5 energy and machine room staff.
  4. Quality Assurance Department (5 people): quality system, online quality control, laboratory, raw material inspection. 1 department head, 2 online QC, 2 raw material and finished product inspection.
  5. Workshop (50 people): workshop production. The workshop operates in two shifts, with 1 director, 10 in the batching section, 8 in bottle making, 26 in filling and packaging, and 5 maintenance workers.
  1. Factory director: 1 person, pre-tax salary 15,000 yuan/month,
  2. Department heads: 5 people, average pre-tax salary 8,000 yuan/month,
  3. Key staff: 20 people, average pre-tax salary 6,000 yuan/month,
  4. Ordinary employees: 70 people, average pre-tax salary 4,000 yuan/month,
  5. Based on the above standards, the total monthly wages for the factory: 150001 + 80005 + 600020 + 400070 = 455,000 yuan.
  6. Adding the company's share of insurance, the total monthly wage and bonus payment is 600,000 yuan.
  7. Assuming an operating rate of 20 days per month, 20 hours per day (including CIP cleaning and equipment maintenance), the monthly output is: 20 days/month * 20 hours/day * 40,000 bottles/hour = 16 million bottles/month. 600,000 yuan / 16 million bottles = 0.0375 yuan/bottle. Including year-end bonuses and others, the total is 0.05 yuan/bottle. Now calculate depreciation: with an investment of 100 million yuan, annual depreciation is 9 million yuan. 9 million yuan / 16 million bottles = 0.05 yuan/bottle. Now calculate depreciation again: with an investment of 100 million yuan, annual depreciation is 8 million yuan. 8 million yuan / 16 million bottles = 0.05 yuan/bottle. As a well-known beverage brand, our products are familiar to consumers, but the beverage market is now full of varieties and products. Looking at sales data over the past few years, sales have been declining year by year. The reasons are analyzed as follows: First, advertising investment is insufficient, and pull is not enough. But TV advertising is now expensive, ineffective, and low cost-performance. Second, the profit margin is insufficient. Due to the large number of small distributors, price differences are becoming more transparent, leading many terminal stores to be unwilling to sell our products. Third, display fee investment is insufficient. Competitors' display fees are signed for one year, and freezers are massively deployed with convenient procedures, free use, and even electricity costs covered. Fourth, due to declining sales, while the bonus commission ratio remains unchanged, and the number of salespeople increases, the income of frontline customer managers is getting lower, seriously affecting their enthusiasm. Fifth, adopting the distributor model, salespeople's wages are paid by distributors, and our company gives a 0.5% subsidy on sales. Although this reduces our costs, in recent years, large distributors have been cut, and the salespeople hired by small distributors are certainly not well paid, leading to frequent turnover of salespeople and a significant drop in terminal customer relations. Sixth, multiple competitive job postings have led to the loss of many excellent sales personnel. If you complete sales tasks for 5 consecutive years but fail in the 6th year, you may be laid off; some regional managers promoted to regional managers for 2 years, but if they fail to complete tasks, they are laid off and have no position, so they leave and go to competitors or small brands, becoming our competitors. Sales expense analysis: (as a percentage of sales)
  1. Advertising: 7%
  2. Distributor expenses (display fees, etc.): 3%
  3. Sales personnel expenses: 3%
  4. Distributor salesperson subsidy: 0.5%
  5. Distributor capital interest subsidy (cash before delivery, reward for completing tasks): 2%
  6. Company promotion expenses (100 cases free 3 cases): 3%
  7. Others: 1.5% The total adds up to 20%, but due to failure to meet target sales in recent years, and the company may adopt aggressive promotional activities, actual expenses often exceed this. About Pure Milk and Milk Beverages
  8. The current public opinion says milk is nutritious. I make beverages, and my position influences my opinion; I have a different view.
  9. Which milk brand is good? The key to a milk brand is the milk source. Ten years ago, I visited a dairy factory in Taiwan. The pure milk they gave us to drink was so delicious that I still miss it to this day; I have never had such milk since. Secondly, I drank fresh milk at a cattle farm, which was a sample, milked and boiled immediately; it tasted pretty good too.
  10. I used to collect milk. At that time, there were 15 milk stations and 3 cattle farms supplying us. The factory I worked at was in a remote area with sparse population, where every household raised cattle, each with 5 cows. After milking, they sent the milk to the milk station (where it was put into a refrigeration tank). When the station collected 5 tons (one truckload), it was transported to the factory. After passing inspection, it was sent to the workshop for processing. In this process, there were two problems. First, dairy farmers would adulterate the milk. For example, if yesterday's milk couldn't be delivered to the station in time and turned sour by today, they would add some alkali. Of course, adding water also happened from time to time. Second, the milk station would add things, because the factory tested for protein and other indicators, and different indicators commanded different prices, so melamine and other substances appeared. We also collected fresh milk from some cattle farms; their milk quality was stable, but the farm's costs were high, so the price of farm fresh milk was higher, and in terms of total volume, farm fresh milk accounted for about 20%.
  11. Milk beverages are generally made with sugar, milk powder, and various vitamins, with about one-third milk content. However, imported milk powder is now cheap and stable in quality. Their cows are naturally grazed, which is certainly happier than our confined feeding with feed. Milk beverages made with imported milk powder (which is vastly different in price from infant formula) have stable quality, and I think they are safer than pure milk with unstable milk sources. About Preservatives Common preservatives in beverages are potassium sorbate and sodium benzoate. Generally, regular companies will indicate them on the label. Actually, there is a simple method. Just open a bottle of neutral beverage, drink a few sips, and then drink it again the next day. If it tastes different, it means there are no preservatives. If it still tastes normal after a week, or even after a month without spoiling, then you should be cautious. Generally speaking, the better the product, the easier it spoils, because it is nutritious. Products that can be stored for a long time are not recommended for excessive consumption. Source: Tianya Community New Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry's 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's 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 or 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: City 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: The 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 manufacturer and distributor friends 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] ↓↓↓