Click to read the original text for details. Terminals are places where products and consumers complete transactions. As the name implies, they are the final port of the supply chain. For distributors, terminals are platforms for product display and layout operations, and also the best places to observe market changes and maintain consumer stickiness. Nowadays, as industry changes accelerate, distributors should better understand the composition and characteristics of terminal channels in the current market state. Only by mastering the most real-time and in-depth terminal information can distributors check their channel structures, arrange their forces reasonably, and discuss the best terminal layout plans before each new marketing season arrives. In the current market, terminal channels are generally divided into the following six categories: 1. Large Supermarkets Large supermarkets include hypermarkets (over 10,000 square meters), Class A stores (over 5,000 square meters), and chain or independent self-service retail stores. These stores are characterized by spacious areas (over 1,000 square meters), more than 10,000 product types, and they also sell clothing, home appliances, durable consumer goods, etc. They use sales techniques to attract customers to buy in bulk, adopt low-profit policies to ensure small profits but quick turnover, and usually have more than 10 checkout counters. Typical representatives include Walmart, RT-Mart, Metro, and domestic stores. Advantages of this channel: Located in main business districts, high foot traffic, standardized management, suitable for generating sales and enhancing brand image. Disadvantages of this channel: High costs, long processes, long payment terms, and intense competition from similar products. Many traditional distributors admire the sales capability of large supermarkets but are deterred by high operating costs, leaving them hesitant and sighing in despair. In fact, the function of large stores should not be interpreted in a single dimension; their considerable sales volume can only be achieved through "channel resonance." Channel resonance refers to maximizing marginal sales within a certain period by combining the rich displays and consumer communication methods of the store with the long-term cultivation of consumers through traditional small shops and other channels. In simple terms, the specific approach is divided into five steps: Step 1: Observe. Examine three factors: First, product attributes — does it form household consumption habits? Second, timing — has it achieved exposure breadth in channels like traditional small shops? Has it formed consumer purchasing habits in such channels? Third, customer relations — do you already have enough SKUs in the store system? Are you familiar with the operating procedures and habits of the department? Do you have enough say? Step 2: Listen. Observe the operating status, prices, promotions, and consumer acceptance of similar competing products in the target store. At the same time, determine whether to enter the store to follow or squeeze competitors based on their status. Step 3: Ask. First, ask the manufacturer: Is there reasonable fee subsidies or operational guidance? Are there plans for brand promotion in this channel? Second, ask the store: Understand the commission points and fees. Then analyze your own profits based on facts and make decisions. Step 4: Diagnose. First, diagnose the manufacturer — based on its previous traditional channel operations and brand investment, judge whether it has the determination for sustainable operation; otherwise, do not enter the store hastily for short-term gains. Second, diagnose the store — based on its ability to sell fresh and short-shelf-life products, judge its business capability, and thus comprehensively decide whether to enter and which store to enter. Step 5: Entry negotiation. Based on product characteristics, sales expectations, cost investment, and store requirements, gradually unfold negotiations in combination with reality. Due to space limitations, details are not elaborated here. 2. Chain Convenience Stores This channel mainly consists of chain-operated self-service stores. They sell fewer categories of goods, generally have small areas (under 100 square meters), about 1,000 product types, operate 24 hours, have at least two freezers, automatic cash registers, storefronts, display windows, and good lighting equipment. Representatives include 7-Eleven, C-Store, etc. Chain convenience stores, along with large supermarkets and hypermarkets, belong to the modern trade. Their characteristics and operating strategies are basically the same, so they are not elaborated here. 3. Medium-Sized Supermarkets Medium-sized supermarkets are also called Class B supermarkets, single-point supermarkets, individual supermarkets, medium-sized grocery and department stores, etc. The store area is 300–1,000 square meters (chains with fewer than 5 stores), with 3,000–10,000 product types, and usually at least 3 checkout counters. In the traditional trade, medium-sized supermarkets are Class A channels with strong selling capability. Although they also have fees, they are more reasonable compared to hypermarkets and large supermarkets, making them more attractive for distributors and companies to cooperate and enter. In addition, because the entry threshold for this type of terminal is relatively low, a tiered fee policy can be adopted, allowing the sales team to handle entry or distribution work, with an optimal maintenance cycle of twice a week. 4. Small Shops In the terminal practice of the FMCG industry, practitioners often refer to shops below 200 square meters, such as tobacco, alcohol, grocery stores, grocery and department stores, mom-and-pop stores, balcony stores, station and dock stores, noodle and fast-food restaurants, snack stalls, and even mobile stalls, as small shops. Although small shops are small, they cannot be ignored. The sales share of a single small shop is almost negligible, but the cluster effect of small shops is huge and difficult to estimate. The marginal sales, brand marginal effects, and marginal profits brought by each new small shop are the factors that distributors should value most. However, for distributors, distributing to small shops is a troublesome task. Vehicles, personnel, strategies, timing, and execution logic are all indispensable. If any link goes wrong, it will affect the overall process. (There will be dedicated text later introducing distributor distribution work, so I won't elaborate here.) For these small shops scattered across every corner of the country, distributors should be reminded to maintain orderly actions and prioritize layout during operations. Generally, at the beginning of the marketing season, distributors need to race against time to seize territory, as speed is of the essence. But at the same time, they must follow the concept of "concentrating 80% of resources to attack 20% of key stores." Once successful, it yields twice the result with half the effort. The remaining 80% of stores can be taken down step by step without haste. 5. Catering First, correct a misconception: do not treat snacks, fast food, or even temporary night stalls as the catering channel. The catering channel mentioned here refers to hotels with scattered seats, private rooms, or distinctive features. Because their business hours differ from those of grocery terminals, they often start working near noon when the front hall and front desk begin work, and do not close until late at night. Therefore, the catering business team of distributors is required to adjust their work schedules accordingly. The characteristic of this channel is that the product premium rate is between 50% and 200%. Taking JDB as an example, the normal price in grocery terminals is 3.5 yuan/can, while in catering terminals, the retail price is often 6–10 yuan. Some higher-end restaurants can even sell it for 15 yuan/can. This requires distributors to fully consider the entry conditions and policy adjustments during entry negotiations. 6. Special Channels Special channels, also known as special trade or closed channels, refer to channels where the target products are not the main business. For example, internet cafes, bath centers, KTVs, and other entertainment venues. The common feature of these channels is that retailing goods is a sideline, but because the target consumer groups match well, they are actually efficient channels for target products. These channels must not be underestimated. Their driving effect and marginal effects are the best in the channel system. It is no exaggeration to say, "Doing special channels is doing brand building"! However, for distributors, operating special channels requires high professionalism in negotiation and maintenance. Therefore, it is recommended that distributors establish a professional special channel team and try not to transfer personnel from the traditional channel team to operate in this field. Source: Food Board On October 23-24, during the Autumn Sugar and Wine Fair, the "2018 FMCG City Distribution Logistics Conference" hosted by New Distribution will be held. At that time, we will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions around the theme of "New Distribution, New City Distribution," focusing on the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution. We hope to bring you different inspiration and thinking! The specific meeting topics are as follows: List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-commerce Co., Ltd. Unilever Service (Hefei) Co., Ltd. Shanghai Branch Huicong Hunan Xuan'ang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Industry Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Trading Firm Boda Trading Industrial Bank Changsha Branch Wuhan Muchen Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-commerce Co., Ltd. Jiangxi Xiao Laoer E-commerce Co., Ltd. Jinshan Koufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chao'an Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Development Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhiru Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. ...... Representatives of Distributor Transformation (Tentative) In no particular order Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao Hebei (Chengde) Wulian Yun Warehouse Co., Ltd. General Manager, Meng Yucun Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun Jilin Sansheng Lianguo Chairman, Zhang Hailing Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei ...... -END-