Just after the weekly meeting, Lao Wang specifically asked Lao Li and Xiao Zhang to stay. Recently, prices in community group buying have been somewhat chaotic, and Lao Li and Xiao Zhang have had a falling out. Lao Wang wanted to have a good talk with them.

"Lao Li, you need to support the young people's work. Community group buying is just starting out, and it's inevitable that there will be some conflicts with old channels. As a senior colleague, you should be more understanding. Tomorrow, the three of us will visit a few group leaders together and discuss ways to resolve the conflicts. Is that okay?"

"Hmm, okay!" Lao Li replied perfunctorily. Lao Wang was clearly dissatisfied with this attitude...

In the era of new retail, almost every FMCG brand is talking about innovation, change, and transformation. Every company is actively seeking change based on its own operational and organizational characteristics.

Every frontline city sales organization (i.e., every prefecture-level city sales team), as the most basic marketing unit in China's FMCG marketing, is also a subject of change in the new retail and new omni-channel era. If the frontline city sales organizations do not change, no matter how much change the company talks about, it will ultimately not be implemented, and business will not improve significantly.

Therefore, this article discusses the "change and constancy" of frontline city sales organizations under the new situation. From the perspective of a city manager, let's talk about what we need to change and what we don't.

1) Four principles for restructuring frontline omni-channel teams 2) What cannot change in frontline sales organizations? 3) What must change in frontline sales organizations?

Before elaborating on the restructuring and upgrading of frontline city sales organizations, it is first necessary to clarify that the underlying logic of frontline business is ultimately sell-through and distribution. These two things will not change due to the emergence of new business formats or new things.

Once the unchanged parts are determined, we then look at what needs to change. In the era of omni-channel distribution, a frontline city manager must base everything on the core algorithm of omni-channel, that is, to maximize satisfaction of the needs of customers and platforms in the city market, and based on this, match and restructure the sales team.

For example, local KC supermarket chains have higher gross margin requirements and a higher proportion of private label products. Can we do joint promotions with their private labels to drive performance? If their need is to drive traffic, can we consider how to help them with that?

If all frontline organizations remain stuck in the past practices of distribution, sales assistance, and execution, without co-creating and co-building with major local customers or truly solving their pain points, the overall team direction will be lost, and efficiency will be very low.

Everything is consumer-centric—this is for the company headquarters, or the marketing department, brand department, and R&D department. For our frontline marketing organizations, who are our customers? They are the channels. Without channels, if channels don't help you, you have no chance to do well in sales and achieve sales growth.

-01- Four Principles for Restructuring Frontline Omni-Channel Teams

1. Match the team based on the omni-channel needs of the channel 2. Cultivate star talent; mediocrity brings no growth 3. Dare to make heavy investments; tolerate low efficiency during the seeding period 4. Different positioning for three age groups: old, middle-aged, and young

1. Match the team based on the omni-channel needs of the channel

In the past, our slogan was "Brand is the foundation, distribution is key, and victory lies at the terminal." This was relatively fixed for channels, but now it's no longer viable. Now our slogan must change to "Channel is the foundation, product selection is key, and victory lies in response."

Why do we say this? For frontline city managers, the brand is too far away! Consumers are indeed important, but they are almost unreachable. 99% of daily time is spent with customers and channels. Although new retail can directly connect to consumers, the contact with new retail ultimately takes the form of channels. Therefore, for frontline city managers, channels remain the foundation of business.

Product selection is key. Many new channels that have emerged are selling hot products or novel and unique items, precisely because they can directly connect with consumers, engage in dialogue with them, and match target consumers based on channel scenarios. At this time, how to lay out different product lines based on different channels is an urgent task.

Victory lies in response. Previously, it was victory at the terminal, but now the terminal has changed; some are tangible, some are intangible cloud terminals. If the terminal is in WeChat, how do you win at the terminal? Therefore, channels are constantly changing, and the key is response. With the emergence of new channels, seizing the track is more urgent than defending the track. For example, in the community group buying track, if you don't seize it, others will; without a voice, you have no initiative.

The current new normal of FMCG is transmitted to every city market, and the biggest change felt is the strong divergence between old and new channels. The redistribution of channel sales and the iterative innovation of channel forms are irreversible trends.

Everything is channel.

Channels are rapidly changing and restructuring. Frontline city managers must not only pay attention to channel changes but also respond to channel needs at all times. Based on their needs, combined with our business growth goals, design strategies and tactics, and match team capabilities. Rather than simply building our distribution and sell-through capabilities based on visiting outlets as in the past.

2. Cultivate star talent; mediocrity brings no growth

In any frontline sales team, there are five types of people: stars, white rabbits, oxen, wild dogs, and dogs.

Undoubtedly, wild dogs and dogs must be eliminated; they are malignant tumors that can easily spread if not removed. Especially at the end of the year and beginning of the new year, there should be both entry and exit.

White rabbits have correct values but don't produce results. We need to gradually transform and appropriately replace these people, on the one hand to ensure the team is more dynamic and combat-effective, and on the other hand to ensure the team's metabolism.

There are also the "oxen" in the middle. These people are always on the sidelines, observing whether the stars or the white rabbits who coast along are gaining power. If stars gain power, they lean toward stars; if they get close to white rabbits, they become diligent but low-performing employees.

As a city manager, you often manage local people, sometimes even relatives or friends. It's hard to be objective in elimination and adjustment. Over time, this leads to too many mediocre people.

Facing the new omni-channel new retail situation, frankly, the talent pipeline construction of frontline organizations is even more important because requirements are higher, and learning ability and adaptability must keep up with the speed and professionalism of industry upgrades and iterations.

In the current market environment, we must vigorously cultivate an excellent talent pipeline! Only star talent can lead growth and seize share. Because current performance growth comes from two aspects: First, seize share from existing stock; second, seize position from incremental growth.

But both paths require a 90-point mindset. Why can you seize share from others? You must do better than others.

For example, a follower brand wants to seize share from a leading brand. The former must do better than the latter, but if your team is generally 60-point or 70-point people, you simply can't seize share because others have already achieved 85 points.

3. Dare to make heavy investments; tolerate low efficiency during the seeding period

Dare to make heavy investments and believe in the certainty of growth of new channels and platforms. Don't neglect emerging channels like community group buying just because they are currently small, maybe tens of thousands or hundreds of thousands of yuan per month.

The emergence of new channels is often a seeding period for brand owners, and low efficiency should be tolerated. Because platform efficiency multiplied by time, its potential will be enormous. Many people only think about harvesting and are unwilling to sow. Without sowing and cultivating, there is no possibility of reaping without labor.

We must invest heavily in new channels, follow up specially, and actively embrace them. Although the volume is small now, we must also see the future development potential of the platform. We have always talked about seizing the track. How to seize the track? When the new channel is small, entering at the first opportunity is the only way to achieve the possibility of seizing the track. Otherwise, once the new channel matures, the investment and cost to enter and harvest sales will be enormous.

4. Different positioning for three age groups: old, middle-aged, and young

Use the strengths of employees at each stage, ignore weaknesses, and focus on advantages and characteristics. It's not that old people are useless; old people have their strengths, the backbone has its uses, and young people have their vitality.

Corresponding to different channels and different tactics, we should configure the old, middle-aged, and young generations according to the channel. The premise for good use is to use them flexibly, and the root of flexible use is accurate use.

In new retail channels, dare to use young people. New channels typically correspond to startups or internet companies, and the communication contacts behind them are also post-90s. If you use old people, the platform window may still be working overtime at midnight to communicate with brand owners, and at that time, young people who are more energetic at night can obviously respond faster.

In traditional supermarkets and wholesale channels, use old people or experienced backbone, because not only emotional intelligence is needed, but also social relationships. Traditional channel customers care about face and use tricks. If a young person goes to communicate, they are easily "bullied," but senior to senior, both have experience and sophistication, and deep industry and social experience, making things go smoothly with mutual respect.

Therefore, old people are not all bad; they have their advantages. Let them seize share from existing stock, let them negotiate when distributors have difficulties, and let them settle wholesale channel disruptions.

New and old should be combined. Don't let new people do old channels and old people do new channels, as that would cause confusion. Don't say that because an old person did well before, the city manager should always reuse him, and you're confident in whatever he does. Now community group buying and other new channels, he'll definitely do well.

However, it's very likely that his "lifelong reputation" will be ruined by your "blind confidence," and ultimately both channels will be lost. At the same time, the mismatched young person will be bullied and suppressed by customers in old channels and will resign within two months... But if both types of subordinates are configured in the correct channels, it may be a win-win.

This is also a summary of our frontline market practice. In the past, the turnover rate of newly recruited young people was high, mainly because they couldn't stay, dealing with distributors or secondary wholesalers every day, with no sense of achievement.

But now it's different. Cooperating with new retail channels, even if the business is small, at least they feel they are cooperating with Alibaba, Meituan, and JD.com. The people they communicate with are also highly educated peers, giving them a sense of entrepreneurship that cannot be measured by salary.

-02- What Cannot Change in Frontline Sales Organizations?

1. Team values and bottom lines cannot change 2. The seriousness of team targets cannot change 3. Daily terminal checks cannot change 4. Regular review meetings cannot change 5. The bottom-out elimination system cannot change

1. Team values and bottom lines cannot change

No matter how new retail develops and new channels emerge, the team's values and bottom lines cannot change. No favoritism or fraud; many bottom lines cannot be lost. Adhering to doing the right thing and always leading the team to maintain positive values is fundamental.

No matter how the situation develops, frontline marketing organizations, as frontline command posts, and frontline city managers, must lead the team to spread positive energy. This is something every city manager must advocate and manage.

2. The seriousness of team targets cannot change

This point is very critical. Whether doing new retail or traditional sales, online or offline, the duty of any manufacturer's frontline sales team is to complete sales targets on time every month! This is a matter of course and non-negotiable.

Once sales are not completed, even if you do new retail extremely well, you cannot be considered competent! Perhaps you and the team can have a hundred objective reasons to explain why the target was not completed on time, but for any company, it is futile. After all, in times of change, every company must ensure operational sustainability, and the seriousness of achieving targets is the red line for every frontline city manager.

3. Daily terminal checks cannot change

Some people say that many new retail channels are online, so why do we still need daily checks? In fact, new retail just uses internet technology to make the FMCG industry more efficient; it is not purely online, but a fusion of online and offline.

For example, the ERTM, community group buying, O2O home delivery, and other online channels that frontline city managers deal with are completely tied to offline terminals. Offline stores use the advanced algorithms of internet platforms to form efficiency and platform advantages, but the final execution results cannot be separated from the routine checks of the sales team. "Sales rely on close supervision," this simple method still works even now.

Of course, these new channels are not like previous channels with fixed visit routes. The quality of business depends on the quality of daily visits, as well as supervisor co-visits and city manager rechecks. How to achieve daily checks in new retail channels?

For example, ERTM requires local sales to closely monitor daily execution. If the platform stipulates that this month's activity distributes 8 SKUs, but the tracking report shows only 4 SKUs, missing 4, then the frontline team must explain clearly at the daily morning and evening meetings whether the goods didn't arrive or the platform missed the order. There must be results and rapid response actions.

The same applies to community group buying. If the terminal group leader is rewarded with a 6% commission, but when you visit the terminal store, you find only 3%, where did the other 3% go? These constant checks and inquiries cannot be separated from daily routine visits and high-frequency checks. The so-called "the answer is at the scene, and the scene has gods," only in the trenches can you smell the gunpowder.

4. Regular review meetings cannot change

Morning meetings, weekly meetings, and monthly meetings are effective management tools to ensure all execution is controllable. With more and more new retail channels, morning meetings are even more necessary because there are too many things to summarize and respond to.

In the past, daily morning meetings had only a few items: sales progress and store visit tracking. It was easy to get tired of them because they were the same every day. But now it's different; new retail, new channels, and new platforms change every week or even every day.

Meetings, especially weekly meetings, also serve a training function. Frontline sales organizations are not wealthy enough to frequently attend classroom training at regional or headquarters levels. They can only train through competition, using weekly and monthly meetings to replace training functions, cultivating the frontline team's immediate combat capability and new cognition.

5. The bottom-out elimination mechanism cannot change

This must be taken as seriously as the seriousness of targets. Those who always fail to complete sales or are always last must be eliminated. Of course, after the arrival of new retail, many frontline city organizations still have a majority of old salespeople. The bottom-out elimination mechanism can be used for faster turnover, also to allow more young generations to metabolize.

Now the post-90s are already 30 years old. The golden age for frontline sales representatives is around 22-33 years old. The post-90s are about to leave the golden decade. Not only should post-90s come in, but post-95s should also join.

-03- What Must Change in Frontline Sales Organizations?

1. The team's channel tactics must change 2. The team's energy allocation must change 3. The team's collaboration methods must change 4. The team's learning methods must change

1. The team's channel tactics must change

Why must channel tactics change? Take the same hypermarket. In the past, the organizational configuration was mainly offline; now O2O offline coordination must be added. Offline will not only not add people but may even reduce people. There is no need for as many promotional staff standing at shelves. 10%-20% of hypermarket business has shifted online; offline is the existing stock, and incremental growth is in O2O home delivery.

After similar changes in hypermarket channel tactics, online diversion and erosion are growing at high speed every year, which will further lead to more streamlined offline staffing. The strategy of elite soldiers will replace the previous strategy of a sea of people. The spectacular scene of shelves being filled with promotional aunties from various manufacturers every weekend is gone forever.

2. The team's energy allocation must change

Business is being constantly restructured, and sales are being redistributed. In the past, a lot of energy was spent on intensive cultivation of traditional channels, but now more and more energy must be gradually allocated to new channels and new retail. Of course, this does not mean ignoring or no longer valuing previous channels, after all, the existing stock of traditional channels is still the main body and bulk of business, but new channels will definitely become mainstream in the future.

Energy is limited; how to effectively coordinate and allocate? In the past, to achieve 80 points in a channel, you might have spent 90% of your energy. But now old channels only account for 70% of the overall business, so you might need to take out 30% of your energy to do new channels.

What about traditional channels? Don't pursue 80 points; 60 points is enough. Don't pursue perfection, because the channel you are perfecting is declining. You execute perfectly to 85 points, but sales are falling, meaning your perfection is redundant and meaningless.

3. The team's collaboration methods must change

In the past, frontline sales organizations each managed their own affairs, at most wholesale affected various channels. But now that channels are online, each channel can affect each other, and small frictions naturally lead to many conflicts.

Especially reflected in prices, with more channels, prices are more chaotic. This leads to internal friction if there is no collaboration or if organizations don't handle it well.

Almost every year, new channels emerge in the FMCG industry, inevitably accompanied by a period of pain, as the new pattern redistributes the old pattern. At this time, everyone in the old business format is affected, and the sales of the new format and the veterans of the old format easily encounter coordination and collaboration issues.

At this point, problems should be solved on their merits, with rapid response, streamlined processes, and open communication. For example, 3L cooking oil is 3 yuan cheaper per barrel in community group buying. Facing this problem, the team should discuss openly what caused it. The city manager should lead everyone to investigate, coordinate the next steps, and solve the problem immediately without letting it linger overnight.

At the same time, during the process, the city manager should also define some principles, such as whether it is compliant and whether it operates within the company's regulatory framework. The premise is to ensure the maximization of overall market interests and collective interests, and to resolve every detail issue arising from conflicts between new and old channels with an objective and fair attitude.

For example, many times city managers let young people do new channels, which often faces questioning and challenges from veterans. At this time, the city manager cannot be partial; they must be open and transparent, rewarding the good and punishing the bad.

4. The team's learning methods must change

In the past era of traditional deep distribution, frontline sales organizations operated regularly for a long time, and sales knowledge and skill systems were already formed and familiar.

But when the new retail and new omni-channel era arrives, the previous sales knowledge and skill systems can no longer adapt. Although many frontline city managers are very hungry for new knowledge and skills, fragmented learning that is not systematic or in-depth makes most teams' learning discrete.

What should be done at this time? The answer is to transform into a learning organization. Group learning! Through group co-creation and resonance, achieve collective capability upgrade of the team, rather than relying on the past individual learning model.

How to achieve group learning? It requires team campaigns over a certain period to achieve individual and team improvement together. No matter how strong an individual's learning willingness is, it is too difficult to fully and professionally understand new retail alone. You need to interact with the company team and learn through actual combat.

For example, for new channels like community group buying, everyone should fight the battle together and immerse in practice. In this way, colleagues in the team who are not involved in new retail can also participate in the community group buying campaign on weekends.

Only through personal participation can mutual understanding be achieved. Colleagues doing traditional retail will gradually realize that the low prices in community group buying are not because sales want low prices, but because the platform is too difficult to control and requires more precise management. If people from traditional channels do not participate, it is easy to form internal friction.

The above is the change and constancy of frontline sales organization restructuring. Every city manager should have a clear change promotion approach, and should base all actions on the needs of customers and platforms, thereby restructuring the core capability system of each city's sales team, following the trend, and achieving steady growth.

After walking through the community group buying communities with Lao Li and Xiao Zhang for a day and visiting several group leaders, Lao Wang realized that Lao Li's attitude was positively changing. After all, through field visits and communication, Lao Li also realized that Xiao Zhang did not deliberately disrupt prices, and many things need the team to work together to solve.

Seeing that everyone was a bit hungry, Lao Wang planned to treat his two old and new capable generals to a meal. As soon as they sat down, he called the waiter to order two bottles of white liquor, because Lao Wang always believed that no misunderstanding or gap can't be resolved by two bottles of white liquor. For new retail and new business formats, only by opening hearts and achieving honest communication can everyone in the team progress together!

"Lao Wang, Xiao Zhang, let's have a toast. Today, we won't leave until we're drunk..."

About the author: Xu Xiang, currently Sales Director of Unilever South China, with 20 years of experience in FMCG daily chemicals, dairy, and condiments, deeply engaged in regional market management and customer marketing, willing to exchange and learn with peers for common progress. The above article only represents personal views.

Editor: Asher | Proofreader: Chen Feng

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