Recently, the author visited over twenty dealers, spanning first-tier, second- and third-tier markets, provincial capitals, and county towns, covering categories such as snacks, condiments, and beverages.

During these exchanges, one clear feeling emerged: the era of aggressive expansion is over; today's battle for markets, channels, and customers is increasingly fierce.

Drawing from discussions with dealers across regions, the author shares observations from market visits, hoping to offer some inspiration and food for thought for dealer bosses.

Dealers in big cities struggle to grow; dealers in small cities struggle to survive. Dealers in both large and small cities bear anxiety and pressure, but their challenges differ. Recently, in Shenzhen, the author visited a beverage dealer focused on the Pupu Supermarket channel and a leading beverage brand, achieving annual sales exceeding 100 million yuan. In big cities, the vast market capacity and sustained consumer demand provide a platform for dealers to scale up more easily. In such an environment, even focusing on a single channel or brand can yield significant results. However, big-city dealers, despite the advantage of large market capacity, have their own anxieties. Some traditional dealers with annual sales of hundreds of millions or even billions face relatively unstable channel structures. Wholesale and KA (key accounts) account for a large portion of their business, but the thin margins of wholesale and the high costs and long payment cycles of KA channels bring uncertainty. Some dealers overly reliant on internet platforms and channels appear successful, but their growth is based on channel growth, lacking strong competitive barriers. Once platform or channel support is lost, the business becomes difficult. Beyond structural issues, they also face growth challenges. Although they can achieve substantial scale through a single channel or brand, each channel has its own dedicated players with strong control, making it difficult for dealers to capture other channels in full-channel coverage, hindering further expansion. These are the anxieties of big-city dealers. Now, let's look at the problems faced by dealers in small cities and markets.

In small cities, dealers face a limited market capacity and intense competition. Despite past performance, the rise of online e-commerce and snack stores has squeezed market share significantly. Moreover, in small markets, the standardization and refinement of various systems, channels, and dealer capabilities are lacking. In such circumstances, relying solely on a single channel or brand makes survival painful. Against this backdrop, dealers must strive to capture more market share, not just in one channel but down to every display area, every shelf, and every sales guide. Overall, dealers in higher-tier markets can still do well for a while due to large market capacity. But for dealers in small cities, the immediate challenge is not growth but survival.

Dealers in small ponds should aim to be 'big fish'. How can dealers in small ponds find new paths? In a previous article, Yuan Lai, Chief Content Officer of New Distribution, expressed a view: in the distribution and circulation field, there is no so-called 'small and beautiful' business; only scale effects bring true competitive advantage. For dealers in small ponds, the only way to survive is to become a 'big fish.' How? During this period, the author has seen some excellent dealer cases in regional markets. Here are some summaries and insights that may inspire you.

First, pursue multi-channel: sell wherever consumers are. In an era of channel fragmentation, consumer shopping paths are diverse and complex, often spanning multiple touchpoints and channels. This leads to declining sales in individual channels, especially for dealers who previously only worked with KA and supermarkets. Expanding into more channels is their top priority. Dealers should 'encircle' consumers by going deeper into lower-tier markets, traditional small stores, and developing new channels like special channels for multi-point reach. For example, in Taiyuan, the author visited a condiment dealer with annual sales of 150 million yuan. Traditional offline channels accounted for about 80 million yuan, but he keenly seized multi-channel opportunities, actively expanding into online e-commerce and community group buying, nearly doubling annual sales. He also leveraged condiment characteristics to expand into niche markets, such as partnering with catering equipment delivery companies, joining property management apps, and conducting community exhibitions. But note: channel expansion is not blind development; it must be based on existing products and market characteristics, with sound judgment and evaluation.

Second, penetrate stores thoroughly: only when stores have growth can dealers grow. Simply stocking products without moving them is like 'empty talk.' The real challenge for dealers is helping stores sell products to consumers, increasing per-store output, and achieving sustained sales growth. To promote sell-through, relying solely on relationship-driven customer service is far from enough. Most people open businesses to make money; the key is to design terminal profit structures so customers earn money, ensuring long-term business development. For example, a dealer in Guangxi proposed a strategy for store management: raise product prices to ensure sufficient profit margins for stores. At the same time, use bundle gifts to lower actual purchase costs, encouraging terminals to stock more and motivating store owners to become product promoters. Of course, dealers should not limit themselves to managing and promoting their own products; they must have a holistic view, help stores do business, and improve overall store performance, which not only strengthens customer loyalty but also achieves win-win outcomes. For instance, in recent years, snack chain stores have significantly impacted terminal stores. Some snack dealers proposed joint business plans with stores to create hard discount zones. They provide not only products and promotional materials but also display shelves, and offer training on store environment layout, such as traffic flow, lighting, and hygiene, to enhance store competitiveness and jointly counter the impact of emerging channels, effectively boosting overall store sales.

Third, broaden the supply chain: sell whatever consumers buy. Dealers who started around 2010 often grew with brands; in an era of undersupply, betting on a brand and following the manufacturer's lead easily achieved growth. But today's market is oversupplied; good products are no longer scarce. The past brand-driven operational strategy is gradually failing. Some dealers are shifting their mindset, anchoring on a specific category and then combining brands. When a dealer's advantageous category has been fully developed in the region and faces growth bottlenecks, the next step is multi-category development to seek new growth points and enhance risk resistance.

Fourth, strengthen the organization: use more effective management and incentives to improve salesperson efficiency. 'Easy to enter, hard to do well' is a true portrayal of salespeople in the FMCG industry. On one hand, they must follow strict operational procedures and constantly report at morning, weekly, and monthly meetings, making work tedious and repetitive. On the other hand, sales targets set by the company are increasingly high, and they cannot afford to relax, but the market is sluggish, and terminals cannot sell. After a busy day, they are physically and mentally exhausted. Improving salespeople's conditions and efficiency is no longer a choice but a necessity.

First, tools are aids, not shackles. During market visits, the author heard many 'complaints' about systems: salespeople must frequently take photos, upload, check in, and enter data, and strictly follow planned routes. When unexpected situations arise, they face dilemmas. This not only increases workload but also creates discomfort of being 'monitored,' leading to resistance. Therefore, bosses should not just focus on data while ignoring the human element. More importantly, they should think about how to stimulate salespeople's intrinsic motivation and sense of identification!

Second, optimize work processes to let salespeople 'do less.' A dealer in an Anhui county town with annual sales exceeding 100 million yuan hired resident merchandisers to free salespeople from low-skilled tasks like product shelving and display, allowing them to focus on core business such as customer relationship maintenance, market development, and new product promotion. At the same time, establish a business training mechanism: 'sharpening the axe will not delay cutting wood.' Invite manufacturers to visit periodically for exchanges and training on product selling points and promotional policies; internal department heads should mentor new and existing salespeople, accompany them on store visits, and identify problems to solve them. Through a series of measures, continuously improve salespeople's professional skills and thus improve efficiency.

Finally, the formulation of compensation and performance systems should be reasonable, compliant, and legal. There are hundreds of ways to design compensation; the key is to align with the company's current development priorities and the salespeople's situations, and by distributing money well, maximize team combat effectiveness.

In conclusion Can dealers' businesses succeed? How should they be done? There is no standard answer. We must view the market objectively; dealers in different cities, categories, and scales face different problems and think differently. But one thing is certain: when the market enters a shrinking phase, dealers will inevitably face a reshuffle, so finding their own moat is crucial.

From August 20-22, 2024, the '2024 6th China FMCG Conference' with the theme 'Crossing the Shrinking Era,' along with the '3rd China FMCG Hard Discount Conference' and the '3rd China FMCG Dealer Conference,' will be grandly held in Shanghai.

At this conference, we will continue to implement 'professional methodologies' and 'case growth theories,' bringing together all roles in the FMCG industry chain, top guest lineups, leading retail platforms, and outstanding dealers nationwide, interpreting industry changes from multiple perspectives, deeply linking upstream and downstream of the industry chain, and efficiently docking cooperation opportunities! Keynote speeches, roundtable dialogues, report interpretations, closed-door salons, and networking dinners—attend this conference and refuse to be a 'frog at the bottom of a well'!

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