---
title: "Digital as the Engine: Lee Kum Kee Continuously Empowers Channel Partners for Efficient Business Growth"
description: "According to relevant data, offline business accounted for 89.6% of the condiment market in 2022. Looking further at offline channels, the 2 million+ small retail stores that are closer to consumers in near-field consumption will definitely become the mainstream of the condiment market in the future. Covering these 2 million+ small stores through traditional methods and a manpower-intensive approach makes it difficult to balance efficiency and cost. From the perspective of the condiment industry, what should be done? First, fully mobilize the power of distributors and work with them to tap into the potential of stores; second, use more efficient digital tools to expand coverage radius..."
author: "周群"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2023-08-08"
language: "en"
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# Digital as the Engine: Lee Kum Kee Continuously Empowers Channel Partners for Efficient Business Growth

> According to relevant data, offline business accounted for 89.6% of the condiment market in 2022. Looking further at offline channels, the 2 million+ small retail stores that are closer to consumers in near-field consumption will definitely become the mainstream of the condiment market in the future. Covering these 2 million+ small stores through traditional methods and a manpower-intensive approach makes it difficult to balance efficiency and cost. From the perspective of the condiment industry, what should be done? First, fully mobilize the power of distributors and work with them to tap into the potential of stores; second, use more efficient digital tools to expand coverage radius...

According to relevant data, offline business accounted for 89.6% of the condiment market in 2022. Looking further at offline channels, the 2 million+ small retail stores that are closer to consumers in near-field consumption will definitely become the mainstream of the condiment market in the future. Covering these 2 million+ small stores through traditional methods and a manpower-intensive approach makes it difficult to balance efficiency and cost. From the perspective of the condiment industry, what should be done? **First, fully mobilize the power of distributors and work with them to tap into the potential of stores; second, use more efficient digital tools to expand coverage radius, improve coverage efficiency, activate the autonomy of small stores, and let distributors do more valuable and important things.** Lee Kum Kee, one of the leading enterprises in the condiment industry, understands this well and has always insisted on empowering channel partners to improve digital operation capabilities. At 8 p.m. on July 28, Lee Kum Kee, together with New Distribution, launched the first **"Lee Kum Kee Channel Partner Empowerment Live Broadcast."** Ping Yichen, Deputy Director of B-end Digital Operations at Lee Kum Kee, Chen Yizhe, Senior National Channel Development Manager, Peng Yao, General Manager of Neijiang Dongxing Hengli Trading Company, an excellent channel partner, and Yuan Lai, Chief Content Officer of New Distribution, shared in-depth with more than 100 Lee Kum Kee channel partners about the pain points of distributor business and how to use digital tools to achieve efficient operations.
**Digitalization is the key to solving distributor efficiency problems** At the beginning of the live broadcast, **Yuan Lai, Chief Content Officer of New Distribution, as the host, analyzed the value of digitalization to distributors.** The core source of offline business is stores. If stores are not well managed, distributors have no business, and manufacturers have no growth. From the perspective of distributors, what should they do well? **First, do a good job in distribution, expand store coverage, and sell goods to more stores; second, do a good job in sales promotion, expand share in stores, and increase output per store.** To do sales promotion, distributor salespeople need to spend a lot of time and energy on process actions such as product shelving, display, end-cap displays, and materials, which are numerous and tedious. In this context, distributors need to use digital tools like HuiXiaoShou to leverage third-party forces, especially the power of stores, to efficiently solve these problems. Through rewards, store owners are encouraged to proactively help with some process actions, while salespeople can free up time to cover more stores and find more business opportunities. **Next, Ping Yichen, Deputy Director of B-end Digital Operations at Lee Kum Kee, shared the pain points of the condiment industry market and traditional distributor marketing, as well as Lee Kum Kee's HuiXiaoShou solutions.** Ms. Ping mentioned that from 2016 to 2022, the overall market size of the condiment industry has been steadily rising, and offline remains the main sales channel for condiments. Whoever can control more offline terminals will gain the initiative in business and achieve more growth. In traditional marketing models, distributors face five major problems in terminal operations: **First, low efficiency.** Brand owners are implementing more and more activities at terminals, and salespeople need to spend a lot of time on in-store actions, leading to lower overall efficiency. **Second, less operation.** Salespeople have limited energy; the more time spent on execution, the weaker their attention, operation, and maintenance of terminals. **Third, difficulty in being comprehensive.** Serving a terminal well is difficult; often a salesperson has to serve dozens or hundreds of terminals, making it impossible to be thorough and respond promptly. **Fourth, lack of precision.** In terms of cost investment, salespeople cannot precisely calculate how much to invest in each terminal, where to invest, and what products are involved. **Fifth, slow return.** During brand activities, distributors often advance the initial costs, leading to tight cash flow in overall operations. In a competitive market, efficiency is king. To effectively solve the above problems, the core is to use digital tools to improve the efficiency of daily execution, thereby achieving refined terminal management and operation. Therefore, it is important to emphasize that **the essence of digital transformation is to help distributors reduce costs and increase efficiency, improve performance, and drive growth.**
**Lee Kum Kee Joins Hands with Distributors to Create a New Marketing Model and Drive Business Growth** As a leading enterprise in the condiment industry, what help can Lee Kum Kee's digital marketing solutions bring? **Ms. Ping mentioned that to help distributor partners reduce burden and increase efficiency, Lee Kum Kee has launched a dedicated digital marketing tool—HuiXiaoShou.** Unlike traditional FMCG manufacturers' digital tools, HuiXiaoShou is a pure marketing tool that does not involve any orders or data of distributors. The core function of HuiXiaoShou is to operate and manage terminals, thereby solving the five major problems mentioned above. Through digital tools, simple process work is transformed into store owner execution, allowing salespeople to do more valuable actions. At the same time, rewards in the form of red packets and points are directly given to terminals, reducing distributors' advance costs and accelerating capital return and turnover. In this way, the problems of "people, products, and money" are solved, helping distributor partners reduce burden and increase efficiency. **Ms. Ping further shared that HuiXiaoShou will focus on three modules: "Marketing Activities, Content Marketing, and Member Club" to build a digital portal for retail terminals.** **Marketing Activities:** Terminals participate autonomously, rewards are issued online, reducing daily execution by salespeople. **Content Marketing:** Continuously output content that terminals are interested in to strengthen interaction and stickiness. **Member Club:** A daily operation and management center for terminals, enhancing and maintaining store loyalty through various incentive measures. Lee Kum Kee hopes that through such a series of digital support and services, distributor partners will not only execute but also operate terminals, thereby achieving business growth. After Ms. Ping's sharing, Peng Yao, General Manager of Neijiang Dongxing Hengli Trading Company, an excellent partner of Lee Kum Kee, generously shared his case. Hengli Trading Company joined Lee Kum Kee's gold medal project in 2021, followed Lee Kum Kee to deeply cultivate the market, and by April 2022, successfully promoted to RCD (Diamond) distributor. Mr. Peng mentioned that distributors currently face many problems. On the one hand, manufacturers have increasingly high requirements for market execution, and the daily execution work of sales personnel is becoming more cumbersome; on the other hand, competition among downstream terminal outlets is increasingly fierce, requiring continuous investment of a large amount of manpower and material resources to ensure stable supply relationships. At the same time, consumers' needs are becoming more segmented, and the decision-making path for consumer purchases is becoming more complex, making it necessary for distributors to serve more meticulously when deeply cultivating the market to generate more sales. Although there are many problems, the underlying business logic remains unchanged. **The foundation of a distributor's business is still channel control; with outlets and sales promotion, the business will exist.** **For distributors, only by operating terminal outlets well can the business develop sustainably. But to operate terminals efficiently, it is necessary to use digital operation tools.** Realizing this, Hengli Trading Company began to deeply operate terminals with the help of Lee Kum Kee's HuiXiaoShou digital tool. After two months of promotion, the feedback was quite good. On the store side, the speed of redeeming activity costs was accelerated, greatly improving overall store satisfaction. On the business side, salespeople reduced time spent on in-store shelf and display maintenance and could do more valuable things, such as developing new outlets. Mr. Peng believes that HuiXiaoShou is a very good digital tool, and if fully utilized, it can help distributors reduce costs and increase efficiency. Mr. Peng's views also corroborate the excellent results achieved by HuiXiaoShou. In just four months, HuiXiaoShou covered 264 cities nationwide, with over 32,000 active sales points. There are also many successful distributor partner cases where HuiXiaoShou reduced burden and increased efficiency, achieving business growth.
**Distributor Digital Operation is Difficult but Right** In the final dialogue session of the empowerment live broadcast, Chen Yizhe, Senior National Channel Development Manager at Lee Kum Kee, and Mr. Peng discussed how to truly implement digital tools successfully, using HuiXiaoShou to increase terminal store coverage, precise marketing, and tap into incremental growth. In the process of promoting digitalization, distributors will inevitably face some resistance. First is the acceptance of the business team; many salespeople think it is unreasonable to take time to adapt to and promote digital tools. Second is the resistance of terminals; store owners think promotional activities and displays are the work of salespeople and should not be done by themselves. How to solve these two problems? **First, distributors must have a clear understanding of digital tools.** From the perspective of salespeople, explain the advantages of digital tools and the help they can bring. **Second, integrate assessment into daily execution and reward individuals who perform well.** With incentives, salespeople will be more motivated and the results will be better. **Third, first set benchmarks, then gradually expand.** Salespeople first concentrate their efforts to let some stores get good feedback through HuiXiaoShou, then gradually radiate to surrounding stores. **Mr. Peng emphasized that distributor digitalization is a trend of the times and a difficult but right thing; distributors must persist.**
#### **Final Words
Market business growth comes from terminals; mastering terminals is the key to winning offline. Traditional management models are difficult to efficiently operate and manage terminals. Distributors need to use digital operations to improve efficiency and drive growth. **This is also the original intention of Lee Kum Kee's digital empowerment, hoping to help channel partners efficiently operate terminals and seize the market through various forms of empowerment activities.** This live broadcast empowerment is a brand-new attempt by Lee Kum Kee in channel empowerment and received praise from more than 100 participating distributors. In the future, Lee Kum Kee will continue to polish good content and promote the rapid development of channel partners through such forms, working together for win-win results!


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