During the pandemic, many distributors are extremely anxious due to store closures, logistics restrictions, and inventory backlogs. In such difficult times, how should distributors deploy their current business? Methods are always more useful than anxiety.
To this end, New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading Co., Ltd., to discuss via live broadcast how distributors can deploy sales and enhance sales opportunities during the pandemic.
Guest Introduction: From 1995 to 2009, he rose from a frontline salesperson to National Sales Director at Linghua Group; from 2009 to 2012, he served as Sales Director at Dongguan Hongxing Food (Baili) Co., Ltd.; from 2013 to the present, he has been President of Anshan Hongye Hengda Trading Co., Ltd.
During his tenure at Anshan Hongye Hengda (2013–present), he helped this distributor in a third-tier city increase sales from 86 million RMB to 300 million RMB, raised the average annual income of the sales team by 233%, increased terminal outlets by 462%, and increased annual profit by 500%.
Hongye Hengda Trading, located in a third-tier city, has achieved the No.1 national sales ranking among distributors for Yihai Kerry Arawana Vitamin A Pure Aroma Soybean Oil; it is the first distributor in the three northeastern provinces to exceed 10,000 tons of small-pack oil; and it is the No.1 distributor in the three northeastern provinces for Yihai Kerry's rice, flour, and dried noodle product lines.
With 24 years of hands-on market management experience, he has summarized the problems that distributor business teams face in the market: consumption upgrading, channel reform, channel sinking, difficulty in new product promotion, e-commerce impact, and lack of data management. Based on market practice, he has formulated the Twenty Great Methods for Sales Growth for distributor business teams, helping distributors double sales and multiply profits.
The following content is based on Mr. Li Feng's live broadcast, edited and organized by New Distribution.
Content Topics:
1. During the pandemic, how to do internal management?
2. During the pandemic, how to find sales opportunities?
3. During the pandemic, how to maintain customer relationships?
-01- During the pandemic, how to do internal management?
First, as a distributor boss, you must adjust your own business mindset. Build confidence and maintain an optimistic attitude. Lead by example, get employees moving, and implement全员营销 (all-staff marketing). As long as your thinking doesn't slip, methods will always be more than difficulties.
Regarding internal management, the distributor's specific deployment is reflected in 7 aspects:
1. Protective measures: At the beginning of the pandemic, Hongye Hengda centrally purchased 10,000 masks, distributed 20 masks to each employee first, and required employees to do self-protection; established a daily disinfection system for the company office and warehouse; screened employees for any out-of-town travel records or cold/fever symptoms during and before the Spring Festival, and if any, required them to quarantine at home immediately.
For logistics and distribution, vehicles are disinfected daily and masks are worn. At the same time, to reduce the risk of contact with customers, and for the benefit of both parties, standard scripts for after-arrival at stores were developed.
2. Inventory management: Established an inventory reporting system, reporting inventory changes daily in the company's internal WeChat group, including inventory product information, quantities, and corresponding inventory handling policies. Guide frontline salespeople on which products (large inventory) to focus on promoting.
At the same time, frontline sales personnel share relatively good sales methods for large inventory products in the group immediately. What kind of customer, how it was sold, what kind of script, what kind of policy—share immediately. Provide suggestions to other salespeople, especially during special times, as sales methods may be unconventional.
Transmit information promptly, summarize good methods, and replicate and promote them.
3. Compensation and incentives:
The more special the time, the more important it is to stabilize people's hearts. Base salary can remain unchanged, but additional assessments should be adjusted appropriately, and commission rates should be appropriately increased. For example, based on current inventory, set tiers: 100 boxes/150 boxes/200 boxes, corresponding to different commission rates. The harder the times, the more you should treat employees well with conditions and standards. Income security is the top priority.
At the same time, let employees have confidence that they can get rewards. Hongye Hengda reports daily in the group how many boxes each salesperson sold and how much money each salesperson earned. Let salespeople clearly know their own sales and income.
In addition, salespeople compete in sales PK and income PK. The first place gets a certain amount of money, the second place gets a certain amount, etc. In short, not only give employees confidence, but also give them enthusiasm.
4. Cost control:
In difficult times, cost control is also extremely important, but it does not mean reducing employee income, but rather reducing market investment expenses. During the Spring Festival, distributors invested a lot of expenses, such as display fees, floor stack fees, and promoters. At this time, distributors can judge whether to continue arranging promoters based on foot traffic.
For display fees and floor promotion fees, if you originally invested in 5, can you reduce to 2-3; or in terms of cost, if it was 800 RMB/month, can you halve it, but not reduce the quantity.
5. Payment collection management:
For large inventory products, handle them as soon as possible, focusing on capital recovery; for products that sell well, in principle, focus on cash on delivery, especially for large stores. In the past, there were credit periods; now you can consider a discount of 2 RMB/box, but with cash settlement. At the same time, actively have the business team communicate to collect accounts receivable from before the Spring Festival to ensure normal cash flow.
6. Promotions:
In addition to formulating promotional policies for large inventory products, also consider seeking resources from upstream brands and using manufacturer resources for sales. Of course, don't directly ask for policies; instead, bring a plan and data to ask for resources.
Design plan content: current inventory quantity, shelf life situation, cost analysis. Plan what discount intensity to use, how much the brand bears, and how much the distributor bears? Be sure to show a mindset of joint efforts and overcoming difficulties together;
Communicate with the highest leader you can reach.
If the support funds are really too little and don't meet your expectations, you can use an alternative plan. For example, through later purchases, communicate with an additional subsidy of 2-5 RMB/box.
7. Sales management:
At this time, the core of sales management is to have clear sales task targets. The harder the external market, the more you need to set clear standards, not vague or ambiguous, so that salespeople are not confused.
Issue a formal notice that the 2020 task assessment will not be adjusted; for categories severely impacted, present data and appropriately adjust the phased task target by 30-50%, and resume normal assessment after the pandemic ends.
Use data, explain clearly, and make it clear so that salespeople don't panic or get confused. At this time, salespeople will also fully understand the company's situation.
8. Learning and training:
Some stores are closed, so employees' workload is relatively unsaturated and they have plenty of time. But don't let employees take leave; they must have a sense of belonging and stay active. Organize employees to learn professional product knowledge and sales skills. The pandemic is temporary, but learning and growth are long-term. As long as salespeople's abilities improve, it will greatly help sales growth after the pandemic.
This is not enough; it's just having goals and execution content; there must be results. What does result output mean? For example, present learning results in the form of assessments, study notes, or online sharing.
9. Preparation:
It can be expected that the inflection point of the pandemic is coming. After the inflection point, order volume will definitely increase, especially during the first round of replenishment. At this time, competition will be the most intense, and seizing time and speed is crucial. Before dawn comes, you must be fully prepared, otherwise you won't have a chance in the next round of sales.
-02- During the pandemic, how to find sales opportunities?
According to recent data, 98% of restaurants and hotels are closed, which means household consumption will grow by at least 30-50%. This also tells distributors that in the next 2-3 months, the FMCG industry will see sales growth of over 30%.
In addition, after the Lantern Festival, 90% of consumer households have almost no FMCG inventory left. Categories such as grain and oil, snacks, daily chemicals, milk, and paper products have reached historical lows. This is the consumer side.
On the retail side, Spring Festival stockpiles have basically been sold out after 15 days; on the distribution side, inventory has also reached its limit, except for some gift boxes; on the factory side, factories face difficulties in resuming work, with low worker attendance, trunk logistics, and traffic management issues.
On February 15, out-of-stock is a foregone conclusion!
At this time, distributors must consider replenishment issues, seize the time node to quickly replenish and quickly transfer goods. Now that roads are blocked everywhere, whoever fills the customer's inventory first will have their products sold. Under the current situation, consumers' brand awareness is not that strong. Terminal owners will promote whatever products they have at home.
At this time, distributors should get moving, not just focus on the difficulties of sluggish sales during the Spring Festival, but go all out to seize time and catch the next sales peak. How to do it specifically?
1. Opportunities in hypermarkets/wholesale markets
With demand in place, distributors should focus on where consumers gather during the pandemic. Traditional circulation small stores are 30-50% closed; fresh food stores, national hypermarkets, local hypermarkets, and wholesale markets are gathering places.
For the above key stores, distributors should invest in promoters and floor stack displays. At this time, consumers' purchase of fresh vegetables is a rigid need, and the average transaction value is 3-5 times that of daily consumption, as consumers have a hoarding mentality.
2. Opportunities in online e-commerce business
In the past, whether consumers or distributors, for FMCG categories, online e-commerce was relatively rare, but during the pandemic, more and more consumers are considering ordering online. The online here does not refer to Tmall or JD.com, but community e-commerce, community WeChat, community group buying, etc.
Distributors should pay special attention to such channels. If they haven't done it before, quickly find local customers who do online business. Set up a special channel development award, get everyone moving, and find local customers who do online business.
Distributors should understand that milk, beverages, and gift boxes are not things consumers don't need; it's that we haven't taken the initiative. Put inventory products in shopping places where consumers go every 3 days, and find distributors with online channels to deliver inventory products to consumers' homes. Consumers' homes are lacking everything now!
3. Opportunities at community entrance supermarkets
For such supermarkets, the core needs of consumer households are emergency small categories, and some groups who are particularly concerned about personal protection and don't go to stores. It is recommended that cooperation with community entrance supermarkets be: poster promotion + entrance display. At the same time, use loudspeakers to record and broadcast promotional content, which can be about products and pandemic prevention, products and family health, etc., to actively trigger consumers' purchase needs.
A while ago, Hongye Hengda cooperated with local chain community supermarkets to hold a theme week activity. "XX system's 19 supermarkets jointly with Hongye Hengda (Arawana) guarantee 100% supply of grain and oil products to Anshan people during the pandemic."
For example, a milk distributor's activity theme: Yili Milk jointly with XX supermarket guarantees 100% supply of milk to XX city residents. This not only improves consumer goodwill but also quickly digests inventory.
4. Opportunities for multi-channel development
Taking Hongye Hengda Trading as an example, the development of 8 special channels achieved major sales breakthroughs:
Neighborhood committees, community property management, police stations, and other units purchase grain and oil to comfort residents. Such sales leads usually come from supermarkets or government departments. We need to communicate in advance, get leads as soon as possible, and provide products at relatively favorable prices.
Spring plowing season is coming soon; farmers need to buy fertilizer for farming. Cooperate with local fertilizer factories/agents to do promotional activities together. For example, farmers who buy 10 bags of fertilizer get a free 5L bottle of soybean oil. Baijiu, beverages, ham sausages, milk, etc. can also be used as promotional items.
Banking system: After the Spring Festival, banks will make efforts to stimulate depositors, such as depositing 50,000 RMB to get 5L soybean oil, depositing 30,000 RMB to get 1.8L corn oil. Currently, Hongye Hengda has cooperated with XX Bank and already has orders of several hundred thousand; with XX Bank, it obtained an order of 9,000 barrels.
In some rural areas, to cope with the pandemic, village heads will uniformly purchase livelihood products; currently, labor unions have increasing power and issue benefits according to national regulations.
Government canteens, factory canteens, school canteens, and meal delivery companies are all our sales channels.
Residential property management now has advertising income (elevator ads/outdoor ads) and regularly gives gifts to owners; at the same time, property management has some policies to stimulate owners to pay property fees as soon as possible, such as paying one year at a time and getting gifts.
A certain oil company gives gifts for recharging cards; supermarkets give gifts for recharging cards;
Local famous enterprises/large factory units: find key people and do employee internal purchase events, delivering goods to the unit.
For the development of the above 8 special channels, it is recommended that the distributor boss personally communicate and coordinate in the early stage. These are sales cooperation opportunities promoted by local network resources.
-03- During the pandemic, how to maintain customer relationships?
During the pandemic, it's a special node. The more you do at this time, the best time to build customer relationships. In difficult times, true feelings are seen. If you think of customers first, they will remember you.
1. Hongye Hengda requires each salesperson to send WeChat messages to corresponding customers every day. The content includes: reporting the pandemic and expressing condolences. Give customers confidence that difficulties are temporary.
- Help customers solve problems. For example, salespeople can establish communication groups for their responsible customers, allowing customers to understand each other's supply information, best-selling product information, etc., help introduce product transfers between customers, and share successful sales cases.
3. Touching service: When visiting township customers, buy vegetables for customers, buy toys for key customers' children (who are bored at home), give customers masks, etc., so that customers always feel you care about them.
Help customers handle warehouse inventory. The principle is not to recommend returns; you can propose product compensation policies or mutual transfers between customers, etc.
Solve the problem of timely delivery of customer orders. Many places have poor traffic, especially in township areas. Distributors can proactively help contact the Commerce Bureau to issue certificates that the goods are livelihood products and can be released.
Value-added services: Help customers think of ideas, train and guide customers in WeChat marketing (community residents), home delivery, and off-store displays. Even if the store is not open, they can still operate normally without losses. For example, a Hongye Hengda salesperson guided a township customer to buy vegetables and fruits from rural greenhouses and negotiated cooperation to sell at the greenhouse entrance, and business was very good.
Train logistics drivers to wear gloves and masks when delivering, proactively inform customers that the vehicle has been disinfected, and minimize time spent at customer homes.
Some large stores' workers haven't returned to work; salespeople can help put goods on shelves, arrange displays, seize opportunities to grab displays, and at the same time do customer relationship maintenance.
Now that traditional circulation small stores are closed and workloads are unsaturated, you can allocate work to three things: paying attention to open stores, doing customer relationship maintenance, and online learning.
In Hongye Hengda's view, when the pandemic crisis comes, everyone faces the same crisis; the only difference is the subjective willingness to work hard, which comes from employees' recognition of the company.
No matter the time or environment, no matter the competition, challenges and opportunities coexist. How to turn challenges into opportunities? You must learn to identify opportunities for performance growth in challenges, seize the opportunity points and time points, and grasp the word "fast." Victory will surely belong to us. Why worry that performance cannot grow?
Finally, let me emphasize again: Facing difficulties is not only an opportunity for the company but also for employee growth. Challenges teach us the attitude and methods to deal with difficulties, learn to reduce expenses and save costs under pressure, learn to carry forward the spirit of facing difficulties head-on, and learn to boost team morale!
As the saying goes, as long as your thinking doesn't slip, methods will always be more than difficulties. Come on, distributor friends!