Due to my work, I have come into contact with a large number of food distributors, many of whom have become my WeChat friends. Yesterday, I flipped through my WeChat and found that I had 5,037 friends, among whom over 3,600 were distributor friends from all over the country, and the rest were manufacturers. Because I have so many friends, the frequency of updates in my Moments is too fast. Yesterday, I had some leisure time and scrolled through my Moments, and the results were beyond my expectations:

  1. In just half a year, many manufacturer salespeople have left the food industry, and most have experienced job changes. Many friends reported that the food industry business was too difficult in 2015, so they switched careers. Some went into daily chemicals, some into building materials, some became micro-business operators, and some entered the internet industry. 60% of my friends have changed jobs.
  2. 85% of distributors are still in the food business, but their sales are declining. They continue to work while complaining.
  3. 15% of distributors are living very comfortably, developing faster and faster, with a trend of integrating regional markets. Yesterday, Mr. Bai from Taiwan (who does leisure food), Mr. Liu from Shanghai (who does beverages), and Mr. Li from Guizhou (who does pickled chicken feet) came to my company for tea, and we discussed this matter together. Their exchanges gave me a deeper understanding of the above phenomena. I. Why is business bad this year?
  4. Is it because people are not consuming, not eating, not drinking anymore? The answer is no. I conducted market research at a supermarket in Shanghai. Many children entering the supermarket mostly come out with snacks or drinks, and parents' shopping baskets are also mostly filled with food. The poor business is definitely not due to lack of market demand. When I trained college students at an education institute, I asked them through which channels they purchase food. 50% buy from school terminal stores, 30% buy online, and a portion buy from small shops run by students themselves, and some through special mobile shopping platforms like "Anlaiye" and other mobile shopping platforms. Students are always consuming, but through various channels. The school's small shop might feel that half of its business is gone.
  5. Consumption is still there, so why is business bad? Is it a market problem or your own problem? Although China's food industry has seen a certain degree of saturation, with many categories facing rampant competition, imitation, and low-price channel disruption, there are always companies that succeed. Just like in my Moments, there are always 15% of distributors who do well and grow bigger, with a trend of integrating regional resources. Business competition is like war. Even if the market is saturated, smart and wise companies can always find ways to seize market share from competitors. In the face of war, strong companies can monopolize the entire industry. Companies like Master Kong and Mondelez have seen their market share in China decline, but my friend in Hebei is doing very well and growing faster. It's not because his company is powerful, but because he understands the frontline market situation better, knows consumers and distributors better, and with slight product innovation and cost advantages, he quickly took away Master Kong's regional business. The growth of a category generally goes through three steps: 1. Only one company does it. For example, juice milk was first created by Xiaoyangren, but due to lack of hype and market cultivation, performance was mediocre. 2. Many companies do it, and gradually industry giants emerge. Wahaha saw this market and quickly launched Nutrition Express, with annual sales of over 20 billion yuan. 3. The market share of small and medium enterprises will gradually be seized by leading companies. When consumers recognize Nutrition Express, Xiaoyangren's market share will be taken by Wahaha, and the naked war will determine the winner. Many categories are now in the third step, making it harder for SMEs to develop. It's no longer about being bold; you need to be proficient in market, marketing, product, planning, brand, management, competition, and other operational systems. It's no longer simply producing and then finding ways to sell. Mobile internet is constantly changing business; the past buyer-seller relationship has become a transaction. Consumers need to like the product, even personalized. Products produced by feeling are not needed by consumers at all, and no matter how hard you try, you won't sell well. Even if the market environment is bad, there are always companies that rise against the trend. Poor business management is mostly due to one's own reasons.
  6. We are facing the rarest opportunity. The darkest hour is just before dawn. Before the founding of New China, it was the darkest period in China; a dynasty was about to perish, and a political party was about to be replaced. The same is true for the economy. When business is good and the market is good, you can't tell who is good or bad, or who can persist. The harsh economic environment forces various disruptors to automatically exit the market, clearing the way for good companies. A friend who does beauty industry training does very well when the training industry is not doing well. With professional industry training and implementation guidance, annual revenue exceeds 500 million yuan. But look at mainland China, most training companies are in a terrible state, with countless branches closed, layoffs, salary cuts, and career changes. Fewer and fewer can survive. But my friend's company is developing better and better. Their management model and service implementation capabilities are rare in China, and with professional industry segmentation, ordinary training companies cannot shake his clients. Over time, they have a trend of monopolizing the market. This is just like the current food distributor market. Some distributors are intensively cultivating channels, deepening terminal relationships, increasing visit frequency, and strengthening market control. With process optimization and personnel training, they have the ability to quickly replicate markets and gradually seize more regional sales. Through the waves of sand, the worse the market, the greater our opportunity. As long as you have enough strength and perseverance, the future is yours. II. What to do in the future?
  7. The way out is not from imagination, but from your customers. Most distributors have poor business because they haven't truly managed the terminals. Terminal market feedback represents the real frontline demand. Consumers are becoming more autonomous. Products and marketing that cannot satisfy, get close to, and cater to consumers will fail. What products are suitable for you? What price should you set? How to achieve faster terminal sell-through? All these need to be grasped from the market. Many consumers are trying e-commerce and mobile shopping malls. As a distributor, you need to understand trends and experiment. A distributor friend who represents meat floss cakes, because he understands e-commerce, sells better online than the manufacturer. He is also proficient in Baidu SEO, so when you search for the manufacturer's brand, the first website is the distributor's. As a result, while other distributors are promoting the brand offline, this distributor leverages the trend and sells well online. The way out is definitely with customers, not from our imagination. Many manufacturer salespeople fail to sell well for the same reason. You need to understand what distributors really need, not just lie in a hotel sleeping. Salespeople with good performance are definitely those who diligently visit the market and endure hardship. Because they understand, they can provide targeted solutions. In Jiangsu, Mengniu's salespeople reported that the policies formulated by upper management cannot be implemented at the grassroots level. Frontline distributors discovered that competitors like Yili were grabbing terminals and promoting, and immediately applied for market policies, but large companies have layers of approval, and in the end, they still follow the policies set for the month, unable to counter competitors in time, and soon the terminals are taken. In the food industry, the manufacturer's customers are distributors, distributors' customers are second-tier wholesalers and terminals, and terminals' customers are the people. Everyone needs to understand the terminals and the needs of the people, otherwise they will die by their own hands. It's not that the market is bad; why are others doing well? You need to understand the market, find improvement measures, and if the measures are reasonable, implement them, and then you will succeed.
  8. When you have money, don't get the "rich disease." Many distributors started with an electric tricycle. A college classmate of mine became a distributor after graduation, representing Six Walnuts. At that time, Six Walnuts was not big, a small brand. He worked hard, driving an electric tricycle to deliver goods everywhere. When I met him recently, he had gained weight, with a big belly from drinking. He had accumulated wealth but had become lazy. During our conversation, I learned that he is pessimistic about the current distributor environment. Actually, his difficulty is mostly a "rich disease." In the past, it was harder. He had to personally visit terminals and deliver goods every day. He and his wife, one took care of the shop, the other purchased and delivered goods, and his wife's nephew helped when free. Through wind and rain, Six Walnuts was still a small brand then, and he couldn't afford to represent big brands, just a small second-tier wholesaler. Wasn't that harder? Now, thanks to Six Walnuts' growth, plus other products he represents, his annual revenue exceeds 50 million yuan, with profits of several million. He lives a comfortable life, but he wants to pay employees less, so he can't retain excellent employees. Isn't it natural that he finds it difficult? Employee compensation management is important; without the right methods and strategies, it's hard to retain people. To retain excellent employees, you need to turn them into partners. For new products, give employees greater incentive policies, such as tiered rewards. Use modern technology to provide employees with more work convenience, such as management software, WeChat functions, and better delivery tools. You can ride an electric tricycle in the cold winter when you're starting your own business, but employees won't tolerate that; they'll quit for better jobs. It's normal not to retain people. Many people easily get the "rich disease." Actually, life is still the same; diligence can still be rewarded, but now they can't be diligent anymore, can't endure hardship.
  9. You must become professional; future money won't be so easy to earn! You must become professional, otherwise future money will be really hard to earn. If you didn't understand compensation management before, you need to learn it now, including when to give dividends, equity, and options. Without retaining excellent employees, how can you develop? You need to understand real marketing, use your terminal sensitivity to grasp market trends, and understand consumer development trends. You need to understand product selection criteria and product sell-through strategies. If you want to do OEM or your own brand, you must understand brand marketing, positioning, selling points, price design, and understand the internet, e-commerce, mobile malls, O2O, etc. You have so much to learn; don't be lazy anymore. Future wealth will gradually shift to smart people. It's really hard to earn money comfortably. You must become professional. Why should supermarket terminals be sure that your products will make money? Why will they definitely sell? What factual data are your judgments based on? Why would consumers definitely like the products you develop? The market is no longer a testing ground; once a brand fails, it will rot. Future marketing cannot afford major mistakes. Mistakes will be catastrophic, and once the market is lost, it will be hard to recover. Through the waves of sand, don't be the one eliminated. Find ways to become professional, learn about marketing, market, management, finance, etc. In the next 10 years, you need a regular army. Among China's 1 million distributors, 95% will die by their own hands! Your success or failure is entirely up to you. Don't blame the economic environment or competitors. Out of 100 distributors, 85 will die by their own hands; you can't blame others! You are the root of all problems! -END- The best FMCG distributor learning platform in China Focuses on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operation | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brand | [Long press QR code to follow] To join QQ/WeChat groups, click: Read Original