---
title: "Distributors Need to Rethink Their Channels"
description: "Emerging channels such as convenience chains, snack systems, and online platforms are significantly cheaper than traditional supermarkets, eroding sales for traditional distributors. Most distributors complain and worry but take no action. To thrive, they must correctly understand new trends, embrace new opportunities, and focus on key links in the sales chain."
author: "金铭"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-08-05"
categories: "Dealer Operations"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/distributors-need-to-rethink-their-channels-4451b3cb/"
markdown: "https://xinjignxiao.com/en/articles/distributors-need-to-rethink-their-channels-4451b3cb.md"
original_source: "https://mp.weixin.qq.com/s/EA8oz2_prQAgLIwqyVRC9w"
translation: "https://xinjignxiao.com/zh/articles/%E7%BB%8F%E9%94%80%E5%95%86%E8%A6%81%E9%87%8D%E6%96%B0%E7%90%86%E8%A7%A3%E6%B8%A0%E9%81%93%E4%BA%86-4451b3cb.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/distributors-need-to-rethink-their-channels-4451b3cb/"
citation: "金铭. “Distributors Need to Rethink Their Channels.” New Distribution, 2025-08-05. https://xinjignxiao.com/en/articles/distributors-need-to-rethink-their-channels-4451b3cb/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Distributors Need to Rethink Their Channels

> Emerging channels such as convenience chains, snack systems, and online platforms are significantly cheaper than traditional supermarkets, eroding sales for traditional distributors. Most distributors complain and worry but take no action. To thrive, they must correctly understand new trends, embrace new opportunities, and focus on key links in the sales chain.

“Convenience chains, snack systems, online platforms and other emerging channels are much cheaper than traditional supermarkets, and product sell-through in supermarkets has deteriorated significantly,” is a common complaint among traditional distributors.
New channels and marketing models are emerging one after another, continuously diverting limited consumer traffic. Most distributors, apart from complaining and feeling anxious, take no action or make no changes.
Channels are becoming increasingly diversified, continuously diverting sales from traditional channels. Being hostile to new channels will not change your current situation. You must correctly understand new trends and embrace new opportunities to achieve sustainable development and escape current difficulties.
Correctly Understanding New Channels
In recent years, I have visited many distributors and found that most have a biased understanding of new channels.
Misconception 1: New channels steal sales from traditional channels because of low prices.
Many distributors believe: “New channels mainly rely on low prices to steal sales from traditional channels.” But the fact is that these emerging businesses exist regardless of whether a particular brand enters them, and consumption is increasing, with sales growing larger.
“Product A in the snack system is priced too low, affecting sales in surrounding traditional stores,” a distributor complained as soon as he saw me.
From what I understand: “The normal selling price of our product in that snack store is indeed 0.3 yuan per bottle cheaper than in traditional stores (equivalent to a 10% discount), but only one product entered the snack store, which does not conflict with the main products sold in traditional stores. Moreover, traditional stores’ promotional activities are often more aggressive than those of the chain stores.”
The distributor nodded and said nothing.
The core competitive advantage of snack systems is not solely price; their product innovation, supply chain efficiency, and user operation capabilities are unmatched by traditional stores.
Even if our manufacturer’s products do not enter snack systems, traditional mom-and-pop stores will still lose business. Consumers are unwilling to visit traditional stores; they will buy similar competing products from better-experience snack stores or convenience chains nearby.
Similarly, looking closely at instant retail, which has risen rapidly in recent years, we find that the normal prices of most products are on par with or slightly higher than offline supermarkets.
According to iResearch Consulting, only 28% of instant retail users consider price as the primary factor. Its core competitive advantage lies in instant fulfillment capabilities and differentiated supply. Many products that are hard to find offline can be quickly obtained on instant retail platforms, creating a differentiated competitive barrier.
Any new channel that rises does so based on its own advantages. Especially in a stock competition environment, the impact of new channels on traditional stores will become more pronounced, and this trend will not change.
Misconception 2: New channels have small sales; the bulk is still in traditional channels.
In conversations with distributors, I found that many do not truly value new channels, look down on them, and are even indifferent to new trends.
In the past two years, Meituan Flash Stores have opened rapidly in various places. In one market, Meituan Flash Stores did not carry our products. I was puzzled why the distributor did not cooperate with local flash stores.
“I know Meituan Flash Stores are growing fast, but the bulk of our sales is still in traditional channels. Competition there is fierce, and we have a lot on our plate recently. Let’s wait a while and see,” the distributor said confidently.
If you don’t participate and don’t operate with dedication, of course you won’t see sales!
A key account of a leading brand, with annual sales of hundreds of thousands of cases, was dismissive of local small chains: “A store sells only a few cases, and delivery is troublesome.”
Distributors look down on such small volumes and always find a reasonable excuse to convince themselves. But these systems grow quickly and have many stores. When they reach scale, cooperating with them will cost you more.
They would rather invest heavily in existing markets, fighting head-on with competitors, even if it leads to bloody battles with little effect. For new tracks, distributors do not treat them as “doing means growth” and do not truly value them. What a pity!
Misconception 3: Lack of understanding of new channels; operating new channels with traditional methods.
Traditional distributors believe that as long as they participate in new business, good results will follow.
In Zhuzhou, there is a local snack system called “Dai Yonghong”. In previous years, it was supplied by a local traditional customer, and sales were lukewarm.
“We have cooperated with this system for several years, but sales have never been large,” the distributor asserted.
The main reason: The distributor operated it like a traditional mom-and-pop store, giving a bundle discount policy to push more products, then waiting for natural sales, replenishing when stock ran low, and so on.
In 2023, the system was handed over to a customer specializing in chain systems, and sales doubled in the first year.
The core action of that customer was to concentrate resources on consumer promotions, grabbing share from competitors within the system.
New channels have new operating models, but many traditional distributors do not study the sales methods of new channels and apply traditional channel methods to new channels. This largely wastes resources and is doomed to be short-lived.
Where Are the Opportunities in New Channels?
Many distributors wonder: In a stock competition, where are the new opportunities?
Everyone keeps staring at the hottest new channels and then complains that these new channels are not for them because they are operated uniformly by the company.
For distributors, any channel you haven’t operated before is a new channel. For dairy and beverages, foodservice is a new channel.
There are many seemingly insignificant but highly valuable new channels in various markets, such as property management channels, cross-industry channels, campus channels, factory channels, and vending machines. At the same time, these channels are special or closed channels, with relatively higher product prices and no price chaos.
According to my understanding, for these special channels, manufacturers follow the principle of “whoever develops it owns it.”
This year, I heard a regional manager share: “A property management company head contacted me through various channels, saying they wanted to sell FMCG products in their property channels and wanted to discuss cooperation.”
From this, opportunities in new channels exist; we just haven’t actively discovered and utilized them.
Recently, I visited a distributor who operates chain systems.
Given that various retail systems are developing private-label products or trying to bypass suppliers to directly become first-tier distributors, I was curious how he maintained growth.
Distributor Mr. Chen said: “This year, we expanded into several small systems and also tried entering some small local online platforms. We hadn’t paid attention to these areas before and had no cooperation.”
“Now, various emerging channels are rising. Large convenience chain systems are also in stock competition. Increasing per-store share is feasible but difficult. So, while maintaining existing initiatives, we also focus on developing small, local supermarket chains to gain growth opportunities.”
There are many similar opportunities, but they are overlooked, or there is a lack of confidence, thinking it can’t be done, so they don’t even try.
Seizing Key Links
Professional Operation to Grasp New Trends
Different channels have different characteristics, target different groups, and have different operating models. Therefore, distributors should adjust their operational focus according to the channel’s characteristics and the target group’s needs to achieve twice the result with half the effort.
Everyone knows that sales is a systematic job, composed of brand, marketing, team, management, operations, products, services, supply chain, and other elements, ultimately forming a complete sales loop.
But it doesn’t mean you have to excel in every aspect. Instead, based on the new channel’s characteristics, you should grasp the key links in the sales chain (which can be one or several links such as product, key channel personnel, consumer activities, etc.). This is the fundamental reason for maximizing return on investment.
1. Some channels focus on selecting suitable products.
Community group buying needs low-price products to attract traffic, and low-price products have huge sales volumes.
Instant retail, in addition to low-price traffic products, also needs high-end differentiated products to meet the personalized needs of young consumers.
A beverage brand distributor told me: “The company launched this differentiated product A (with novel packaging), and we did many offline promotions, but sales were poor. This year, we tried it on a newly partnered instant retail platform, and sales far exceeded expectations, without any special planning.”
“Last year, I collaborated with a scenic area to develop a customized product, sold only in channels within 3 kilometers of the scenic area. There was almost no additional product operation; it sold well just by placing it at the terminal,” a beer distributor told me.
Products are not necessarily easier to sell if they are low-priced. You need to choose suitable products based on the target group of the new channel.
2. Some channels focus on key channel personnel.
In certain channels, establishing mutual trust, mutual benefit, and win-win cooperation with key channel personnel is the key to sales breakthroughs.
At this month’s review meeting, a distributor who took over the nightlife channel shared his insights: “Rather than giving low prices to the terminal, it’s better to incentivize key personnel. Initially, through bundle discounts, a large quantity of products entered stores, but without recommendations, products didn’t sell, and there were many monthly returns. Later, we adjusted our approach and gave incentives to key terminal personnel (rewarding XX money for selling a certain amount per month). Sales immediately picked up because key personnel would organize in-store staff to recommend the product to customers.”
3. Some channels focus on leveraging sales.
Especially in special channels, even consumer activities for products may not yield good results. You need to explore new promotional methods to drive more sales.
A beverage distributor partnered with a chain of braised food stores and applied to the manufacturer for a customized product, but consumers do not proactively buy beverages at braised food stores. Initially, the distributor tried consumer activities such as discounts and buy-one-get-one, but results were poor.
Given that the partner’s combo meals were selling well, the customer communicated with the braised food company, negotiated mutual concessions, and bundled the beverage with the braised meal combo. In the first month, sales increased rapidly.
Similarly, a major dairy company’s key account cooperated with a local property channel. Initially, product sell-through was slow. They asked property staff to post promotional information in owner groups, but the effect was poor, and many products with near-expiry dates were left unsold each month.
By analyzing the sales of various products in the property, the distributor changed the model of separate product promotions and launched a “prepay property fees and get XX product free” campaign in conjunction with the property. They promoted the activity in elevators, owner groups, and property mini-programs, leading to rapid business growth.
Additionally, leveraging holiday opportunities, the distributor cooperated with the property to embed products into owner activities, resulting in annual sales growth.
4. For some channels, a professional team is the primary factor.
Some new channels are complex to operate and cannot be driven by a single action; they require a professional team.
When opportunities arise but you can’t seize them, it’s largely due to a lack of professional talent.
At a manufacturer’s annual review meeting, a veteran sales manager with over 20 years of experience admitted: “I’ve been in traditional business for 20 years, and many things are deeply ingrained. I resist new business from the bottom of my heart, so I’ve lagged behind others in new business operations.”
Facing new business, most people just watch. Even if forced into it, they only complain more.
A brand of soda water, positioned for drinking occasions, expanded into the late-night snack channel. Products entering stores did not generate healthy sell-through because consumers did not clearly understand the benefits of soda water in drinking scenarios.
To address this, the manufacturer established a dedicated scenario department. Staff went deep into terminals, organized interactive activities with consumers, and adjusted interaction formats based on feedback, allowing the target group to truly experience the value of XX soda water. At the same time, they used interaction content as material to create short videos and spread them on social platforms, further amplifying the product’s scenario value.
By building a professional team for the unique scenarios and audiences of new channels, creating deep consumer interaction and product memory points, they rapidly advanced the development of XX soda water in the late-night snack channel.
Focusing on the key links in the sales chain is the core to winning competition and achieving sustainable development. If you allocate resources to irrelevant links, no matter how many actions you take or resources you invest, it will basically be wasted.
Final Thoughts
“The duck is the first to know the warmth of the spring river; the先知 must also act first.”
When changes in the macro environment come, they challenge traditional distributors but also bring new development opportunities.
Waiting, explaining, and complaining cannot solve problems. You must lay out plans in a timely manner and respond proactively. At the same time, break free from the shackles of experience, combine the characteristics of new channels, focus on key actions, expand new capabilities or recruit new talent, and continuously summarize and optimize in practice to better grasp new trends and achieve long-term development.
Distributor growth no longer relies on inertia, but on: whether you truly understand new trends and new channels; whether you can find structural opportunities in seemingly “small sales” channels; and whether you have the ability to quickly experiment and act in uncertain environments.
In the face of trends, waiting is not a solution, and doubt cannot solve problems. True opportunities belong to those who can break path dependence and take the initiative.
On August 19-20, in Shanghai, at the 7th China FMCG Conference, we have invited numerous brand executives and industry experts to share trends in industry changes. We have also invited heads of new channels such as Douyin, Dewu, and Xiaohongshu to share opportunities in new channels. We have also invited many regional distributor benchmarks, including Zhu Jun, General Manager of Chichi Holding Group and founder of Zuolin Youlin/Shenghuo Yizhan convenience stores; Li Yong, Chairman of Shenzhen Yataixuan Industrial; Zhang Shicheng, General Manager of Tianjin Shicheng Bofa Trading; Zhong Xiaoping, General Manager of Jie Cang Wang Gou; and Zhang Gaifeng, General Manager of Zhengzhou Dapeng Trading, to share how they did it.
We have also specially set up a forum on “Instant Retail Reconstructing the Offline FMCG Market,” inviting Huang Jianchao, General Manager of Kuaikeda Holdings; Shi Honghai, Co-founder of Legou Online Supermarket; and Wang Xukun, Head of Supply Chain at Jiang Xiaodun, to look at the logic and tactics behind instant online supermarkets from the perspective of instant retail practitioners.
Liu Shaomin, General Manager of New Retail at Hengan Group; Zhang Yu, former CEO of Wanshengtang Okamoto Division; and Xu Fubin, the largest instant retail supplier of daily chemicals in East China, will share their practices and thoughts on instant retail from the perspectives of manufacturers and distributors.
This is not a theory class, but a solution you can learn from. Welcome to register and win in the next round of channel transformation!
********🔺


---

## Citation metadata

- Publisher: New Distribution
- Author: 金铭
- Published: 2025-08-05
- Canonical: https://xinjignxiao.com/en/articles/distributors-need-to-rethink-their-channels-4451b3cb/
- Original source: https://mp.weixin.qq.com/s/EA8oz2_prQAgLIwqyVRC9w

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671