Click the image below for a WeChat Wine giveaway ▼ By Zhao Haiyong, Senior Project Manager, Shengchu Consulting Terminal distribution has always been the first step in establishing cooperation between a product and its retail outlets. How to quickly "showcase" a product in market terminals has become a primary challenge for merchants. With the development and adjustment of the white spirits industry, liquor terminal owners are increasingly cautious when selecting products. So, amid these industry changes, what forms of terminal distribution can we adopt? Based on years of experience in the liquor industry, the author has summarized eighteen terminal distribution strategies for your reference.
Strategy 1: First-Order "King" Reward Distribution This involves a first-order bonus, typically used for new product distribution. For example: Any terminal that orders one case each of the brand's Mianrou Sanxing, Sixing, and Wuxing products receives an electrical appliance set of equal value (choose any from Gome Electrical Appliances). This strategy was adopted by a client in Jiangsu, who reached an agreement with Gome to settle at a 30% discount, offsetting part of the cost with liquor. As a result, they achieved distribution in 246 outlets within three months. Comment: Terminal owners will stock up whether they need appliances or not, because everyone has a "get a bargain" mentality. Merchants can implement similar distribution strategies based on their own resources.
Strategy 2: Monthly + Quarterly + Annual Rebate Distribution This involves a "barrage" of multiple rebates, typically applied during the mid-stage of product sales when market atmosphere is good. For example: For any product from the brand purchased monthly, the terminal receives a ¥100 cash rebate per month, a 2-jin sealed jar of liquor worth ¥198 per quarter, and a family portrait photography package worth ¥999 at year-end. A county-level brand merchant in Henan implemented a similar strategy, signing up 122 outlets across the county with sales reaching ¥3 million. Note: All costs are within the client's control. Comment: This taps into customer psychology: if the product sells and makes money, they just need to recommend it more each month to get more rewards.
Strategy 3: Volume-Based Rebate Distribution This means the more you sell, the bigger the reward. It is generally suitable for best-selling products and those in the growth stage. For example: Terminals achieving annual sales of ¥100,000 enjoy a 5% rebate plus a round-trip Japan tour worth ¥8,888; those achieving ¥50,000 get a 3% rebate plus a Jiuzhaigou tour worth ¥3,888; those achieving ¥20,000 get a 2% rebate. This uses "sales volume" to stimulate customers and achieve distribution goals. Comment: Volume-based rebates are a practical operation for merchants. By segmenting terminals based on completed volume, you can leverage the terminal's own "absorption capacity."
Strategy 4: Travel Incentive Distribution This involves offering travel packages based on the value of goods ordered, generally suitable for mid-range products with strong consumer appeal. For example: Ordering three cases of a ¥288 product earns a ¥588 three-day Beijing bus tour; eight cases earns a ¥1,988 Yunnan Dali tour; fifteen cases earns a ¥3,988 Sanya seven-day round-trip flight tour. Different travel packages stimulate different terminal owners. Comment: Many younger terminal owners are interested in travel-based distribution policies, which can attract their attention.
Strategy 5: Tiered Reward Distribution This sets different purchase amount tiers, with larger orders earning bigger rewards. It is generally suitable for new and best-selling products. For example: Purchases of ¥2,000, ¥5,000, or ¥8,000 earn different rewards; or ordering three, five, or ten cases of a product earns different rewards. Merchants can tailor policies based on their specific product situations. Comment: This method is simple and practical. As long as your policy is attractive and the terminal can sell, they will place orders.
Strategy 6: Seasonal Promotional Distribution This involves merchants or companies running themed promotions during holidays (Mid-Autumn, Dragon Boat, Spring Festival). It is generally suitable for best-selling and growth-stage products. For example: On top of the original policy, orders placed between [date] and [date] enjoy an additional 5% rebate (or physical rewards). This leverages the terminal's ability to sell during these periods to stimulate orders. Comment: This method is generally popular with terminals because it increases their profit margin on top of existing profits, and merchants are quite receptive.
Strategy 7: Display Reward Distribution This rewards terminals for displaying products according to merchant requirements. It is generally suitable for new product distribution. Display-based distribution has been around for years and is the simplest method. Currently, a brand in Hunan uses tiered terminal displays with rewards directly deposited into accounts, which is quite popular. For example, display rewards are set at ¥600/month, ¥800/month, or ¥1,000/month based on shelf space, with cash directly transferred to the terminal owner's bank card at a fixed time each month. Terminals are highly receptive. Comment: Display rewards are simple to operate, but details can be adjusted. As long as merchants consider the terminal's perspective when designing display reward strategies, they can create highly attractive offers.
Strategy 8: Excess Volume Reward Distribution This provides additional rewards for exceeding the base task. It is generally suitable for best-selling and growth-stage products. For example: After completing the base task, any additional products ordered earn an extra 2% rebate or other rewards. This makes customers feel that selling more brings even more profit on top of the original margin. Comment: This is a "icing on the cake" approach to boost distribution.
Strategy 9: Combined Lottery Distribution This involves customers receiving lottery tickets based on order value, with more tickets for larger orders, increasing their chances of winning. It is generally suitable for distribution at ordering conferences. For example: Customers who order ¥1,000 worth of a product series receive one lottery ticket, and so on. A lottery draw is then held at the ordering event, with the grand prize determined by the merchant. Comment: Atmosphere is crucial for this method. At the ordering and distribution event, you must create a "grand spectacle."
Strategy 10: Honorary Award Distribution This involves customers receiving an honorary title such as "Regional Brand Strategic Partner" when they reach a certain sales volume. It is generally suitable for mid-to-high-end brands. For example, you can cooperate with liquor industry associations or white spirits alliances to conduct honorary plaque-awarding distribution. This is particularly attractive to terminals that value face. Comment: Many terminal owners care about reputation as much as profit.
Strategy 11: Value-Added Rebate Distribution This offers a value-added rebate on unsold products, in addition to the purchase amount. It is generally suitable for high-end products. For example: If a terminal purchases ¥100,000 worth of goods, unsold products at year-end can be returned, and the distributor gives a 1% value-added rebate as compensation. This alleviates concerns about products not selling. Comment: This method carries both risks and opportunities. Merchants without the capacity to bear such risks are advised not to adopt it.
Strategy 12: Resource Exchange Distribution This involves terminals exchanging a certain purchase amount for vouchers or meal coupons. It is generally suitable for hotels or chain supermarkets. For example: A hotel that orders ¥10,000 worth of products receives ¥10,000 in meal coupons redeemable at that hotel (usable as cash with no restrictions). The merchant can then use these vouchers as consumer promotional items for themed promotions. Hotels generally accept this well, as it can also bring them business. Comment: Resource exchange is currently a popular distribution method. Merchants and companies can choose reasonable and effective resource exchange strategies based on their own circumstances.
Strategy 13: Cumulative Reward Distribution This allows terminals to exchange accumulated sales for different rewards. It is generally suitable for mid-to-low-end products. For example: After selling 10 cases, the terminal can redeem ¥1,000 in cash; 20 cases, ¥2,400; 30 cases, ¥4,000, with no repeat redemptions. To get more rewards, customers need to "push" for higher sales. Comment: This method "gambles" with terminal owners, stimulating them to stock and sell more.
Strategy 14: Price Increase Stockpiling Distribution This involves announcing a price increase from a certain date, prompting terminals to stock up in advance. It is generally suitable for particularly best-selling products and is a common tactic used by companies and merchants. For example: A product's purchase price will increase by ¥20 starting November 1st. Orders placed before the end of October still enjoy the original price, plus an additional 1% year-end rebate. This form of price-increase stockpiling is used to push inventory into terminals. Comment: Don't try this unless you're the "leader" in your market.
Strategy 15: Physical Reward Distribution This involves giving physical gifts based on order value. It is generally suitable for mid-to-low-end products. For example: Ordering three cases of a product earns a mahjong table set; ordering one case earns a large laundry basin. The more practical and simple the gift, the better, especially in rural markets where this method is highly effective. Comment: Physical reward distribution is simple and easy to operate. The main effort lies in policy design and gift selection, which merchants need to research thoroughly.
Strategy 16: Special Product, Extra Cap and Box Recycling Distribution This involves offering additional profit rewards for certain products when ordering a series. For example: After self-consumption or single-bottle sales, the bottle caps and box tops can be redeemed for extra rewards at the distributor. This is done through a "hidden redemption" model. Comment: This method is relatively complex to operate, and many customers may misunderstand it, requiring patience from merchants to explain to terminal customers.
Strategy 17: Small Circle, Relationship-Based Distribution This involves inviting terminal owners to "chat" before distribution and presenting the policy privately. It is generally suitable for new products or those with weak brand influence. For example: Choose a private club and invite target terminal owners in the area for a meal and discussion. Ask them to help sell the product. Usually, most who attend will place some orders. Comment: This method is more personal and works well for particularly difficult customers.
Strategy 18: Employee Sales Competition Distribution This involves setting distribution tasks and offering extra rewards to employees for short-term sales and distribution efforts, stimulating them to carry out distribution work. Ideally, rewards are given daily so employees enjoy the immediate benefits of their efforts, boosting their enthusiasm. Comment: This method is simple and easy to operate, and is particularly effective for new product launches.
In fact, beyond the eighteen methods summarized by the author, there are many other distribution strategies. As long as merchants continue to innovate and study the needs of terminal owners, they will find success. If you sit in your office all day saying, "Who has a novel distribution method? I've used those methods years ago! Your methods are outdated!" then it's all meaningless. Among these eighteen terminal distribution strategies, one is sure to work for you!
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