Opening the door, he glanced at his watch; it was midnight again. This was the third consecutive night Lao Wang had worked overtime until the early hours. Now in his forties, he felt increasingly strained and puzzled: "Why does new retail feel more tiring and uncomfortable the more we do it?" As a city manager, one must not only pull the cart with head down but also look up at the road! Having深耕本地多年 and accustomed to self-reflection, Lao Wang decided to think it through tonight.

Frontline city managers, immersed in the market daily, can easily notice the significant changes occurring in today's market.

Channels are multiplying and becoming more fragmented. O2O home delivery, community group buying, and FMCG B2B are creating incremental growth while also diverting and eroding some of the existing volume from traditional channels. Facing a brand-new incremental and existing market, how should city managers strategize?

The emergence of new channels signifies the start of new competitive tracks. In any city market, manufacturers that previously excelled in KA outlets, wholesale markets, or convenience stores may not necessarily maintain their lead in community group buying, ERTM, or home delivery channels. Thus, for any manufacturer, new tracks present both opportunities to overtake on curves and risks of being overtaken.

Where business is, we go!

As commanders of frontline markets, every city manager needs a new 'omnichannel distribution' strategy battle map. This article focuses on strategy, discussing how city managers should deploy troops and re-layout regional markets.

-01- Distribution Strategy Map for Frontline City Managers

Any business, whether private or foreign, whether a new startup or a leading manufacturer, has the ultimate goal of growth. Small enterprises without growth face survival and death; large enterprises without growth cannot explain to shareholders, leading to stock declines.

So the strategic bullseye for any regional market must be growth! Without growth, nothing else matters!

Now, with old and new channels alternating, coexisting, and conflicting, the past methodology of pushing inventory through primary distribution will inevitably lead to a vicious cycle, causing price system conflicts, chaos, and even collapse. Therefore, in this context, I propose the regional market layout concept of "Omnichannel Growth, Sell-Through First," which must focus on selling out as the core logic. This refers not only to secondary sell-through in old channels but also to secondary sell-out in new channels.

"Omnichannel Growth, Sell-Through First" is the core business strategy for a city (regional) market and the central philosophy for city managers in commanding operations. Once the direction is set, the next step is strategy.

If the strategic approach is wrong, no amount of effort will help.

When discussing strategy with frontline managers, avoid lofty, high-sounding concepts that are out of touch; you must use logic and methods they can understand and relate to!

— For city managers, starting from the long-used marketing 4Ps (Place, Price, Product, Promotion) is easier to understand and implement, plus brand strategy upgrades (not headquarters' media buying strategy, but more about low-cost brand communication and localization in the local market).

Let's start with the most important distribution strategy upgrade.

-02- Distribution is not about being as wide as possible, but as precise as possible

When it comes to distribution strategy upgrades, in the past we emphasized width distribution for large stores and depth distribution for small and medium stores. Now we must list every channel, whether traditional or emerging, and make a before-and-after comparison. Design customized distribution strategies centered on each channel.

For example, community group buying follows a hit-product logic, even C2M customized hits, which is different from traditional circulation and hypermarkets; hypermarkets serve as the bridgehead and core lighthouse for offline channels, so they must not only sell goods but also provide brand exposure.

With brand communication becoming increasingly fragmented, even dust-like, every hypermarket must play a key role in brand communication. Not only should they sell core SKUs, but also "promote new and sell high," ensuring that premium and new products, which previously only fulfilled "width distribution" tasks, achieve high-frequency sell-through.

It's not about selling more, but selling more precisely. The shoppers behind each channel are different. Frontline city managers should combine their own brand and category to precisely target corresponding traditional and emerging channels.

Once the distribution positioning for each channel is determined, then design specific products, prices, and promotions.

-03- Many channels but chaotic prices; efforts can easily go to waste

Frankly, before omnichannel distribution, when there were only a few mainstream channels, prices were already chaotic.

Around 2000, international hypermarkets entered China, followed by domestic ones, and at that time distributors cried that they couldn't survive because business was taken by the hypermarkets. Hypermarkets, due to centralized procurement and direct contact with manufacturers, held negotiation power and had natural price advantages, far lower than traditional retail stores.

The lower purchase prices at hypermarkets led to product outflow to wholesale markets, fattening up many nearly bankrupt wholesalers. Later, another player entered: e-commerce. In 2015, Tmall's "Double 11" sales reached 92 billion yuan, approaching the 100 billion mark. After this promotion, To C e-commerce truly established its position. Subsequently, undercurrents emerged, with some不良 backdoor shipments from e-commerce gradually flowing offline, further disrupting the price chain.

Before that, among hypermarkets, wholesalers, and distributors, there were "minor skirmishes" to complete manufacturer tasks, and prices were relatively controllable. But with the entry of internet e-commerce after 2015, FMCG B2B in 2016-2017, and the explosion of community group buying in 2019, many manufacturers faced unprecedented pressure to maintain a healthy price system.

It's easy to see that the hit-product operation thinking of emerging channels has a typical feature: price wars! No new channel is willing to proactively help manufacturers promote new products; they all rely on capital or platform support to create hits and fight on price.

Therefore, city managers must pay sufficient attention to price strategy management upgrades to win in the region and do well in omnichannel distribution. Price design across channels must be clear; otherwise, history will repeat itself, with more severe impacts than simple channel conflict and price undercutting.

In addition to setting up price firewalls and establishing electronic or physical coding systems, it's more important to rebuild the price chain across channels. For example, set three price tiers: e-commerce, hypermarkets, and distributors. E-commerce prices are highest, hypermarkets next, and distributors relatively lowest; traditional distributor channels are usually the receivers, so they need protection and support.

-04- Product differentiation and segmentation; launching new products is key

Products follow channels; the core of product strategy upgrades lies in two key points: first, segmentation and differentiation; second, combination and new product launches.

Product strategy should be formulated based on the operational characteristics of each channel and the consumers behind them. For example, products sold on e-commerce should be differentiated from those in KA hypermarkets, community group buying, and even traditional distributors. Even for the same product category, specifications should be appropriately differentiated; different channels sell different products.

While differentiating specifications, fully consider the positioning of each channel in product mix. For instance, hypermarkets should have a full range of categories and items, serving as both a mainstream channel and a communication platform to meet the needs of various consumer groups; in convenience stores, where young consumers dominate, small specifications and novel, quirky items are the main selection direction.

Another key aspect of product strategy is how to nurture new products; without successful new product launches, product mix upgrades are impossible. Whoever wins the omnichannel distribution battle will be determined by the quantity and quality of "promoting new and selling high." If new product launches fail and you rely only on old products, you'll end up in price wars and a mess.

-05- Promotions focus on ROI, adapting to the venue

In the past, if a manufacturer implemented a deep distribution system that could directly control the smallest stores, promotion strategies were based on product bundling, policy rebates, or related promotional items. The promotion forms were single, with limited operational space, low efficiency, and unable to effectively measure ROI.

But now, in the omnichannel distribution era, whether it's the new application of old scenarios represented by ERTM or the digitalization of new scenarios represented by new retail O2O, precision marketing has gradually become standard for both old and new scenarios. At this point, the core of promotion strategy upgrades is: focus on ROI and cost-effectiveness, with precise promotion guidance.

Any manufacturer will pay attention to investment cost-effectiveness and will not sacrifice profits to cater to new channel sales. A healthy and良性 state is the best operating condition; you can't live beyond your means. For example, in the past, when evaluating the ROI of promotions at small stores, some companies might only look at the distributor-level big picture. Now, through ERTM POS systems, you can measure the ROI of the smallest stores, with real-time sales data sharing, enabling real-time control of terminal ROI.

With more channels and changed forms, city managers must clearly understand the rules and gameplay of each channel. While focusing on ROI, concentrate investments and find the most effective promotion forms for each channel, rather than doing all promotions; provide precise guidance.

For example, for new retail home delivery platforms, the most effective form is not bundling gifts but free shipping. Gifts are nice, but fulfillment efficiency is very low. Today's home delivery platforms can achieve "thousand stores, thousand faces," with different SKUs and different inventory levels. If you still do bundling like offline, gift inventory at each store cannot be guaranteed, leading to customer complaints.

Another example: in the past, small appliances as gifts for distributor wholesale channels are now outdated. But now, on ERTM platforms, giving them directly to small store owners is very practical.

In summary, promotions for new channels should still prioritize ROI, and the form of promotions should adapt to the venue.

-06- Achieve low-cost and localized brand communication based on regional characteristics

The core of FMCG is brand; without brand protection, even if products are distributed widely, they can easily be a flash in the pan. Brand is the lifeline of FMCG companies. Therefore, as a frontline city manager, the brand strategy upgrade should focus more on how to implement the headquarters' brand strategy in the regional market, achieving low-cost and localized brand communication!

Regarding the implementation of brand building in city markets, the core is reflected in four levels:

First, building brand influence at key terminals, such as KA hypermarkets;

Second, participating in and sponsoring local opinion-forming and event-based themed activities;

Third, brand sponsorship and promotion activities targeting specific groups;

Fourth, township roadshow activities, etc.

Typical examples include elevator ads in KA hypermarkets, joint square dance competitions with hypermarkets, sponsorship of local marathons, badminton matches, local university activities, and township caravan roadshows.

On one hand, the implementation of brand strategy comes from the headquarters, which allocates media placements to the market through various traditional or new media. Although it may not be directly visible, city managers must proactively communicate with headquarters to争取 more placement resources. The squeaky wheel gets the grease; don't just think about promotion resources.

On the other hand, feed back more regional characteristics to headquarters, hoping for targeted support. For example, if locals prefer iQiyi, can you apply for LBS-based precise placement in your city when investing in iQiyi? Or when cooperating with local chain hypermarkets on themed activities, apply for placement resources to投放 relevant information on Focus Media in residential communities and office buildings around the hypermarkets.

The above are the five core areas that need strategic attention in the omnichannel distribution era. Once the overall market layout is established, the next step is to consider how to implement at the organizational level to ensure strategy execution and achieve sustainable growth.

-07- Details, Resources, Co-creation, Talent

In the omnichannel distribution era, with more channels, the corresponding organizational capability system also needs to be upgraded and iterated. Although organizational capability upgrade is a systematic project, it can be broadly summarized into four directions:

1. Obsess over key details

The starting point of "obsessing over key details" is having the ability to identify "key details."

With more channels, there are naturally more details to follow up and handle daily, but not every detail is key. You must have priorities; you can't obsess over everything because everyone's time, energy, and resources are limited.

So every city manager must set their own channel priorities—based on their local market characteristics and current situation, determine which channels must be fully promoted (e.g., hypermarket home delivery O2O and ERTM), which channels should be moderately promoted (e.g., community group buying), and which channels are for small team seeding (e.g., helping distributors open online stores).

The omnichannel distribution era is complex and increasingly noisy; trying to cover everything means covering nothing. Only by adhering to "you can't do everything, so you must choose what not to do" and knowing which opportunities have the most potential to multiply growth to go ALL IN can you win the growth advantage.

2. Communicate with headquarters for resources

In the omnichannel distribution era, business is fragmented and broken apart, and resources from headquarters and regions become relatively scattered.

In a regional market, city managers today must learn to communicate with headquarters using the new business logic of new channels to get more resources. The newer the channel, the less professional and confident the resource departments at headquarters and regions are; their investment decisions rely more on the feasibility of plans and judgment/prediction of execution results. So build your reputation, deliver on promises, and keep your word! This way, you'll gain an advantage in competing for internal resources in new retail. Once you get a良性 support loop of internal resources, your new channel business growth will be smoother!

The sales environment is always changing, but the simple resource allocation logic of "the squeaky wheel gets the grease" remains unchanged; resources are always prepared for proactive teams and businesses.

3. Co-create with omnichannel customers

Whether it's new retail O2O, community group buying, or ERTM, these are new species in recent years. During operations, these new species platforms also need the support of FMCG companies, and FMCG companies have deep understanding and insights into consumers. The relationship is not simple cooperation or dependence, but mutual growth and iteration.

Therefore, city managers can proactively assist, even allocate resources. For example, if a platform's recent work focus is active customer numbers, city managers can provide promotion resources to help increase customer activity. When you help others, the platform's external display resources will also tilt toward you later.

Currently, traditional circulation distributors or wholesalers are anxious due to various channel impacts. You can also help them with digital upgrades, such as opening Pinduoduo stores or Taobao stores, improving their application of digital tools. When you help them improve business opportunities, your sales tasks will also be taken seriously.

4. Key talent pipeline

Regarding the key talent pipeline for omnichannel distribution, the approach I advocate is to use "newcomers" to attack new markets, stimulating experienced "old-timers" to accelerate progress. Using newcomers for internet new retail has three benefits:

First, negotiations with hypermarkets and traditional distributors require experience and social savvy; senior colleagues are more suitable, while newcomers find it hard to handle;

Second, internet new retail is a new species, and partners are mostly young people, with smooth communication, fast pace, no bureaucracy, and transparent hierarchy, suitable for training newcomers;

Third, new retail is in a rapid development stage with obvious sales growth, which can also stimulate old-timers to learn faster. Especially those who previously looked down on new retail will see growth and be willing to actively integrate.

The above is about supporting the implementation of strategy upgrades. Returning to the role of city manager, as a leader of a region, I believe you also need to do four basic constructions to ensure you don't fall behind in the omnichannel distribution era when operating in the regional market.

The market is never static. To achieve omnichannel growth, city managers must have a sense of market crisis. Always pay attention to the market, manage every member to discover problems and provide immediate feedback; see opportunities and follow up promptly.

It's late at night. Through today's review and reflection, Lao Wang became more convinced of one insight—"In the omnichannel distribution era, while pulling the cart with head down every day, you must not only look up at the road but also look up frequently, more often!" Because the only constant in new retail and new omnichannel under internet thinking is that it changes all the time. Only by responding dynamically and laying out agilely can you cope with the rapidly iterating marketing environment. Laws are irreversible, human nature cannot be violated, organizations must not be chaotic, and layouts must not be rigid! Thinking of this, Lao Wang breathed a sigh of relief, knowing he could sleep well tonight, and set a small goal for himself: "Tomorrow, no overtime; leave work on time to accompany my daughter's online class..."

Bio: Xu Xiang, currently Sales Director of South China at Unilever, with 20 years in FMCG daily chemicals, dairy, and condiments, deeply involved in regional market management and customer marketing, willing to exchange and learn with peers for mutual progress.

Tips will be paid 400-2000 yuan once adopted.