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Traditional distribution and supermarket channels are becoming increasingly competitive, and many distributors are now prioritizing the development of special channels as their next key focus. What exactly constitutes a special channel? Each distributor may give a different answer, but in summary, special channels should possess three characteristics: closedness, independence, and a fixed consumer base. These characteristics determine that special channels differ from traditional channels in operational models. So, what issues should distributors pay attention to when developing special channels?

Breaking Away from Tradition: Discovering New Special Channels

Many distributors are reluctant to develop special channels, mainly because they feel that developing them is too difficult and the entry barriers are too high. In fact, there are many special channels; any channel that differs from traditional sales pathways can be considered a special channel.

Currently, more traditional special channels like gas stations and schools are becoming increasingly powerful. For example, when the convenience store chains of PetroChina and Sinopec were first established, they were initially learning from successful foreign gas station convenience store models and lacked their own experience in operating such stores. As a result, very few distributors initially operated these gas station convenience stores.

On one hand, distributors did not pay much attention to developing gas station channels; on the other hand, the institutional reasons of PetroChina and Sinopec also led to various drawbacks in the operation of these convenience stores. However, as gas station convenience store business improved, PetroChina and Sinopec increasingly focused on building and maintaining their own convenience stores. Besides establishing dedicated non-oil product departments, they also hired purchasing managers from major supermarkets at high salaries to serve as convenience store purchasing managers.

These individuals recruited from supermarket purchasing departments are shrewd "old hands" who are well-versed in the tactics of "exploiting" distributors. Leveraging their strong position, they have increasingly high demands on distributors, which is why distributors commonly report that it is difficult to enter special channels.

In fact, the scope of special channels is very broad. Any relatively closed channel can be called a special channel, such as bathhouses, billiard halls, internet cafes, and beauty salons.

Shijiazhuang Jinhua Tai Trading Company primarily distributes Jingtian mineral water, which is positioned at the mid-to-high end. Choosing traditional distribution channels would not be a good option. Li Lei, the general manager of Jinhua Tai, thought of using special channels as a breakthrough point for the product and focused on developing them. In fact, since 2008, Li Lei has been operating the gas station convenience store chain systems of PetroChina and Sinopec, achieving very good results.

To further increase brand awareness among target consumers, Li Lei vigorously developed special channels such as bathhouses, gyms, and billiard halls in the urban area of Shijiazhuang. After about two years of exploration, Li Lei became adept at developing special channels. Now, he has set his next development focus on automobile 4S dealerships, aiming to let private car owners see his products during car maintenance, thereby generating purchasing power.

Wherever there are people, there is sales. As long as distributors are good at discovering, many places that were previously overlooked can become the next sales channels. How to seize business opportunities depends on whether distributors can identify these potential sales channels in advance and create their own special channels.

Seizing the Characteristics of Special Channels for Targeted Development

Different special channels have different functions for different distributors. It is unwise to measure special channels solely by profit. Many distributors regard product profit and sales volume as the only criteria for evaluating channel quality, leading most to focus their main channels on distribution and supermarkets, thus falling into a vicious cycle of excessive investment and insignificant sales growth.

Whether a product succeeds depends not only on quality and promotional investment but also on whether the promotional efforts are targeted.

The Jingtian mineral water distributed by Jinhua Tai is not very well-known in the northern market. Although the manufacturer provides some promotional support, its mid-to-high-end positioning means it cannot be accepted by ordinary consumers in the short term like Kangshifu mineral water.

Li Lei believes that mid-to-high-end consumers not only have the purchasing power to accept Jingtian mineral water but also have a growing health consciousness that makes them willing to accept Jingtian mineral water, which promotes the concept of healthy water. Therefore, he specifically selected relatively upscale fitness venues, bathhouses, and billiard halls in Shijiazhuang for focused promotion and sales.

Li Lei said that although the consumption volume in these venues is limited, they are concentrated areas of the product's target consumer group. Conducting promotional activities in these venues increases the pertinence of promotion and creates an impact among the target audience.

Now, Li Lei has begun distributing and trial-selling in major automobile 4S dealerships in Shijiazhuang, targeting car owners who come for maintenance. By using special channels as his main platform for product promotion, Li Lei has precisely targeted the consumer group and achieved excellent promotional results.

The channels mentioned above have higher consumption levels but limited foot traffic; however, consumers are concentrated, making them suitable for product promotion. But some channels have relatively concentrated consumers and high consumption volume, with the typical representative being boarding schools. Nowadays, many schools implement closed boarding management, and middle schools strictly control on-campus supermarkets, so basically each school has only one or two supermarkets. The sales volume of these supermarkets is undoubtedly huge.

Hengshui Zhongsheng Trading in Hebei seized this opportunity and, starting from 2003, successively cooperated with various boarding schools in the urban area of Hengshui, signing contracts with schools to become exclusive suppliers for school supermarkets. In addition to its own brands, Zhongsheng Trading also signed consignment contracts with agents of other brands to specifically operate the school supermarket channel.

Li Houcun, the general manager of Zhongsheng Trading, said that the idea of operating the school channel came to him when he went to school to see his child and happened to catch the lunch break. The small supermarket on campus was surrounded by layers of students, and the bustling business surprised him. Through chatting with the supermarket owner, Li Houcun learned that the school supermarket had no fixed supply source; they basically called familiar suppliers when they needed something, without a regular supplier.

So Li Houcun thought that if he developed the school channel well, it would be a very attractive market. After making up his mind, Li Houcun proactively approached the school authorities and proposed the idea of being the exclusive supplier for the school supermarket, which was immediately approved by the school. Li Houcun analyzed that students value product freshness and are prone to following trends, but they don't have much money, so product prices cannot be too high. He then actively sought products suitable for school supermarkets to distribute, and for those already distributed by others, he signed consignment contracts with the distributors to specialize in the school channel.

After years of development, Li Houcun's channel now covers almost all boarding schools in the urban area of Hengshui and its surroundings. With good reputation and long-term accumulated connections, he maintains a strong position in the school channel. Li Houcun's next goal is to penetrate into township boarding schools, striving to build a school channel network covering the entire city.

Valuing Connections, Reducing Costs, and Maintaining Special Channels

The consumer base of special channels is relatively stable, and currently, suppliers for mainstream special channels such as gas stations and highway service areas are also relatively stable. However, this does not mean that distributors can let their existing channels develop freely; special channels also require enhanced maintenance from distributors.

Many distributors say that special channels are not as easy to operate as before, mainly because the managers of special channels are becoming more business-savvy, and special channels often hold absolute advantages, which is the main reason for their increasing strength.

Li Lei, general manager of Jinhua Tai Trading Company, said that when he first entered the gas station system, it coincided with the initial launch of the project by PetroChina and Sinopec. They had no experience in operating convenience stores, and most distributors did not pay much attention to this channel, so cooperation was achieved with little effort.

However, as the non-oil product departments of PetroChina and Sinopec became more standardized, they also realized their advantages and subsequently introduced professional personnel to handle product procurement. Now, the operating costs of gas station convenience stores are also increasing. Li Lei said these results are inevitable; distributors cannot change this fact. The only thing they can do is start from themselves, maintain special channels well, and reduce operating costs.

Li Lei believes that personal connections are very important in special channels, requiring more energy and resources than operating other channels. The key is to reach a consensus with these channels. Distributors must first show sincerity in cooperation to form a beneficial and long-term partnership.

To reduce operating costs, Li Lei actively develops sub-distributors in various parts of Hebei, using his advantages in the gas station channel to attract these sub-distributors. These sub-distributors are only responsible for the local gas station channel, and when the time is ripe, they can also develop into his regional sub-distributors in the area, killing two birds with one stone.

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