---
title: "FMCG Manufacturers: This Mid-Autumn Festival Should Be Celebrated 'Rationally'!"
description: "With the Mid-Autumn Festival approaching, market sentiment is weak, and channel partners are reluctant to stock up. This article offers rational advice for FMCG manufacturers and distributors, emphasizing respect for objective facts, scientific inventory pressure under channel digitalization, and lessons for holiday marketing."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-08-28"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/fmcg-manufacturers-this-mid-autumn-festival-should-be-celebrated-rationa-40660d2d/"
markdown: "https://xinjignxiao.com/en/articles/fmcg-manufacturers-this-mid-autumn-festival-should-be-celebrated-rationa-40660d2d.md"
original_source: "https://mp.weixin.qq.com/s/4TfbBUGw8dTzZVn6tM7NCg"
translation: "https://xinjignxiao.com/zh/articles/%E5%BF%AB%E6%B6%88%E5%93%81%E5%8E%82%E5%95%86-%E8%BF%99%E4%B8%AA%E4%B8%AD%E7%A7%8B%E8%8A%82%E8%A6%81-%E7%90%86%E6%80%A7-%E5%9C%B0%E8%BF%87-40660d2d.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/fmcg-manufacturers-this-mid-autumn-festival-should-be-celebrated-rationa-40660d2d/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# FMCG Manufacturers: This Mid-Autumn Festival Should Be Celebrated 'Rationally'!

> With the Mid-Autumn Festival approaching, market sentiment is weak, and channel partners are reluctant to stock up. This article offers rational advice for FMCG manufacturers and distributors, emphasizing respect for objective facts, scientific inventory pressure under channel digitalization, and lessons for holiday marketing.

********Click to read the original text for details********
Recently, I received calls from several friends, including brand personnel and distributors, who generally reported that with only half a month until the Mid-Autumn Festival, the market atmosphere has not picked up, and the willingness to stock up at all levels of the channel is weak. Even strong channel policies are not attractive to most outlets. Some strong brands have also seen distributors pay but not ship goods. Everyone is waiting and watching. What should be done? I offer a few points for your reference.
**01 Respect objective facts and follow objective laws!**
**1. According to the solar calendar, this year's Mid-Autumn Festival is half a month earlier than usual, and it is separated from the National Day holiday.** What impact does this have? The Mid-Autumn Festival is a time for family reunions, which leads to visiting relatives and friends. At this time, FMCG products with gift attributes begin to sell well. The Mid-Autumn Festival holiday is short, and since it is nearly 20 days before the National Day holiday, many people choose to go home during the National Day holiday.
Therefore, for population-exporting markets, FMCG manufacturers should prepare for the Mid-Autumn Festival until after the National Day, with key resources allocated to the National Day. For population-importing and population-stable markets, FMCG manufacturers should focus on preparing before the Mid-Autumn Festival, which is also a key node for resource allocation.
It is worth reminding: any brand's resources are limited, and it is unscientific to evenly distribute them over the 30 days from September 10 to October 10.
**2. Consumption downgrading has occurred; sell products, not excessive packaging.** Take mooncakes as an example. A few years ago, a box of mooncakes could sell for over a thousand yuan, with packaging costs far exceeding product costs, and sales were still good. The domestic economy was developing rapidly, and people could afford to pay the 'IQ tax.'
After three years of the pandemic, this phenomenon is decreasing. FMCG manufacturers must clearly realize that for the vast majority of consumers, products that are presentable, of good quality, and moderately priced are the 'premium choice' for gifts.
**3. The 'phenomenon of cutting off relatives' is on the rise, and more and more post-90s are no longer interacting with relatives.** I believe many manufacturers have noticed this. People's awareness of the Mid-Autumn Festival is fading. As the pace of modern life accelerates, the festive atmosphere weakens, which is reflected in the market as declining sales of gift-attribute products and weaker sell-through. Some brands that developed through visiting relatives and friends are seeing declining sales and profits.
**4. Channel stocking pace continues to be delayed.** In fact, under the continuous downturn of the economic environment, channel partners at all levels are ensuring cash flow security. Secondly, channel partners are already numb to manufacturers' limited-time strong policies. With such fierce market competition, they are not afraid that you won't offer policies. Finally, terminal owners have a deep-rooted belief: real product sell-through only happens three to five days before the festival, so there is no need to stock up in advance.
**02 Scientific inventory pressure under channel digitalization**
Inventory pressure is a common phenomenon and is natural for sales. As long as sales exist, inventory pressure is inevitable. For most FMCG products, the essence of market competition is still channel competition, and inventory pressure is a competitive need.
The key is that the marketing environment has changed, and technological means are advancing rapidly. Only by emphasizing systematic victory and marketing innovation can brands achieve true success in Mid-Autumn inventory pressure. Next, I will share a Mid-Autumn inventory pressure policy from a brand that has initially achieved channel digitalization.
**1. Redefine inventory pressure outlets**: This mainly solves the problems of what outlets, what goods, how much, and when to press inventory.
a. What outlets: Essentially, it is the classification of outlet attributes. The brand divides outlets into several levels based on their average sales during the Mid-Autumn Festival over the past three years and the brand window effect generated by the outlets.
b. What goods: Essentially, it is analyzing the previous sales composition of outlets to determine the SKUs for inventory pressure.
c. How much: Essentially, it is analyzing the previous sales volume of outlets to determine the quantity for inventory pressure.
d. When to press: Essentially, it is analyzing the previous purchase timing of outlets to determine the best time for inventory pressure and re-establish the pressure rhythm.
**2. Re-plan inventory pressure costs**: This mainly solves the brand's cost investment, improves brand window visibility, reduces the cost-effectiveness ratio, and spends money where it counts.
a. Brand window stores: Some stores occupy unique commercial locations and are windows for manufacturers to build their brands. The value of these stores is not just sales; they carry more brand visibility. So they must be secured. With channel digitalization, the number of these stores and the proportion of cost investment can be precisely controlled.
b. Reduce cost-effectiveness ratio: This goes without saying. Channel digitalization can precisely segment outlets by sales volume, invest costs by level according to the brand's budget, and make money go further.
**3. Re-evaluate inventory pressure results**: Inventory pressure is a necessary offline measure, and the Mid-Autumn Festival is the peak season. Everything has pros and cons. No matter how good the control measures, large-date products are inevitable. In actual operation, manufacturers invest all costs in channel inventory pressure and rarely reserve costs for digesting large-date products. Channel digitalization can solve this problem. Here is a method:
a. When the system monitors that the shelf life has passed one-third, the operation is to transfer from low-sell-through stores to high-sell-through stores. The execution plan is: incentivize and guide salespeople to swap themselves or mix sales in good customer-relationship stores at a ratio, e.g., 5 new + 1 old;
b. When the system monitors that the shelf life is between one-third and two-thirds, the operation is to transfer to independent large supermarkets. The execution plan is: discounts, bundled promotions, promoter recommendations, or give costs, requiring no returns or exchanges, and exclusive sales;
c. When the system monitors that the shelf life has passed two-thirds, the operation is centralized processing. The execution plan is: stall promotions, factory-direct sales, or deep discounts in community stores, buy one get one free;
d. When the system monitors that the product is near expiry, the operation is door-to-door sales or handling through acquaintances. The execution plan is: 1-3% discount sales on social circles or 1-3% discount sales at markets.
Summary: Here I mentioned channel digitalization. Indeed, many manufacturers are beginning to lay out their digital transformation, which can play an important role at key decision points. For important festivals like the Mid-Autumn Festival, inventory pressure is necessary. How much to press? How to match production and sales coordination? How to formulate channel policies for inventory pressure? How to invest in store display costs? How to efficiently handle the aftermath of inventory pressure? Without digital support, if you still operate by feel and inertia, the results can be imagined.
**03 Insights from holiday marketing for some FMCG manufacturers**
'No business for half a year, but one deal feeds for half a year' was the true portrayal of many FMCG manufacturers before. Indeed, for many alcoholic beverages, gift items, plant proteins, apple cider vinegar, and other FMCG products, sales during the Mid-Autumn Festival and Spring Festival accounted for more than 80% of annual sales. But now that is no longer the case, and some manufacturers are even on the verge of bankruptcy. Here are a few suggestions:
**1. Re-emphasize the importance of hypermarkets**
Kantar Consumer Index has a specific indicator, Shopper Reach Points (SRP), which measures retailer influence by multiplying the number of consumers entering the store by their purchase frequency.
According to Kantar Consumer Index research data, the five largest FMCG retailers in China—RT-Mart, Yonghui, Walmart, China Resources Vanguard, and Carrefour—account for one-third of the total shopper reach points in the market. The data shows that these five retailers have far more purchase trips than other retailers. Of course, these five physical retailers have faced significant competitive pressure in the past year, but for brand business, they remain crucial retail partners.
**2. Online and offline should integrate as soon as possible**
From a development perspective, the retail market has undergone transformations from pure e-commerce to community e-commerce, O2O models, B2B models, and then DTC (direct-to-consumer) models. These different models not only coexist but also have good development.
For traditional manufacturers, especially those that have succeeded in traditional channels, accepting online layout still carries some baggage. But the retail market has evolved from the 'era of independent online and offline development' to the 'era of fierce online and offline competition' and now to the 'era of comprehensive online and offline integration.'
In addition, the impact of the pandemic and the penetration of internet thinking have changed consumer habits. Manufacturers must quickly and inevitably learn to adapt and integrate into this transformation.
**3. Pay attention to home-delivery O2O business**
The pandemic's catalysis of direct-to-home business is obvious. Consumers' behavior in using O2O shopping will become more mature, and the categories purchased will further expand. Look at two sets of data:
a. From 2016 to 2020, the average annual compound growth rate of home-delivery O2O reached 64%. The overall O2O scale reached 2.6 trillion yuan in 2020, with home delivery accounting for 56% (1.4 trillion yuan).
b. The target consumer profile: 70% female, 80% married, 53% with bachelor's degrees, 59% white-collar workers. These profiles clearly indicate high-net-worth users with absolute household consumption decision-making power.
These two sets of data fully demonstrate that the main consumer group is continuously driving the development of the home-delivery business model, and the impact will become more profound.
Take product experience as a simple example. The traditional model requires manufacturers to purchase display positions (floor stacks, end caps, etc.), hire promoters, and then conduct product experience under site constraints. With O2O home delivery, intermediate links can be saved, allowing brands to connect directly with consumers more efficiently.
**4. Marketing models of old brands need to iterate**
Let me give a few examples: Nongfu Spring achieved a leap in quality and quantity through an exclusive distributor model; Jinmailang achieved a leap in quality and quantity through a four-in-one manufacturer-dealer cooperation model; Tsingtao Beer achieved a leap in quality and quantity through a two-level distribution model; Coca-Cola achieved a leap in quality and quantity through the 101 model at a specific stage. These companies all experienced self-denial and growth, and all experienced the pain of reform. Without these, how could they be where they are today?
At the same time, we see many brands that, until the moment of bankruptcy, did not have the courage to change themselves. Change is painful; not only must you admit your many shortcomings, but you also need to be 'not ashamed to ask and learn from others.'
Some famous entrepreneurs and executives, with their reputations, find it hard to do this sincerely. But what I want to say is: the market environment is changing too fast today. If your marketing model has been used for ten years without significant improvement, you should be careful. Elimination may be just a matter of months. Only by changing can you respond to all changes with constancy.
 _-END-_


---

## 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