From 3000 to 500: After the implementation of the "strictest milk powder policy" in history, the "Measures for the Registration Management of Infant Formula Milk Powder Product Formulas," more than 75% of the 3000 milk powder brands were eliminated, leading to a major reshuffle in the formula milk powder market. The first to bear the brunt were milk powder distributors. For them, the sharp reduction in brands corresponds to a continuous shrinking of operational channels, and the fully "purified" market is also "purifying" distributors wave after wave. So, where should distributors go in this life-and-death situation? Reposition and Rebuild Channels Currently, the formula registration list has already been released in 11 batches. In the latest batch announced on September 14 and 15, a total of 11 companies including Wandashan, Fonterra, Huaguan, Shuangwa, Aoyou, and Nestlé passed registration with 38 formulas. As of September 15, a total of 53 factories, 100 series, and 297 formulas have passed registration. In the future, as the list continues to be announced, it is expected that about 500 formulas will pass the new policy. So, the choices for distributors have been reduced from 3000 to just over 500. Facing the continuously "concentrating" market, whether they are experienced channel operators or new distributors, they obviously need to muster the courage to start over, rebuild channels, and find their place again. Among the 500+ brands, they are divided into two major camps: local brands and international brands. Within these two camps, they can be further divided by category into milk powder and goat milk powder, and by brand positioning and product price into high, medium, and low-end segments. Facing these segmented segments, many experienced distributors will first examine their customer base: what sales capabilities do they have, what types of products are more suitable for their needs, and then select products for them based on the characteristics of the target group. In fact, this is the self-positioning of distributors. After determining the target consumer group based on positioning, they then choose products and brands based on the characteristics of the customer group. French brand Adilac, from Sodiaal, France's largest dairy cooperative, has repeatedly emphasized the importance of positioning among its distributor groups. Because under the influence of the macro environment, increasingly "savvy" consumers no longer need a wide range of product and service options, but rather precise and excellent product quality assurance. So, what distributors need to do is to screen out truly reliable, safe, and stable quality products for customers and consumers. Choose the Best, Rebuild Brand Architecture It can be said that domestic distributors are experiencing the painful period of formula milk powder market reform. After this period, distributors will either be reborn from the ashes or disappear. So, streamlining or restructuring the product portfolio becomes the "pioneer axe" for distributors to start anew. This requires distributors to choose the best from the more than 500 milk powder brands that have stood out under the new policy, rebuild their brand and product architecture, and rebuild and improve channel construction. Next, for the formula milk powder market, it will be a foreseeable competition of strength. If we stand from the perspective of distributors and break down this ultimate PK into steps, it can basically be divided into three steps: Distributor Positioning → Product Screening → Brand Inspection. Taking French Adilac as an example, the three steps can be detailed as follows: First, distributors conduct self-positioning to accurately target the target population, determining their consumption habits, levels, and other consumption characteristics. Second, conduct preliminary product screening based on the characteristics of the consumer group. For example, when the consumer group belongs to the middle class, new middle class, and high-end consumer groups, they have stable spending power and higher demands for milk powder quality, safety, and formula nutrition. In that case, French Adilac formula milk powder should be one of the must-choose products for distributors. Third, conduct the final round of elimination based on brand and corporate strength. Strong corporate strength and national distribution capabilities will help distributors achieve twice the result with half the effort on the road to development. Taking Adilac as an example again, as a global dairy giant and a leader in European milk powder production technology, French Adilac's parent company, Sodiaal Group, has long been renowned internationally. It owns 20,000 self-owned pastures and 72 factories in France, and has always advocated and practiced the product concept of "naturally nurturing life." As the only brand of Sodiaal Group, French Adilac is an important strategic move for the group's transformation into a brand output enterprise. Adilac can be said to be the "favorite" of the group, possessing the group's advantageous resources in various sectors. Currently, French Adilac cooperates with Aili (Dalian) Investment Co., Ltd. to exclusively operate the Adilac brand. Aili (Dalian) Investment Co., Ltd. is precisely the "combination" of CIT and the original Bailile operation team, which has a strong channel operation team and resources for the milk powder category. It can be said that such an Adilac is a "sharp weapon" for distributors to open up market situations and is the best choice for distributors to improve their product architecture. At present, the new milk powder policy continues to exert its power, and more than 2,000 formula milk powder brands have faded out of the market. The era of fierce competition among many players in the formula milk powder market will eventually end. What distributors will face next is a high-quality and healthy market composed of excellent milk powder brands like Adilac. For distributors, this is both a challenge and an opportunity! -END-