Market oversupply, channel diversification, and fragmentation are intensifying competition in the front-line market. Against this backdrop, a group of distributors rooted in county markets are quietly growing, breaking through in niche tracks through precise product selection and deep channel operations.
Li Yun (pseudonym), head of Yunsheng Department Store in Shangcai County, Zhumadian, Henan, is a standout. Leveraging core brands such as Mingren Soda Water and Maopu Liquor, she achieved counter-trend growth in a fiercely competitive stock market, becoming a benchmark among local FMCG distributors. Her company now covers over 2,000 offline outlets, with Mingren Soda Water sales soaring from 500 to 160,000 cases, demonstrating strong market expansion capability.
This article shares her business growth journey, hoping to provide insights for fellow distributors.
From Restaurant Owner to FMCG Distributor: A Remarkable Pivot
In 2007, Li Yun and her husband, who had been running a restaurant business in Guangzhou, decided to return to their hometown in Henan to start anew, as their child needed to attend middle school there.
With a keen insight into the beverage needs of the restaurant industry, they noticed the rising beer consumption in the southern market and planned to capitalize on this trend in their hometown.
Thus, they initially chose the beer business. Without experience, they thought simply delivering goods would suffice, but soon realized it wasn't that easy.
At that time, the beer brand they represented had sales staff visiting only two days a month, providing basic route planning guidance. Market development was largely a trial-and-error process for them.
"Back then, we were busy almost around the clock, waking up at 8 a.m. and not finishing until after midnight, with no breaks in between. It was truly exhausting," Li Yun recalled.
In the winter of 2008, as beer sales entered the off-season, Li Yun began seeking new categories to fill the market gap.
"When we first encountered soda water, we didn't understand the category or the Mingren brand," Li Yun admitted.
However, during market research in Zhengzhou and Central China, she saw Mingren Soda Water and was impressed by its clean, simple packaging and unique logo design. Compared to competitors, Mingren's soda water tasted fresher and had no aftertaste upon opening, which delighted her. She decided to contact the manufacturer.
What surprised them even more was the sincerity and trust shown by Mingren's manufacturer, unlike other brands.
Unlike other beverage manufacturers at the time, Mingren did not impose high thresholds or cumbersome conditions for agency. In an industry where "cash on delivery" or "payment before delivery" was common, Mingren directly delivered 500 cases of goods with an agreement to "pay after selling." This rare trust and support in the FMCG market greatly motivated Li Yun.
Leveraging the restaurant channels covered by the beer business, the 500 cases were distributed within days. Due to the product's quality, repeat purchases quickly followed, solidifying her confidence in the partnership.
Since then, Yunsheng Department Store has maintained a partnership with Mingren Soda Water for over a decade.
Minimalist Category, Ultimate Service: Driving Rapid Growth
In December 2008, Li Yun officially became an agent for Mingren Soda Water. Six months later, she decisively gave up the beer business to focus entirely on the soda water market.
Clear division of labor and well-defined responsibilities are key to ensuring smooth company operations. Especially in county markets, product sell-through hinges on personnel efficiency: "To distribute goods widely, you need people to provide hands-on service to terminals."
Li Yun quickly assembled a three-person marketing team: one responsible for township markets and two for the county town. Unlike traditional "sit-back" merchants, she took the initiative, leading her team to deliver goods to terminal stores. She and her husband personally led the team, working alongside salespeople and teaching them how to visit stores.
After 2009, thanks to Li Yun's sincerity and hard work, as well as Mingren Soda Water's influence, the company gradually got on track. But business is never smooth sailing; with success came competition. In 2012, malicious low-price competition from peers posed a huge challenge, causing sales to decline and making the path forward difficult. Should they continue?
Despite having taken on brands like Zhujiang Beer, Wanglaoji, and C'estbon, Li Yun firmly said, "I earned my first pot of gold with Mingren; I don't want to give up!"
Persistence eventually paid off. In 2013, Li Yun became an agent for Maopu Liquor and promoted the concept of "one sip of liquor, one sip of soda water" to terminal store owners, using tastings to promote the products. This not only successfully introduced Maopu Liquor to the market but also drove rapid growth for Mingren Soda Water.
During this period, she was deeply impressed by Mingren's business managers, who visited the market once or twice a month. They proactively understood the distributor's difficulties and provided professional guidance on channel layout, inventory management, and promotional strategies, laying a solid foundation for future growth.
After 2013, the company's soda water sales increased year by year, reaching 110,000 cases in 2022 and 160,000 cases in 2024, a 45% surge in just two years.
Today, Yunsheng Department Store focuses on soda water and liquor, insisting on dedicated teams for each category without mixing roles. She explained, "The distribution methods for beverages and liquor are completely different. Water sells quickly, while liquor requires longer customer communication. We want our teams to serve customers with targeted strategies, deepening each category."
Deepening Channel Networks to Help Terminal Stores Do Business
A distributor's business is not just about delivering goods; it's about building a service system centered on terminal needs—not only getting products into more stores but also helping stores sell them!
Yunsheng Department Store approaches this from three aspects to build a robust channel network and boost terminal sales.
First, maintain old customers and strengthen relationships.
Among its 2,000+ offline outlets, Yunsheng has over 100 core stores. Every month, Li Yun organizes four tasting events, inviting terminal store owners to discuss market trends, product information, and consumer insights.
Additionally, she proactively assists stores in planning banquet events. This deep interaction significantly boosts terminal sales performance and increases trust and loyalty among store owners.
As a result, core stores maintain stable repurchase rates, and new product launches are smoother, with faster shelf placement.
Second, expand new channels and develop specific markets.
While consolidating existing channel advantages, Yunsheng actively expands into high-traffic special channels, targeting chess and card rooms, billiard halls, hotels, and internet cafes, building an omnichannel sales network through precise penetration.
For special channels, they set clear sales strategies and phased goals for salespeople, such as "start with 10 or 20 cases, then gradually break through," while optimizing display methods for different scenarios to increase product visibility.
Third, integrate beverages and liquor through scenario-based marketing.
In 2015, Mingren proposed the scenario marketing strategy of "Drink Mingren before and after alcohol," providing distributors with special training subsidies and terminal material support. Li Yun actively responded by deeply bundling Mingren Soda Water with the liquor brands she represented, encouraging core terminals to launch "buy liquor, get water" promotions, achieving shared customer bases and synchronized sell-through for both categories.
In a competitive market, mere transactional relationships are insufficient for long-term growth. Only by establishing deeper symbiotic relationships with terminals can one truly earn market trust and loyalty.
Yunsheng's partnership with Mingren exemplifies this, supported by Mingren's philosophy of "manufacturer-distributor integration, mutual benefit and win-win," ensuring long-term cooperation.
Manufacturer-Distributor Symbiosis: From "Trust Contract" to "Community of Shared Destiny"
Choosing the right brand is the starting point, deep channel cultivation is the foundation, and manufacturer-distributor collaboration is the key to accelerating growth.
Mingren consistently adheres to a "distributor-centric" approach, upholding the philosophy of "symbiosis, win-win, and co-prosperity," committed to building a "community of shared destiny" with distributors, treating them as business partners rather than mere collaborators, ensuring they feel respected and supported.
Reflecting on the 17-year partnership with Mingren, Li Yun said, "Having been a distributor for 18 years, I've represented many brands and given up many, but Mingren has always been my first choice, and it will remain so in the future."
On one hand, Mingren's products are always trustworthy.
Amid numerous brands entering the soda water market, Mingren Soda Water has consistently ranked as the domestic sales champion due to its superior quality, proving its competitiveness and market recognition.
For younger consumers, Mingren has successfully built the brand perception of "Mingren = Soda Water" through product innovation, consumption scenario creation, and social media communication. This strong market appeal brings distributors a steady stream of business opportunities and provides stable market support.
On the other hand, Mingren always prioritizes protecting distributor interests.
For example, to address the common issue of cross-region selling, Mingren has established strict control mechanisms to ensure price system stability, helping distributors avoid market uncertainties. They also regularly handle expired or near-expiry products properly, ensuring distributors don't bear excessive risks.
Additionally, Mingren regularly invites expert teachers for distributor training. When other brands were still unclear about scenario marketing, Mingren invited Liu Chunxiong, a professor at Zhengzhou University and deputy director of the Scenario Marketing Research Institute, to conduct training for distributors, positioning Mingren at the forefront of scenario marketing and helping distributors seize market opportunities early.
In today's complex and ever-changing market environment, FMCG distributors must be cautious in selecting products and even more so in selecting brands. Only brands that truly value distributors and stand with them can be long-term stable business partners, enabling mutual growth and development in a complex market!