Today, whether we are in a retail store or dining out, we notice the biggest difference from ten years ago: sales assistants have almost disappeared. When we choose products or dine out, few people introduce or recommend products to us, or offer samples or free drinks. Why did the sales assistant model come about? Where did they go, and why did they disappear? After the sales assistant model, what else can brands do when facing customers? 01 Sales Assistants Were the Main Force in the Era of Terminal Interception Ten years ago, China's FMCG industry had at least one million sales assistants, mainly women. Why did this million-strong sales assistant army come into being? As we have said, the main innovation in Chinese marketing over the past thirty years has been in channel model innovation, with brands continuously moving down the channel to get closer to customers. We have experienced multiple eras of moving down, such as "channel is king," "rise of KA," and "terminal wins." The ultimate form of channel down-movement was stationing sales assistants at the terminal level to intercept customers. In the era of "terminal wins," sales assistants were the absolute main force. Every leading brand had thousands or even tens of thousands of sales assistants deployed in retail stores and key restaurants across major cities. Their functions were very clear: "sales assistant" means "guide purchase"; some brands called them "promoters" to "promote sales"; others called them "promoters" for "product promotion." Regardless of the name, the core goal of sales assistants was the same: to introduce product features or discounts to customers, possibly offering samples or tastings, and ultimately drive purchase conversion for new and existing products. Although the cost of a human wave strategy was extremely high, in the era of terminal interception, the power of sales assistants was strong. Countless Chinese companies grew rapidly through "terminal interception," even defeating foreign brands in the same category; many already excellent brands increased their share and consolidated their market position through "terminal interception"; and countless new products successfully launched this way. Why were sales assistants so effective? Although they were hired by brands, they indeed provided unique value in that era. First, they truly created value for customers. In the past, when information was not well-developed, customers could not be consumption experts. They indeed needed information from sales assistants who were more familiar with and knowledgeable about products to make purchase decisions. At the same time, many customers were unfamiliar with store layouts, where products were placed, what promotions were available, and what content was offered, so they needed someone to guide and introduce them. Second, they saved costs for terminal stores. Brand sales assistants not only had to complete brand tasks but also helped with store work. They proactively cleaned, organized shelves, greeted or responded to customers, and did other tasks without the store owner having to pay them. Why wouldn't terminal owners welcome that? These factors, combined with the characteristics of the era and competitive pressures among brands, ultimately created a brilliant "terminal interception" era with a million-strong sales assistant army. 02 Why Have Sales Assistants Disappeared Today? Everything that rises with an era will also fade as the era passes. The emergence and prosperity of sales assistants were due to the market competition needs of the industrial era; their disappearance is due to the evolution and transition from the industrial era to the information era. From the customer perspective, customers increasingly do not need the product information services of sales assistants. Whether in retail or dining, with the baptism of mobile internet information, customers can obtain information so easily that they no longer need sales assistants to introduce products. On the contrary, the information introduction by sales assistants is increasingly resented and resisted by the younger generation of customers. Today's customers feel "disturbed" or "offended" by any passively received information when they have not actively sought it out. Of course, customers still have service needs at the terminal, but they can shrewdly distinguish between store staff and brand sales assistants who "carry their own agenda." Therefore, the first core reason for the disappearance of sales assistants is that "customers no longer need them." The second major reason is that today's sales assistants may no longer contribute to the interests of terminal store owners but rather harm them. Brand-stationed sales assistants save some labor costs for stores in terms of service. However, the sales tactics of sales assistants are causing increasing customer complaints. Terminal owners know the trade-off between saving a little labor and potentially losing customers. Especially in retail stores, the presence of sales assistants may harm the store's profit structure. In developed countries' retail stores, product gross margin is the only source of profit, so the principle of product display is generally to place the store's private label next to major brands. How much a store earns depends entirely on sales volume and sales structure. In the past, Chinese retail stores mainly profited from "entry fees, slotting fees, display fees, festival fees, promotion fees" and other "rent-like" models, which were not directly related to product sales volume or structure. But today, complex back-end fees are increasingly difficult to collect, and stores must rely on sales volume and structure to make money. Especially, sales structure is more important, and in the future, this will align with developed countries. But today, small brands cannot afford to send sales assistants; only large brands have the strength. If a store's sales mainly come from low-margin large brands, and high-margin small or private label brands are ignored, can the store survive? Given these reasons, if sales assistants still exist today, they are likely to provoke customer resentment and terminal resistance. Will the effect be good? With high operating costs and declining sales results, will brands still choose the sales assistant model? In the past, sales assistants provided information services, saved terminal costs, and increased manufacturer sales, so they deserved to exist. Today, the sales assistant model interferes with customers' normal decision-making and harms store interests, so it should be relegated to history. All of us in FMCG marketing should say: goodbye, sales assistant era. 03 After the Disappearance of Sales Assistants, What Can Brands Still Do at the Terminal? Each era has its own theme song; it changes but never falls silent. The era of terminal interception is over, and the sales assistant model has failed, but brand marketing at the terminal will only evolve and innovate, not give up or withdraw. Famous marketing expert Mr. Liu Chunxiong recently proposed in a dialogue: Today's terminal marketing should completely and thoroughly abandon the sales assistant model aimed at "direct sales"; instead, establish a terminal team of "brand experience officers" centered on "brand promotion." Another company CEO succinctly summarized this as: brands should use core terminal scenarios as their base, and through a series of "warm promotion" methods such as "creating atmosphere," achieve the effect of deeply embedding the brand in people's minds. This is a major shift in terminal marketing, with the center still revolving around customers while also meeting the core interests of the terminal. What do customers hate? They hate being sold to; what do they like? They like to join in the fun. Anything novel, fun, or visually appealing can attract their attention and gather a crowd. What do terminal owners fear? They fear losing customers and having customers not return due to poor experience; what do they like? They like thriving foot traffic and a full house. Therefore, brand marketing should plan and implement terminal activities that customers enjoy and are willing to participate in, embedding brand and product information into customers' minds in a subtle, non-intrusive way, thereby satisfying the interests of customers, terminals, and brands simultaneously. Some excellent brands are already exploring and practicing new terminal marketing models with good results. In 2019, China Resources Snow Breweries was the first in its category to propose a clear "decisive battle for high-end" strategy. As an important support for the high-end strategy, China Resources Snow established a "flying team" of ten thousand people at terminals across markets nationwide. Image source: 2022 North China Second Battalion WeChat Official Account Snow Beer's "flying team" is the "brand experience officer" team that Mr. Liu Chunxiong mentioned. The core operation of the "flying team" is: in a touring manner, within the region, at core restaurant positions where main products are promoted, carry out a variety of brand promotion and experience activities centered on customers. First, as the name suggests, the "flying team" activities are not fixed at one terminal but tour within the region. Wherever the "flying team" flies, it brings brand activities. Second, the "flying team" task is not sales but creating scenes, atmosphere, and momentum at the terminal. The purpose is not to bluntly promote products but to create in-store activities and interactive games that customers are willing to participate in and actively engage with. Third, every activity of the "flying team" is carefully planned and executed. The team members' image, temperament, costumes, props, game formats, and activity content all align with the brand image and positioning, full of quality and sophistication. In key details, brand and product elements are embedded to achieve a subtle effect. For example, some regions recruit Hanfu enthusiasts to join, using beautiful Hanfu shows to attract customer attention and participation, promoting national-style concept products; some regions hold dart-throwing games in stores to attract customers to compete and win beer; others perform flash mob dances at the store entrance, instantly drawing huge attention and foot traffic to the terminal... and so on. In the past, sales assistants bluntly recommended products, even giving away products, which might not be well-received. Now, integrating products into interactive activities has a world of difference in effect. Mr. Liu Chunxiong believes: whoever can successfully establish a terminal team centered on "promotion" will win in the current terminal era. The terminal era of the million-strong FMCG sales assistant army is over, but a new terminal era with new forms, new content, and new tasks has begun.
Brand Marketing · Distribution & Channels
Goodbye, Million Sales Assistants
Today, whether in retail stores or restaurants, the most noticeable difference from a decade ago is the near disappearance of sales assistants. This article explores why the sales assistant model emerged, why it has vanished, and what brands can do at the point of sale in its wake.
