Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to jointly explore the path of Internet transformation for the FMCG industry. In 2016, the state advocated "Mass Entrepreneurship and Innovation" and introduced many favorable policies to promote entrepreneurial development. Various industries have shown strong growth momentum, with light-asset operating models such as internet and micro-commerce emerging one after another. Today, I want to focus on how early-stage FMCG distributors can walk steadily and well under the macro favorable policies.
Sources of FMCG Distributors Analyzing the current situation, there are generally three types of people who become distributors: First, manufacturer sales personnel transitioning to become distributors. Their advantage is that they can understand and empathize with manufacturers, seize manufacturer needs to obtain resource support, and have a wide network of friends and certain information sources. The disadvantage is that they need to quickly adjust their mindset; previously they were mainly assessed on performance, but now they need strong cost awareness and improved comprehensive operational income and expenditure management. Second, those who previously worked as delivery personnel at established distributors. This group generally believes that their original boss earned a lot and wants to start their own business to earn more income. Their advantage is that they have familiar customer relationships in downstream sales channels and strong execution. Disadvantages: weak ability in overall planning and operational management, lack of methods in managing personnel, customers, warehouses, cash, etc., and inability to fully understand manufacturers' strategic approaches. Third, those transitioning from other industries. They generally believe that the FMCG industry is not saturated and that people need to consume daily. Their advantage is that they have certain funds and are bold in thinking and acting. The disadvantage is that they do not understand the industry, often adopt methods from others, and may rely more on trial-and-error management.
Initial Practices for New Distributors Practices are as follows: Regardless of which aspect they transition from to become FMCG distributors, they are all smart people with ideas. There are two aspects to grasp in this industry: The first is hardware: delivery vehicles, warehouses, funds, etc. The second is software: that is, the connection work of the upper, middle, and lower levels: the upper level is communication and negotiation with upstream manufacturers, the middle level is mainly management, and the lower level is the construction of downstream channel sales. As for how to deal with the upper level, according to the analysis of hardware facilities, you can choose products from small and medium-sized manufacturers to operate (large manufacturers are not easy to cooperate with), and find three products to position. Do not define solely by sales volume, but focus on profit. At this time, it is not a matter of development, but how to solve the problem of survival. Therefore, you must seriously put profit first. For the lower channels, do not seek large and comprehensive coverage, but be precise and accurate. Generally, there are five major sales channels in a region: KA, circulation, group buying, OTC, and special channels (schools, internet cafes, restaurants, hotels, KTV, etc.). When acting as an agent for products of small and medium-sized enterprises, the initial channel introduction should focus on actual sell-through, not on image display. Small and medium-sized enterprises generally give fees based on sales volume, while large enterprises have assessment requirements for image building. For example, if you act as an agent for instant noodles with dry-eating noodles as the entry point, choose special channels (schools, internet cafes) as the key breakthrough. You can follow the fifteen-character policy: "Grasp special channels, continue publicity, do terminal work, activate second-tier distributors, and hold ordering meetings." Schools gather thousands or even tens of thousands of concentrated people. When doing publicity and purchase-gift activities, there will be quick sell-through and returns, and the invested funds are relatively concentrated with obvious effects. At the same time, after establishing a "base" market, you can see the product's strength and also have a stable rear channel for yourself. Even if some slow-moving products appear after large-area distribution, they can be handled to maintain a controllable situation. During operation, you must have cost awareness. Investment is not scary; what is scary is investing without knowing whether there will be returns. Investing in channels with sell-through is the best approach.
Regularly Conduct Product and Consumer Interaction Activities Explanation is as follows: In a market with homogeneous and abundant products, you must clearly know that distribution rate ≠ sell-through rate, and sell-through rate ≠ reorder rate. Therefore, according to the attributes of the products you represent, persist in conducting ground promotion activities, i.e., tasting and purchase-gift activities. You can set aside time each month to conduct eight activities, choosing Saturdays and Sundays. You can choose to carry them out in places where the target consumer group lives or plays. Do not blindly push product sales to channel customers, but continuously work on consumer purchases. Let consumers know, recognize, and approve your products, and purchase from channels to drive product sales. This work must be persisted for at least three months before there is a response in the channels, because products of small and medium-sized enterprises have weak appeal, and tasting and purchase-gift activities will have better effects.
Be Psychologically Prepared for Hardship Preparation is as follows: Entrepreneurship is a process that looks glamorous on the surface but requires tremendous internal effort. Planning, decision-making, and execution bear all consequences. Because you cannot afford to hire people for those positions, you must face it yourself. Do not think it is easy. Every choice determines the next step. In terms of mindset, you must know that it takes half a year to see benefits, one year to achieve small success, and three years to accomplish something. You must not engage in gambling behavior.
Consider and Care About Family Feelings Preparation is as follows: Entrepreneurship is not something that happens overnight. Before starting a business, you must consider the family's tolerance. Entrepreneurship is for a better quality of life, not to make you reckless and ignore your family.
Finally, suggestions for entrepreneurial distributors:
- Do things according to how much money you have.
- Do not seek large and comprehensive, but be stable and precise.
- Be able to accept temporary failure.
- Entrepreneurship is a kind of life, not a revolution.
- Only by surviving can you talk about development and planning.
I hope these suggestions are helpful to entrepreneurs. The development process has three periods: The first period is doing everything, even if it means channel crossing or dumping goods, to ensure survival; the second period is doing some things and not others, choosing matching products to operate, looking a bit further; the third period is not doing some things but must do others, needing to understand giving up, seizing trend products, and then you can move up a step.
New Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels should change under the general trend of Internet + transformation
Conference Agenda 09:00-09:30 Registration 09:30-09:35 Host opening 09:35-10:05 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 10:05-10:25 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:25-10:45 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Field 365 10:45-11:25 Alibaba Retail Link All-round Empowerment - Guo Kunkun, Alibaba Retail Link 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? (Guests to be confirmed) 12:00-13:30 Lunch 13:30-14:00 Distributor Transformation: City Distribution Trend Development - Wang Qi, CEO of Weijie City Distribution 14:00-14:30 Roundtable Forum - Why Should Distributors Do Logistics in Transformation? 14:30-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:30 Detailed Explanation of Zhanghe Cloud Factory Strategy - Yang Lixiang, Zhanghe Tianxia (Speech content to be confirmed) 15:30-16:00 Supply Chain Finance is the Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 16:00-16:30 2B Investment Principles and Ideas - Xu Xiaoping, Founder of ZhenFund (Guest to be confirmed) 16:30-17:00 Small Retail, Big Business Opportunities: Transformation and Upgrading of China's Retail - Wang Jianfeng, General Manager of E-commerce Division, Yurun Group 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models? (Guests to be confirmed) 18:00-20:00 Dinner For manufacturer and distributor friends who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register.
Registration Method: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]