When FMCG distributors operate in regional markets, the two annual ordering conferences are particularly important. These are usually held before Mid-Autumn Festival and before Spring Festival, with the year-end conference before Spring Festival being the most critical. A single Spring Festival ordering conference can collect advance payments that account for over 30% of annual sales. So how should distributors run their year-end Spring Festival ordering conference to achieve good results?

The author has compiled experience from organizing multiple ordering conferences for Huiyuan Juice and Prince Milk to form this article, providing reference for manufacturers and distributors in the industry to avoid detours and not waste our year of hard work.

1. Why Do We Hold Ordering Conferences?

We have summarized the following benefits of holding ordering conferences:

1. Boost Customer Relations – For local terminal retail store owners, the distributor's year-end dinner invitation is essential. The larger the sales volume of the terminal retail store, the more important it is to personally invite them, thanking them for a year of pleasant cooperation, achieving a win-win situation, and ensuring better cooperation in the coming year.

2. Collect Advance Payments – At this time of the ordering conference, manufacturers typically allocate a certain amount of market expenses, which are not usually available at other times. So manufacturers and distributors jointly provide support to collect payments first. After collecting, the distributor transfers the funds to the manufacturer, usually with a 5-10% rebate for payment.

3. Increase Stock Pressure – After collecting payments, the manufacturer ships goods to the distributor's warehouse, and the distributor pushes goods to terminal stores. Terminal stores have limited space, so they pile goods at the entrance and inside the store, creating a "mountain of goods" effect. Consumers see the large stock and buy more due to herd mentality. Thus, more stock pressure leads to more sales.

4. Lay Foundation for Next Year – After the ordering conference, the distributor's customer relations are established, laying the foundation for the next year's pre-Mid-Autumn ordering conference or the March new product ordering conference, ensuring next year's sales performance.

In summary, the Spring Festival ordering conference has many benefits, so FMCG companies should encourage distributors in various regions to hold such conferences at this time. Even if it requires more support, the conference should be run well.

2. Common Forms of Ordering Conferences

1. Traditional Ordering Conference:

What is a traditional ordering conference? It refers to the common form: sending invitations to terminal stores in the area, holding the event at a local hotel on a specific date, setting up booths for main products (not exclusive to one brand), and building a few display stacks.

Typically from 10:00 AM to 12:30 PM, policies are announced, advance payments are collected, and receipts with lottery tickets are issued.

After 12:30 PM, the banquet begins, with drinking and prize draws, sometimes accompanied by entertainment performances, making the event lively and harmonious. It ends around 2-3 PM.

This type of conference is usually hosted by the local distributor, who applies for meeting expenses and support policies from the manufacturers of different brands they represent. The prerequisite for a successful conference is a large number of terminal retail store owners attending! Of course, this also requires the hosting distributor to be a direct-to-terminal retailer (a "traveling merchant").

So, this type of conference usually attracts many retail terminals, with banquets of 30 tables or more, so the venue is typically a hotel with a large banquet hall.

2. Key Distributor Roundtable Meeting:

Key distributor roundtable meetings are generally held under two circumstances:

First: The local distributor is a "sitting merchant" who does not deliver directly to terminal retail stores but recruits second-level distributors (i.e., sub-distributors) in various townships to distribute goods.

Second: The local area is large, and the distributor cannot serve all retail terminals directly, so they use township-level or other channel distributors to control terminals, meaning they serve only some retail terminals.

Because distributor policies differ from retail terminal policies, the local distributor usually invites major distributors and KA (Key Accounts) to a roundtable meeting, i.e., a banquet. Policies are not explained separately; products are ordered through drinking and dining.

This roundtable meeting is usually held in a high-end private room, with no more than two tables, mainly to strengthen customer relations.

3. Large-Scale Joint Ordering Conference (Annual Meeting) by Manufacturer and Distributor:

This refers to large FMCG companies with many product varieties that co-host a dedicated ordering conference with local distributors. The distributor is responsible for inviting customers, and costs are usually borne by the local distributor upfront, though sometimes the manufacturer's local office takes the lead.

This type of conference is usually high-end with strong support. During the meeting, agreements for display and advertising are signed with large local retail terminals (local KA/B).

The conference also requires the local distributor's annual sales to rank within the top 100 among all the company's distributors, as it is a key market development.

4. Policy Flyer Meeting (Non-Banquet):

This type of policy flyer meeting is usually used near holidays, targeting a single brand with specific policies. It is not about treating customers to a meal; the main purpose is to provide policies to terminal retail stores. The distributor prints policy flyers, which are distributed by route sales representatives directly to terminal retail stores. The flyers specify products, order tiers, and payment deadlines.

3. How to Run a Good Ordering Conference?

The author has organized over 50 ordering conferences in a single year. Based on past experience, I believe the following five points are key to running a successful ordering conference:

1. Many Guests – Invite as many guests as possible. The more people, the stronger the atmosphere.

2. Strong Support – This refers to products suitable for holiday sales, such as gift boxes, carry bags, and whole-box purchases. These should not only be placed prominently as main products but also have very strong support to encourage terminal retail stores to order enthusiastically.

3. Lively Atmosphere – It's best to have some small games interspersed in the ordering process. Terminal store owners should have food, drink, and laughter, and order goods in the process. For example, prize draws with prizes displayed on site to enhance the atmosphere. During the meal and ordering, there should be entertainment like singing and dancing that appeals to all tastes.

4. Have "Shills" – Arrange some terminal store owners to lead the ordering before the event. The herd mentality of Chinese people will then cause others to rush to order. At the same time, the host should constantly announce orders and explain policies.

5. Manufacturer Support – Relying solely on the distributor's efforts is not enough. If the manufacturer can support part of the meal costs, provide some market expenses, and combine with the distributor's own support, the ordering conference can be held. Additionally, inviting leaders from related companies to attend and speak on the day will elevate the conference's status.

The author believes that regional distributors all know the Spring Festival ordering conference is crucial, but running it well is not easy. Comprehensive planning is needed, with the goal of making terminal retail store owners order enthusiastically, happily, and eagerly. Only then is the ordering conference successful.

This article is the author's personal opinion, and peers are welcome to correct it.

Introduction: Hu Wei, from Jiujiang, now lives in Beijing. Graduated from Nanjing University of Finance and Economics. A practical FMCG marketing expert with 15 years of experience in the FMCG industry. He has held positions including Product Director at Huiyuan Juice Group, General Manager of Guangdong Region, Marketing Director at Hunan Prince Milk Group, Marketing Director of Northern Region, Marketing General Manager at Jiangxi Gaozheng Group, and Deputy Marketing Manager at Duoduo Runer Company. He specializes in differentiated marketing for food and beverages, channel incentives, and breaking into regional markets.

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