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Method 1: Increase sales by helping stores organize their displays.
Generally, BC-class stores are often located near farmers' markets. The owners typically lack professional knowledge and are mostly family members. As a result, management is often informal, staff quality is low, and product displays are messy, with no clear procedures or standards for product selection. Store management elements are unclear and not properly implemented. Given this, when we propose to the owner to organize the displays, they usually welcome the idea, and the staff are also relieved. Of course, some staff or supervisors may object, mainly fearing that we might mess up other displays and create extra work for them. Therefore, explaining, asking for permission, and giving assurances beforehand are essential. We generally follow these steps to organize displays:
Step 1: After obtaining the owner's and staff's consent, we first draw a product display plan on paper to show them. We explain the purpose, intent, and rationale behind the display, and ask if they have any better suggestions. Usually, they won't have many opinions because they are not professionals and don't know what a good display looks like. So, as long as we get their approval on paper, the rest is easier. Also, it's important to explain while drawing why we arrange it this way and what benefits it brings, and ask them not to change the display frequently. This approach not only serves them but also serves our own brand.
Step 2: Many of us only consider our own products when organizing displays. In fact, we should think from the store's perspective, considering what methods can generate more sales for the store, what kind of display can attract customers first, and what is the optimal display. Therefore, the display doesn't have to strictly follow our company's requirements; it should have a clear purpose. It's not about displaying for the sake of displaying or for aesthetics, but to sell better, faster, and more. Also, never place other products under our own, as this can seriously damage the store manager's view of you and your company. They may see you as selfish and not considerate of the store's perspective, making you unwelcome. Worse, you might lose the chance to organize displays in that store again. So, it's crucial to have a clear purpose and be mindful of these details.
Step 3: When organizing displays, highlight your main promoted brands and products. Besides tidying up the basic shelf space, focus on the month's and company's key brands and items. Whether it's shelf space or end caps, the worst is a display without focus. Many suppliers or distributors handle multiple brands, sometimes dozens of brands and hundreds of SKUs, but without a clear product promotion plan for sales reps, they tend to just make the display look good and full, neglecting the company's key products. So, we advocate that key brands and products must be placed in prime positions and given expanded display space.
Step 4: Bring sales aids when organizing displays. Sales aids are meant to help sell. I often see sales reps organizing displays empty-handed, just casually placing products, checking price tags, and wiping products. That's far from enough. We need to attach attractive promotional materials. New product launches often require trial use, tasting, or sampling. If you don't bring samples, it's hard to promote. In many BC-class stores, even end caps lack price tags, so you might need to write a special price tag yourself. According to surveys, proper use of sales aids can increase sales by over 20%.
Step 5: After organizing the display, don't forget to invite the staff or managers to "inspect" it. The purpose is not really for them to check, but to make the staff satisfied and managers reassured, respecting their opinions and encouraging them to speak well of you. Many don't understand why to invite inspection, thinking it might have negative effects. Actually, it's the opposite; proactively inviting inspection is a strategy.
Step 6: Through organizing displays, we can quickly see the shelf and warehouse inventory levels. Then, we can inform the buyer or owner about the replenishment items and quantities. Usually, this replenishment process goes smoothly. Conversely, if you don't know the inventory on shelves and in the warehouse, when you ask for replenishment, they may think you're not serious or not considerate, and often you won't get approval, or worse, your delivery might be returned.
Step 7: Finally, organizing displays helps us identify sales opportunities. The purpose of sales is to constantly seek opportunities in fierce competition. After the display, you'll see which products sell best, which are most competitive, and what price is suitable for your products. You'll also see what products are missing in the store and which categories are most suitable. You can learn about promotional methods, whether to place a sales guide, consumer groups, and habits—all through organizing displays.
After completing the display, the next step is to maintain the current display effect and continue optimizing. So, how to effectively consolidate the display effect? And how to counter competitors who mess up your display?
Method 2: Build good relationships with store personnel.
Some say that in China, sales is all about relationships; if you handle relationships well, sales will naturally follow. Nowadays, more and more companies value customer relationships and treat building and maintaining them as a key marketing task. But in practice, many sales reps don't know how to do this well, thinking it's just about giving gifts, treating to meals, or entertaining at KTV. That's not entirely wrong, but it's incomplete.
In reality, true customer relationships should be built on professionalism, which in turn is based on respecting the customer. It's maintained through professional sales skills, management knowledge, and a professional attitude. We know that customers' eternal concerns are benefits and value. So, it's necessary to make customers feel that you are serious, dedicated, and professional, that you are better than them in business or management, and that you can teach them methods to improve their business and help them break through in sales and profits. Only then will customers respect you, trust you, cooperate with you, and follow your "commands," because all relationships are based on commercial interests.
Of course, good relationships don't guarantee sales performance, but they are a good lubricant for achieving it. They greatly help boost sales and are the best guarantee for maintaining product displays and selling in products. Statistics show that good relationships can increase sales by over 29%. KA and A-class stores need relationship building, but BC-class small stores need it even more. For BC-class stores, without good relationships, you may not be able to talk about sales, sell in products, discuss displays, run promotions, or even get paid. In short, without good relationships, everything you say may be empty talk, and everything you do may be in vain.
Since relationships are so important for BC-class stores, where should we start? I believe we should focus on the following categories:
First, build a good relationship with the owner.
In most BC-class stores, the owner has the final say. Whether it's buying products, negotiating entry fees, discussing promotional items, or settling accounts, the owner usually makes the decision or at least approves it. So, building a good relationship with the owner is essential. BC-class store owners are generally not highly educated but are entrepreneurial and hardworking. They started business early, and though they may not have read many books, they have traveled widely and met many people. So, they are experienced. If you try to trick them with clever tactics, it's like "wielding an axe at Lu Ban's door" (showing off in front of an expert). Therefore, the only way to deal with them is to move them with your dedication and impress them with your professional methods. I often visit these owners with my managers, and I hear them say, "Your boss personally visits the front line—rare!" When they see me directly organizing displays, they are even more moved. The purpose is to make them see our company as dedicated and to show our subordinates that we must pay attention to details that can move store owners. So, I always ask my managers to teach these owners how to select products, manage categories, do displays, and run promotions—these are management and profitability issues. In fact, management and profit models are the most interesting topics for owners. If you can teach them these methods, they will be very satisfied and enthusiastic towards you.
Second, build a good relationship with the buyer or store manager.
In BC-class stores, the store manager or buyer usually handles purchasing. It can be said that in small stores, the buyer or store manager has the power to decide which products are stocked and where they are placed. They can remove your products from the shelves or kick them out of the store, or they can boost your products to the top sales position, turning declining sales into rising ones. For example, they can place your products in the best positions, especially end caps, which are crucial in the era of volume sales. I think the best way to handle them is to "buy them off." They are employees and most need direct benefits—money. "Money makes the mare go." Link sales to rebates and give directly to the buyer. "He who receives money, relieves disaster" is an old saying and a wise one! This can bring unexpected rewards: the best display positions, features in flyers, product exchanges, constantly changing competitors' positions, and reducing their display space, making it hard for them to compete. Of course, besides money, you should also have meals with them, go to KTV, pat them on the shoulder, and "connect" emotionally.
Method 3: Match the right products to the right stores.
Choosing the right products is crucial for sales volume, especially for BC-class stores because they are small, have few shelves, and limited product categories, so the breadth and depth of products cannot satisfy most manufacturers. When I visit supermarkets, I often see suppliers who don't understand the consumer base in the store's trading area, leading to products being delisted or buried in the product pile shortly after entry. This wastes the manufacturer's entry resources, the store's shelf space, and consumers' time in choosing alternatives. Conversely, if you can select the right products for the right stores, it's beneficial for both suppliers and stores: suppliers save resources, and stores don't waste shelf space. Everyone gets what they need.
Large manufacturers usually require distributors to sell in all product items. In fact, the manufacturer's distribution guidance should only be a reference, not fully followed. Most manufacturers classify stores by size (KA, A, B, C, D) and require product sell-in accordingly, but few classify by the consumption characteristics of the resident population. In reality, each consumer group has common consumption traits. Only by selling in products based on these traits can we make the conversion from product to commodity more appropriate, faster, and more suitable for consumers, increasing turnover. Below is a summary of my experience in classifying products by consumer characteristics:
First, sell into residential community stores.
In residential communities, small stores mainly serve nearby residents, whose consumption is primarily family packs. For example, for laundry detergent, they usually choose large packages with a capacity of over one liter, rarely buying small 360ml packages. Another characteristic is that housewives are very price-sensitive, comparing even a dime. They often go out of their way to buy promotional items, waiting a week for a sale; they also don't mind visiting several stores to compare prices. So, price is a key factor. They often bring supermarket flyers for reference; other people's opinions also influence them. In short, they are afraid of buying wrong or missing out. Hong Kong's ParknShop and Wellcome chains often hold special promotions and gift-with-purchase events on Fridays and Saturdays, targeting housewives who love bargains, always focusing on family packs. Housewives tend to buy larger sizes, even if they don't really need them, and don't feel wasteful.
Second, sell into student/school stores.
It's widely recognized that the post-90s generation are trendsetters, advocates of independence and creativity, and enthusiasts of entertainment and self-expression. They have different growth environments, ways of thinking, life philosophies, and consumption traits. They spend generously, like trying new things, favor novelty, have distinct personalities, and are willing to spend ahead of their means. They are bolder and more willing to try. However, many think they focus on famous brands, but in my observation, they don't care about brands but about whether they like it; not about price but about suitability. For example, Tempo pocket tissues are very popular among students. They don't think a pack costing one yuan is expensive, nor do they consider saving money since they are students using their parents' money.
School stores are usually small with limited storage. So, as a supplier, you need to carefully decide which products to stock, such as small, exquisite, personalized, fashionable, or even romantic designs. If the school is far from the city or large supermarkets, students will buy daily necessities like plastic buckets, washbasins, toilet paper, shower gel, and slippers nearby. But small items like sanitary napkins, cosmetics, and hair accessories that can fit in a bag, they'll buy on weekends when they go to supermarkets. Durable items like clothes are rarely bought at school stores because they involve personal image and price.
Method 4: Special sales promotions.
BC-class stores can be strange. If you visit in the morning, you might be shocked: the store is so quiet, no customers, few staff, just two or three people tidying shelves and wiping products. You might think, "How can this store do well?" But such stores are not uncommon among BC-class stores, possibly over 70%. Many executives who haven't done grassroots sales might not know or understand this. They might even scold sales reps for not inspecting properly, thinking such stores aren't worth investing in. But they don't consider: don't these stores want to survive? Can they survive without business? The reality is that these stores don't sell all day; they have peak periods when they are extremely busy, while most of the time staff are just killing time, waiting for customers. But once customers come, it's like a swarm of bees—they are overwhelmed.
As sales reps, we must fully grasp each store's sales times and points. If you promote during these special times or points, you'll get twice the results with half the effort. Otherwise, you'll work hard but achieve little.
So, how to promote in these special stores?
First, special day promotions.
Every store has special days like festivals, anniversaries, and weekends (Friday, Saturday, Sunday) and national holidays. On holidays, people have time to browse and shop, and they feel more relaxed and willing to spend. Often, when people see others grabbing items, they also make impulse purchases, influenced by the environment. This is especially true for Chinese people, especially Chinese women. It's known that on holidays, people buy bigger rather than smaller. Because holidays are times for gatherings and family reunions, and Chinese people are used to eating and drinking heavily, being generous, and giving big gifts. So, family-pack gifts sell faster and more on holidays.
During holidays, children's products are also a hot spot. According to many mother-and-baby store owners, sales of mother-and-baby products increase by over 60% during holidays, especially toys, clothing, diapers, and wipes.
Special day promotions aim to quickly boost sales, create profits, attract customers, and build brand. On these days, we typically use methods like: limited-time and limited-quantity sales to give some consumers deals, creating a contrast that makes others feel regret and remember our brand; gift-with-purchase to satisfy bargain hunters; and "buy pork, get bones" to give consumers what they want, gaining brand recognition. Gifts with purchase are a common promotional tool. Special prices, points, personnel, and advertising are also common during holidays.
Second, special time period promotions.
I like to visit supermarkets, both day and night, whenever I have time, like a woman, watching salespeople sell and consumers buy. It's not a hobby but a professional need. In my visits, I noticed a strange phenomenon: during the day, there are many sales guides, but at night they seem to be off duty. Is it company policy, or haven't they realized that night is the best sales time for many stores? In fact, in BC-class stores in factory areas, the peak sales time is from 7 PM to 11 PM, because workers are free then. In school stores, noon and afternoon are peak times when students are relatively free. Mastering these peak times and promoting accordingly can double your results. So, the key to special time promotions is knowing each store's peak sales time, who the consumers are, their consumption traits, and their price range. Every sales rep must know this.
Third, special location promotions.
Choosing the right location and position for promotion is crucial. This includes which supermarket and where. If you don't have enough budget and resources to promote in all BC-class stores, you must carefully estimate your distribution, costs, materials, personnel, and cooperation with the store, and quickly decide which stores to promote in. After selecting the store, the most important thing is to choose the right spot: at the entrance or near the shelf; on the end cap or elsewhere? These are all considerations before promotion. For example, Foshan Jingxing's ABC sanitary wash is usually placed next to sanitary napkins because that's where women must go, easily attracting their attention. Conversely, if you place it in the cleaning products category, you might make a categorization error. In summary, special location promotions require attention to: first, who are the consumers of this product? Second, what is the foot traffic at this location? Third, is the promotion format strong enough to attract potential consumers' attention?
Fourth, special product promotions.
Not all products need promotion. The purpose of promotion should be clear for every company. So, which products need promotion? Usually, the following types: First, new products. New product launches are essential for every company because they may be image products, profit products, or "fighter" products to attack competitors. Second, star products. Star products need promotional tactics to fend off direct competition; blocking and setting barriers are necessary. Third, image products. Image products represent the company's highest iconic product, possibly a leader. Their success or failure can cause direct losses. However, promotional methods for these products should not be one-size-fits-all; they should vary by category. For example, image products usually don't use special prices but rather buy-gifts, gifts, or points.
Method 5: Concentrate resources to generate volume.
Everyone knows that 80% of sales come from 20% of stores/personnel/products—a recognized truth. But I ask: who truly implements this? I've been exploring how to generate volume in BC-class stores and have practiced and tested in my own stores. The conclusion is: only by concentrating all resources on certain stores for comprehensive breakthrough, blockade, and defense can we truly generate volume. Why?
BC-class stores generally don't have much space for our products. Typically, there are only 3 to 5 suppliers in the same industry and category, with each category having fewer than 200 SKUs, and each supplier can only have about 30 product positions. This means our competitors are these three or four suppliers, competing in a 300 to 3000 square meter supermarket. The result is either you die or I die, not the pleasant talk of win-win or multi-win—that's nonsense! Why is industry concentration increasing? Why are only a few brands left in supermarkets? Why are chain supermarkets becoming stronger? I don't need to explain; everyone understands. So, we must concentrate our forces to generate volume in certain stores, certain brands, and certain SKUs. Concentrated resources are power!
First, concentrate on increasing volume in certain stores.
I looked at a dairy company's store counts in Shenzhen, Guangzhou, and Foshan: 12,000, 15,300, and 7,600 respectively, but less than 30% generate volume. Why? According to sales managers, this less than 30% relies mainly on less than 10% of stores. These stores generate volume because their brands and products occupy over 80% of shelf space, floor stacks, and N-shelves, with multiple displays, sales guides, promotions, and better visual merchandising. Also, in terms of relationships, they have the upper hand; for example, for monthly activities, buyers first ask if they want to be on the flyer, do off-site events, or run points programs. In fact, if we analyze, the consumption of a certain product in a store is almost constant; it doesn't matter which brand is consumed. Who gets more or less is the fundamental question. My view is: "Better to be the king of a small country than a minister of a big country!" Here, "king of a small country" means in a certain store, our brand has a say, generating over 40% of volume, and covering over 80% of the same category. Many may question if such monopoly is possible, but in BC-class stores, through relationships, activities, service, and long-term purchase of end caps and N-shelves, these goals are achievable.
Second, concentrate on increasing volume in certain brands.
Nowadays, distributors rarely operate a single brand; over 90% of distributors handle 3 to 30 brands or more. In such cases, as a supplier to supermarket stores, you should prioritize brands. Experienced distributors always prioritize brands that can bring benefits and create value for the company.
Which brands should be key promotion brands? I believe: first, brands with potential; second, brands where the manufacturer can cooperate in market investment; third, brands that bring benefits, whether short-term or long-term; fourth, brands that can drive sales of other brands.
How to promote these key brands? First, design and select products for sell-in, including variety, pricing, and personnel tracking. Second, when buying end caps, shelves, and doing activities, show preference and invest more, e.g., other brands might buy one end cap in a store, but for key brands, we might take over the whole store. Third, sales reps' assessments should be targeted; they only promote brands with rewards and benefits, and only take responsibility for assessed tasks, not for what leaders expect.
Third, concentrate on increasing volume in certain product categories.
Within a brand, there are key SKUs—those that bring reputation and business, or star SKUs. Whether it's a person, brand, or product, it's about seeking fame or profit. If a product brings neither, promoting it would be foolish or charitable. We often see that among many SKUs, only a few generate volume, usually no more than 10 to 20. So, as suppliers, we can't expect every SKU to bring high volume in a market; only one or a few SKUs can stand out.
How to generate volume in certain SKUs? I believe: first, pricing should not be high; it must be reasonable, and if possible, low. Second, placement should be in the first position among many products. Third, use multiple end caps to leave no sales opportunity for competitors. Fourth, prioritize them in special activities. Fifth, emphasize them in sales reps' assessments and meetings, with repeated requirements.
Constant dripping wears away a stone. In general, you can't have your cake and eat it too. How to concentrate forces and resources on certain stores, brands, and SKUs to generate volume is a principle that must be carefully observed in sales. Respecting this principle will double your results, make business smooth, and bring prosperity!