The original "FMCG Dealer Professional Management Consulting" has been renamed to New Distribution 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. Some secondary distributors, in order to complete the sales tasks assigned by dealers and use the policies provided by dealers to drive sales of other products, repeatedly cut prices, sometimes even below the factory price, which troubles many beverage dealers. The "Two Sins" of Secondary Distributors Cutting Prices Although cutting prices can bring temporary benefits and profits to secondary distributors, the adverse effects and destructiveness are also obvious. First, it disrupts the overall market order. The most direct result of secondary distributors privately cutting prices is that the purchase price of the product for all retail terminals in the region generally decreases. Then, terminals with low or no inventory will significantly reduce their retail prices, while terminals with large inventory, having previously purchased at high prices, will inevitably have retail prices higher than other terminals. This causes chaos in the overall market price system. For surrounding secondary distributors, the price-cutting secondary distributor poses a significant threat. To maintain existing terminal resources and develop new terminal customers, they are forced into the dilemma of whether to cut prices or not, eventually spreading like a snowball and affecting a larger area. Second, for the product itself, secondary distributors cutting prices also deals a devastating blow. Price chaos causes direct losses to terminals with large inventory and surrounding secondary distributors. The profit margin of the product is repeatedly squeezed. When it reaches a certain level, many terminals and secondary distributors will reluctantly choose to exit, and the product's life cycle in the market will be shortened imperceptibly. Three Unreasonable Aspects Behind Price Cuts A considerable number of people may think that the phenomenon of secondary distributors cutting prices is entirely caused by their unscrupulous pursuit of profit maximization, and that enterprises and dealers have little to do with it. In fact, it is precisely because enterprises and dealers have many loopholes in the design of product price systems, the formulation of sales policies, and the control of the market that many secondary distributors have the opportunity to exploit and profit. First, the price system is set unreasonably. If a product's price system has loopholes, for example, if the manufacturer sets too high a profit margin for secondary distributors when formulating the price system, then secondary distributors will arbitrarily reduce their profit margins to expand sales and compete for retail terminals, leading to price cuts. Second, sales policies are formulated unreasonably. In the formulation of sales policies, dealers, in order to boost sales during peak seasons, spare no expense to provide policy support to secondary distributors, such as high rebates and high promotional expenses. As a result, secondary distributors can arbitrarily reduce the product's own profit or even sell below the factory price, because they can give up product profits in exchange for high rebates and high promotional expenses, while also driving sales of other products. Why not? Third, the channel width is designed unreasonably. Another important reason is that dealers overly rely on secondary distributors, and the channel width is too wide, leading to competition and price cuts. At the same time, there is insufficient control over secondary distributors and the market, lacking various punitive measures and deterrence, which only makes price-cutting behavior more unscrupulous. Control the Source and Strengthen Management Where there is profit, there is pursuit. Perhaps we cannot completely eliminate the occurrence of secondary distributors cutting prices, but we can curb it through effective methods and actions. Control the source of profit. Enterprises should carefully consider when formulating the product price system, and formulate corresponding price systems for different periods of the product in the market. While ensuring secondary distributors obtain normal profits, they should also prevent excessive profits that may lead them to take risks. Dealers should also consider comprehensively when formulating promotional policies for secondary distributors during peak seasons, and try to use physical goods to fulfill commitments instead of cash or items that can be converted into cash, to prevent secondary distributors from using these money or promotional items to participate in price cuts through discounting. A reasonable profit margin and promotional policy play a role in controlling the source of profit, making profit acquisition fair and transparent, and playing a controlling role from the source. Once the source is controlled, the next step is to urgently strengthen market control. First, when selecting secondary distributors, dealers should choose those with less overlap in terminal channels, because if multiple secondary distributors cover the same area, they will inevitably resort to unscrupulous means to seize terminal resources. Second, dealers should not overly rely on secondary distributors. By channel sinking, dealers can appropriately reduce the width of secondary distributors, which is also conducive to market control. Finally, dealers need to formulate a feasible supervision and punishment system and agree with secondary distributors, such as conducting regular visits to secondary distributors and terminals within a certain period. Once price-cutting by secondary distributors is discovered, dealers can take measures such as deducting deposits according to the agreed system to punish them, achieving the effect of killing one to warn a hundred. New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will transform under the general trend of Internet+ transformation Conference Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Waiqin365 10:35-11:05 Reconstructing Distribution Channel System to Promote Urban Retail Upgrade - Tian Yuan, General Manager of Alibaba Retail Link Backend 11:05-11:25 Channel Efficiency in the Internet Era - Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Dealer Transformation: Urban Distribution Trends - Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum - Why Should Dealers Do Logistics in Transformation? Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off - Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail to Reconstruct Business Ecology - Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Ideas - Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturers and distributors 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]