New Distribution has long provided in-depth interpretations of the FMCG industry and its channels. Behind these interpretations, there is a certain cognitive model serving as theoretical guidance. This is also the foundational content that New Distribution uses to guide its internal editorial colleagues in understanding the industry. Today, we have organized these foundational frameworks into an article to share with our readers.

Cognitive frameworks are the basis for explaining the industry.

-01- Customer Delivered Value: Customer delivered value refers to the actual value transferred by the enterprise that the customer perceives. It is generally expressed as the difference between the total customer value and the total customer cost.

Customer delivered value was proposed by Philip Kotler in his book "Marketing Management." He defined "customer delivered value" as the difference between total customer value and total customer cost.

Total customer cost refers to the time, energy, physical effort, and monetary funds that customers spend to purchase a product. Therefore, total customer cost includes monetary cost, time cost, energy cost, and physical cost.

Since customers always hope to minimize the costs involved in purchasing a product, including monetary, time, energy, and physical costs, while also hoping to gain more actual benefits to maximize their needs, they often compare value and cost when selecting products. They choose the product with the highest value and lowest cost, i.e., the one with the greatest "customer delivered value," as their priority.

Products suitable for e-commerce platforms: Low time cost for consumers, low logistics cost, high unit price, and low purchase frequency. Products suitable for retail stores: High time cost for consumers, high logistics cost, low unit price, high purchase frequency, and requiring less decision-making.

Recommended reading: Philip Kotler's "Marketing Management"

-02- Consumer Behavior: Immediate, Planned, and Impulsive

Different consumer goods can be classified into three types of consumer behavior: immediate, planned, and impulsive.

Immediate: When consumers have physiological needs such as thirst, hunger, fatigue, sleepiness, or illness, they have relatively high time requirements and lower price sensitivity. For example, Coca-Cola requires ubiquitous distribution because when consumers have an immediate need, the product must be readily available.

Planned: For categories like toothpaste, laundry detergent, facial cleanser, and toilet paper, consumers are less time-sensitive and tend to make purchase plans in advance. For planned categories, consumers are more price-sensitive and compare prices horizontally to find the best value.

Impulsive: Consumers have no prior plan, but when they enter a certain scenario, they are influenced and stimulated to have a consumption need, leading to a transaction. This type of behavior is generally less price-sensitive, and emotional factors play a larger role in the decision. Common categories include snack foods.

-03- Three-Dimensional Space: Cognition, Transaction, Relationship

Cognition: Today, information overload is a serious problem. Imagine a scenario: "When you scroll through Douyin, if you come across good content and like it, after scrolling two more posts, you'll likely forget what you just liked." This is a typical content shock caused by the massive volume of information.

Conversely, in a very noisy environment, no matter how loud the outside noise, if someone calls your name, you will immediately notice. In an information-overloaded environment, people only care about content related to themselves and selectively ignore external information that is irrelevant.

In such an environment, companies must rethink their communication logic. Using user-generated content (UGC) and winning support from key opinion leaders (KOLs) in the media will become very important means of persuading consumers.

Transaction: The diversity of channels makes transactions extremely convenient for users, but it also brings a significant challenge: user transaction touchpoints are full of uncertainty. What is certain is that the link between information and transactions is getting shorter, post-transaction user operations are increasingly important, and the boundaries between marketing and sales departments are becoming blurred.

From a transaction perspective, people's behavior trajectories have changed from linear radius to jumping shopping. Information acquisition may come from physical stores, community discussions, or internet information, followed by attention, search, transaction, sharing, and purchase behavior, making it unpredictable.

In the past, the core of channel building was efficiency; today, the core of channel building is user tolerance, i.e., the coverage sector of transaction touchpoints for target users in three-dimensional space.

In the past, offline stores and online e-commerce were two separate departments. Today, around users' life scenarios, we need to reconnect the three-dimensional space of online, offline, and community. Based on users' behavioral logic and life scenarios, we need to rebuild transaction touchpoints.

These digital channels built on new infrastructure: on one hand, technology brings visualization of user behavior; on the other hand, user online presence makes full lifecycle management possible. Who the user is, where they are, their behavioral trajectory, and building deep and close relationships with users, as well as communication and interaction, can all be achieved. In the past, transaction was the end; now, transaction is the beginning. In the past, the business unit was the store; now, the business unit is the person.

Relationship: In recent years, traffic has become increasingly expensive, and many people pay more attention to private domain traffic. But in my view, if we only look at private domain traffic from the perspective of traffic cost, we greatly underestimate its value.

Private domain is not contact; it is relationship! Why is the relationship between us and users so important?

As choices increase, the satisfaction and happiness that material goods can bring to people are decreasing. Moreover, as mentioned earlier, information overload makes users' attention more scattered. Whether I consume your product depends on what kind of relationship I have with you.

If a company cannot build a closer relationship with users that goes beyond material goods, it will be at a great disadvantage when competing with brands that can build relationships with consumers. Facing highly homogeneous products, they will forever be trapped in the red ocean of competition.

New Distribution believes that the highest level of building relationships with users is co-creation: co-creating products, scenarios, and meanings. Then let users spontaneously do secondary promotion for the brand, completing the operational loop.

Recommended reading: "Connection" by Shi Wei

-04- Three Retail Scenarios: Tree, Star, and Topology Networks

Today's retail scenarios can be roughly divided into three categories.

First: Traditional offline agency-retail system Goods go from first-level agents to distributors, retail stores, and then to consumers. This chain is similar to a tree network. The transaction logic of a tree network is based on a comprehensive transaction mechanism generated by product brand, media communication, and channel convenience.

Second: Online e-commerce platforms Platforms aggregate supply and demand traffic and generate transactions on the intermediate platform. The transaction logic is based on the platform's referee mechanism: reviews, payment systems, transaction order counts, platform recommendations, etc.

Third: Social network platforms This type of network is naturally decentralized, and the transaction logic is based on personal endorsement.

Recommended reading: Six Network Topologies https://zhuanlan.zhihu.com/p/267710797

-05- Four Consumer Sovereignties: Factory, Brand, Channel, and Consumer

Factory Sovereignty: After China's reform and opening up, for a long time, people's material living conditions were poor. Most Chinese families could only eat white flour every day by the late 1980s, let alone other non-staple foods and consumer goods. Most goods were purchased with ration tickets, and supply was extremely scarce. People were eager to improve their lives, but disposable income was very low.

For a family, after being able to eat enough, the first goal to improve life was to buy essential "big items" such as bicycles, televisions, and washing machines.

The demand for products was mainly based on basic indicators such as durability, sturdiness, practicality, warranty, and price. For a company, whoever could produce these daily necessities on a large scale with low cost and high efficiency, as long as quality and function were not too poor, could become a leading enterprise of that era.

The famous story of Zhang Ruimin smashing refrigerators is a landmark event of that era.

Brand Sovereignty: As the economy gradually developed, people's disposable income slowly increased, and market supply began to enrich. After essential items were purchased, consumer demand for consumer goods gradually shifted from basic needs to functional needs.

Consumers began to shift from whether they could afford a product to whether it was a famous brand, whether it had better functions, what features it had, and what differentiated functions it offered, which became the main reasons for purchase. Moreover, after the basic market supply became saturated, the drawbacks of supply homogenization began to appear. Many companies began to realize that even the emperor's daughter would worry about marriage (i.e., even good products might not sell).

Chinese-style marketing, in a sense, was born at this stage. Several professors from Renmin University, including Shi Wei, Peng Jianfeng, and Bao Zheng, proposed deep marketing theory with Chinese characteristics, which officially kicked off the vigorous thirty-year development of China's consumer goods industry.

It was also at this time that well-known theories such as HBG, deep distribution, positioning theory, and 4P marketing began to be practiced in various enterprises and became deeply rooted in people's minds.

We see many domestic brands, such as Master Kong, Uni-President, Yihai Kerry, Coca-Cola, Tsingtao Beer, Snow Beer, and other nationally renowned brands, all became national brands during this stage through centralized media communication, deep distribution networks, and extensive distribution.

This stage started in 1992 and lasted until 2013. These twenty years were the happiest twenty years for FMCG brand entrepreneurship. China's economy developed rapidly, and the market size grew at double digits annually. As long as your product was not too bad and had some selling points, you could achieve decent growth.

Third Sovereignty Era: Channel Sovereignty Channel sovereignty means that a certain retail enterprise has the right to allocate and sell traffic.

The earliest channel sovereignty model in China was the large supermarket that appeared in 1998, commonly known as the KA channel in the industry.

The first hypermarket to enter China was France's Carrefour. They brought advanced management concepts and a shopping environment that refreshed Chinese consumers. For the next decade or so, hypermarkets were one of the must-visit commercial attractions for Chinese families on weekends.

Leveraging huge shopping traffic, hypermarkets squeezed brand manufacturers almost without limits: entry fees, barcode fees, display fees, anniversary fees... Countless exploitations, all for one purpose: to extract the last penny from suppliers' pockets.

But brand manufacturers and distributors endured it for the sake of considerable traffic, carefully serving the buyers of various stores. However, this exploitation was nothing compared to the later e-commerce giants.

E-commerce began to emerge in 2006. The richness of goods brought by unlimited shelves is incomparable to any KA store in China.

The hottest product in 2020, Luosifen (river snail rice noodles), had as many as 24,424 SKUs when searched on Tmall. Imagine, which consumer needs so many different brands and selling points of Luosifen? Who can distinguish the good from the bad among so many brands?

There is a psychological theory called decision paralysis. When users face a massive number of products, it is difficult for them to make effective decisions. Therefore, platforms must use rules and algorithms to filter out the most suitable products for consumers.

The platform's rules are from the consumer's perspective, distinguishing brands, sales volume, reviews, diamond exhibitions, direct traffic, and other preferred recommendations to help consumers make the shortest decision path.

This is the competitive logic of channel sovereignty: not giving users unlimited choices, but using algorithms and customer advertising budgets to help users filter out the products they need.

The very popular live-streaming e-commerce also follows this logic. Viya and Li Jiaqi essentially stand on the consumer's side, helping users find the best value product among a sea of products, helping users bargain, and then using huge traffic to force manufacturers to comply.

Some friends might say, "My product quality is good, and the brand is big. I won't use direct traffic or diamond exhibitions, and I won't find Viya or Li Jiaqi. Can't I just sell based on my own ability?"

It's possible. Take Luosifen as an example. Among the 24,424 SKUs, only the top 13 SKUs have monthly sales exceeding 100,000 orders, and only 110 SKUs have monthly sales exceeding 10,000 orders.

That is to say, when the channel stands on the consumer side and controls the distribution of traffic, you not only need a brand and excellent quality, but also lower prices, better experience, higher appearance, and better reputation to get algorithm recommendations.

Problems faced by brand manufacturers in the channel sovereignty era:

In the past, in stores, users mainly made planned purchases, shopping with a purpose to find products. Stores aggregated traffic and brands, and hypermarkets earned channel fees from traffic.

But the problem is that now with unlimited shelves and supply redundancy, each product has tens of thousands of SKUs. Users cannot find suitable products among so many SKUs, so algorithm recommendations or KOL recommendations are necessary.

On the surface, it is platform recommendation and user choice, but in essence, it is the redistribution of traffic.

Therefore, e-commerce earns traffic allocation fees. Platforms will squeeze the last drop of profit from suppliers. If you don't provide low prices, sufficient quantity, good reviews, and branded products, traffic will not be given to you. This has nothing to do with the platform's morality; it is because the mechanism of unlimited shelves determines that you must empty your pockets of the last penny.

To obtain the right to allocate traffic, as a brand manufacturer, you must transform your marketing logic from selling supply to selling scarcity. Therefore, the fourth consumer sovereignty era has arrived.

Selling scarcity does not mean the material is truly scarce, but making consumers feel it is very valuable and meaningful.

The transition of the first three sovereignty eras was not achieved overnight, and the boundaries were not so clear. Moreover, in many industries, multiple sovereignties coexist in a sense.

The logic behind this is, on one hand, China is a super-large market with obvious income gaps and different consumption structures; on the other hand, the internet allows people to live and entertain in tribes within the same network structure. This leads to the fact that we must face a super complex market environment.

The logic of the first three sovereignty eras is based on structural changes: from a buyer's market caused by supply shortage, to supply surplus and the emergence of television, leading to product branding and differentiation, and then to the popularity of the internet, especially mobile internet, which further intensified traffic concentration. Each transition was a change in a different dimension.

But this complexity is not without a handle. The underlying handle is Maslow's hierarchy of needs from the supply perspective.

Different people, with different cognition and consumption abilities, are likely to stay at the corresponding Maslow level. Very few people can cross levels. From the perspective of intergenerational differences:

People born in the 1950s and 1960s experienced famine. Their typical consumption characteristics are thrift, preference for cheap goods, and hoarding, which essentially stems from a lack of security.

People born in the 1970s and 1980s: some have become rich first, but most grew up in an environment of material scarcity. The strong contrast between rich and poor created the typical consumption characteristic of this generation: preference for international brands, which essentially stems from a lack of social confidence.

People born after the 1990s, especially those born after 1995, emphasize the self. They essentially live in an environment with relatively abundant material goods, showing relatively narcissistic tendencies.

Fourth Sovereignty Era: Consumer Sovereignty

The current post-95 generation is the first generation of consumers who have never experienced scarcity. They live in a very affluent material environment. As soon as they can remember, they have lived in the internet world. The country is thriving, income is rising, life is improving, and national confidence is soaring.

This generation's consumption logic is completely different from previous generations. First, material goods bring less and less happiness to this generation. The material rewards we believe are obtained through hard work are taken for granted by them. Their sense of happiness and value is completely different from those born before the 1990s.

Therefore, those born before the 1990s must not measure their cognitive logic with our value coordinates. We should look at their consumption logic from their perspective.

Consumer sovereignty is not about giving them more choices, nor is it about choosing better products for them. They don't need any of that.

Recommended reading: Alvin Toffler's "Power Shift"

-06- Infinite Shelves

The concept of infinite shelves was first proposed by Chris Anderson, editor-in-chief of Wired magazine, in his book "The Long Tail." Many people are familiar with the concept of the long tail, but few pay attention to the core concept of "infinite shelves" mentioned in the book.

Infinite shelves refer to shelves that are different from traditional supermarkets. Due to physical space limitations, stores cannot stock all products without limit, so shelf resources in stores are limited and can only stock the popular products at the head of the demand curve.

But on e-commerce platforms, shelf display is not limited by physical space, and the marginal cost of listing products is almost zero, so products can be listed infinitely. This allows many niche products that previously had no chance to be shown to consumers to be displayed on infinite shelves.

From a channel perspective, online malls like Taobao have electronic shelves with almost zero marginal cost for expansion, so they can expand countless products without limit. Consumer search is also very convenient; with just two or three steps, they can find the product they want among hundreds of millions of SKUs.

This long tail of demand is a result of the emergence of electronic shelves. The essence of shelves is a physical product catalog, whose core function is to allow consumers to conveniently search for products and make choices.

Based on this logic, you will find that shelves exist not only in supermarkets. Any place where information interacts with users can be used for product search. These virtual shelves bring a huge advantage: they allow countless small and medium-sized enterprises to flexibly produce various personalized products in small batches and display them to consumers at extremely low cost.

Recommended reading: "The Long Tail"

-07- Supply Surplus and Lack of Meaning

From the consumer side, today's market problem is the shift of discourse power caused by supply surplus. This is an indisputable fact. But we need to carefully break down what exactly is in surplus and how we should view it. We can find attitudes towards supply surplus from intergenerational differences.

Different generations have somewhat different feelings about material goods. Those born before the 1990s have memories of poverty during their oral stage, so their material needs are typically characterized by quantitative satisfaction.

Based on this, it is not difficult to understand why elderly people buy things on Pinduoduo, not seeking good quality but preferring more quantity for the same amount of money. We see that whether it's Coca-Cola, JDB, or Six Walnuts, they are essentially selling sugar water, just differentiating on concepts like "afraid of getting heaty" or "brain nourishment."

But in essence, they are still satisfying and differentiating at a very low physiological level in Maslow's hierarchy. This is also closely related to the consumption logic of this generation.

However, with China's reform and opening up, economic takeoff, and developed goods, those born after the 1990s grew up in a relatively abundant material environment, especially the post-95 and post-00 generations.

This generation has no feeling for quantitative consumption or low-level consumption. It's not that they don't think drinking JDB can prevent heatiness, or that drinking Six Walnuts can nourish the brain, but they won't buy without thinking just because of an advertising slogan.

They can drink beer with goji berries, apply the most expensive face masks in beauty salons, and have more choices to compensate for some lack they feel. But it doesn't have to be material.

They need more differentiation at the spiritual level, at the higher levels of Maslow's hierarchy, to bring true differentiation.

Today's so-called supply surplus is essentially a surplus of low-level consumption needs. The supply of high-level needs in Maslow's hierarchy is still scarce.

Recently, I saw an analysis report saying that the search keywords for people born in the 1990s and 2000s in 2019 were loneliness and solitude. As someone born in the 1980s, it's hard to understand why young people who lack nothing in food, drink, entertainment, and work would be so sentimental.

Later, I figured it out. As people have more and more choices, the satisfaction that material goods can bring decreases. What we call expectation and hope, in a sense, is the reward provided by the amygdala to encourage you to achieve your goals during the process.

But this generation satisfies material needs too quickly, so there is no chance to get the dopamine reward from the amygdala during the waiting process.

For example, people born in the 1980s have written letters. The anticipation of waiting for a reply is a reward that drives you to do something. But the post-00 generation was born into a network society. WeChat replies instantly across the world, and high-speed rail and planes can get you thousands of miles away in half a day. Low latency brings a serious problem: users don't need to wait at all; everything is instant feedback. So this generation cannot get dopamine rewards from waiting for goals.

So now, except for the anticipation when waiting for express delivery, most of the time, what remains may only be loneliness and solitude.

When everything can be easily obtained, when all information can be quickly fed back, when users don't need to work hard and wait to get rewards, the core problem this generation faces becomes: lack of meaning.

What is my motivation for doing this? What is the result? What is the meaning?

Recommended reading: "Brand Flip" by Marty Neumeier

-08- Industrial Civilization and Information Civilization

"Information civilization" refers to a new type of civilization that relies on computer technology, microelectronics, quantum information technology, communication technology, network technology, multimedia technology, artificial intelligence, and other technical sciences; is characterized by hyperlinks and even the Internet of Things; aims at high personalization and mutual interaction; uses information possession, mining, and utilization as resources; and trends towards digitalization and intelligent development. It was born within industrial civilization but in turn destroyed the support systems, conceptual frameworks, and ways of thinking that nurtured it.

The core elements of agricultural civilization are: farmers, rural areas, agriculture, farms, handicrafts, acquaintance society, self-sufficiency, hierarchical structure, etc. Globally, the timing of agricultural civilization in different countries is entirely determined by geographical environment.

The core elements of industrial civilization are: workers, factories, capital, cities, stranger society, market economy, hierarchical management, etc. The process of industrial civilization is driven by science and technology.

The core elements of information civilization are: netizens, networks, information, data, flat management, social capitalism, digital sharing, pursuit of comprehensive development and intelligent life, etc. From the overall trend of human civilization evolution, the development and transformation of these three civilization forms were not planned in advance by humans but gradually evolved through long-term human practice, resulting from the interaction of multiple factors.

The connotation of information civilization is: Just as industrial civilization transformed agricultural structure and production methods through industrialization, information civilization transforms industrial production structure and methods through informatization, networking, digitalization, and intelligence, and once again transforms agricultural production structure and methods.

Information is different from matter and energy. The possession and consumption of matter and energy are not only exclusive but also consumptive; they decrease with use. Information, however, can be shared repeatedly, and sharing increases its value.

Therefore, information civilization is destined to be a civilization of sharing.

This era has been using the marketing discourse system of the past, but the era when those theories were born did not have the internet, smartphones, social networks, infinite shelves, viral communication, and other professional terms.

This is the surface. In essence, it is the time gap between industrial civilization and information civilization. This gap requires us not only to respond to today's information and technological means based on past theories but also to look at today's problems from a completely new perspective.

The biggest feature of information civilization is connectivity. The connections between people, between people and information, and between people and matter are all growing exponentially.

This also leads to the fact that in the industrial era, the market environment was "limited," and all demand was based on consumer "scarcity"—scarcity of material goods and information. The most typical marketing case is P&G's "HBG" theory: mass production, mass communication, and mass distribution.

Today's problem is that the market environment has become "unlimited." When consumers are no longer scarce in either products or information, our past marketing theories have, in a sense, all become invalid.

What are the differences in information civilization?

1. Infinite supply brought by infinite shelves: Information is infinitely supplied, users can obtain it more easily, leading to no longer remembering. Material goods are infinitely supplied, making users feel less and less satisfaction from products.

2. Intangibility: In the past, information was carried by books, newspapers, magazines, and specific physical spaces. These have all become intangible digital information.

The carrier of information has not only changed but has also changed from a container to a pipeline. Containers store information, and pipelines flow information.

Just like in the past, without running water, we needed large vats to store water. These vats could be books, magazines, or our brains. We needed to store this information. But today, information is like running water. Turn on the tap, and water flows infinitely. This leads to the fact that because it is too easy to obtain, users don't need to remember.

Kevin Kelly pointed out in "What Technology Wants" that in the past six years, the average weight of goods exported per six dollars decreased by one-sixth (inflation-adjusted).

A long-term study of the S&P 500 shows that over the past 30 years, intangible assets have grown from 17% to 80% of a company's monetary value, with brand being the most important part.

Goods are still the same goods, but the intangible assets behind them will account for an increasing proportion of value.

-09- Division of Labor Between Distributors and Wholesalers

Distributors serve brand manufacturers. To successfully represent a product, a distributor must at least have several functions: capital advance, inventory advance, marketing, logistics, and customer service.

For most FMCG industries, the off-season and peak season are very obvious. In the off-season, capacity is surplus, and in the peak season, capacity is insufficient.

Take Nongfu Spring as an example. Every year at the end of the year, salespeople do one thing: the factory first offers a strong policy, such as 20% or 30% bonus, to encourage distributors and second-tier wholesalers to pay and stock up. But during the peak season, there is no policy. The logic behind this phenomenon is actually simple: the goal is to use the distributor's warehouse, inventory, and funds to balance the factory's off-season capacity in time and space.

From January to February, brand manufacturers push goods into distributor warehouses. From February to March, distributors push goods into second-tier wholesaler warehouses. From March to April, they push goods into small stores. From April to May, brand manufacturers do a series of consumer pull activities.

This is essentially the brand manufacturer physically transferring goods in time and space, not only forward inventory transfer but also reverse capital transfer. This is the value of traditional distributors.

What are second-tier wholesalers? Where is their value?

New Distribution believes that second-tier wholesalers are essentially shared warehouses for small stores. Take Guangzhou as an example. Guangzhou is a century-old city with many urban villages, narrow roads, high population density, and severe traffic congestion. It is a famous "congested" city. But there are many convenience stores in Guangdong. Because the economy is developed, rent is high, and small stores cannot stock too much inventory, as it would occupy store space.

This brings a problem: Guangdong's weather is changeable. For example, if it rains in the morning, drinks won't sell, but if it clears up in the afternoon, the drinks in small stores may sell out immediately. The small store owner then calls the distributor to deliver 5 cases of water. The distributor's salesperson typically thinks, "What? Are you crazy? 5 cases? You want me to deliver that?" Of course, they can't say that directly. They usually say, "The minimum is 20, 30, or 50 cases for delivery." Why? Because distributors serve brands, and a single product cannot be delivered in just three or five cases.

Where is the value of second-tier wholesalers? When a store owner asks for goods—one case of Mizone, one case of Red Bull, one case of Coke, two cases of Nongfu—the second-tier wholesaler can deliver them with a single press on the accelerator. The actual value of second-tier wholesalers is as shared warehouses for small stores. They do not serve brand manufacturers.

-10- Three Future Types of Distributors: Brand Operators, Category Operators, and Channel Operators

Based on New Distribution's past observations and thinking, we believe that in a regional market, due to proactive or passive channel structural adjustments by upstream brand manufacturers, the diversification of downstream retail scenarios, the niche evolution of consumer demand, and mobile internet technology becoming a basic marketing tool, future distributors will be continuously integrated and optimized, with fewer numbers and improved quality.

Overall, the evolution of distributors in the future, "quality improvement," will revolve around the following three directions:

1. Brand Operators: The "brand operators" here do not refer to OEM-label distributors, but distributors deeply bound with upstream brand manufacturers. They are more likely to reach strategic cooperation with brand manufacturers in a regional market, becoming the designated and exclusive local operator or service provider.

2. Category Operators: They deeply operate around a certain category, at various types of terminals, aiming to occupy the maximum shelf display for that category, or connect multiple retail scenarios with that category.

3. Channel Operators: They conduct product procurement and sales from the bottom up. Emphasizing "procurement and sales" rather than "agency," the key is that procurement and sales are centered on the needs of circulation small stores or small and medium restaurants, rather than meeting the upstream manufacturer's demand for market share growth.

In general, brand distributors are mostly in beverages, alcoholic drinks, and dairy; category distributors are mostly in snacks, seasonings, daily chemicals, and general merchandise; and channel distributors are mostly through multi-category combinations such as snacks, seasonings, and daily chemicals.

The above is the theoretical framework that guides New Distribution's content creation and industry insights. We hope it can also bring some inspiration and thinking to industry practitioners.

Tips will be paid 400-2000 yuan once adopted.