---
title: "In the Era of Surplus, What Opportunities Can 'Ultimate Supply Chain' Bring to Distributors?"
description: "Today, most products, especially FMCG, are in an era of surplus, squeezing distributors from both upstream and downstream. Distributors face a dilemma: mature bestsellers with volume don't make money, while profitable new products have too little volume and insufficient margins. To address this, New Distribution has launched the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair, a new supply chain distribution model that connects brand owners and distributors at factory prices, offering low thresholds, high profits, and low risks."
author: "张雨薇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-03-09"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/Myz-mTRCc462aFvwhnWeNA"
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---

# In the Era of Surplus, What Opportunities Can 'Ultimate Supply Chain' Bring to Distributors?

> Today, most products, especially FMCG, are in an era of surplus, squeezing distributors from both upstream and downstream. Distributors face a dilemma: mature bestsellers with volume don't make money, while profitable new products have too little volume and insufficient margins. To address this, New Distribution has launched the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair, a new supply chain distribution model that connects brand owners and distributors at factory prices, offering low thresholds, high profits, and low risks.

Today, most products, especially FMCG, are in an era of surplus. In this context, distributors' businesses are squeezed from both upstream and downstream. On one hand, downstream customers' businesses are declining, and competition is fierce; on the other hand, upstream brand owners' task volumes increase year by year. Every company is demanding growth, and that growth comes from the performance growth of thousands of distributors, which is extremely difficult today.

**Under this dual squeeze, distributors face a huge problem: mature bestsellers with volume don't make money, while profitable new products have too little volume and insufficient gross margins to support team promotion and new product operations.**

Competition today is brutal, and tomorrow will be even more so—this is an indisputable fact. **Facing declining sales and rising labor, logistics, and operational costs, how should distributors respond?**

On the evening of February 28, New Distribution specially invited Zheng Jinbin, General Manager of Nantong Shilangman Food Co., Ltd.; Yang Bo, General Manager of Shanxi Yanheng Industrial; Cai Lingkai from Uni-President's Coconut Business Unit; and Zhang Xin, founder of Sanguantang Beverage, to discuss these issues.

**Distributors Still Have Demand for New Products—Just More Rational**

Every year, new category opportunities emerge in the market, impacting or dominating the original product system and structure. For distributors, while bestsellers from leading brands can maintain stable sales, their profitability gradually declines. Selling new products well is the foundation for distributors' sustained profitability. However, the risk behind new products is too high.

In this regard, Zheng Jinbin, General Manager of Nantong Shilangman Food Co., Ltd., said, **"It's not that new products can't be sold, but whether distributors know how to choose."**

Many distributor bosses, after failing to introduce new products, often attribute the cause to the product or market environment, and then refuse new products altogether. But in most cases, **products are not good or bad; it's just a matter of whether they fit the distributor's current operating system, channels, and local market.**

In selecting new products, Zheng Jinbin focuses on the following dimensions:

> **1. Brand exposure**—whether there are promotional activities and content seeding online and offline;
>
> **2. Whether the product aligns with consumption trends and can withstand cyclical growth tests.**

Products meeting the above two points are the first choice. Next, he looks at the product's profit space and the company and brand behind it. If the profit space is large enough, such products will also be considered, but not as the first choice.

Yang Bo, General Manager of Shanxi Yanheng Industrial, said that **if a distributor's channel capabilities are strong enough, as long as the product is good, there's no fear of not selling it.**

Therefore, in product selection, he places more emphasis on whether the product's gross margin space is sufficient to support channel promotions and whether the manufacturer's policies are stable. **"Not afraid of not selling, but afraid of insufficient funds to operate."**

In the era of product scarcity, good wine needs no bush; as long as the product was of high quality, it would sell once placed on the market. But today is an era of surplus, even an era where good products are in surplus.

**Distributors still have demand for new products, but they are more rational in selection.**

**'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair: A New Supply Chain Distribution Model in the Era of Surplus**

For distributors, market-validated bestsellers have sales but no profit, while profitable new products carry certain risks.

For brand owners, making products is a life-and-death struggle. The cost of launching new products is increasingly high. Often, they spend tens of millions, mobilize thousands of people, and waste half a year, only to see one new product after another "die" in the market.

To solve this problem, **New Distribution, together with brand owners and channel partners, attempted a supply chain reorganization—the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair.**

On December 18, 2023, in Beijing, the first Brand Factory Direct Sourcing Fair was held. More than 50 distributors attended, and nearly 30 placed orders for related new products, with total order volume exceeding 150,000 units and order value exceeding 4 million RMB.

Although the order volume was modest, it proved one point: **It's not that excellent distributors are unwilling to promote and sell new products, but that your products are not good enough and incentives are not high enough.**

On February 28, 2024, New Distribution launched the first live-streamed "Brand Factory Direct Sourcing Fair," which received enthusiastic responses.

The first live stream received strong support from Uni-President and Sanguantang.

**Uni-President Group's brand [Youye] 100% Coconut Water** is produced by Uni-President's Thailand factory, using Thai imported coconut water freshly filled within 24 hours, with NFC processing technology to preserve the original flavor of fresh coconut juice, 0 added white sugar, and 0 fat.

**Uni-President Group's brand [Little Raccoon] High-Fiber Konjac Snack** is a 30-year-old national brand. The product uses konjac from Ankang, Shaanxi, with Uni-President's secret recipe, available in two flavors.

**Uni-President Group's Vietnamese imported coconut crisp cookies** have clean ingredients and three flavors, and are currently distributed in premium supermarkets in some first-tier cities.

**Comment by Zheng Jinbin, General Manager of Nantong Shilangman Food Co., Ltd.:**

Produced by Uni-President, a major manufacturer, quality is guaranteed. The purchase price is generally lower than similar products currently on the market, providing sufficient profit space. Among the several products, besides coconut water which already has predecessors, the other two products are relatively new in concept.

The only issue is that imported products have narrower channels, so trial sales are needed in the early stage. **If you have suitable channels, these products are good choices.**

**Sanguantang's annual core product "Ka" (Coffee) and strategic product "Jun" (Probiotic).** "Ka" uses Colombian Arabica coffee beans, combining coffee with soda, giving the coffee drink a cola flavor—carbonated coffee, more like cola; "Jun" is a carbonated lactic acid bacteria drink with great taste and broad appeal—probiotic soda with more flavor. Both products feature minimalist packaging design, one black and one white, sold as a set, making them more eye-catching.

**Comment by Yang Bo, General Manager of Shanxi Yanheng Industrial:**

After years of operation, Sanguantang has become a landmark soda in Chengdu. **The products have been tested by local consumers and have a foundation for continued operation or even cross-regional expansion.**

"Ka" and "Jun"—one is an innovative differentiated core product, the other is a safe strategic product to highlight the core product. This product combination strategy is excellent. Including the brand name, product specifications, and the black-and-white combination, it's full of stories even before launch. Overall, I am very optimistic about this new product set.

**The above products will be offered at the sourcing fair at prices lower than the usual policy prices for distributor brands. Surprising prices will be revealed at the fair!**

In addition to the above products, the sourcing fair will invite more than 20 excellent brand owners and select over 100 high-quality products, bringing brand owners and distributors together. **Based on "factory prices," we will establish a no-tricks, equal purchasing cooperation between manufacturers and distributors.**

Every new product comes from the professional teams of well-known brands and is produced by powerful factories;

Every new product has been pre-tasted, reviewed, and approved by a jury of excellent distributors from 5 categories organized by "New Distribution" before appearing at the sourcing fair;

Every new product has no brand premium and removes marketing and management costs—all at factory prices. The ultimate supply chain means ultimate low prices based on excellent quality;

Every new product has a low order threshold. Above the minimum order quantity, you can order hundreds or tens of thousands of units as you wish. Under the attraction of ultra-high profits, the only test is your judgment and confidence in your team.

**The 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair is the most eye-catching innovation at the 9th China FMCG Innovation Conference; it will also be an extraordinary exploration and experiment in the context of the supply chain revolution.**

**What Business Opportunities Does the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair Bring to Distributors?**

How to solve the problem of "bestsellers don't make money, new products are unwilling to sell"? Three core keywords: **low threshold, high profit, low risk.**

**For brand owners, the sourcing fair reduces product launch costs to zero, while greatly improving the efficiency of launch and franchise recruitment.**

Launch ten new products at once. Zero investment, zero after-sales, zero market costs to start. Dozens of distributors test your products for you, better verifying the market viability of new products.

If a new product performs well and distributors reorder frequently, it can be listed as a potential future growth product. If there are no reorders, it proves the product's strength is insufficient, but you don't lose money and can still earn marginal production benefits.

Distributors who cooperate well and have excellent capabilities can develop from short-term cooperation to long-term agency partnerships with brand owners.

**For distributors, there's no need to bear new product targets or desperately perform various seemingly scientific but actually useless actions to obtain new product rewards.**

As long as you have a team, customer relationships, and terminal networks, you can trust your product selection judgment and your team's execution. No tasks, no factory assessments. Whether you order a thousand or ten thousand units is entirely up to you.

As long as you have the ability, you don't need to worry about not making money—it's just a difference of earning a few yuan or dozens of yuan per unit.

If you sell well and earn more, you can request regional agency from the manufacturer; if you sell poorly, earn less, clear out the remaining stock, summarize, and strive to pick a better new product next time to earn more money.

**On March 15-16, the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair will make a grand appearance at the 9th China FMCG Innovation Conference. We welcome all excellent brand owners and channel partners to participate in the 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair.**

From March 14-16, 2024, the 9th China FMCG Innovation Conference, themed "Supply Chain Revolution," will be held on time in Chengdu.

This conference is hosted by New Distribution, co-hosted by Amto Intelligent Logistics and Yonyou Digitalization; the 2nd China FMCG Distributor Conference is co-hosted by Zhoupu Data; and the 2024 Supply Chain Digitalization Innovation Summit is co-hosted by Yonyou Group.

Over 3 days, there will be one main forum, one China FMCG Hard Discount Conference, one China FMCG Distributor Conference, and more than ten sub-forums and closed-door exchange sessions. Together with thousands of FMCG brand owners, distributors, retail innovators, and industry service providers from across the country, we will meet in Chengdu for continuous brainstorming to discuss the challenges and opportunities, changes, and solutions in the era of supply chain revolution.

**The 'Ultimate Supply Chain' Brand Factory Direct Sourcing Fair will be one of the standout innovation activities during this conference!**


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