---
title: "Liu Chunxiong: New Channel Players Align with Retailers—Who Are Brand Owners' Channel Allies?"
description: "Business has a stance, and so does business theory. Distributors and deep distribution align with brand owners, while B2b platforms and supply chains align with retailers. Shared stance makes allies. As more channel players side with retailers, who are brand owners' allies? Without allies, how can brand owners operate channels and users?"
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-07-16"
categories: "Brand Marketing, Dealer Operations"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/qOv8uzX-BlfmIdPDdwxN9Q"
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citation: "刘春雄. “Liu Chunxiong: New Channel Players Align with Retailers—Who Are Brand Owners' Channel Allies?.” New Distribution, 2025-07-16. https://xinjignxiao.com/en/articles/liu-chunxiong-new-channel-players-align-with-retailerswho-are-brand-owne-00a7cd36/"
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---

# Liu Chunxiong: New Channel Players Align with Retailers—Who Are Brand Owners' Channel Allies?

> Business has a stance, and so does business theory. Distributors and deep distribution align with brand owners, while B2b platforms and supply chains align with retailers. Shared stance makes allies. As more channel players side with retailers, who are brand owners' allies? Without allies, how can brand owners operate channels and users?

Business has a stance, and so does business theory.
Distributors and deep distribution align with brand owners, while B2b platforms and supply chains align with retailers.
Shared stance makes allies. In channel transformation, more and more channel players are siding with retailers. Who are brand owners' channel allies?
Without allies, how can brand owners operate channels and users?

Bad news, one after another
These days, manufacturers are having a hard time, with bad news coming one after another.
The overall environment is poor, entering an era of shrinking volume. Manufacturers have been suffering for years.
In recent years, there has been more bad news for manufacturers, and the negative factors have not yet been fully realized. Two major pieces of bad news have arrived successively.

The first piece of bad news is the supermarket adjustment. 2025 is the year of supermarket adjustment (2024 was the pilot year), with even the saying "adjust or close down."
What does adjustment mean for brand owners? First, SKUs for a single brand will be significantly reduced. Naturally, brand sales will decrease. Of course, there is also hope for national big single products; second, activities such as buying end caps, displays, and promotions will gradually disappear; third, manufacturers' in-store promoters will disappear.
For brand owners, these are not good news.

The second piece of bad news, which this article emphasizes, is that since deep distribution, brand owners' strong control over channels will disappear, and they may even face the problem of having no allies in the channel.
This issue is extremely important, even more important than the shrinking volume problem, the overall environment problem, and the supermarket adjustment problem.

Deep distribution created channel hegemony
Deep distribution for over 20 years has also been over 20 years of manufacturers' strong control over channels.
When it comes to channel hegemony, some may not agree. Brand owners are also struggling; how can there be channel hegemony?
Think about the term "managing distributors." Such aggressive words are used by brand owners every day, even in front of distributors, spoken casually.
In business, distributors are manufacturers' customers, their gods. Having the idea of "managing gods" is absolutely disrespectful.
However, brand owners have done this without any qualms for over 20 years. The reason is simple: deep distribution has been running in Chinese channels for over 20 years, and it has become a habit.

What is deep distribution? One of the proponents of deep distribution, Teacher Shi Wei, wrote the book "Deep Distribution: Controlling the Channel Value Chain." Please note the subtitle: "Controlling the Channel Value Chain."
In the book, Teacher Shi Wei says that deep distribution is a form of "interventional distribution." In an environment where China has vast territory, high population density, three-dimensional markets, rich consumer segmentation, and low concentration of retail distribution, manufacturers "can only feel at ease by intervening."

So, how deep is the brand owner's "intervention" in the channel?
Distributors' salespeople can be managed exclusively by the manufacturer. The manufacturer pays the salary, and the distributor pays performance bonuses. This controls the distributor's people.
Deep distribution reaches the terminal, doing relationship building, buying end caps, etc., using "money power" to indirectly control the terminal.
In supermarkets, placing in-store promoters can "interfere" with consumer shopping.
Isn't this channel control channel hegemony?
When I talk about "channel hegemony," I do not mean it as a value judgment; I even call it "Chinese-style marketing." It is precisely because of deep distribution that brand owners have connected scattered channels into a value chain.
Chinese marketing has two drivers: one is brand-driven, and the other is channel-driven. Channel-driven is deep distribution. If we only talk about brand-driven, multinational companies have inherent advantages. But when it comes to channel-driven, local Chinese companies have advantages. FMCG multinational brands that operate well in China have compromised with local companies on deep distribution.
Deep distribution was a good thing at a specific stage. However, channel hegemony cannot last long.

New channel players mostly side with retailers
Traditional channels are dominated by brand owners, but new channel players mostly side with retailers. This is a major change in Chinese channels in recent years, with far-reaching implications.
In the future, good days like deep distribution will be rare.
Because the new forces in channels, including B2b platform operators, suppliers, and third-party logistics providers, will follow retailers' lead.
As mentioned earlier, under the deep distribution model, manufacturers intervene in distributors. Distributors must not only have capabilities but also be "obedient."
Obey whom? Obey the brand owner.
"Obedience" has several criteria:
First, of course, they must have certain capabilities;
Second, they cannot operate competing products. Well-known brands basically have this unwritten rule;
Third, they follow the brand owner's baton, doing whatever they are told. If distributors are unwilling, brand owners do it themselves. For example, in provincial capitals and above, well-known brands have basically replaced distributors with visit-sales, reducing distributors to delivery providers.
New channel players are not only disobedient but also side with retailers.
B2b platforms serve retailers and certainly do not listen to brand owners.
Suppliers also organize sources for retailers, so they listen to retailers.
Delivery providers need no further explanation: if retailers want goods, they deliver.
When B2b platforms, suppliers, and delivery providers divert many functions of distributors, what functions remain for distributors?

Big single products, is there still growth?
Huatang has been studying the food and beverage industry for years and recently made a brief comment on big single products above 5 billion in the beverage industry. Except for a few listed as "strong growth," most are listed as "stable," "declining," or "severe challenges."
This is not a special phenomenon in the beverage industry but an overall phenomenon in the FMCG industry. With weak industry growth, weak growth of big single products, and weak new product promotion, where is the room for enterprise growth?

Growth comes from growth actions
Originally, distributors undertook all channel functions and sided with brand owners, making them controllable by manufacturers. Now, the emerging channel players that have separated are all siding with retailers, and distributors have fewer and fewer functions left. So, what are distributors doing now?
Distributors are very familiar with deep distribution actions.
Distribution, shelf management, buying out terminal resources. Can these actions still bring growth?
In the early days of deep distribution, distribution meant sell-through. Distribution was also a growth action.
Growth actions in distribution, from distribution to buying out terminal resources, to pressure stocking, step by step, distribution no longer brings growth.
In recent years, what channel problems have not been caused by distribution and pressure stocking?
Large channel inventory, large near-expiry products, high costs, and low-price cross-region sales. Which of these is not the result of excessive deep distribution?
Deep distribution is no longer a growth action; it has become an interference action for normal channel operations.
Stores that can be distributed to have already been distributed. Stores that can be bought out have already been bought out. Buying more is unaffordable. For stores already distributed, more distribution leads to inventory backlog.
A distributor said, which product is selling well, and the store will not reorder? Which product has sold out, and the distributor will not restock?
This is completely different from the reality faced in the early days of deep distribution.
I recently spoke at a company, saying that without growth actions, assessing distribution rate is digging a pit for yourself and then burying yourself.
I divide frontline salespeople's actions into two categories:
The first category is stock actions. It can be said that almost all current 2b actions are stock actions, including distribution (pressure stocking) and shelf management.
The second category is growth actions. These mainly include new product promotion actions and old product growth actions. These actions have a basic characteristic: they are 2C actions.
In the current channel state, distribution actions have no growth, and sell-through actions are done by some. Thus, the growth dilemma is unsolvable.

Who is doing growth actions?
Deep distribution actions like distribution and promotion were growth actions in the early days, but now they are stock actions.
Currently, growth must solve two problems: one is the source of growth; the other is growth actions. More importantly, who does these things?
The source of growth is not old products but new products. Specifically, it is "three new and one high," namely new markets, new brands, new products, and high-end products.
In the past, the promotion of the three new could be through advertising or distribution leading to sell-through. Now, except for online UGC ignition, there is no other certain new product promotion action.
2b is not a growth action, and direct 2C offline is very difficult. So, the only remaining option is bC integrated actions.
Since 2019, I have been promoting bC integration. Many people do not understand the purpose of bC integration and why it is needed.
The purpose of bC integration is to reach the C-end. The purpose of reaching the C-end is to promote the "three new and one high."
In recent years, I have anchored on bC integration because, apart from bC integration, there is almost no certain means for new product promotion.
bC integration has two stages. The first stage is to reach the C-end from the b-end, achieving C-end cognitive breakthrough; the second stage is to use the C-end to activate the b-end, improving breakthrough efficiency.
bC integration is essentially a leverage effect of the dual closed loop of b-end and C-end. If applied well, efficiency is high.

Operators, growth breakthrough
Traditional marketing theory has two important logics: one is the cognitive logic, and brand theory is cognitive logic. It lets consumers gain product or brand awareness; the second is the channel logic. The value of channels is convenience, making it easy for consumers to buy. Therefore, channel logic is also transaction logic.
However, the Chinese market is somewhat special. According to Teacher Shi Wei's view, offline channels have the trinity of cognition, transaction, and relationship.
The bC integrated actions mentioned earlier are cognitive actions. Precisely because they are cognitive actions, they have the ability to promote the "three new and one high." The key is to use the strong relationship between b-end and C-end to lower the cognitive threshold.
Once cognitive breakthrough is achieved, the remaining orders, delivery, warehousing, etc., are efficiency work. Without cognitive breakthrough, efficiency is meaningless.

So, who is most suitable to undertake the operator function?
Let's see what resources an operator needs. As an operator, you do not need much capital, warehousing, or delivery vehicles. What an operator needs most is the relationship with the b-end and the ability to operate bC integration.
Current distributors undoubtedly have b-end resources, but those who have been distributors for a long time may feel that operating bC integration is a "downgrade" and are unwilling to do it. Some brand owners' frontline salespeople also have b-end resources, but they lack capital, warehousing, and vehicles. Recently, while visiting the market, I found that some brand salespeople have turned to operators.
For brand owners, the most important task in the channel now is to promote the "three new and one high." Other functions can be handed over to third-party efficiency platforms.

Operators, brand owners' new allies
When new channel players like B2b platforms and suppliers are siding with retailers, the era when brand owners influenced channels through deep distribution is over.
More importantly, because brand advertising has lost its power, brand owners can no longer find effective and certain marketing means to form C-end cognition. bC integration is a rare method that is effective and suitable for connecting with deep distribution.
Deep distribution solved the problem of reaching the b-end. bC integration is about leveraging the bC relationship of the b-end, either through deep reach into consumption scenarios or through terminal scenarios, to reach users and conduct user operations.
However, operators do not exist naturally; they need to be cultivated by brand owners. Either transform distributors or guide new channel players to have bC integrated operation capabilities.
Operators do not need as much capital as distributors, nor do they need warehouses, vehicles, or delivery capabilities. Even for new channel players, strengthening b-end relationships is not too difficult. However, they have not formed user operation awareness or mastered bC integration capabilities, and they need brand owners' guidance.
It is normal for many people to take a wait-and-see attitude toward new things. In my marketing practice in recent years, including the promotion of bC integration and scenario marketing, I have guided a group of distributors to transform into operators.
Back then, the transition from wholesalers to distributors took more than 5 years. From distributors to operators may take even longer.
In the past, distributors were brand owners' natural allies and an extension of brand power in the channel. Since B2b platform operators, this phenomenon has changed.
Brand owners, please note: if there are no merchants siding with you in the channel, you are alone in the channel, and the day you disappear from the channel is not far off.

Are there brand operators in China?
Some distributors already have brand operation functions. If they separate the operation function, they become brand operators.
Now the channel is in a transformation stage. Traditional functions are gradually fading, but they still exist and are even mainstream. New functions are a trend, but they are still difficult to exist independently.
This is a difficult transition period. You cannot give up tradition, nor can you ignore new trends. A rhythmic transition is the best strategy. Simply breaking with the past may make it hard to survive now; simply sticking to tradition may make it hard to survive in the future.
Do not overestimate the present, and do not underestimate the future. In the face of trends, this saying is very useful.
The emergence of brand operators requires both the determination and capability of operators and the support and assistance of brand owners. In recent years, in my service to enterprises, I have supported many distributors in transforming into operators, benefiting both manufacturers and distributors.
Are there brand operators in China? As far as I know, there have been for a long time, and they operate very well, some even on a large scale. But the number is small, and they have not formed a demonstration effect.
Now, many brand operators are those who integrate distributor, operator, and even B2b platform functions, but the three can be separated at any time to achieve professional operation. Some have already completed functional separation internally, but externally they still maintain integrated business operations.
More and more merchants with the ability to promote the "three new and one high" user operations are emerging. They are meant to serve brand owners. If they are not serving you, they may be serving your competitors.
During the transformation of channel players, brand owners are not afraid of them siding with retailers, but only afraid that no operator will side with you.
When deep distribution fails in the market and new channel players collectively side with retailers, the boundaries of distributors, brand owners, and channels are being reconstructed. If brand owners do not cultivate their own operator allies as soon as possible, future business will be even harder.

But transformation is not simple. How can distributors move from stock actions to "bC integration"? How should brand owners build a channel moat for the new cycle? What should operators do to find new growth business?
From August 19 to 21, "New Distribution" will hold the 7th China FMCG Conference with the theme "New Demand · New Supply" in Shanghai. We have invited top brand and retailer executives, leading industry consulting institutions, and regional top distributor benchmarks to answer these questions together.
Join the conference, let us break free from traditional limitations and embrace new growth opportunities!

****🔺


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## Citation metadata

- Publisher: New Distribution
- Author: 刘春雄
- Published: 2025-07-16
- Canonical: https://xinjignxiao.com/en/articles/liu-chunxiong-new-channel-players-align-with-retailerswho-are-brand-owne-00a7cd36/
- Original source: https://mp.weixin.qq.com/s/qOv8uzX-BlfmIdPDdwxN9Q

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