---
title: "Managing Bulk Goods, Gold and Silver in Bulk"
description: "In recent years, with the economic rise of inland China and the continuous advancement of urbanization, the retail industry in mainland China has been provided with fertile soil and has undergone earth-shaking changes. As a result, a situation of \"a hundred flowers blooming and a hundred schools of thought contending\" has emerged between traditional and modern channels. Especially the rapid development of modern channels has not only changed Chinese consumers' habits but also provided broader space and stage for the development of bulk food. Bulk food, due to its characteristics of selectability and self-service, can satisfy the fun of participation during shopping and meet the consumption needs of the personalized consumption era."
author: "朱丹蓬、饶壮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-04-22"
language: "en"
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# Managing Bulk Goods, Gold and Silver in Bulk

> In recent years, with the economic rise of inland China and the continuous advancement of urbanization, the retail industry in mainland China has been provided with fertile soil and has undergone earth-shaking changes. As a result, a situation of "a hundred flowers blooming and a hundred schools of thought contending" has emerged between traditional and modern channels. Especially the rapid development of modern channels has not only changed Chinese consumers' habits but also provided broader space and stage for the development of bulk food. Bulk food, due to its characteristics of selectability and self-service, can satisfy the fun of participation during shopping and meet the consumption needs of the personalized consumption era.

In recent years, with the economic rise of inland China and the continuous advancement of urbanization, the retail industry in mainland China has been provided with fertile soil and has undergone earth-shaking changes. As a result, a situation of "a hundred flowers blooming and a hundred schools of thought contending" has emerged between traditional and modern channels! Especially the rapid development of modern channels has not only changed Chinese consumers' consumption habits but also provided broader space and stage for the development of bulk food. Bulk food, due to its characteristics of selectability and self-service, can satisfy the fun of participation during shopping and meet the consumption needs of the personalized consumption era. Therefore, it has increasingly become a new favorite among consumers and has created a number of comprehensive and distinctive brands, such as Xu X Ji, Xi X Lang, X Ke, Mi Lao X, Ma X Jie, etc. Since bulk food covers a wide range and is too numerous to enumerate, its categories are broad, involving roasted seeds and nuts, dried fruits, dried meat, preserved fruits, preserved plums, snacks, etc.; its channels are wide, involving modern and traditional channels; its categories are numerous, ranging from traditional agricultural and sideline products to industrialized products. Here, I will not enumerate them one by one. Through years of experience in operating "bulk snack food" (hereinafter referred to as "bulk goods") in modern channels, I would like to introduce our understanding of this sector to everyone, and welcome your criticism and correction.
I. Characteristics of the bulk goods industry:
1. High output per store:
Whether it is a first-tier, second-tier, or third-tier brand, as long as a professional display tool is placed at the terminal, its monthly sales can exceed a thousand, which is difficult to achieve for a single-code product without a display. This can be fully demonstrated by the trend of increasing area allocated to bulk goods in modern channels.
2. High return on capital:
The bulk food industry generally has high profit margins and fast turnover. Under the premise of refined item management, returns and unsold goods are rare.
3. Relatively controllable channels:
Since bulk food requires large or wide display tools, it cannot be carried by modern terminals without a certain scale. Therefore, ordinary non-quality stores cannot support the sales of a large amount of bulk food.
4. Easy brand establishment:
General branded bulk food has its own professional display tools. As long as the dedicated display tools are placed at the terminal, the brand is established, which helps beautify the terminal brand image.
5. Flexible cooperation methods:
Most bulk food distributors are willing to operate at bottom prices with manufacturers. On the one hand, they can gain more autonomy; on the other hand, they can cooperate with terminals in more ways, such as shop-in-shop, counters, purchase and sale, etc., to meet the cooperation needs of different terminals.
6. Lower operational risk:
Since bulk goods operation requires store selection and professional tool support, and cannot be placed arbitrarily, its channels are relatively narrow and easy to control. Coupled with good profit margins, the operational risk naturally becomes very small.
II. Development trends of the bulk goods industry
1. First-tier brands adopt a dual-track approach of bulk and fixed-weight products, aggressively capturing mainstream channels.
The traditional products we see in stores, such as candies, jellies, and chocolates, have greatly promoted the development of the modern bulk goods industry. As a result, various bulk goods have appeared one after another, continuously enriching and innovating items, forming a situation of a hundred flowers blooming. First-tier brands fully attach importance to the development of bulk goods in modern channels, and use their strong brand advantages to aggressively attack in modern and circulation channels, achieving a double harvest of bulk and fixed-weight product lines.
2. Customers specializing in bulk goods operation in various cities have begun to take shape and are growing vigorously.
Due to commodity surplus and market competition, marketing segmentation has become inevitable. In addition, the acceleration of urbanization has made it necessary for distributors to fully utilize their limited resources through operational and channel segmentation. Therefore, distributors in various cities are constantly transforming, and customers specializing in bulk goods naturally emerge. We have visited many cities, and so far, we have not found a city without such customers.
3. Bulk goods specialized customers have strong autonomous operation capabilities, possess the strength to integrate brands into item operation, and are moving towards OEM operation.
The operation of bulk goods requires extremely detailed business thinking, from the flavor type of a small category to a large brand, all need careful consideration. Take chocolate as an example: different brands of chocolate have different shapes and weights, and their sales volumes are completely different. Therefore, this naturally trains the strong operational ability of bulk goods customers. Since various bulk goods categories have different seasonal factors, the investment in a dedicated tool must maximize benefits. It is necessary to fully consider what products sell well in spring, summer, autumn, and winter, and what products must be stocked. Therefore, bulk goods customers must comprehensively consider item and brand issues. When existing brands and items cannot meet demand, they even go for OEM operation to maximize the benefits of counter investment.
4. Bulk goods specialized customers have a trend towards building their own channels and are striving to create snack food specialty stores.
First, due to the rapid development of bulk goods items and the continuous favor of consumers; second, due to the increasing "exorbitant taxes and levies" of modern KA channels, some powerful bulk goods customers are striving to break free from dependence on modern KA and are striving to build their own snack food kingdom, gradually developing their own snack food chain specialty stores.
III. The operational rules of bulk goods in modern channels - three cores, nine definitions
In recent years, the development of modern channels has driven the development of the bulk goods industry. Through long-term contact with bulk goods customers, I have found that customers in the bulk goods industry follow the following three cores: 1. Profit principle 2. Display principle 3. Inventory management. In actual operation, they basically implement the following nine steps.
1. Determine the point (i.e., formulate sales outlets)
Formulating sales outlets is the most important link in bulk goods operation. First, operators must be very clear: the placement of bulk goods must be selective and purposeful. To highlight the brand, it must be placed together with professional tools, and the counter must be dedicated. It is necessary to fully understand the bulk goods capacity of the terminal and the capacity of competing products, and ensure that the outlets placed are effective outlets. Operators of bulk goods must be very clear that the store coverage rate in bulk goods operation must refer to the share of effective stores. Therefore, detailed market research is the prerequisite for operating bulk goods well and formulating reasonable sales outlets.
2. Determine the position (i.e., establish the sales location)
Securing a good display position is the second important factor for operating bulk goods well. Since the bulk goods area in modern channels is large and brand competition is fierce, if the position is not good, it will not produce good sales and will not achieve the expected operational purpose. Therefore, it is necessary to find a reasonable position according to the layout of each store. Pay attention to the distinction between the publicity position and the purchase position in the bulk goods area, and understand the pedestrian flow design of the bulk goods area. Avoid placing your counter in the publicity position rather than the purchase position. Generally, positions near the weighing scale and the main pedestrian passage are good choices.
3. Determine the counter (i.e., establish the island counter size)
After doing the above two points, what we need to do is to determine the size of the island counter. We must fully negotiate the area of the island counter position with the store, accurately measure it, and then make the island counter according to the area to avoid waste due to careless work.
4. Determine the items (i.e., establish product items)
Before negotiating with the store, we must fully understand the sales status of various competing product categories, formulate a reasonable item sales plan, fully grasp the advantages and disadvantages of our products, and refine it to each flavor type to achieve rapid product turnover, fully considering the utilization rate of the island counter and the output rate of each grid.
5. Determine the price (i.e., establish supply price and selling price)
Price is the watershed. Before setting the selling price, multiple factors such as brand, competing products, and costs must be fully considered. If the price is too high, it will affect the normal turnover of products, leading to unsold goods and greater losses; if the price is too low, it will seriously damage the brand image and lead to an imbalance between input and output, failing to achieve the operational purpose. Therefore, to ensure reasonable pricing, you can start high and then gradually lower it, but never start low and then raise it, which would cause more obstacles in business negotiations.
6. Determine the display (i.e., establish the display form)
For different stores, different display forms should be developed. For terminals with dedicated counters, consider whether to add a display or a counter for promotional purposes. For terminals that cannot have dedicated counters, should we use display? How to display to make it expressive? These are key issues that bulk goods operators need to consider. Generally, the display of dedicated counters should be arranged according to the size and color of products, following the principles of large on top and small on bottom, full and eye-catching, to create momentum and expressiveness. Also, follow the principles of multi-point display and vivid display to maximize consumer contact.
7. Determine the personnel (i.e., establish the sales promoters)
Sales promoters are a powerful weapon for generating sales. Bulk goods operators must not only fully train promoters in product knowledge and sales skills but also provide sufficient incentives and performance management to fully unleash their productivity. They should also fully consider the number of promoters to deploy based on factors such as product structure, peak and off-peak seasons, and store business conditions, whether one or more. Especially during major festivals, there are many lessons where insufficient personnel deployment allowed competitors to steal sales.
8. Determine the promotion (i.e., establish the promotion method)
Appropriate promotions and reasonable methods are effective means to spread the brand, strengthen consumer memory, and cultivate loyal customers. Due to the different characteristics of various regions, the methods are also diverse. I believe that it is better to carry out more interactive promotions with consumers, preferably with a game-like nature, which is easier to strengthen consumer memory.
9. Determine the publicity (i.e., establish the publicity means)
Doing more brand publicity has a great effect on increasing sales. Bulk goods operators should formulate scientific publicity means according to regional characteristics. In terms of static publicity, they can fully invest in pillar wraps, store signs, etc. In terms of dynamic publicity, they can choose holidays for large-scale outdoor publicity activities. The only purpose is to make consumers deeply remember your brand.
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