---
title: "One-Stop Bulk Food Category Output Helps Supermarkets Achieve 30% Growth: How Did This Post-90s Distributor Do It?"
description: "In recent years, most distributors, especially leisure food distributors, have faced tough business conditions. With the rapid expansion of snack stores, competition has intensified, and price wars have become common. A small survey by New Distribution showed that supermarket business for standard leisure food products dropped 10%-20% year-on-year, while bulk leisure food sales fell about 30%. This article shares how Tao Xin, a post-90s distributor from Suzhou, tackled these challenges and achieved growth."
author: "张雨薇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-11-18"
language: "en"
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# One-Stop Bulk Food Category Output Helps Supermarkets Achieve 30% Growth: How Did This Post-90s Distributor Do It?

> In recent years, most distributors, especially leisure food distributors, have faced tough business conditions. With the rapid expansion of snack stores, competition has intensified, and price wars have become common. A small survey by New Distribution showed that supermarket business for standard leisure food products dropped 10%-20% year-on-year, while bulk leisure food sales fell about 30%. This article shares how Tao Xin, a post-90s distributor from Suzhou, tackled these challenges and achieved growth.

In recent years, most distributors have found business difficult, especially leisure food distributors.
With the rapid expansion of snack stores, competition in the leisure food market has intensified, and price wars have become the norm, with discounts like 8.8折, 5.8折, even 5.5折...
New Distribution once conducted a small-scale sample survey, showing that affected by snack stores, distributors' supermarket business for standard leisure food products declined **10%-20%** year-on-year, while bulk leisure food supermarket business declined about **30%**.
Store business is shrinking, sales are declining, and many distributors feel lost: give up? Unwilling; move forward? No clear path.
Are there any good measures or cases that can help distributors regain their business rhythm under external shocks?
Recently, I had the opportunity to meet a **post-90s distributor in Suzhou, mainly dealing in bulk leisure food.** Since taking over from his father in 2013, he led the team to transform into a professional trading company, achieving a leap from millions to over 100 million in business. **With supermarket clients accounting for more than half, he still maintains rapid growth.**
He is **Tao Xin, General Manager of Suzhou Suxiangguo Trading Co., Ltd.** He represents brands such as Beilike, Changji, Baichibuyan, and Kalizi, with over 2,000 SKUs and annual sales exceeding 100 million.
This article shares Tao Xin's methods for coping with the impact of snack stores, hoping to bring some thoughts and inspiration to anxious and confused distributors.
**Post-90s Takes Over, Deeply Cultivates Products**
**Business Leap from Millions to Over 100 Million**
Suxiangguo Trading was formally established in 2013. Before that, Tao Xin's father had been in the food business in Suzhou for over a decade but without corporate operation, going wherever business was.
It wasn't until 2013 that Tao Xin, after graduation, began to take over his father's business. He knew that guerrilla-style business wouldn't last, so to seek diversified development, he transformed into a professional trading company, focusing on bulk leisure food. He also started from grassroots business roles, accumulating resources and experience.
After two years of accumulation and exploration, Tao Xin successfully created a product he personally managed and distributed—**"Beilike Rice Crackers"**. Due to excellent product quality and the team's dedicated promotion, it attracted many repeat customers and referrals, and in the same year, he became the first distributor in the country to sell over 10,000 units per month.
The product's success brought Tao Xin to the forefront. Suxiangguo seized the opportunity to quickly expand its team and capture market share, growing from an initial few million to 20 million.
With the success of Beilike, Tao Xin determined the company's business direction: **focus on polishing products.** In 2017, when snack store systems first entered the Suzhou area, Tao Xin was already a local "Bulk Food Prince." Leveraging his expertise in bulk food, he provided core single items like Beilike and spicy products to snack stores.
From 2015 to 2019, four years of rapid development, Suxiangguo tripled its scale, exceeding 60 million. Looking back at Suxiangguo's development, products were the core factor in its rapid growth. Having experienced the wave of hard discount snacks, Tao Xin keenly sensed market changes.
Tao Xin said, "The emergence of snack bulk stores has broken the price system of leisure food and taken business from traditional retail stores. Facing such a huge impact, both distributors and stores must make changes."
**"In the past, supermarkets did business by selling shelf space; what they sold didn't matter. Now, facing such a big impact, supermarkets are returning to the essence of retail, focusing on product quality, brand pricing, and supplier service."**
In this process, terminals need someone to provide category-based product solutions.
So, since 2019, Tao Xin has been, on the one hand, seeking to cover more quality outlets, and on the other hand, making diversified attempts in products. Tao Xin himself also immersed himself in the market, constantly adjusting category combinations based on store data, and finally, after three years, developed a store-based bulk food category output model to help stores with category planning.
Today, Suxiangguo has served **over 10,000** various types of clients, helping more than 100 deeply cooperative supermarket stores achieve **20%-30% growth** in bulk food category sales. Suxiangguo has also become a leading bulk leisure food distributor in Suzhou with annual sales exceeding 100 million.
**Creating a 9.9 Yuan Zone to "Hard Confront" Snack Stores**
In Suxiangguo's client structure, more than half are supermarket clients. In recent years, facing the impact of snack stores, supermarket bulk food business has been particularly affected. Why are consumers easily taken away?
**First, the price issue.** In the terminal market, price is the most direct and effective competitive tool. The emergence of snack stores has changed consumers' price perception, especially for first-tier brands.
For example, Oreo cookies sell for 35.8 yuan/jin in supermarkets, but snack stores sell them for 24.8 yuan/jin. If you don't follow, you lose customers; if you follow, you lose 30% of your profit.
**Second, slow product updates.** What you can buy in supermarkets, you can also buy in convenience stores and snack stores.
**Third, overall layout.** In supermarkets, a bulk food counter usually has only one category, and prices often differ. If you want to buy multiple categories, you have to go back and forth, walking a lot of "detours."
Suxiangguo's solution is also very direct—**bring down the prices of first-tier brands and launch a 9.9 yuan zone to "hard confront" snack stores.**
Unlike the past practice of using big-brand near-expiry products for special offers to attract traffic, Suxiangguo selects 1-2 first-tier products each month for special prices, offering consumers prices lower than snack stores. For Oreo sold at 24.8 yuan/jin in snack stores, Suxiangguo directly matches the price.
Tao Xin explained, "No one wants to spend money unnecessarily. Since consumers' price perception of first-tier products has already formed, instead of educating consumers, it's better to follow the trend: **if you're low, I'm even lower!** "
In the past, 9.9 yuan in supermarkets was usually a promotional activity, but Suxiangguo made it a regular thing, with everyday low prices. **Aligning prices with snack stores while offering better quality** not only satisfies consumers' pursuit of low prices but also encourages repeat purchases.
At the same time, to provide convenience for consumers, Suxiangguo **designs displays based on customer flow lines.**
Primary display positions use high-demand products like bread or internet-famous items to attract traffic, then based on the consumer profile within 3-5 kilometers of the store and past sales data, provide different product combinations. A counter with 51 frames allows consumers to buy all categories in one stop: cakes, spicy strips, candies, puffed snacks, etc. And there's no worry about "price刺客" (price traps).
**In today's overall decline of supermarkets, after Suxiangguo's transformation, supermarkets can still achieve 20%-30% year-on-year growth in bulk food categories.**
**One-Stop Execution Output, Good Store Service**
During channel expansion, Tao Xin found that many supermarket clients wanted to change in the face of external shocks, but due to the complexity of categories, they didn't know how or where to start.
"When cooperating with Suxiangguo, you don't need to worry about shelf design or product selection; we design the plan and provide one-stop execution output!"
From the selection of in-store bulk food locations, to early display services and stocking, to holiday event creation, Suxiangguo provides clients with a complete operational plan. The core service principle is: **make clients worry-free, assured, and profitable.**
**1. Display Layout: One Store, One Plan, Updated Monthly.**
Different stores have different store types and surrounding consumers. In shelf design, Suxiangguo designs the location and cabinet type of the bulk food area based on store area, store type, and customer flow lines, providing plans in the form of display diagrams, one store, one plan.
Throughout the process, the Suxiangguo team **stays on-site to complete a series of actions to ensure implementation.** At the same time, based on sales data, product layouts are updated monthly to ensure sell-through.
Take a previous cooperation with a 400-square-meter fresh food supermarket as an example. From the early stage of store opening, Suxiangguo was involved in selecting the bulk food location, designing the bulk food cabinet type based on store area and customer flow lines, then using 180 barcodes to assemble two bulk food counters, creating a 9.9 yuan bulk food zone. With offline materials like explosive stickers and floor stickers to enhance visual merchandising, they helped the store achieve a **30%** increase in monthly bulk food sales, exceeding **30,000 yuan**.
**2. Optimize Product Structure to Attract Diverse Consumers.**
The leisure food category iterates quickly. To ensure product richness and appeal, Suxiangguo updates one manufacturer's product daily, holds a full-team product selection meeting every Monday, and monthly, based on month-over-month sales data and online trends, iterates products in the 9.9 yuan zone, placing more **"precise and accurate"** products in front of consumers to continuously attract repeat purchases.
In the past, supermarket channels required high gross margins and high fees, leading to a traditional product structure. **Suxiangguo's empowerment of supermarkets at the product level not only gives supermarkets the ability to "confront" snack stores on price but also attracts more diverse consumers by optimizing product structure.**
For example, the konjac and konnyaku products that became popular recently were introduced by Suxiangguo for trial sales three years ago when they were still imported brands, and they achieved good results at that time.
**Final Thoughts**
Facing low-price impacts from snack stores and e-commerce, many distributors are at a loss, afraid to do low prices, and can only watch business be taken away. But Tao Xin of Suxiangguo Trading not only dares to do it but has even formed his own model, doing better and better.
Why does he have the ability and confidence to sell at low prices, even daring to "hard confront" snack stores?
Besides the customer relationships accumulated over two decades of focusing on local bulk leisure food business, good service and after-sales, the core is his **understanding of categories and ability to operate at low cost.**
He doesn't pursue profit on every item or rely on a single gross margin, but rather **based on supply chain advantages and his understanding of categories, he designs product combinations and overall gross margins to earn reasonable profits. At the same time, he proactively intervenes in the store's sales management process to help stores make more money.**
The supply chain market has always existed, but as competition intensifies, the pie is getting smaller, and it will be left to more professional people. Distributors can only keep up with market changes by continuously cultivating their internal skills and maintaining their professionalism.


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Contact: zhaobo258@gmail.com · +86 158 5481 7671