Introduction: If we cannot eliminate it, we must learn to coexist. It is time to return to new growth! As 2022 enters its final countdown, with the arrival of the last month, people across the country have welcomed a long-awaited 'freedom.' On December 5, Xinhua News Agency reported: With the weakening of the Omicron virus's pathogenicity, the widespread vaccination, and the accumulation of prevention and control experience, China's epidemic prevention and control faces new situations and new tasks, and the most difficult period has passed! Subsequently, the State Council issued the 'New Ten Measures,' the 'Notice on Further Optimizing the Implementation of COVID-19 Prevention and Control Measures,' canceling 48-hour nucleic acid tests and health code checks in public places, no longer requiring nucleic acid tests and health code checks for cross-regional travelers, and canceling arrival tests... It can be said that such optimization and adjustment of epidemic prevention policies benefit, on the one hand, from the significant achievements of China's epidemic prevention and control. Over the three years of the pandemic, with precise and scientific measures and continuously optimized policies, China has safeguarded people's health at the minimal cost, and has the confidence and assurance to make adjustments and optimizations. On the other hand, the current high vaccination rate has woven a protective barrier. Undoubtedly, today we turn a new page, freer, more confident, and more self-disciplined. To this end, New Distribution connected with eight FMCG companies across the country to see what adjustments and plans they have after the adjustment of epidemic prevention policies, and what specific actions they will take for the Spring Festival.

Location: Beijing: Adjust product structure based on terminal demand Gao Jingjing, general manager of Beijing Guoyingjian Trading Company, in our impression, always has a 'never give up' tenacity. As a first-tier city in Beijing, she faced three years of repeated uncertainty from the pandemic and experienced several severe epidemic control measures, but instead became stronger with each setback. Her every 'forward-looking' move has allowed the company to 'escape difficulties and grow against the trend,' and she has summarized a set of her own experience and response methods. After this adjustment of epidemic prevention policies, we immediately connected with General Manager Gao. She proposed a strategic direction adjustment: previously brand-centered, now customer-centered. What does that mean? In the past, the product structure was mainly brand-oriented, especially during the three years of the pandemic, focusing mainly on first- and second-tier brand products with good traffic. Now it is centered on serving customers, that is, terminal store outlets. Whatever product needs the stores have, we provide, such as instant noodles, ham sausages, eggs, etc. Before this, General Manager Gao's main business was circulation products such as drinking water, beverages, alcohol, and snacks, so modules like instant noodles, ham sausages, and eggs were only special channels for individual customers. After this adjustment of epidemic prevention policies, she re-entered this track to increase customer stickiness. Although business has grown, it also faces a problem. General Manager Gao said: Although the epidemic prevention policy has been optimized, there are pros and cons, and delivery is a big challenge. During delivery, many people are contacted, and employees are gradually infected and sick, especially frontline drivers. If they get sick, the delivery volume decreases by 20%. Facing sales growth, employees cannot keep up, which is contradictory. Fortunately, in 2022, General Manager Gao had already expanded personnel and refined teams such as logistics and clerks. Although some employees are infected, the impact is currently not significant. When frontline drivers are insufficient, they temporarily hire some part-time drivers, and salespeople also serve as drivers to ensure normal circulation. For the Spring Festival, General Manager Gao has not made early arrangements. She mentioned: First, the epidemic situation in Beijing is still relatively serious, and most people do not enter Beijing unless necessary; second, Beijing is a city of migrants. During the Spring Festival, Beijing becomes an empty city, and most people return to their hometowns. Especially this year, with free movement of people, there should not be a big consumption explosion. It is enough to prepare some gift boxes appropriately.

Summary: After the adjustment of epidemic prevention policies, traditional distributors' first- and second-tier brand products, which rely on traffic, may see some stagnation. They can adjust product structure in real-time based on consumer demand, focusing on terminal store needs, and strengthen the stickiness between distributors and terminal stores.