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If it were a week ago, I believe many distributors would still be full of confidence. The epidemic was basically under control, and this year's Spring Festival gift box market should have considerable sales. But who knows, unexpected storms can arise. The epidemic has not subsided. Shijiazhuang, Hebei, has entered a "wartime state," with the city fully locked down, and residents self-isolating at home for 7 days without going out. Seeing this information adds a sense of worry. Should gift boxes be done this year? How much effort and resources to invest? This is a difficult problem for distributors.

Setting aside the uncertain impact of the epidemic, this article discusses from a market perspective how to plan this year's gift box market.

-01- Should Gift Boxes Be Done?

First, confirm one point: if you have not dealt with gift box products before and want to try this year, I advise you to be cautious. Besides the uncertain epidemic, the gift box market itself is highly competitive. The short, fast, and quick gift box market, although with objective gross profit margins, naturally carries considerable risk.

Returning to the market dimension, whether to do it or not depends on two core dimensions:

1. Regional market characteristics 2. Manufacturer sales policies

1. Regional market characteristics

Does the regional market have the habit of giving gift boxes during festivals? On this point, you can ask peers about the space in the gift box market, where the main consumption areas are, and make key judgments. Also, consider the matching of your own distribution channels. If the channels do not match, and you need to invest money to develop them independently, it is not appropriate at such a time.

2. Manufacturer sales policies

In the FMCG industry, sales growth is market-oriented in the long term and policy-oriented in the short term. Gift box products only look at the short term. Distributors do not need to consider the "big pie" the manufacturer paints for the future; manufacturers will not cultivate gift boxes as strategic products. Just look at the immediate short-term benefits.

Of course, if some gift boxes can help distributors expand new channels, increase new outlets, or maintain existing channels, distributors can also consider them. For example, gift box benefits for enterprises, institutions, and manufacturing factories.

Since you choose to do gift boxes, the next step is market operation.

-02- How Specifically to Do Gift Boxes?

In the market, the key points that determine the sales volume of a product, besides simple, direct, and rough sales policies, are market operation and implementation.

Regarding the market operation of gift box products, I think there are three core key points:

1. Node control 2. Terminal interception 3. Execution monitoring

1. Node control

Gift box products are seasonal products with strong substitutability. After the season passes, gift boxes lose their consumption scenario, and consumers will no longer buy them. Therefore, for gift box operations, sales node control must be the top priority.

If you miss the market opportunity, you can only face returns and inventory disposal.

Take the daily sales data of a manufacturer during the 2020 National Day and Mid-Autumn Festival double festival as an example.

From the figure below, we can see: before October 1, gift box sales gradually increased; from October 1 to October 8, gift box sales gradually decreased; from October 8 to October 15, gift box sales basically did not move; September 30 was the highest point of gift box sales.

(Figure: Daily sales data of a manufacturer's gift boxes)

Therefore, the market operation focus for gift box products must be placed before the festival, at least half a month in advance, or even one month, to schedule promotions. The preparatory work is the most important part of sales performance. During the Spring Festival, do daily replenishment and execute according to the previously planned promotion plan perfectly.

2. Terminal interception

Since it is short, flat, and fast, you must be one step ahead and seize the terminal store inventory in advance.

The best way to seize terminal store inventory is through incentives. In past daily work, we usually have two types of incentives: purchase incentives and sales incentives.

The most important first step for gift boxes is the pre-festival terminal store inventory. Give store managers purchase rewards for gift boxes, not sales rewards. If you give sales rewards, such as a commission per box sold, this operation cannot directly mobilize the store manager's enthusiasm for purchasing gift boxes.

Store managers purchase according to the store's demand. For products with such strong substitutability as gift boxes, once competitors have better sales policies and seize terminal store inventory first, the result is predictable. Therefore, in the process of seizing terminals, it must be purchase rewards rather than sales rewards.

3. Execution monitoring

The market is always dynamic and constantly iterating. The importance of data is reflected in timeliness during execution. Distributors should shift from the previous net-casting control to information control or data control, so that they can make targeted adjustments to problems in execution.

For gift box product operations, you must know the daily sales volume every day. Based on the daily consumption rate, you can understand the market situation and make timely decisions.

For stores with abnormal sales, immediately track whether the expenses have been invested, whether the store display resources obtained are problematic, or whether the execution follows the previously agreed display standards. If problems arise, communicate with the business personnel responsible for the store immediately and make adjustments.

Distributors should know how to track quantitative indicators of market performance based on daily sales data of gift box products.

Recently, I visited most distributors in the Shanghai area. Frankly speaking, they are not optimistic about the gift box market and hold a negative attitude this year. If it were not for some hard performance requirements and assessment indicators from manufacturers this year, they would not prepare to do gift boxes. After last year's epidemic impact and the current uncertainty, they all hold a conservative attitude.

Therefore, for distributor friends doing the gift box market this year, tracking daily sales data is even more important. In addition to making Plan B before layout, during the node sales period, through data observation, make strategic adjustment plans in time. Plan B and Plan A should be implemented in parallel.

Important Conference Announcement!

January 19-20, Jiangsu · Wuxi

New Distribution will join hands with 500+ FMCG distributors from five provinces in East China to gather in Wuxi, Jiangsu, to provide brand owners and distributors with a meeting aimed at product selection, cooperation, and exchange.

Make layout before the year, start work after the year! Don't wait until after the Spring Festival to make layout!

Interested brand owners or distributors are welcome to contact us. Please scan the WeChat QR code below to register for the meeting or exhibition.

Exhibition contact:

Tips will be paid 400-2000 yuan once adopted.