Recently, while exchanging ideas with a distributor owner in Chengdu, he shared his own case. Originally, the company's annual warehouse rent was over 3 million yuan. After switching warehouses, they saved nearly 1.8 million yuan a year. To move, he paid a price: compensation for breach of contract, abandoning the original decoration, and selling shelves at low prices. "It hurts, but this is a necessary calculation. In the past, things looked impressive – big warehouse, nice office – but reality is harsh. Now is not the time for face; it's time to truly dig in." That 1.8 million is real profit. In Guizhou, another distributor owner shared an adjustment in business management. "In the past, the company divided salespeople by region, each guarding their own area. Over time, many areas became stagnant. Stores didn't grow, and salespeople had excuses: 'This area's stores are weak; growth is hard.' Later, he changed the rules: salespeople still had their own areas, but if a store in their area didn't order for over a month, or sales dropped more than 30% year-on-year, that store entered a 'public pool,' where other salespeople could re-develop and re-serve it. Within six months, overall business grew by 20%. These two cases are not complex. One is about switching warehouses, recalculating storage costs; the other is about changing business rules, reactivating stores. For many distributors, growth doesn't necessarily start by seeking external opportunities, but by finding internal space first. Don't always focus on variables Distributors should hold onto their constants There are many external variables: discount retail, instant retail, livestreaming, private domain, AI, etc. Every new thing makes distributors worry about their business. But the problem is, many distributors get more confused the more they hear, and the more confused they get, the easier they are led by external concepts. Today they hear others succeed with B2b, and think they should do it too; tomorrow they see others gaining from flash warehouses, and worry about missing out on instant retail; the day after, they see others doing livestreaming, and consider doing it themselves. The result is they look at many directions, take many actions, but their own business doesn't truly strengthen. Behind this is a crucial issue: many distributors focus on "variables" but ignore the "constants" they can truly control. What are variables? Platform policies, manufacturer fees, channel trends, consumer sentiment, competitor actions – these are all variables that distributors cannot control. Today the platform gives subsidies; tomorrow it may shrink. This year the manufacturer provides resources; next year it may pressure costs. A channel has dividends today; soon everyone enters, and profits thin out quickly. Variables – distributors often can only react passively, so they most easily create anxiety. But constants are different. Finance, warehousing and distribution, business rules, product mix, customer segmentation, procurement standards, data capabilities – these are constants that distributors can adjust and control. The Chengdu distributor owner told me, "The industry is tough now; anxiety is normal, but anxiety doesn't solve problems. What we truly need is to calm down and re-examine our competitiveness." "Finance, procurement, warehouse, stores, business system – each segment needs a fresh look. Not to see what others are doing, but first to see where we haven't done thoroughly. After I did these well, many chain stores proactively approached me for supply." If constants are weak, you can't catch variables when they come. If constants are solid, variables may naturally become opportunities. Squeeze out water, reduce costs Cost isn't simply cutting expenses, nor is it pressing wages, logistics, or services. It's recalculating whether each expense generates operational efficiency. Many distributors used to understand business by scaling up. A big warehouse shows strength; many vehicles show distribution capability; many salespeople show coverage; many outlets show deep market penetration. When the market was good, these looked like advantages. But today, some advantages may have become burdens. The warehouse is big, but turnover is slow; many vehicles, but low load rates; many staff, but limited output; many customers, but long payment terms, high returns, and thin margins. The Chengdu distributor's warehouse switch is a typical case. Behind this is not just saving money, but re-judging whether the original storage costs still match today's business. Many distributors are like this: it's not that they have no profit, but profit is eaten by fixed costs. Warehouse rent, vehicle depreciation, driver wages, loading/unloading fees, branch warehouse costs, route losses – these seem necessary, but if not recalculated, they easily become profit black holes. So, when calculating costs today, distributors shouldn't just see if money is spent, but whether it strengthens operations. For example, warehouses aren't just about rent. Location affects delivery radius; layout affects picking efficiency; ceiling height affects storage capacity; loading conditions affect labor efficiency; temperature, ventilation, and moisture affect product loss. A cheap but unsuitable warehouse may be falsely cheap. An expensive but efficient warehouse may be worthwhile. The key is to calculate the total cost. Has picking efficiency dropped? Has delivery radius lengthened? Has labor efficiency improved? Has loss been reduced? Has turnover accelerated? Effective cost reduction means total costs fall and operational efficiency rises. On the business side, activate "motivation" Costs can save profit, and the business side can also activate growth. Many distributors used to divide salespeople by region. This method itself isn't wrong – clear responsibilities, stable routes, and customer relationships are easy to accumulate. In a sense, it becomes the salesperson's private property. The logic of private property is: this area is mine; whether I do it and how is up to me. If stores don't grow, I have the excuse "this area's stores are weak." The Guizhou distributor's case changed to a usage-rights logic: this area is temporarily yours; if you can't deliver, you must yield to others. Different rules lead to completely different salesperson states. Non-ordering stores are re-developed by others; inefficient customers are re-followed; salespeople no longer just guard their areas waiting for orders. This is the constant value on the business side: your existing customers, outlets, and relationships are mostly not yet fully served. On the product side, good products matter more than inefficient promotions When distributors look inward for space, products are unavoidable. In the past, many distributors entering the market habitually thought of actions first: special offers, end-cap displays, shelf arrangements, pressuring policies, having salespeople push more. Do these actions work? Of course they do. But the problem now is that the marginal effect of many actions is weakening. Stores don't lack promotions, and consumers don't lack cheap goods. If the product itself isn't attractive, more actions just spend money. A major merchant at Zhengzhou Bairong Market noted: "Many traditional sales-driving actions aren't as effective now. What truly works is providing stores with a good product." This is important. It reminds distributors that they can't just be product pushers; they must become product experts again. What is a good product? It's not simply cheap, nor is it just a big brand name. It's a product that fits the channel, fits the store type, fits local consumers, and brings sell-through and margin to the store. Break down products: which are main items, profit items, traffic items, or differentiated items. Different products have different roles; they can't be lumped together. Categories like snacks, beverages, daily chemicals, and seasonings see rapid consumer changes. If a distributor's product pool doesn't iterate, stores lose freshness, and consumers have no reason to buy. Good products are more important than inefficient promotions. On the customer side, not all stores are worth investing in In the past, many distributors entering the market habitually increased customer numbers. More outlets meant more peace of mind; broader coverage meant a more stable base. But today, having more customers isn't necessarily good. Sales aren't low, but payment terms are long; orders aren't few, but returns are many; volume is large, but margins are thin; demands are many, but actual contribution is small. If such customers aren't re-segmented, they will continuously consume the distributor's expenses, warehousing, personnel, and cash flow. A daily chemical distributor in Guizhou shared a case: "When negotiating with some new stores, I insisted on cash payment. Initially, stores didn't accept it, thinking the payment term was too short. But before opening, the stores proactively paid, asking me to deliver quickly. After delivery, goods sold out the same day, and the stores were willing to continue cash cooperation." A distributor's true bargaining power isn't longer payment terms, lower prices, or more fees. It's that your products sell through, bring foot traffic to stores, and let stores see results – then you don't have to rely on concessions to win cooperation. Grab data, calculate the business clearly Another key constant is data. For distributors, truly valuable tools must return to one question: can it help me do business better? In recent years, many distributors have adopted systems, changed software, made mini-programs, and researched AI. But the reality is some bosses think that changing a system will automatically bring orders; installing a tool will automatically improve management. Often, the result is: systems exist, but no one looks at data; reports exist, but actions don't change; AI is used, but only for writing copy or making posters. In the past, distributors made judgments based on experience. Which customer is good – by feeling; which product can sell – by experience; which salesperson is diligent – by impression; which activity is effective – by results; which store has potential – by the boss personally visiting the market. Experience is important, but today's market is too complex; relying only on experience can lead to incomplete or inaccurate views. The value of data is to make invisible problems visible. Today we talk about how distributors use AI; it should be understood in this context. AI doesn't replace the boss's decisions; it helps the boss organize information faster, find problems more accurately, and form actions more systematically. For example, which stores haven't ordered for over a month? Which stores have declined more than 30% year-on-year? Which products have high inventory and slow turnover? Which customers are worth reactivating? These questions can be turned into reminders and lists using data and AI. AI won't automatically make a distributor stronger, but a distributor willing to break down operations, accumulate data, and review actions will become stronger because of AI. At the AI Application Forum of the 2026 China FMCG Conference held in Hangzhou on May 27-28, we will also feature "Distributor AI Practical Course" as a key content, deeply exploring AI application scenarios in channel operations, store management, product analysis, and business efficiency. Welcome to this "2026 China FMCG Conference AI Application Forum" to see cases, learn methods, and exchange ideas. Click the image to view conference details.