Why don't products sell on the shelf? Why don't they move in volume? Why don't channel distributors stock them? Products sitting on shelves without selling is a common problem for many companies. What causes these issues? Only by identifying the causes can we "apply the right remedy." Below is an analysis of the reasons behind this problem. First, from a corporate strategy perspective: Focus on brand enhancement. When we choose "brand channels" (referring to influential distributors and supermarkets), supermarkets also value "channel brands" (products with strong brand power), because consumers' brand awareness is continuously increasing, and products with good brand effects naturally facilitate supermarket sales. This requires manufacturers not to focus only on short-term interests, not to "only make products, not build brands." Only when brand effects are established can product added value be highlighted and profit margins be larger. Packaging design should consider the terminal environment. Why do many manufacturers' packaging, which they consider excellent, lack visual impact when placed in terminal venues like supermarkets? Because during packaging design, they fail to fully consider differentiated features and how to integrate with the competitive terminal environment. Therefore, to attract consumers in the store, our products must consider how to stand out among a dazzling array of similar products. Implement support for distributors concretely. When recruiting distributors, manufacturers often make attractive promises, but when it comes to actual market support, most fail to truly implement policies. This leaves distributors feeling powerless and losing confidence. Here, manufacturer support doesn't need to be everywhere, but even if you do one store, you must do it thoroughly; if one point is done well, it can drive a certain area. Below, let's briefly discuss several main reasons: I. Product Reasons
- Product not suitable for the local market Nowadays, market products show increasingly regional characteristics; different regional markets require different specifications, packaging, and tastes. Even for the same taste name, different markets have different requirements. However, many companies operating in different regional markets fail to recognize regional differences, so once products are distributed and placed on shelves, they become unsold. For enterprises, especially FMCG, it's essential to consider national differences, such as sweet in the south and salty in the north, children preferring sweet tastes, and implement personalized marketing.
- Product concept too advanced or poor timing of launch Developing products based on potential market demand to achieve major breakthroughs is entirely correct, but if the product concept is too advanced, it can lead to the awkward situation where products sit on shelves unsold after launch. Because with an advanced concept, you'll incur huge costs to do the market well; you can't lead consumers; you must adapt to the market. For example, currently, the market is buzzing with vitamin drinks, sugar, weight-loss products, etc. The concepts are already familiar, so promotion naturally achieves twice the result with half the effort.
- Product entering decline stage Product aging means the product's life cycle has entered the decline stage. If the company doesn't realize this and continues to push sales, products will sit on shelves unsold.
- Product not keeping up with changes Social changes and rapid technological advancements can cause certain products to disappear naturally. If such products are still on shelves, it's no surprise they don't sell. For example, a few years ago, pagers had a place in China's communication market, but now with the popularity of mobile phones, pagers have no market. If stores still put pagers on shelves, no one would be surprised they don't sell.
- Products developed without market research Product development that ignores consumer and market conditions, based entirely on personal wishes, is doomed to fail. II. Price Reasons
- Pricing too high If a company sets prices based on its own requirements without considering specific market conditions, it will lead to consumers not buying and products not selling on shelves. In 2004, Uni-President Hefei Company developed a new product called "Haojindao." When pricing, the company ignored market specifics and unanimous opposition from distributors, pricing based on its own profit perspective. As a result, the market rejected it immediately, and sales plummeted. Later, the company had to increase promotions and lower prices to turn things around.
- Pricing too low Just like pricing too high, pricing too low can also make consumers skeptical. For certain products, too low a price makes consumers doubt the product's positioning and suspect quality issues, leading them not to buy—"If your price is so low, your quality must be problematic." Thus, products sit on shelves ignored. III. Place: Unreasonable Channel Profit Settings Unreasonable channel price settings and chaotic price systems leave channels without sufficient motivation, also causing products to sit unsold on shelves. IV. Promotion Reasons The essence of promotion is value for money, even exceeding value. It's about understanding distributors' and channel merchants' psychology, innovating promotion methods, and meeting their needs. V. Reasons for Ineffective Market Control If a company fails to control the market effectively, such as cross-regional selling causing price system chaos, it will reduce consumers' and stores' enthusiasm for purchasing and promoting the product. VI. Reasons Related to Company Policies If a company lacks regional strategies and tactics, it often forces nationwide promotion of a new product with strict reward and punishment systems. This leads marketing personnel, to avoid fines or earn rewards, to distribute products not based on market needs, resulting in products unsuitable for local markets being pushed out, with predictable outcomes. VII. Market Stockouts If a product is frequently out of stock, once consumers switch to other products, it's natural that when the product returns to shelves, it won't sell. Next, from a tactical perspective: Getting products (especially new ones) "on the shelf" is easy, but "moving them" is hard! The speed of "moving" directly affects market sales and profits to some extent. Typically, if a product doesn't move within three months, supermarkets will ask the manufacturer (or supplier) to withdraw. Actually, from a win-win perspective, neither supermarkets, manufacturers, nor suppliers want products to linger on shelves. So the fundamental issue is: how can manufacturers, suppliers, and supermarkets work together to solve product movement? We can't deny that well-known, fast-selling, and mature products move faster in supermarkets, but usually we face non-well-known, non-fast-selling, non-mature products. In such situations, it's not just one party's responsibility; production, supply, and sales must truly stand on the same line to solve it together. I. Display Reasons Good display not only boosts sales but also serves to promote and remind consumers for new markets and new products. However, if a company doesn't understand product display, it can cause products to sit unsold on shelves, especially in new markets. Product display should be vivid and create sufficient visual impact on consumers. II. Promotion Reasons The purpose of promotion is to solve the problem of selling products off shelves, but improper promotion not only wastes money but also causes products to sit unsold. Main manifestations: promotions don't align with store and consumer needs, failing to stimulate their interest in selling and buying; promotion methods and gifts just used by competitors; promotion intensity too high or too low. III. Reasons Related to Marketing Personnel Execution For new markets and new products, after products are placed on shelves, marketing personnel need to do merchandising, promotion, market follow-up, display, and other tasks to quickly gain consumer recognition and purchase. But if marketing personnel lack execution, they often just distribute goods and then ignore them, and when products sit unsold for a long time and need returns, they start looking for objective reasons. IV. Reasons Related to Competitors Some companies, when in a strong market position, may take measures to clear competitors or increase inventory pressure during peak seasons. This makes stores with large inventories eager to sell quickly to recover funds, neglecting other products, worsening the situation for weaker products, causing them to sit unsold. Generally, weaker products are most prone to sitting unsold on shelves. V. Reasons Related to Distributors If distributors don't value the product, they won't actively promote it, won't guarantee necessary after-sales service, won't maintain customer relationships, and will have too small distribution coverage, all leading to products sitting unsold on shelves. To make agency products sell faster, there are also several points worth noting: Jointly develop effective promotion strategies with manufacturers and supermarkets. Everyone knows about promotions, but not everyone knows how to do effective ones! First, effective funds; second, effective methods; third, how manufacturers and merchants cooperate to execute. Usually, we feel stores are hard to deal with because they focus on entry fees and mutual interests, rarely involving how production, supply, and sales can solve movement strategies through effective methods.
- Supermarket management needs attention to details. Suppliers generally don't have full-time promoters, merchandisers, and salespeople; but task arrangement and supervision must be detailed. This isn't just about financial transactions; it's about doing competitive product dynamics, product reactions, and other market feedback. Supermarket management must adhere to fixed personnel, fixed stores, fixed quantities, and fixed times, using quantitative standards to refine effective target supermarket work.
- Price reduction is not an effective method. To accelerate product movement, especially for suppliers who purchase at "bare price," when they're about to give up, they often resort to price cuts or even "buy one get one free," which actually lowers the product's grade and brand image, and few customers buy. -END- Content Selection Click the title below to read directly: [Practical Guide to Sales Representative Customer Relationship Management (Including 228-page PPT training tutorial for grassroots sales reps download)
