Click 'Read Original' for details. Source: Condiment Business Circle (twpsq0909) Who moved the salt company's cheese? In recent years, the concept of new retail has put some FMCG distributors in an awkward position. But for condiment distributors, who operate at a slower pace, their position won't be shaken for now. Since the salt industry reform, many designated salt production enterprises and designated salt wholesale enterprises have also expressed a preference for working with condiment distributors, because their business and channels align well. Since the transition period, how have distributors entering the industry fared? Among the many distributors, we've selected three classic cases: a former salt company employee, someone who rebuilt channels from scratch and is thriving, and someone who has become disheartened. Today, let's step into their stories. | Story 1 | After resigning from a salt company, his salary nearly tripled Mr. Dong, a former employee of a salt company in Yuncheng, Shanxi, had been in the industry since 1996, responsible for frontline market delivery. Without the salt reform, Mr. Dong thought he might have stayed there, but the reform brought him new hope. "My fixed monthly salary was less than 1,000 yuan, plus a commission of 100 yuan per ton of salt sold, totaling around 2,000 yuan. In the past, that income was okay, but in recent years, with soaring prices, as the family breadwinner, life became increasingly tight," Mr. Dong said. Before the reform, the salt market income was stable, but after prices rose, his income didn't improve much. Due to the salt system reform, the local salt market was impacted by external salt, his company's operations faltered, the capital chain was on the verge of breaking, and salaries went unpaid for months. At that moment, another company offered him a position with significantly higher base salary and commissions. Pressured by life, in August 2017, Mr. Dong resigned from his original company. Besides increasing his personal income, the new employer also offered preferential pricing on product supply. So Mr. Dong, who already had resources in supermarkets and food processing enterprises, worked even harder and developed many new clients over the months. His income now exceeds 6,000 yuan, about three times his original salary. | Story 2 | After salt was seized, a distributor decided to 'crush the salt bureau' Mr. Liu, a distributor who started in municipal engineering, is a typical example of boldness and strong action. He targets employees like Mr. Dong, who are familiar with the salt market, and admits that finding them can achieve twice the result with half the effort. This is experience Mr. Liu gained through market operations, but it came after stepping on many pitfalls. "In 2016, after reading news about the salt reform, I began contacting designated salt production enterprises, planning to make a big move. I eventually signed a cooperation with Huanghua Tongbao Special Salt Factory and started operations in Inner Mongolia in 2017," Mr. Liu said. Since the market was different from his original one, selling salt required opening new channels. Using his extensive network, he opened up the salt markets in Hohhot, Baotou, and Ordos, and initially operations went smoothly. But it didn't last long. From May 17 to 19, 2017, over 300 tons of his salt in three locations were 'temporarily detained' by local salt bureaus on various pretexts. Mr. Liu panicked and contacted his supplier. The salt enterprise introduced him to lawyer Zou Jialai, who is well-known in the salt industry. The lawsuit lasted over half a year, and Mr. Liu won each time. In March this year, he got back over 260 tons of salt. "After winning, I began aggressive promotion locally. Besides KA markets in cities and counties, I also pushed into rural markets. Within just three months, the recovered salt was sold out," Mr. Liu told Condiment Jun. His method was to use points to drive the whole area: stocking in relatively developed urban areas to increase product exposure, while the real demand was in rural areas. To further expand the market, Mr. Liu brought some condiment distributors into his team for circulation channels. He also 'recruited' three former salt company delivery staff, raising their commission from 100 yuan per ton to 200 yuan and doubling their base salary. Facing the future salt market, Mr. Liu is confident, saying, "Although profits are low now, we've captured market share, laying the groundwork for future competition. If the old salt companies adapt to market rules, they'll still have a place; if not, they'll only wait for other salt enterprises with fresh vision to squeeze their market further, or even crush them." | Story 3 | After failed rights protection, overtaking on the curve Mr. Wu from Xuzhou, Jiangsu, has been in the FMCG industry for nearly 20 years, having sold water, beverages, and snacks. He has good customer relationships in KA channels and terminal markets. Similarly, Mr. Wu decided to make a big move when the salt reform came. On March 1, 2017, he purchased over 90 tons of salt at a price of over 1,300 yuan per ton, totaling over 110,000 yuan. For the designated salt production enterprise, Mr. Wu was one of the local major customers. But on March 7, 2017, the local salt bureau 'seized' his salt on charges of illegal operation. He subsequently communicated with the local salt bureau multiple times but received no response. This was unfortunate for Mr. Wu as a distributor. But in April, the plot reversed: the salt Mr. Wu purchased from Zhongyan Wuyang Salt Chemical Co., Ltd. was found to be 'smelly foot salt.' After the issue was exposed, customers who received deliveries from Mr. Wu came to him for returns. "The salt enterprise didn't refund money, and the goods were basically seized. My 110,000 yuan almost went down the drain," Mr. Wu said, full of helplessness when recalling the past year's experience. But believing the salt reform was a historic opportunity, in the second half of 2017, he signed a cooperation agreement with a designated salt wholesale enterprise in Hubei. Now his sales volume is around 30 tons per month. Mr. Wu reminds that when choosing suppliers in the future, even if the price is slightly higher, distributors should choose enterprises with good after-sales service to avoid many troubles. From August 22 to 24, the '2018 China Digital Innovation Conference (2018FDIC)', hosted by the China FMCG Industry Association and organized by New Distribution, with the theme 'Finding New Engines for Growth', will be held in Shanghai! The three-day conference will focus on two main themes: marketing and supply chain, with six parallel forums on brand, channels, communication, B2B, intra-city logistics, and innovative retail. We will invite industry experts, CEOs, and brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. We will invite over 500 FMCG enterprise executives, 200+ B2B industry CEOs, and 1,000+ major FMCG distributors to gather and discuss how the FMCG industry can use digital tools to achieve rapid growth again in the digital era. This conference will build a bridge for brand owners, distributors, retail enterprises, and marketing agencies, helping FMCG manufacturers obtain the latest information, understand best practices, and master more practical transformation skills. Proposed Invited Companies Conference Time August 22-24, 2018 Conference Venue Shanghai Baohua Marriott Hotel Conference Content August 22: Full-day check-in Afternoon 14:00-17:30 Distributor Intra-city Logistics Parallel Forum Evening 18:30-21:00 New Distribution Night Gala Dinner August 23: Theme: Marketing Digital Innovation Morning 9:00-12:00 Marketing Digital Innovation Main Forum Afternoon 14:00-17:30 Brand, Channel, Communication Parallel Forums August 24: Theme: FMCG Supply Chain Digital Upgrade Full day: FMCG Supply Chain Conference Registration Method Registration is now open. Long-press the QR code below or click 'Read Original' to register. Early bird tickets are on sale for only 2 more days, with a 50% discount. Prices return to normal on July 1! Registration Consultation Ticket inquiries: Media cooperation inquiries: Highlights of Previous New Distribution Conferences Click the links below to review the highlights of the 1st, 2nd, 3rd, and 4th FMCG + Internet Conferences: -END-