On October 15, the live case sharing of PepsiCo Foods' 'Ru Hu Tian E' dealer digital transformation project concluded successfully, with a record-breaking cumulative online attendance of 33,600. In June 2020, PepsiCo Foods officially launched the 'Ru Hu Tian E' dealer digitalization project, leading and empowering dealer partners to undergo digital transformation and upgrade in the new era. This time, PepsiCo Foods, together with New Distribution and outstanding dealer benchmark Shenzhen Yataixuan Industrial, created the 'digital omnichannel dealer' case. As the event concluded, it's clear that digital transformation, omnichannel operations, and full-channel layout are concepts being increasingly practiced and applied by dealers. Against this backdrop, this article provides an in-depth interpretation of the new logic of manufacturer-dealer win-win behind PepsiCo Foods' 'Ru Hu Tian E' project. Dealers Are No Longer 'Goods Movers' or 'Payment Collectors' In the past, many FMCG professionals viewed dealers as merely entities that handle payments, shipments, and distribution. Their work was considered low-level, unskilled, and profit-driven. However, since the emergence of dealers in the late 1990s, after 30 years of elimination and iteration, today's dealers have transformed from simple sales owners into formal trading companies with management awareness. In the past, New Distribution has emphasized that dealers are transitioning from amateurs to professionals. Let's examine the evolution of dealers from six dimensions. 1. Evolution of Functions Capital provider → Distributor → Coverage provider → Operator 2. Evolution of Organization Mom-and-pop shop → Group → Small organization → Corporate system 3. Evolution of Agency Single brand/single store → Product portfolio/focused channels 4. Evolution of Scale Million-yuan dealers → Ten-million-yuan dealers → Hundred-million-yuan dealers 5. Evolution of Tools Phone & handwritten notes → DingTalk & Excel → Digital management 6. Evolution of Compensation Basic salary + sales commission → Basic salary + sales commission + special bonuses → Basic salary + sales commission + market process construction rewards & dividend rewards (balancing income and cost input) From the above evolution, we can see that dealers' operational capabilities are undergoing tremendous changes. Dealers are no longer individuals but systematic organizations. At the end of 2018, New Distribution launched the 'New Distribution 100 People' column, where we deeply report on outstanding dealer cases across the country, compiling their business methodologies into articles through interviews, hoping to inspire and provoke thought among more dealers. In the process, not only have the aforementioned functions, organizations, scales, tools, and compensation changed, but they have also maintained normal business growth despite the impact of e-commerce and group buying. They seem more composed in the face of invasive species, leveraging their own resources and capabilities to find business opportunities and offset sales losses from the impact. I believe this is the development characteristic of dealers in the new era. Today's dealers have completely changed. It is precisely for this reason that PepsiCo Foods has recognized the logic behind dealer changes, shifting from a control and game-playing mindset to an empowerment and co-creation mindset. The New Logic of Manufacturer-Dealer Win-Win Facing the changes in the dealer community, PepsiCo Foods' 'Ru Hu Tian E' project also brings us food for thought. In the past, we positioned dealers as distributors, capital providers, and coverage providers. Now, we should also shift our perspective, positioning dealers as operators, marketers, promoters, and channel partners. Based on the local market or a specific channel, they conduct market insights and market building. Based on this logic, New Distribution proposes a new strategy for manufacturer-dealer win-win: 1. From single sales-based tiering to label-based tiering 2. From single policy output to successful case sharing 3. From single business coaching to business quality improvement 1. From single sales-based tiering to label-based tiering In the past, brand owners managed dealers through hierarchical tiering, usually based on sales volume, the 'sales hero' theory, setting A, B, C levels or one-star, two-star, three-star, etc., providing different market expense support and personnel input based on sales level standards. However, the diverse nature of channels and dealers' own development aspirations mean that sales size alone should not be the measure. Some new channels represent future trends, while some channels have limited category capacity. If sales volume is the sole criterion, it does not align with the long-term development strategies of brand owners and dealers. Instead, tiering by label characteristics, using the 'market building theory' as the standard, for example, dividing dealers by channel, and providing corresponding support and empowerment to dealers tackling different channels. Of course, in addition to the channel dimension, there are also outstanding dealers in organizational management, marketing promotion, second-generation succession, and digital transformation, who can be categorized with corresponding labels. When a brand owner launches a new product, they can find dealers with the 'marketing promotion' label to conduct pilots and tests, and extract corresponding standard promotion manuals. 2. From single policy output to successful case sharing The logic of single policy output is: I say, you listen; I teach, you do. But that no longer works. As the saying goes, 'experts are among the people.' Some dealers can successfully launch a new product in the local market, some lead in channel development, and some innovate in visit efficiency. These good measures, methods, and practices should be shared as cases for more dealers to learn from. Previously, Mr. Pan Lihua of Swire Coca-Cola proposed the management culture of 'share at every meeting' for frontline salesperson management. I believe brand owners can also adopt similar management approaches for dealers: annual meetings for major sharing, quarterly regional meetings for medium sharing, and monthly local meetings for small sharing. Let outstanding dealers tell you how they do business. Through label management, identify outstanding dealers with corresponding characteristics, extract successful cases through interviews and surveys, and then share them through online live streams and offline meetings. Let surrounding dealers feel, 'My neighboring dealer does it this way; I should try it too.' 3. From single business coaching to business quality improvement In the past, we always talked about being user-centric. In fact, dealers are also users of brand owners. Being dealer-centric means leading dealers in transformation and upgrading. The achievement of brand sales targets is the effect, while the improvement of business quality is the cause. The cause comes first, then the effect. We should not reverse the order, thinking about sales target achievement first and then business quality improvement. The core of improving dealer business quality lies in three aspects: increasing revenue, reducing costs, and improving efficiency. 1) Increasing revenue: Revenue growth and profit growth. Revenue growth comes from outlet coverage, per-outlet output, outlet activity, and outlet structure; profit growth comes from category structure and product mix, such as the ratio of new to old products. 2) Reducing costs: Management of return rates, bad debt rates, product freshness, etc. 3) Improving efficiency: Application of digital tools, compensation and performance models, warehouse and picking models, distribution models, institutional processes, etc. Increased efficiency ultimately reflects in increasing revenue and reducing costs. Looking back, the core of improving dealer business quality is also the process measures for brand owners to achieve sales targets. In the past, the contradiction between brand owners and dealers was actually a problem with the starting point. If we change our thinking, aiming at improving dealer quality and integrating brand sales target achievement into it, we can definitely achieve a 1+1>2 effect. The above is also the starting point of PepsiCo Foods' 'Ru Hu Tian E' project: from strategic control to empowerment, from game-playing to co-creation; from single policy output to successful case sharing. In the future, New Distribution will also collaborate with more brand owners to set benchmarks, establish role models, and cultivate more outstanding dealers to support market development! Are you 'watching' me?