---
title: "The number of merchants with annual sales exceeding 100 million on Dewu increased by 70% in one year, and the trend that distributors must follow has arrived"
description: "Recently, New Distribution released the \"2024 China FMCG Distributor Operating Conditions Survey Report\" at the FMCG industry conference. The report shows that only 55.0% of distributors achieved their brand sales targets in the first half of the year, with 48.7% seeing revenue decline and 63.2% seeing profit decline compared to the same period in 2023. This indicates that distributors are facing operational challenges, and they must proactively seek growth in emerging e-commerce platforms like Dewu, which offers high traffic, demand, and sales potential."
author: "秦淮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-08-26"
language: "en"
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---

# The number of merchants with annual sales exceeding 100 million on Dewu increased by 70% in one year, and the trend that distributors must follow has arrived

> Recently, New Distribution released the "2024 China FMCG Distributor Operating Conditions Survey Report" at the FMCG industry conference. The report shows that only 55.0% of distributors achieved their brand sales targets in the first half of the year, with 48.7% seeing revenue decline and 63.2% seeing profit decline compared to the same period in 2023. This indicates that distributors are facing operational challenges, and they must proactively seek growth in emerging e-commerce platforms like Dewu, which offers high traffic, demand, and sales potential.

Recently, New Distribution released the **"2024 China FMCG Distributor Operating Conditions Survey Report"** (hereinafter referred to as the "Report") at the FMCG industry conference. The report points out that through analysis of the sales target achievement of the TOP1 brand represented by distributors, only 55.0% of distributors achieved their brand sales targets in the first half of the year. In the first half of 2024 (January to June), compared with 2023, 48.7% of distributors saw revenue decline, and 63.2% saw profit decline. From these two sets of data, it is clear that the current operating conditions of distributors are not particularly ideal. Facing operational pressure and challenges, distributors must proactively "cross borders" to find growth. As the saying goes, growth cures all ills; without growth, all ills arise. Where is the increment? Obviously, it is the **new forces** e-commerce platforms that everyone has paid less attention to. For example, on the Dewu App, a chocolate merchant achieved monthly GMV of over 10 million within 3 months of entering the platform; a dairy beverage merchant reached the TOP1 in its industry within 5 months; a carbonated beverage merchant achieved daily sales of over 10,000 orders... This article focuses on what increments the Dewu platform, where young people gather, can bring to distributors. Understand Dewu, get to know Dewu, and then see which brands of products represented by distributors can match the platform and have growth potential.
# **Characteristics of Dewu's "Dividend":**
# **Traffic, Demand, and Sales**
From the perspective of distributors, Dewu has three obvious "dividend" characteristics: **traffic, demand, and sales.** Let's look at them one by one. **1. Traffic.** Let me share some data: over 90% of Dewu users are post-90s, with a penetration rate of up to 70% among China's 260 million post-95s young people, and a male-to-female ratio of nearly 1:1. Users cover young consumers from first-tier to fifth-tier cities. It is no exaggeration to say that it is not just traffic, but "high-quality" traffic. The core group for food and beverages on Dewu is even younger and has purchasing power. **According to public data, Dewu's food users are concentrated in the 19-25 age group (Generation Z), accounting for 92%, mostly students and white-collar workers, and their spending on snacks and beverages is increasing year by year.** For food distributors, the consumer group is 100% matched, with no need for any screening. **2. Demand.** We used to think that Dewu users are young consumers whose spending is mainly on shoes, clothing, beauty, and digital products, and that their demand for food and beverages might be low. Although there is traffic, is there a large demand space for food and beverages? Data tells us that there is not only demand, but also huge demand. It is reported that in 2023, the GMV of Dewu's food and beverage industry grew by 1800%+ year-on-year, and order volume grew by 4600%+ year-on-year. The number of active merchants in Dewu's food category increased by 450% year-on-year, and the number of merchants with GMV exceeding 1 million quadrupled in one year. Today, Dewu has become a platform with more than 20 categories including food and beverages, beauty and personal care, and 3C digital products, gathering new, trendy, cool, and dazzling products that consumers need daily. **3. Sales.** Just now we looked at industry data; let's further examine sales cases. Coca-Cola entered Dewu and jumped to TOP1 in the beverage category within 3 months, with daily orders exceeding 10,000. Yili Yousuanru collaborated with Line Friends' puppy to create a gift box, which sold out within 3 days of launch, with orders exceeding 10,000. In addition, sales explode during holiday gift-giving periods. During Mother's Day (May), daily orders for "Ejiao" increased 11.6 times compared to April, "Bird's Nest" increased 14.2 times, and "Chocolate Gift Box" increased 4.4 times. Since it is a platform with traffic, demand, and sales, it is worth the attention of all food industry distributors. In the current involution of the stock market, it is rare to find such a platform with **high-growth demand and high-growth sales.** It is understood that on Dewu, the number of merchants with annual sales exceeding 100 million grew by 70% year-on-year, and the number of new product listings on Dewu increased by over 250% year-on-year. Merchants start selling upon entry, and on average, they reach 1 million in 30 days.
# **Which categories have dividends?**
# **Distributors must "sell the right products" to make money quickly**
After interpreting the "dividends" of the Dewu platform, let's look at the category and product dimensions. It is reported that categories such as leisure snacks, dairy beverages, and instant food have huge dividend opportunities on Dewu. This is not difficult to understand, as the main groups for the above categories are also young people (post-90s, post-95s, post-00s), and **snacks and beverages are essential and high-repurchase categories.**
Morning coffee and milk, afternoon snacks and beverages, late-night instant food and cola. These are regular categories and also the mainstream demand for hot products. For example, during the Qixi Festival, a traffic peak, Dewu's food industry frequently produced bestsellers, with 63 single products selling over 1,000 orders in just 2 days, with sales 3-8 times the usual, covering biscuits, chocolate, beverages, and other snack and drink categories. Based on the positioning of the Dewu APP as a trend indicator for young users, what product dividends are there for distributors? I have summarized **3 types of products that can quickly make money on Dewu, for reference.** **First, "interest and self-pleasing" products.** Interest and self-pleasing products, such as the Yili X Strawberry Bear gift box and Yili X Disney mentioned earlier. Young consumers buy related products because they like IPs like Strawberry Bear and Disney. For example, IP co-branded combinations: the Strawberry Bear gift box climbed to TOP3 in food industry sales during Qixi, with daily sales exceeding 500 orders; Glico X Sanrio co-branded gift pack, a full family of Glico products, went from 0 to over 1,000 orders during Qixi. **Second, "festival gift-giving" products.** Festival gift-giving products, where festivals refer more to young people's "festivals" with a sense of ritual, such as traditional Valentine's Day, Qixi Festival, Christmas, and various anniversaries, birthday parties, etc., conveying corresponding emotions through various gift boxes, souvenirs, and gift packs. **Contemporary young people are also very filial, and they express their affection for parents and elders through gifts on Mother's Day and Father's Day.** In terms of specific products, take the recent Qixi Valentine's Day as an example: **clever product bundling, using the 1+1 "Valentine's Day souvenir" approach, quickly made new products go viral.** During Valentine's Day, the three brands "Dove & Disney & Glico" performed outstandingly in the food industry, with 100 "snack gift packs and gift boxes" themed around Valentine's Day launched, helping merchants achieve nearly 5 times the sales explosion.
**Third, "fresh and novel" products.** Fresh and novel products are more about exclusive new products and unique items released on the platform, differentiated from standard products of major brands. For example, Sprite Jay Chou cans, Costa Coffee joint with the National Gallery, Coca-Cola Olympic limited edition, and peach-flavored Coca-Cola. There are also distributors who collect classic editions of Coca-Cola from various countries, and their sales on Dewu are also extremely high. Combined with the positioning of the Dewu APP, distributors should match the platform through differentiated products under mainstream goods to meet young people's consumption demands for new, trendy, cool, and dazzling items.
# **Platform releases entry dividends**
# **What opportunities can distributors seize?**
**Since it is a platform dividend, it must be more friendly in terms of thresholds and policies.**
  * **No worries, no manpower drain.**
Dewu can help merchants operate well on the platform in all aspects, from product selection, operation, manpower, customer service, to one-click shipping. Compared with traditional e-commerce platforms, where merchants have to attract traffic, handle orders and shipping, and do customer service themselves, Dewu merchants need much less manpower and energy. A FMCG distributor, Zhao Lu, once said that his Dewu operation team has only 2 people, without needing to invest a lot of energy in store operation, product detail page creation, and listing image production. The customer service and operation support provided by the Dewu platform greatly reduce merchants' operating costs, allowing Zhao Lu to focus on product selection and sales. "The operating costs on the Dewu platform are truly calculable, with a return rate of only 2%; the platform's professional customer service **saves us at least two man-hours per month, equivalent to saving 20,000 yuan per month.** " For offline distributors who want to transform to e-commerce, Dewu's semi-managed model can help them save tedious operation steps, and they can quickly get started with simple operations like listing and shipping. Moreover, in the key steps of product selection and bundling, Dewu platform operators will provide product selection suggestions based on platform trends, update opportunity lists daily, allow merchants to bundle products according to user needs, and provide "order matching" services to help merchants find "profitable" products faster.
  * **Low promotion cost, low cost.**
Compared with other platforms, Dewu's low promotion and efficient operation model allows distributors to manage their business more easily and focus on sales growth. Merchants do not need to spend heavily on promotion to gain growth, nor rely purely on price to drive sales. It is reported that 90% of the platform's traffic is free, and relying on natural traffic, merchants can also achieve stable sales. For low-margin food categories, without excessive marketing and promotion costs, profits are more favorable. Take an appliance distributor on Dewu as an example: he represents well-known brands such as Dyson, Philips, and Xiaomi, and his promotion cost on Dewu is nearly zero. However, when he first entered Dewu in 2021, he reached a scale of 30-40 million, doubled to 80 million in 2022, and exceeded 120 million in 2023. As a rising industry on the Dewu App in recent years, food has attractive policies for new merchants. For new merchants, **0 commission and 0 deposit entry** further reduce operating costs, allowing them to start quickly in the 0-1 stage and see confidence in business growth! For high-quality new products, Dewu also provides targeted traffic support to help merchants make new products go viral.
  * **Low return rate, fast payment cycle.**
It is reported that **the average return rate on the Dewu platform is less than 10%,** and for the food and beverage industry, it is even lower, with an average return rate of only 0.02%. Thanks to Dewu's "authenticate first, ship later" model, it attracted a large number of users in the early stage and established a mindset of genuine products among users. Therefore, product quality is good, users trust it, and the return rate is low. In addition, due to characteristics such as interest-based purchases, real demand purchases, and strong gift-giving attributes, Dewu users are more non-impulsive consumers, resulting in a low return rate. Furthermore, **it is understood that the payment cycle on Dewu is only 7 days,** and the fast payment method also provides distributors with more flexibility and operational space in capital turnover and goods turnover. It is understood that distributors representing well-known brands are currently one of Dewu's key recruitment targets. **On August 29, Dewu will hold a food and beverage recruitment conference in Shanghai,** where more entry support policies will be announced for distributors, **such as Dewu has already opened 0 yuan entry trial operation, and a 1% fee rate for key brand distributors, etc.** At the venue, operation leaders will explain in detail how to operate and make money on Dewu, and share industry dividend opportunities. Currently, whether they are merchants who mainly did offline business or those with online experience, they have all signed up. Welcome to come and exchange ideas, and jointly find new growth paths.
**If interested, you can scan the QR code to fill in the form to register. Whether for entry or participation, there will be dedicated personnel to contact and answer questions.**


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