---
title: "Thinking About Product Sell-Through from the Perspective of Competition"
description: "A brand executive discusses the challenge of driving sell-through for their second engine product. The article explores three core competitive advantages—product, channel, and consumer competitiveness—essential for successful product sell-through in the current market landscape."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-07-23"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/thinking-about-product-sell-through-from-the-perspective-of-competition-4e3a3173/"
markdown: "https://xinjignxiao.com/en/articles/thinking-about-product-sell-through-from-the-perspective-of-competition-4e3a3173.md"
original_source: "https://mp.weixin.qq.com/s/2A-3sF20kEj9zNwUMz9qLA"
translation: "https://xinjignxiao.com/zh/articles/%E4%BB%8E%E7%AB%9E%E4%BA%89%E5%B1%82%E9%9D%A2%E6%80%9D%E8%80%83%E4%BA%A7%E5%93%81%E7%9A%84%E5%8A%A8%E9%94%80%E9%97%AE%E9%A2%98-4e3a3173.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/thinking-about-product-sell-through-from-the-perspective-of-competition-4e3a3173/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Thinking About Product Sell-Through from the Perspective of Competition

> A brand executive discusses the challenge of driving sell-through for their second engine product. The article explores three core competitive advantages—product, channel, and consumer competitiveness—essential for successful product sell-through in the current market landscape.

********Click to read the original text for details********
A brand executive called me to discuss the sell-through of their company's second engine product. The bottleneck they face is that their first engine product is already quite mature, channel prices are increasingly transparent, channel profits are shrinking, and some channel partners are even "hiding" the product to sell. The impact of the pandemic and rising raw material costs have made it difficult for the company to profit, making it urgent to launch a second engine product. So we discussed the three core competitive advantages of product sell-through from the perspective of market competition, which I share here.
**0****1****Product competitiveness is the cornerstone of product sell-through**
**What is a "cornerstone"? As the name implies, it is the foundation of the product, the inherent attributes it possesses.**
********1\. Total cost leadership****
First, it must be said: low price has never been a product's core competitiveness, but total cost leadership always is. That is, compared with main competitors, my product sells cheaper while offering higher channel profits.
How to understand total cost leadership? It means that from raw material procurement, factory production, logistics to distributor warehouses, marketing costs, channel supply chain to retail outlets, every link undergoes meticulous improvement, so that when the product reaches consumers, they feel that the cost of solving their needs is far less than the value, making it a great value.
For example: In production, we improve equipment utilization, achieve full automation, and reduce the number of production staff to lower production costs; in logistics, we strive to achieve direct delivery, where distributors place orders and products go directly to sub-distributors, wholesalers, or even quality retail outlets' warehouses, avoiding secondary distribution and reducing logistics costs.
Therefore, companies must strive for total cost leadership to create better competitive conditions for frontline marketing personnel, ensuring that competitors' products are too expensive to sell and too cheap to be profitable.
**********2\. Product differentiation******
When it comes to product differentiation, it seems everyone understands it, but many products still lack differentiation. Why?
First, it's not taken seriously, especially by frontline brand marketers who feel complacent, believing their brand power is the best differentiation. In reality, first-tier brands have more new product launch failures than second- and third-tier brands. Consumers won't buy solely for the brand; brand appeal is declining. Products without distinctive features or personalization won't gain consumer favor.
Second, differentiation positioning is often vague, lacking new propositions. Consumers are surrounded by various advertisements daily, and few things leave a lasting impression. If differentiation positioning lacks novelty, its retention in consumer memory is almost zero.
Third, there are limitations in the dissemination channels for differentiation. Once differentiation is established, how to efficiently reach consumers? The era when a shout on CCTV reached the whole nation is gone. With the internet, there are many channels for product communication, and we must find ways to work on all communication channels, such as localized Douyin, official accounts, and other media-based reach; recommendation-based reach through WeChat Moments and community groups, etc.
Therefore, product differentiation must be taken seriously, positioned clearly, and reach consumers through all channels.
************3\. Focus on one or two SKUs********
Market budgets are never enough, human energy is never enough, offline shelf space is always limited, and consumer awareness is always limited. So we must focus, using one or two SKUs to speak for the category we recommend.
Here we need to note a cognitive bias: in the current FMCG market, it's very difficult for companies to create super products worth over ten billion. Mainly due to changes in the market environment, consumers' individual preferences are increasingly evident, making it hard to get a group of people to repeatedly buy your product. But this doesn't mean we should give up on creating super single products. Super single products are the leaders and pathfinders of the product line, crucial to its success or failure.
Therefore, focus on one or two SKUs, striving to make them widely known.
Summary: **Total cost leadership, differentiation, and focus are the core conditions of product competitiveness. The more the rear does, the less sweat frontline marketing warriors shed and the more cities they capture.**
**02****Channel competitiveness is the mainspring of product sell-through**
**What is a "mainspring"? Without a mainspring, there is no power; without power, even the best product is just a dud.**
**********1.**Distribution rate must meet standards******
I've talked a lot about the distribution rate for target outlets. As for how to develop new outlets, I'll only mention a few key points here; details won't be repeated. You can refer to my previous articles (click the author's name at the beginning of the article: Senior Researcher Haiyou).
 _a. Outlet channel attributes_ _b. SKUs in store_ _c. Display standards_ _d. Initial order amount_ _e. Follow-up mechanism_ _f. Sampling experience method_ _g. Target incentive mechanism_
********2\. Outlet quality must meet standards****
Brand display, category display, competitive display, building sales and consumption scenarios, use of visual merchandising materials, etc., are all factors of outlet quality.
********3\. Channel profit must meet standards****
Profit is an important factor driving channel operations. Here we consider not absolute profit but relative profit, meaning you just need to be higher than main competitors.
**********4.****Channel coverage model must match******
Channel coverage should not be a one-size-fits-all approach; it must adapt to regional markets. You can decompose the channel two-dimensionally based on population and per capita consumption, then divide it three-dimensionally based on competitive landscape, then mark four-dimensional operational attention based on distributor sales types (exclusive, specialized, mixed), and finally match detailed market tactics (offensive, defensive, guerrilla). The only principle is: market segmentation, matching tactics, and "foolproof" execution at the grassroots level.
Summary: The focus of channel competitiveness should be on offline layout. In recent years, FMCG has been swept up by various "superior" internet models and capital, but by 2022 it has gradually calmed down. **FMCG companies should return to the market origin, solidify the channel foundation, and rebuild channel competitiveness as the best strategy.**
**03****Consumer competitiveness is the endpoint of product sell-through**
**Why is it the "endpoint"? We must ensure the last meter from sales to consumption.**
********1\. Increase consumer acquisition****
The most effective way to acquire new consumers is through sampling and experience. Although it's "simple," it's truly effective. Experience is the deepest communication at the consumer awareness level. Only with established awareness can transactions occur, leading to relationships.
There are three easily overlooked points in experience:
First, create a sense of ritual; words and actions should make consumers feel respected.
Second, pay attention to details. For example, high-end product sampling should use utensils that match the grade; don't casually use a cardboard box as a bowl or a wooden stick as chopsticks, but don't overdo it either.
Third, provide deep experience. What is deep experience? It can be understood as: after tasting on the spot, deciding to buy, and sharing at home. How to achieve on-the-spot purchase?
This requires consumer promotions. As for how to configure them, you need to think carefully, otherwise you'll see several promotions and hundreds of tastings over a few days, yet sales remain negligible. When the experience isn't thorough, the sales team's confidence in the product also plummets, which happens often.
**********2\. Increase consumer repurchase****
Under what circumstances do consumers repurchase? The answer is simple: increase consumer loyalty. Here are a few methods for reference.
a. If conditions allow, use one-item-one-code: From the consumer perspective, the core is "one code" and "one coupon." "One code" refers to QR codes; consumers scan to get red packets, surprises, and other rewards, which is a way to acquire new customers. "One coupon" refers to coupons, offering discounts, thresholds, or reductions on next purchases, increasing consumer purchase stickiness, which is a repurchase method. Of course, the product itself must be excellent.
b. If conditions don't allow, deepen the experience: Experience continuously stimulates consumers' taste and smell, making it the best solution for building loyalty, but it requires persistence. You can also do live streaming during the experience to expand influence.
**********3\. Increase consumer average order value****
Consumers willing to spend money on a product, and willing to spend more, is a genuine endorsement of the product. So average order value is an important metric. Here are a few examples.
a. Combo promotion model: Many companies guide consumers to buy by the case, such as Jinmailang instant noodles giving a basin with each case; many companies guide consumers to buy multi-packs, common examples being five-pack instant noodles or five-pack beverages.
Image source: Panoramic Vision
b. Large package model: Expanding from individual consumption to family-pack consumption.
**********4\. Competition on shelf life****
**I'll just say this: in the future, freshness of shelf life will definitely be a core competitive factor for products.**
Summary: If a product hasn't been consumed, the sales work isn't complete. Brand owners must not only focus on channel distribution but also do a good job of channel sell-through. FMCG has long transitioned from a seller's market to a buyer's market, so more effort should be put into consumers to enhance consumer competitiveness.
**Final Thoughts:**
Product sell-through is a multifaceted issue that requires attention to all aspects. But from a competitive standpoint, to beat competitors and secure a place in the market, you must value these three competitive advantages: **product competitiveness, channel competitiveness, and consumer competitiveness.** So when thinking about competition, we should start from at least two aspects: first, build our own competitive capital; second, strive to be superior to competitors in as many ways as possible. If you can't be superior in all, use Tian Ji's horse racing strategy—winning two out of three is also a top strategy.
 _-END-_


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671