Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to discuss the Internet transformation of the FMCG industry. In business operations, some work is destined to be hard and tiring, but some companies spare no effort to do this tiring work, achieving annual revenues of over ten billion yuan! Channel and terminal operations are energy-consuming hard work—requiring manpower, time, and effort. But when a company does this work that others are unwilling to do well and thoroughly, it forms a strong advantage and competitiveness. The companies mentioned today, Wahaha and JDB, are both tirelessly doing this "stupid" channel and terminal work, which has contributed to their brilliance, with annual revenues in the hundreds of billions, making them industry leaders!
JDB JDB is one of the few companies in the industry that attaches great importance to channel terminals. This emphasis is also the key to JDB's success in creating the herbal tea miracle, with single products exceeding 10 billion and 20 billion yuan, building a powerful "ground network"! ◆** ◆ ◆**
Building a powerful ground network 1) Strict, multi-dimensional channel system For beverage companies, it is extremely difficult to produce differentiated and hard-to-imitate products, so those who control the channel win the market. In the FMCG industry, where products are bought on impulse, whoever strongly occupies the channel gains the first-mover advantage. From the beginning, JDB started building its channel system. In 2002, when Wanglaoji's sales had just exceeded 100 million yuan, JDB's head, Chen Hongdao, spent 3 million yuan annually to hire five channel directors from PepsiCo to build JDB's channel system. While many peers laughed at his approach, he didn't care, but a few years later, this system began to show astonishing results. JDB's channel system can be described as "terminal is king." Visit any second-tier city, and you can buy JDB at almost every convenience store. JDB's channels form a meticulous, multi-dimensional system, divided into five parts: KA modern (Key Account channels), wholesale, small shops, catering, and special channels (schools, internet cafes, stations, hotels, KTV). Among these, KA accounts for 20%, catering about 40%, wholesale and grocery stores about 30%, and special channels 10%. 2) Dense ground-level promotion JDB executes terminal promotion very well. When JDB operated Wanglaoji, consumers were surrounded by Wanglaoji promotional materials everywhere. When you go to a restaurant, you see Wanglaoji ads on toothpick holders, and even door stickers in some small restaurants. In residential areas, convenience store signs, wall posters, and freezer stickers all feature Wanglaoji. In supermarkets, you see Wanglaoji displays. High product placement means consumers can buy the product anywhere. The pervasive terminal promotional offensive achieves higher reach and efficiency than high-end advertising, forming a massive three-dimensional bombing network on the ground. ◆** ◆ ◆**
Strong ground team with high execution efficiency and stability JDB has a sales team of about 10,000 people nationwide, capable of putting up identical posters across the country almost overnight and having all salespeople say the same thing to terminals. Compared to other FMCG peers, JDB offers extremely generous compensation to this strong sales team, ranking in the top three in the beverage industry. The turnover rate of this large team is surprisingly low at only 3%, far below the industry average of 7%. ◆** ◆ ◆**
JDB's multi-dimensional channel system It is precisely because of years of cultivation, a strong channel system, and a lean sales team that JDB quickly completed its brand transition after splitting with Wanglaoji. 1) Rapidly completing channel terminal integration After the split in 2012, Guangyao also tried to win over JDB's channel partners, offering "Wanglaoji" at 2 yuan cheaper per box than "JDB," meaning distributors could earn 2 yuan more per box. Some profit-seeking terminal operators were tempted, but Guangyao's channel team was too small to connect with terminals. Some distributors said, "After hearing this news, we wanted to learn more, but where are the 'Wanglaoji' salespeople?" More channel partners who had long-term cooperation with JDB, especially those who made money through cooperation, valued the long-term partnership experience. JDB's deep co-marketing support was something Guangyao could not provide and many peers found hard to match. After weighing the options, they chose JDB, allowing JDB to quickly complete channel integration. 2) Rapidly completing consumer integration Retail terminal integration: During the brand switch in 2012, aggressive advertising, displays, and posters in stores made consumers aware everywhere that "the leading Wanglaoji herbal tea has changed its name to JDB." Catering venue integration: After the split in 2012, many people dining out would notice that when ordering herbal tea, promoters would remind them that "the leading Wanglaoji herbal tea has changed its name to JDB," coordinating with media at the terminal level. This powerful system not only contributed to JDB's success in operating herbal tea but also played a crucial role in successfully completing the brand transition and rebirth after the split with Guangyao. This shows how important these "stupid" tasks are! Wahaha
Wahaha is a beverage giant in China, with sales consistently around 70 billion yuan. No domestic peer can match it, and it even rivals international giants. Behind Wahaha's success, there is also a lot of "stupid" effort!
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70-year-old leader goes deep into the front line Many bosses rarely go to the market after their business grows, losing sensitivity to the market. Zong Qinghou is the opposite. Born in 1945, Zong Qinghou has worked 16 hours a day for 29 years since starting his business. He spends over 200 days a year on the front line, using his feet to understand the market, staying connected with people and the ground, promptly understanding industry changes and competitor situations, and making targeted adjustments. Zong Qinghou still does not participate in any sports or leisure activities, including golf. Wahaha has developed at an extraordinary speed to become a leading enterprise in China's food and beverage industry, holding a place in the world's beverage industry. Zong Qinghou attributes his success to running the market, and his accurate grasp and good feel for the market come from his market visits. ◆** ◆ ◆**
Dominance in third- and fourth-tier cities In third- and fourth-tier markets, Wahaha is the absolute king of channels. Wahaha has selected over 1,000 distributors across 31 provinces and cities nationwide who have advanced concepts, strong economic strength, and high loyalty, forming a manufacturer-distributor joint sales system that covers almost every township in China, creating a powerful network! Not only does it have the strongest group of distributors in the industry, but in terms of channels and terminals, Wahaha's displays and presentations also have strong advantages, reaching places competitors cannot. Ding Lei, an IT billionaire from Zhejiang, once looked down on Zong Qinghou's water business, but in 2005, during a trip to the Tianshan Mountains in Xinjiang with his girlfriend, he became extremely impressed. On the journey, he couldn't buy Pepsi or Coca-Cola, but he could buy Wahaha products. He was convinced by Wahaha's channel. This example vividly demonstrates the meticulousness and effectiveness of Wahaha's channel work. ◆** ◆ ◆**
Strong deep distribution system Throughout its development, Wahaha's channels have undergone multiple downward transformations, from provincial agents to city agents, and then to county agents, with channel control continuously moving down. Each downward shift means nearly double the total growth. For example, when moving from provincial to city agents, the provincial agent often did well in the provincial capital but not in other cities due to limited reach. Once down to city agents, each city performs as well as the provincial capital, nearly doubling the total. For a province with 10 cities, previously the provincial capital scored 9 and other cities averaged 6, totaling 63. Now the overall score is 9, totaling 90, meaning at least 1.5 times the previous performance, or even more. Similarly, moving from city to county agents brings another significant improvement. This deep distribution has brought huge returns. In 2010, Wahaha's performance in Anhui, a mid-level GDP province, reached 2.8 billion yuan, earning admiration from industry insiders. Of course, this also means more work and finer details, as going deeper means more terminal work. It's a complex "stupid" task requiring great effort and energy, and Wahaha has done it diligently! The above examples are representatives of "stupid" companies willing to do "stupid" work, and they are industry leaders. There are many similar examples! Offline channels are a tiring and hard "stupid" job, especially when facing a huge channel network. It's a complex and massive task, but this "stupid" work must be done because it's also a key factor in business success or failure! Marketing success requires not only skills but also "stupid" effort and doing "stupid" work! Author: Yu Jianmin, industry observer and senior marketing management expert. Source: Food Board New Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how FMCG industry channels should transform under the trend of Internet+ transformation Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report — Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path — Liu Chunxiong 10:05-10:35 Opportunities and Challenges of FMCG Channel Transformation — Liu Zhao, CEO of Waiqin365 10:35-11:05 Alibaba Retail Link All-round Empowerment — Guo Kunkun, Alibaba Retail Link 11:05-11:25 Channel Efficiency in the Internet Era — Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum — Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: City Distribution Trends — Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum — Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off — Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy — Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy — Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business — Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain — Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecology — Miao Dong, Vice President of Quanshi 16:30-16:50 The Next Decade: B2B as the Main Investment Battlefield — Well-known Investor (TBD) 17:00-17:30 Roundtable Forum — Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturers and distributors planning to transform, this event is a must-attend. Interested friends can long press the QR code below or click "Read Original" to register. Registration: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]