As the saying goes, a good distributor finding a good product is like finding a gold mine. For distributors, how to find and tap into good products? What skills are needed? Based on my years of experience in imported food operations, I would like to discuss with you several key points for handling imported foods:
1. Understand Imported Products
- Importers of Southeast Asian products are mainly concentrated in Guangdong (radiating from Shenzhen and Guangzhou); importers of Taiwanese products are mainly in Fujian (radiating from Xiamen); importers of Japanese and Korean products are mainly in Liaoning and Shandong (radiating from Dalian, Harbin, Qingdao, and Ningbo); importers of Vietnamese products are mainly in Guangxi; importers of European and American products are mainly in Shanghai and Beijing.
- From a product structure perspective, Asian imported foods are mostly snacks, while European brands are mostly grains, oils, kitchen and catering foods, especially frozen foods.
- In terms of pricing and promotions, Southeast Asian manufacturers have stable price systems and policies. Taiwanese manufacturers have high market coverage requirements and high sales targets, leading to severe channel price wars that easily harm distributor and importer interests. Japanese manufacturers, similar to their national character, are low-key and risk-averse, with a strong sales-oriented mindset; political factors are unfavorable for domestic sales, but their advantage lies in product excellence. Korean manufacturers are short-sighted and often change importers or distributors once the market is established, acting ungratefully. They are typically sales-driven and may deny capabilities. European and American manufacturers generally have little control over the market, as product delivery cycles are long. Unless they establish their own companies in China, they rarely change importers.
2. Professional Sales Staff As an importer's salesperson, one should have experience in market conditions, terminal characteristics, consumer needs, channels, and market planning. Therefore, distributors should have detailed discussions with the importer's sales staff to ensure smooth communication, especially since imported foods are almost always cash-on-delivery, which is a challenge. Particularly for niche categories, sufficient professional knowledge and operational experience are essential. For your own sales team, implement recruitment, guidance, and training to ensure market maintenance and development after taking on products, ensuring healthy sales in the market.
3. Product Portfolio
- Ensure refinement and specialization. Observing major distributors, some handle products ranging from snacks to beverages, grains, oils, and jams, with a wide variety. While this increases sales opportunities, it is more difficult to operate than focusing on a single category. Others specialize in snacks (biscuits, candies, etc.) or other niche categories. The benefit is that dealing with store buyers is no longer across all categories, saving time; the sales share of a specific category directly affects the buyer's performance evaluation; your secondary distributors may handle snacks but not necessarily condiments.
- Differentiate by specification, flavor, and packaging. A single biscuit product with different specifications, packaging (bags, boxes, gift boxes), flavors, and price points attracts different consumers and meets their selection needs. When selecting products, consider regional tastes and dietary habits to avoid mismatch.
- Price guides the market. Similar products are divided into high, medium, and low tiers. Different prices attract different consumers. Follow the product strategy pyramid: low-priced products for volume, mid-priced for profit, and high-priced for image.
4. Market Sensitivity Should you consider Japanese products given political factors (e.g., recent anti-Japanese anniversaries)? With Southeast Asian products being ubiquitous, should you consider new products from other countries? Are European and American products too expensive for your region, and does your consumer base meet that price point? Given the current popularity of imported frozen foods, do you have the capability and interest to enter that market? ...
5. Risk Control and Inventory Management For risk control, focus on inventory control. When purchasing, consider the store's digestion cycle and understand the store's inventory management rules to ensure reasonable inventory, complete categories, and turnover of bestsellers. After all, you get what you invest. Any investment should be based on personal consideration and understanding. Money is hard-earned; with opportunities and challenges, invest in imported foods cautiously.
6. Communicate and Learn As an imported food distributor, attend industry gatherings and exhibitions to exchange experiences, value learning and communication, and build knowledge about industry characteristics, product operations, and brand culture behind products. As for brand marketing, terminal promotions, and handling of near-expiry products, I will discuss in depth in the next article. If you find this article useful, you can reward the author. Scan the QR code below to pay.
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