---
title: "Which Marketing Terms Will Disappear from China's Marketing Dictionary?"
description: "Chinese marketing has enriched global marketing with unique terms not found in Western textbooks. This article discusses several such terms—deep distribution, distribution, terminal interception, shelf management, and warehouse filling—that are gradually fading as the market matures and new technologies emerge."
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-08-29"
language: "en"
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# Which Marketing Terms Will Disappear from China's Marketing Dictionary?

> Chinese marketing has enriched global marketing with unique terms not found in Western textbooks. This article discusses several such terms—deep distribution, distribution, terminal interception, shelf management, and warehouse filling—that are gradually fading as the market matures and new technologies emerge.

**Preface**
Chinese marketing has enriched global marketing by creating marketing terms with Chinese characteristics that cannot be found in Western textbooks.
In the book *Chinese-style Marketing*, Mr. Jin Huanmin and I summarized the core elements of Chinese-style marketing into several key terms: interactive marketing, opportunity, sales volume, channel, promotion, shopping guide, planning, selling, and product.
This does not mean that Chinese marketing only focuses on these nine terms, but rather that these terms are very Chinese and have even deviated from their original meanings in Western textbooks.
It is precisely because of these special marketing terms that we find even students who excel in marketing at university are at a loss when they reach the front line, because Chinese marketing does not follow the Western textbook playbook.
There are also other uniquely Chinese terms, such as distribution (pùhuò), deep distribution (shēndù fēnxiāo), terminal interception (zhōngduān lánjié), terminal promotion (zhōngduān tuīguǎng), shelf management (lǐhuò), second-tier wholesalers (èrpī), and warehouse filling (zhàncāng). These terms were once very important at certain stages of Chinese marketing, but as Chinese marketing matures, they are gradually being phased out. Of course, the pace of exit varies across different markets.
Below, I will discuss several Chinese marketing terms that are gradually disappearing.

**Deep Distribution**
Deep distribution can be said to be the biggest feature of Chinese marketing.
China once experienced a debate between "brand-driven" and "channel-driven" approaches. In reality, successful Chinese companies talk about brand but actually focus on channels. Because if they purely competed on brand, how could they compete with multinational companies?
The classic approach to channel-driven is deep distribution. Because China's retail terminals are "small and scattered," only deep distribution can reach terminals directly and get close to consumers.
Why can Chinese companies do deep distribution while multinational companies find it difficult? Because deep distribution is essentially a "channel human-wave tactic." Multinational FMCG companies that perform well in China, such as P&G and Coca-Cola, actually also do deep distribution, but overall, on one hand, they rely on brand power and have less need for deep distribution; on the other hand, deep distribution is a human-wave tactic, and multinational companies have high labor costs, making it unaffordable. Even for local companies that do deep distribution well, it is often "one step forward, half step back," otherwise they really cannot afford it.
In fact, deep distribution works under three premises: first, there is sufficient incremental space, and the increment can offset the increase in costs; second, there is room for channels to sink; third, labor costs are low enough.
Now, the three premises for deep distribution have basically disappeared. Coupled with the industry reaching its ceiling, companies are not focusing on deep distribution but on heavy promotions.
The resurgence of "second-tier wholesalers" and "provincial distributors" can be seen as a sign of the end of deep distribution. Large enterprises no longer need to do deep distribution, and small enterprises do not have the capability to do it.
The human-wave deep distribution can no longer be sustained, but with the popularization of SaaS systems and B2B e-commerce, internet technology can already achieve the goals of deep distribution. From now on, the human-wave deep distribution will truly disappear from China's marketing dictionary. Of course, there are still a few companies persisting, but it is no longer mainstream.

**Distribution (Pùhuò)**
The term "distribution" was once very critical. Companies often had "distribution rate" in their assessments, and new products had to be distributed. Brands like Coca-Cola and Wrigley were very proud of having the highest distribution rates nationwide.
Whether branded or non-branded, as long as the product was distributed, there would be sales. So the sales logic at that time was: product → channel (distribution) → consumer.
Even now, distribution remains an important task for companies.
Recent cases may be very discouraging for those keen on distribution. During the product upgrade process, it has been found that new-generation products no longer fit the original distribution logic. For example, Evergrande Spring Water, which had good distribution, encountered major problems.
In the past, there was a period when basically distributing products meant they would sell. I think there were two premises:
First, the mainstream products at that time were "double-low products" (low quality limit, low price), which were the mainstream with little difference. As long as two conditions were met, they would basically sell: one was visibility (distribution); the other was promotional activities (promotion).
Second, at the initial stage of distribution, there were usually sufficient policies, and new products could become "first-recommended products" (high-margin products) for terminals. Terminals were willing to recommend them to consumers, and the recommendation success rate was extremely high.
The deteriorating effectiveness of distribution is a major challenge for manufacturers launching new products. I believe there are three important reasons:
First, for products undergoing mainstream replacement, it becomes difficult for consumers to accept new products. Because the products of mainstream replacement are not the current mainstream but the future mainstream. Currently, they are niche products, and not all terminals can sell them well, nor are terminal recommendations always effective.
Second, with the supermarketization of terminals, proactive recommendations have decreased, and using profits to solve the "first-recommended product" no longer works.
Third, internet communication has given birth to new promotion methods that are more effective than distribution plus promotion.
Last month, in an article titled "Mainstream Replacement May Die from Traditional Routines," I discussed this issue: when manufacturers launch new products, they used to rely on "air advertising" + "ground distribution + terminal promotion." This once very effective method no longer works.
Having said that, I am not saying the concept of distribution no longer exists, but that the method of promoting new products through distribution is no longer effective. Of course, for products to be sold, distribution is still necessary. If terminals do not have stock, how can products be sold?
In the future, I think new product promotion may be reversed: first promote, then distribute. Distribution remains, but the logic has changed.

**Terminal Interception and Terminal Promotion**
Terminal interception and terminal promotion are definitely Chinese characteristics. The fact that this method of interfering with consumers at the terminal could prevail and even be accepted by international retail giants shows how powerful the Chinese market is in changing global rules.
Terminal interception and terminal promotion are also based on the human-wave tactic of Chinese marketing. In the future, any marketing method based on the human-wave tactic may gradually shrink and even disappear.
What does the effectiveness of terminal interception and terminal promotion indicate? It shows that consumers are easily influenced. In the era when "double-low products" were mainstream, the differences between products of different brands were indeed not significant, and consumers were easily tempted by promotions and other policies.
With the mainstream replacement, this situation is about to change. The more high-end the consumers, the less easily they are induced by policies, and the more they have their own consumption understanding.
More importantly, the involvement of the internet in marketing has given rise to new social marketing methods that have almost completely changed the logic of relying on human-wave tactics for terminal interception and promotion, and they are very effective.

**Shelf Management (Lǐhuò)**
Shelf management was once a marketing job, with people dedicated to it. Shelf management still exists and may even strengthen in the short term. I predict that this job will also gradually phase out.
The concept behind shelf management originates from the idea that the larger the shelf space, the greater the sales. Just like the concept that "sales are squeezed out," sales are also squeezed out by shelf space.
In China, shelf management is actually about maliciously interfering with competitors. Compressing the competitor's shelf space and expanding your own. Competitors do the same in return. It is actually malicious competition.
From the merchant's profit logic, the display that maximizes a manufacturer's sales is actually detrimental to the merchant. Unfortunately, not many Chinese merchants realize this; instead, they harm their own profits under the guise of collecting display fees.
Shelf management seems like merchants are taking advantage of manufacturers' labor, thinking they are clever, but in reality, the true victim is themselves. Because what is good for the manufacturer is not necessarily good for the consumer or the merchant.
Of course, the gradual exit of shelf management is not due to the above reasons. I believe there are two core reasons:
First, visit sales are gradually replacing vehicle sales, and in the future, new marketing methods will replace visit sales, so the people who do shelf management as a side task will disappear.
Second, with the increase in labor costs, this method that heavily relies on the human-wave tactic can no longer be sustained.
Of course, this will take time.

**Warehouse Filling (Zhàncāng)**
In the past two years, warehouse filling under the guise of promotion has been prevalent. Why do I say warehouse filling will disappear?
I think this is precisely the last frenzy of warehouse filling.
Channel promotion followed by warehouse filling to compete for channel funds and squeeze out competitors—this was the original purpose of promotional warehouse filling, and those who did it well in the early days did achieve their goals.
Recently, I have found that all warehouse filling is actually harming the manufacturers and distributors themselves. For example, manufacturers and distributors of short-shelf-life products now spend a lot of time dealing with near-expiry products.
Why are there so many near-expiry products? This is the result of warehouse filling: using strong policies to push products into the channel, but the channel cannot digest them, so manufacturers have no choice but to take back the near-expiry products. If they do not take them back, the problem becomes even more serious.
During warehouse filling, manufacturers do two useless tasks: one is warehouse filling itself, and the other is taking back near-expiry products. In fact, a large number of near-expiry products are the result of warehouse filling.
In the past, warehouse filling was based on a simple and naive belief: sales are squeezed out. In the years of industry growth, this logic held true. However, in the era of industry ceiling, this logic does not hold.
The complete disappearance of warehouse filling may take time, but logically, it has entered its final frenzy.
In the future, without warehouse filling, how will marketing be done? The regional "unified warehousing and distribution" currently being promoted will, I believe, become prevalent in a few years, ensuring that terminals always have stock, as long as terminals have products to sell. Using minimal capital to achieve maximum sales is the goal of future distribution.
The terms I am discussing that are about to disappear from China's marketing dictionary do not mean they have already disappeared. If they had truly disappeared, I would not be discussing them. I am discussing their disappearance to represent a trend. If these terms have already disappeared in your company or work, it means you are saying goodbye to backwardness.

**By the way, if you think any other marketing terms are about to disappear, feel free to leave a comment after the article, and we can discuss together.**

-END-

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