Warm Tip: Click the ↑ above on "FMCG Distributor Professional Consulting" to learn more about marketing and distributor internal management. In the cycle of goods from manufacturers to consumers, distributors may face the most challenges; the game between manufacturers and distributors: if they grow big, they may face integration and market segmentation by manufacturers; if they stay small, they face the threat of being replaced at any time and scarce market support. Facing the terminal, they are always confronted with endless and insatiable demands for policies and support. However, these are after all at the market operation level and can be resolved through negotiation and relationships; but there is a force that is indeed difficult to change in terms of disrupting and eroding distributors, which is a future trend and a powerful force compelling distributors to transform!

  1. Mergers and acquisitions are rapidly unfolding across industries, becoming a trend With over 30 years of rapid economic development in China, the power of market rules is increasingly strong, and market maturity is higher. Many industries have gradually become arenas for giants and oligopolies, leaving less space for second- and third-tier brands. Even highly innovative companies cannot escape the fate of being merged or acquired. Mergers and acquisitions are not only the result of market rules and competition but also the need for China's economic structural adjustment and industry upgrading, the need for China's transformation from a manufacturing and production powerhouse to a creative powerhouse, and the need for food safety strategies and technology upgrading strategies. No force can stop this trend. The result of integration will certainly present two situations: first, various industries will form several oligopolies and several highly innovative companies competing in different tiers. Second, enterprises and brands within the industry will become scarce resources, and distributors will compete fiercely for brands.
  2. Horizontal integration of distributors in related industries will become a trend Industry mergers and acquisitions lead to scarce enterprise and brand resources, fewer brands, and naturally fewer distributors. Those distributors with strong strength, standardized management, strong service awareness, and strong foresight will inevitably dominate, at least in related industries, such as baijiu, beer, and non-staple foods. Perhaps many can see the trend, but the key is whether everyone can achieve it. Under the trend's pattern and guidance, distributors must upgrade and transform to make a difference; on one hand, they must strengthen and improve their management capabilities, actively promote corporate and systematic operations; on the other hand, they must start now to try every means to compete for agency rights of quality brands in related industries. They must grasp both aspects firmly; only then can they become true regional overlords.
  3. The disruptive impact of e-commerce on distributors The rise of e-commerce has a disruptive impact on traditional marketing, directly changing the traditional circulation system from manufacturers, distributors, terminals, and consumers to directly from manufacturers to consumers. Marketing in many industries has also directly split into two core links: one is online product promotion and online sales; the other is offline logistics, distribution, technical support, consumer experience, and a series of services. Based on this, many startups have rapidly risen using the charm of the internet, defeating the accumulation and precipitation of traditional enterprises over more than ten years in just a few years; such as Xiaomi in the mobile phone industry and Meike Mila in the diamond industry, which is the so-called slow life, fast brand. Currently, e-commerce and online shopping can only reach urban and county populations. The vast rural market and rural population are still beyond reach; but two major factors that cannot be ignored will inevitably drive explosive growth of e-commerce and online shopping among rural populations: first, urbanization makes township and village markets more concentrated, generating greater e-commerce demand and service populations; second, smartphones and mobile networks satisfy low-income people who do not have computers to access the internet, making online shopping more convenient and cheaper to use. This is the trend, this is the future; they are quietly disrupting and eroding the future development space of distributors. Perhaps in the near future, distributors' real opponents will be logistics providers. To follow the trend and do big things, distributors must build their marketing and service platforms in the following three aspects to win the future: first, sufficiently strong network distribution and fast service, gradually meeting door-to-door delivery up to the consumer's hands; second, more product and service content, including technical guidance and support, after-sales maintenance services, personalized consumer experience services, etc.; third, scientific and standardized management and systematic operation capabilities. --------------------------------------

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