For FMCG sales, the critical battle of the year is the Chinese New Year, and the core task is stockpiling inventory and pushing goods to dealers. When, how, and how much to stockpile? If you don't understand this or can't do it, you shouldn't be in sales! Chinese New Year's Eve in 2020 is January 24, and Chinese New Year is January 25. Time is running out for salespeople. The countdown to the critical battle has begun. If you do well, it will not only determine your annual sales but also your income for the year. If you do poorly, your year's work is wasted, and the chance to make money next year will be lost. In July-August 2019, at several large events of the "2019 FMCG Distributor Management Upgrade and Transformation Forum," I gave a keynote speech on "The Display Revolution in Distributor Terminal Management." Among the five essential strategies for terminal transformation, I emphasized that terminals are won by seizing them. How to seize? At that time, I posed a practical simulation question: Boss Li is the general distributor of Product Y in a certain region. To achieve a strong start for Chinese New Year 2020, the company launched a Chinese New Year unloading reward activity, offering 5% sales promotion support. For every 100 units unloaded, a reward is given, plus 200 yuan per store for product display, with the requirement of no returns after Chinese New Year. If you were Boss Li, what would you do? This question addresses how to stockpile inventory and push goods during Chinese New Year, and how to drive sell-through. So, when, how, and how much to stockpile, and what sell-through strategies to use? These are essential skills for salespeople. Below, I share some effective methods validated by the Fast Track cooperative project. -01- Sort Out Terminal Store Relationships and Numbers Before stockpiling, the first consideration for a distributor is not to rush to meet the manufacturer's sales targets or earn year-end rewards, but to consider the number of terminal stores they have in the region and their relationship with these stores, to assess the stockpile quantity. Next, classify these terminal stores into ABC categories. For example, A-class stores are those that cooperate with you year-round, supporting you regardless of what products you sell or how they perform. B-class stores only sell your best-selling products and can help boost volume during promotions, but for new products or slow movers, they only order when consumers ask. C-class stores only sell best-sellers, don't boost volume even with promotions, may switch to whoever offers cheaper prices, or rarely sell your products but do some business during Chinese New Year. -02- Estimate Stockpile Quantities After sorting out terminal stores, estimate the stockpile quantity based on the number of stores and their relationships. The number of terminal stores a distributor has, and the strength of relationships, and the ability to classify them effectively before stockpiling, are prerequisites that determine the stockpile quantity and directly impact the distributor's wealth. For example, if you are a county-level FMCG distributor with 600 terminal stores, these 600 stores determine your Chinese New Year stockpile quantity. Based on usual relationships, classify these 600 stores. Suppose there are 100 A-class, 200 B-class, and 300 C-class stores. From sales records, the average monthly sales of Product Y are 120 units for A-class, 60 for B-class, and 20 for C-class. What should be the appropriate stockpile budget for Product Y this Chinese New Year? The rule for Chinese New Year sales is typically 5-10 times the average monthly sales (excluding special factors). If each terminal store is stocked at 7.5 times the usual sales, and the distributor's stockpile is budgeted at 90% of the maximum sales forecast, the distributor's stockpile budget for Product Y would be 270,000 units, with terminal store stockpile budget at 225,000 units. The difference of 45,000 units serves as a buffer for group purchases, new terminals, and other market contingencies. -03- Stockpile Timing and Pushing Strategy 1. Stockpile Timing Chinese New Year 2020 comes earlier than usual, on January 25, so distributors need to stockpile earlier. For products with a shelf life of over 180 days, don't expect to sell only January 2020 batch products. Winter weather is unpredictable, and logistics become tighter closer to Chinese New Year, with various environmental and overloading checks. If distributors don't plan ahead, they may have money but no goods to sell, or even if they pay the manufacturer, shipments may be delayed due to logistics. For products with a shelf life between 30 and 180 days, you should have your payment to the manufacturer by the end of December and have goods in your warehouse by January 10. Anything after that could be risky. For products with a shelf life over 180 days, you should pay the manufacturer by mid-November, have the first batch in your warehouse by the end of November, and complete the full budget stockpile by early December. Some distributors might say this is too early; they want January batch products because cross-year batches are hard to sell. They plan to pay in January and have the manufacturer ship then, blaming the manufacturer if shipments are delayed. In reality, distributors with this mindset often end up with money but no goods, or payments made but no shipments. Even if goods arrive, it's likely just before or after Chinese New Year, leaving no time to push goods downstream. Terminal stores' prime display spaces will be taken by competitors, and there will be no room for your products. 2. Pushing Strategy Based on the budgeted stockpile quantity, allocate all promotional expenses proportionally and design a tiered promotion policy: three levels of pushing for one level, i.e., three different promotional policies for three types of terminal stores, launching a comprehensive "Four Seasons Prosperity" model of one-level promotion and three-level sell-through. For example, Promotion Package A is only for A-class stores; B and C-class stores cannot get it even if they ask. Package B is only for B-class stores; A and C cannot get it. Package C is only for C-class stores; A and B cannot get it. Additionally, the order of pushing and display placement have special requirements. In terms of timing, first visit A-class stores, then B-class, and finally C-class. For display placement, try to secure the best positions for B and C-class stores, but for A-class stores, the best position is mandatory. If not available, it's better not to offer the promotional package. Because these stores carry many product categories, especially during Chinese New Year, warehouses are packed. Products placed in front have more sales opportunities, while those in hidden corners are less likely to be bought. -04- Sell-Through Strategies There are many sell-through strategies, such as personnel promotion: the 10 days before and after Chinese New Year are peak sales periods, so placing sales promoters in A-class stores is most effective. After-sales guarantee: promise to exchange or adjust stock if products don't sell well. Cumulative sales rewards: keep a ledger, and for each set sold, give extra cash rebates. Buy-one-get-one gifts: give a basin with each product sold. On-site lucky draws: consumers can smash golden eggs for prizes, etc. These conventional promotions are too numerous to list. I'll focus on the application of internet tools in terminal sell-through, specifically the use of WeChat group tools in terminal sell-through management. 1. Create WeChat Groups Create three terminal store groups, which you can call Gold Group, Silver Group, and Bronze Group. Assign dedicated managers. Invite A-class stores to the Gold Group, B-class to the Silver Group, and C-class to the Bronze Group. This way, different types of stores are in different groups. However, only stores that have already stocked goods can join; those that haven't are not invited. This facilitates management, allowing separate notifications and interactions for different policies, avoiding negative emotions from store owners due to different policies. 2. Set Up Sell-Through Red Packets After creating the groups, set up three levels of red packet rewards. When a store sells a product, they take a photo and upload it to the group, and the administrator sends a one-on-one timed red packet reward. For example, 1.5 yuan per product sold. The reward amount should increase from A to C, meaning B-class stores get more than A-class, and C-class get more than A and B. Additionally, to keep the groups active, administrators can send regular red packets, and those with the best luck can win different gifts. Seasonal products like medicine during flu season, air conditioners in summer, and food during festivals. How do you stockpile for Chinese New Year? When, how, and how much? What sell-through methods do you use? Feel free to comment and discuss below. Source: Winning Sales Strategy (ID: szkcdzx126) Tips will be paid 400-2000 yuan upon publication.