As the year ends, it's time to negotiate contracts and rebates, and to settle accounts. Typically, this period brings a flood of exclusive news: brands and retailers are at odds, turning against each other, facing delisting, leaving, or rebelling, stirring up turmoil in the industry and exciting onlookers. Looking back at the history of supplier-retailer cooperation, incidents like the Kangshifu-Carrefour price hike and the Kraft-Lianhua delisting were explosive topics at the time, with public opinion pointing to the fragile, tense, and imbalanced supplier-retailer relationship, seemingly on the brink of collapse.
In reality, despite years of bickering, the protagonists in these stories haven't disappeared; they even plan to thrive. Let's face it, we're all adults; who still believes in sweet-talking love? Supplier-retailer cooperation is like living together, more about treating the quarrels as part of business negotiation and finding pragmatic solutions.
As long as you want to do business, everything is negotiable! As long as you do business, conflicts are inevitable! As long as there are conflicts, you must find ways to resolve them; complaining is useless!
Undeniably, the changing business environment in recent years has greatly impacted physical retail. The KA channel is no longer as dominant as before, but it still holds a significant market share. Even if you don't love it, it's hard to leave it, especially for FMCG products. So, as long as you haven't given up, you'll face supplier-retailer issues every day you do business.
Business is never calm; apparent calm often hides undercurrents, because while interests align, they also conflict. Everyone wants to get more from the other and maximize their own benefits—give less, take more. Everyone wants to be the one who gives less and takes more, which means business involves both cooperation and strategic maneuvering. As long as you're in business, there will always be worries and problems; existence is for solving problems. Instead of complaining about tense supplier-retailer relations, it's better to spend more time thinking about how to promote business development.
Since the advent of hypermarkets in China, the rules of the game have been set by retailers, with suppliers mostly complying. With the advent of the internet, online channels have had a huge impact on the entire business environment, breaking sales models, rewriting channel structures, and introducing new practices, ideas, and trends. The dominance in setting supplier-retailer rules is now in a new period of negotiation and fluctuation. This inevitably leads to some powerful suppliers wanting to turn the tables and sing a different tune. No one is forever the boss; in this new era of diverse opportunities, anyone can have a say if they are confident, capable, and able to follow trends and grasp the pulse of the times. Why not say "NO" to once-dominant retailers? Of course, any change carries risks, as entering a completely new field with different rules and tactics may lead to success or failure. You need to be mentally prepared. We salute brave reformers like "Blue Moon" for their pioneering spirit, and we also appreciate those who respect the essence of business, lower their stance, and move forward flexibly.
When retailers realize the value of suppliers and make efforts to win their resources, supplier-retailer relations naturally tend to ease. As we've seen, even when many suppliers are seeking favor with retailers, there are also retailers seeking favor with suppliers. With channels becoming more diversified and virtual and physical channels clashing fiercely, and with more and more stores opening, competition among retailers is intensifying. High-quality supplier resources have become targets for retailers to compete for. As the retail landscape adjusts, this trend will become more pronounced. So, whether you're a retailer or a supplier, there are no permanent enemies or friends, only permanent interests. This is a common pursuit, and no one can act recklessly or rest on their laurels; everyone must stand up and look forward.
Author: Huang Jing Huang Jing is an expert in store backend system design and a researcher on supplier-retailer relations. With over a decade of professional procurement experience, from state-owned large retail enterprises to foreign hypermarkets, she has served as procurement section chief, procurement manager, procurement director, and training director, giving her a comprehensive career in the modern retail industry. She has conducted in-depth research on supplier-retailer relations, particularly on issues concerning suppliers such as procurement, negotiation, fees, contracts, and conflict resolution.
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