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Articles by 李锋
Browse 44 New Distribution articles by 李锋.
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"Pricing Determines the Market" - Distributors, Have You Achieved It?
For distributors, establishing a comprehensive market pricing system is crucial. As the saying goes, "pricing determines the market." Inadequate price control can lead to a series of problems that are difficult to resolve. One of the most troublesome issues for distributors, cross-regional selling (channel conflict), is largely caused by unstable pricing systems.
李锋Distributors: Your Competitor's Sales Are Your Growth!
For FMCG, although the impact from online channels is relatively small, the distribution business is getting harder year by year. Despite this, manufacturers still require distributors to grow at least 10-30% annually. Where does this growth come from? The demand from small retail stores is fixed, and the existing market is limited. Finding growth internally might achieve 10%, but more is difficult. Therefore, to achieve a significant improvement on the existing base, you must seek growth externally by capturing market share from competitors. If you can't do this, sales growth will be hard to come by.
李锋Distributors, Do You Know Who Actually Sells Your Products?
When a distributor company is highly profitable, what comes to mind first? Strong brands, savvy marketing, or solid capital and channels? Often overlooked is the sales team's capability. This article emphasizes that distributors must invest in training their salespeople in professional skills, presentation, logical thinking, and communication scripts to drive sales and growth.
李锋Every Distributor Should Have a "Key Account" Maintenance Plan!
For distributors, customers are the most critical link; the more frequently they order, the higher the distributor's sales. While small customers face less competition and are easier to win, key accounts are targeted by all competitors and must be prioritized. Since 30% of key accounts contribute 70% of sales, distributors should focus on them, using service and strategy to increase their order volume—a 10% increase from key accounts often outweighs a 30% growth from smaller ones.
李锋Dealers Bind Customers' Core Interests: Still Worried About Finding Growth?
First-tier brands have higher turnover and return on investment, which is why second-tier distributors prefer selling them. Non-first-tier brands can leverage their price and profit advantages, while promotional policies, quality service, and management can also drive sales growth.
李锋Cost is the 'Life' of a Distributor's Business
In 2019, FMCG distributors generally face five major cost pressures: labor costs, marketing expenses, capital management, damage handling, and logistics costs. This article provides in-depth analysis and solutions to these five problems.
李锋Distributors, Do These Things and 80% of Your Customers Will Be Willing to Place Orders!
There are many ways for distributors to achieve growth, such as adding agency brands, expanding distribution networks, and developing sales channels, but the most direct way is to increase the frequency of customer orders. The key to this lies in customer relationships and service, which are the core value of distributors compared to e-commerce platforms.
李锋Profit is the Only Criterion for Judging an Excellent Distributor!
The core of a distributor's business is first survival and development, ultimately achieving profitability, and profit is the only criterion for measuring whether a distributor is excellent. Nowadays, competition in the FMCG industry is increasingly fierce, and intensified market competition will inevitably lead to higher industry concentration and shrinking average profit margins. The opportunities and space for distributor development are getting smaller, and most distributors are facing difficulties in the market, reduced profits, and even elimination. Competition is eternal, but opportunities also exist. For FMCG distributors to survive and develop in the new industrial environment, they must find profit growth points and enhance profitability.
李锋Distributors: Poor Customer Relations Means No Business Growth!
Recently, many distributors have asked me why sales haven't recovered even after the pandemic. I didn't answer directly but asked how long it had been since they visited the front lines. Most bosses have been away from the front lines for too long, unaware of how well terminal customer relations are maintained—a serious problem. Customer relations aren't built by routine visits and casual words; they require time, understanding, and trust. This process needs not only the efforts of salespeople but also the supervision and support of distributors.
李锋High Costs, No Profits? Dealers, It's Time for a 'Check-Up' on Your Company
In 2019, many dealer bosses across the country called me, mostly saying business is getting harder. The most common issues were rising costs and stagnant profits; some mentioned difficulty meeting brand tasks, especially new product promotions, leading to annual losses of hundreds of thousands from handling defective and near-expiry products; others faced management challenges, poor performance, and financing difficulties. These factors left many dealers confused, anxious, and living day-to-day, waiting for retirement, complaining but lacking internal drive to change. The pandemic further exposed unprecedented bottlenecks and crises for dealers with single channels or brands.
李锋Dealer Bosses: Seize the Key Link and Excel in Channel Refinement!
Channel refinement is a constant theme for dealers, driven by both business needs and manufacturer requirements. However, few dealers seriously consider how to maximize sales and profit through channel refinement. A county-level dealer with 19 vehicles and 20 salespeople serving 1,000 traditional stores and 3 KA supermarkets achieved annual sales of 50 million yuan but complained about low profits, highlighting the importance of input-output ratio. This article invites Mr. Li Feng, General Manager of Hongye Hengda Trading, to discuss channel refinement strategies for mainstream channels, offering insights on organization, store management, and key operational points.
李锋Distributors Carry Many Products but Don't Make Money: It's a Product Structure Problem!
After the pandemic, some are happy and some are worried. A case in point: a distributor in Shandong with annual sales of about 10 million yuan, only handling one beverage brand from Tianjin in two specifications, mainly for catering channels and small shops. The pandemic exposed the fragility of such a narrow product structure. Many distributors have problematic product structures, and adjusting them is key. New Distribution invited Mr. Li Feng, CEO of Anshan Hongye Hengda Trading, to share practical insights on optimizing product structure to increase profits, reduce costs, and ensure stable development.
李锋KPI Assessment for Frontline Sales Staff: Assess What You Want; Reward First, Penalize Second!
In the post-pandemic era, many distributors' businesses are gradually returning to normal, but a common topic among peers is that sales staff are increasingly difficult to manage, and despite decent pay, they can't be retained. The key issue lies in management misconceptions, especially in performance-based pay assessment. If sales staff are dissatisfied, they leave, and the business suffers. This article outlines seven common mistakes in KPI assessment and offers practical advice.
李锋Distributor Expense Control: Don't Always Look to Cut Costs on People, but Make Expenses More Effective on Things!
Many distributors complain that their sales are growing and gross margins look good, but they still don't make money. A closer look reveals that expenses are too high. While personnel costs are a factor, they are hard to change. Distributors should focus on making their market expenses more effective rather than just cutting costs on people. For example, a 800-yuan display should yield 800 yuan worth of results.
李锋How Distributors Can Reduce Expiry Losses to Below 0.1%
Expiring, damaged, or expired products are a major headache for distributors, often consuming up to 50% of their net profit. To address this, New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, to share how his company controls expiry losses to below 0.1% on annual sales of 300 million yuan.
李锋Single-Channel Distribution Is Risky—Here's How to Build 5,000 Special Channel Outlets
The pandemic has hit many distributors hard, especially those focused on catering, wholesale, and gift boxes. However, multi-channel distributors have suffered less or even grown. This article shares two cases and insights from Hongye Hengda's executive president, Li Feng, on building special channels, seizing the fresh supermarket trend, and mastering modern trade.
李锋Why Do 80% of Distributors Fail with Professional Managers?
Many distributor owners find it hard to grow once their business reaches a certain scale, often due to limited personal energy, market conditions, or lack of management. To solve this, New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, to share insights on how distributors can find reliable partners or professional managers.
李锋How Can a Cross-Regional, Multi-Category, Multi-Brand Distributor Set Up a Branch Company Within 2 Weeks?
As e-commerce impacts first-, second-, and third-tier cities, distributors in these areas face increasing difficulties, while fourth- and fifth-tier cities and county-level markets are less affected, prompting more distributors to focus on county markets. To successfully expand into county markets, this article, based on the practical experience of Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, discusses the necessity of setting up a branch company and provides a step-by-step guide to establishing one within two weeks, including sales strategies for the startup phase.
李锋How Distributors Can Recruit and Retain Talent After Work Resumes
As of March, due to the pandemic, most distributors' businesses have been intermittent and essentially stalled for two months. Now is the real start of their business, and at this point, distributors need to consider recruitment, followed by management and retention. New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, to share how distributors can efficiently recruit, manage, and retain talent, preparing for business growth in 2020.
李锋After Resuming Work, Frontline Sales Staff Have Excess Capacity: Three Things to Do
As the epidemic gradually eases, more trading companies are resuming operations, but sales are still affected by closed downstream stores and limited consumer spending, leaving sales staff underutilized. New Distribution invited Mr. Li Feng, President of Hongye Hengda Trading, to discuss how sales staff can improve their skills during this slack period and prepare for a strong sales push after the epidemic.
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