AUTHOR ARCHIVE
Articles by 连杰
Browse 8 New Distribution articles by 连杰.
Published articles
8 articles · Page 1 of 1
Two Directions in FMCG Market Evolution: Left to Pang Donglai, Right to Hard Discount
The main contradiction in the FMCG market is the relationship between supply and demand, which determines the market theme and the effectiveness of competitive strategies. In a period of undersupply, the theme is expanding capacity; in oversupply, it is reducing costs. Cost reduction enables price cuts, which stimulate consumption, while inefficient players are eliminated, restoring balance. From the supply side, FMCG capacity consists of production and distribution capabilities. The current market is in an early stage of oversupply, with excess capacity, insufficient quality and efficiency, and unmet demand in high-end and lower-tier markets. Effective strategies include the Pang Donglai model (higher quality with controlled premiums) and the hard discount model (lower costs, especially distribution, to serve price-sensitive customers). The hard discount model is simpler and more suitable for most Chinese retailers, offering faster growth.
连杰Heavyweight Case: Jiming Aikemart, a Regional Supermarket Leader, Completes Hard Discount Transformation
Just before the 2024 Spring Festival, the last store of Jiming Aikemart Supermarket was renamed 'Aitemai', completing the first phase of a nine-month hard discount transformation. As the leading retailer in Jiming, converting over 70 traditional supermarket stores into hard discount stores in one go is the first such case in China that the author has seen. On February 26, 2024, Fang Miao, founder of Aitemai, was jointly interviewed by Lian Jie and Ren Wenqing. Background: Aikemart Supermarket is the leading retail enterprise in Jiming, founded by Fang Miao in 2003. Fang has achieved success in multiple segments of the distribution chain, including time-honored brands, agency, retail, and supply chain, and is highly innovative. In 2019, when community group buying was emerging, Fang led his team to pioneer the community group buying business model for chain stores, causing a huge response nationwide. Lian Jie's 'The Third Retail' included this case. Now, Fang has led his team to complete the first full hard discount transformation in China, which is unexpected but reasonable.
连杰Strategies for Hard Discount Transformation in Chinese Physical Retail
Facing the surging wave of hard discount, traditional physical retailers (such as supermarkets) often adopt three attitudes: opportunism, defeatism, and adventurism. The risks of the first two are missing opportunities; the risk of the latter is overreaching. To avoid these errors, we must understand the essence of hard discount, our historical tasks, and the general laws of historical waves.
连杰Hard Discount Transformation of Traditional Retail Is Not Simply About Selling Cheaper
Discounting is not just about selling goods cheaper. A category supply chain transformation essentially involves two points: lower prices and a richer assortment. Taking Lai Yifen as an example, in response to competition from bulk retail stores, it attempted discount transformation through price cuts. However, after the price cuts, it found that something was still missing. Where was the problem? Lai Yifen was born during a period of rapid quality upgrade in China's snack demand, but at that time production capacity had not kept up. Therefore, Lai Yifen's store format was small, with about two to three hundred SKUs, only able to support a portion of people's demand for quality snacks in the competitive environment at that time.
连杰Deep Dive | Evaluating Meituan's Entry into Community Group Buying: Only Two Models Will Survive!
Meituan has announced its entry into community group buying with a new business unit, Meituan Select, targeting lower-tier markets with a 'pre-order + self-pickup' model that empowers community convenience stores. The author argues that this model captures the core logic of community group buying, and predicts that ultimately only two models will prevail: chain-store-led and supply-chain-platform-led, with Meituan likely to win in the first phase against rivals like Xing Sheng, but lose in the second phase to local chains due to higher delivery costs.
连杰Community Group Buying: Changes in the Battlefield After Meituan's Entry and Countermeasures for Chain Stores
Core viewpoints: 1. In the past, offline chain retail was not impacted by online forces, not because we were strong, but because the enemy was not yet capable. 2. Meituan's strategy will impact not only community group buying but also offline store retail. 3. Countermeasure: Chain stores must complete the digitalization of local distributor inventory ahead of Meituan.
连杰Lian Jie, Founder of Dingdantu: Community Group Buying Model Established, How Should Manufacturers Fit In?
The following is the speech by Mr. Lian Jie of Dingdantu at the 5th FMCG + Internet Conference hosted by New Distribution, organized and released for readers. The conference theme defines community group buying as the 'third pole of retail.' In early 2018, Dingdantu was among the first to propose that community group buying would become the third basic shopping scenario after offline stores and online e-commerce platforms. From the supply side, it is the third pole of retail. Over the past year, the development of community group buying has basically validated our judgment. Today, the model of community group buying has basically been established...
连杰How Can Distributors Seize Opportunities from the红利 of Community Group Buying?
This article explores three questions: why community group buying has succeeded among various new retail concepts, whether it will squeeze distributors' survival space by enabling direct manufacturer-retailer transactions, and whether distributors should operate their own community group buying businesses. It analyzes the cost advantages of community group buying and its implications for distributors.
连杰