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Articles by 钱学林
Browse 2 New Distribution articles by 钱学林.
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Laocunzhang: A Price Upgrade Driven by Costs
During the National Day holiday, the author noticed a green train with Laocunzhang's advertisement, highlighting the brand's ubiquitous presence. Despite skepticism about low-end bottled liquor, Laocunzhang's sales reached 6.5 billion yuan in 2014, and the article argues that the current price increases in this segment are primarily a monetary phenomenon driven by rising costs, not consumer demand, presenting both challenges and opportunities for brands like Laocunzhang.
钱学林How Is the Traditional Distribution System Being Dismantled Step by Step?
Companies like Zhongshang Huimin, by building their own warehousing and logistics and setting up ordering and inventory systems, incorporate traditional grocery and retail stores into their distribution network, effectively cutting off traditional distributors. While this reduces intermediate layers, it doesn't necessarily lower operating costs or benefit consumers, as traditional wholesalers mainly handle distribution at low cost. Retailers may benefit from reduced ordering and inventory hassles, but brand manufacturers like P&G and Unilever avoid exclusive agreements with such distributors to maintain bargaining power, keeping traditional distributors relevant. However, traditional systems lag in inventory and ordering, and with limited investment, more retailers may defect. Traditional distributors can upgrade their systems with internet and O2O tools to compete, and startups can help them, offering a cooperative model versus the self-operated model of Zhongshang Huimin. Both models, self-operated and matchmaking, are growing, with coverage exceeding 400,000 stores each, and time is running out for traditional distributors to choose.
钱学林