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Articles by 任文青Andy
Browse 107 New Distribution articles by 任文青Andy.
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From BiuTe to ZhenShiMei: A Retail-Savvy Distributor Representing 460+ Brands and Serving 1,000+ Supermarket Stores
In 2023, when we first approached brands under the name ZhenShiMei, some thought we were frauds. Today, when we meet those brands in various settings, they say, 'We didn't expect you to still be here; let's find an opportunity to cooperate well.' After initial difficulties, this company, founded less than two years ago, has entered a fast-growth track: its represented brands have grown from 80 to over 460, and it serves 51 chain supermarket systems with over 1,000 stores in total.
任文青AndyRen Wenqing of New Distribution: The 'Label Dividend' of Hard Discounts Is Gone
On March 18, 2025, the 4th China FMCG Hard Discount Conference was held in Chengdu, where Ren Wenqing, CEO of New Distribution, delivered a keynote speech. This article is based on that speech. In the past six months, several events in the discount retail sector have drawn attention, including Three Squirrels acquiring two discount retail companies, leading snack chains launching 'money-saving supermarkets,' and Hema NB opening over 200 stores in Jiangsu, Zhejiang, and Shanghai. These events signal that discount retail has moved beyond its early stage, with mainstream players finding their paths and more entering the field. Ren shares seven viewpoints, emphasizing that the 'label dividend' of hard discounts is over, urging a return to market logic, and highlighting the ongoing reconstruction of FMCG distribution order.
任文青AndySupermarket Overhauls Accelerate Distributor Consolidation
Recent discussions with friends reveal that many supermarkets are undergoing overhauls, with some cutting at least half of their distributors. This is driven by demands for bare-price supply and streamlined SKUs favoring top brands, internet-famous products, and imports, leading to the removal of many second- and third-tier brands. The trend signals a shift where capable distributors evolve into service-oriented intermediaries, while traditional regional distributors face elimination.
任文青AndyXinjiayi: 2% Private Label Products Generate 10% of Sales
Xinjiayi, a convenience store chain founded in Changsha in 2007, has entered a phase of rapid growth, expanding from its Hunan base to Jiangxi and Hubei. Despite private label products accounting for only 2% of SKUs, they contribute over 10% of sales, driven by a focus on quality and value.
任文青AndyRetail Stores Are Severely Oversupplied, but Competing on Low Prices Is a Misconception
Retail stores are severely oversupplied, but competing on low prices is a misconception! This is a conclusion drawn from my in-depth exchange with Mr. Zhang Zhiqiang. Who is Zhang Zhiqiang? He is known as "China's No.1 in Category Management," and the book "Category Management," published in February 2024, was written by him and Dr. Brian Harris, the "Father of Category Management," specifically for the Chinese market. On the last day of 2024, I visited Mr. Zhang in his Beijing office, and we talked for nearly three hours. Much of what he said inspired me deeply, such as: "Existing consumption is insufficient to support so many retail stores; a large portion will be eliminated."
任文青AndyThe Distribution Order of FMCG Has Truly Changed
Different perspectives and positions lead to completely different views, which I understand. I don't think low-price competition is good, nor do I agree that everyone should engage in cutthroat competition. I also hope the trend of incremental market growth can continue. However, what we hope for is not the same as what the market actually does. Over the past year, I have been on the front lines of the market as an industry observer and researcher, hoping to understand what is really happening in the industry by communicating with as many people as possible, including brand executives, distributor owners, and retail entrepreneurs.
任文青AndyPangdonglai Is Seriously Deified
After visiting Pangdonglai twice in the past month, the author concludes that Pangdonglai is seriously deified, which highlights the incompetence and tragedy of China's retail industry, especially the supermarket sector. Despite its relatively small scale, Pangdonglai's influence is immense, but the author argues that its success lies in returning to retail fundamentals: offering good products at fair prices.
任文青AndyThe Trapped Distributor
Distributor bosses have never been more pessimistic than they are today. Since 2024, every distributor I've met, regardless of size, has asked: 'Business is really tough—do distributors still have a way out?' Some distributors really can't continue. For example, an extreme case I saw: monthly sales of only 600,000 yuan, but the manufacturer forced over 10 million yuan in inventory. The distributor boss mortgaged his house and borrowed money to barely survive. The manufacturer's people are also trying various ways to prevent his collapse. It's like an ICU patient who is terminally ill but kept alive with various tubes.
任文青AndySales Surge! Genki Forest Distributors Say: Multiple Products Exceed Expectations!
A Shandong beverage distributor told New Distribution that this is the best year in three to four years of working with Genki Forest, with terminal sales orders up 68% year-on-year in May-July. The growth is driven by strong product performance, especially the unexpected success of Ice Tea and Zizai Shui, which even faced supply shortages in the first half of the year.
任文青AndyCCTV Factory Visit, Sam's Club Hit: The Product Logic Behind Yanjin Shop
In recent months, as we've been touring the market, the common refrain is that goods aren't selling. Since the second half of 2023, requests to New Distribution for channel connections have surged. For example, in the snack category, there are well-known brands, regional small brands, and white-label products. They hope to connect with new channels like discount retail and B2b platform-based distributor channels. Synthesizing various information, we see a truth: oversupply and severe product homogenization mean the market is full of snacks, but truly good products are extremely scarce. Why...
任文青AndyThe Historical Mission of Distributors Has Changed!
In 2024, distributors are facing increasingly difficult business conditions. Some distributor owners say, "Goods are stocked at retail terminals but simply don't sell; after more than a decade, I don't know whether to continue." Even top regional distributors note that while sales are increasing, profits are declining sharply. From B2b to various e-commerce platforms, from community group buying to hard discount stores, distributors are the most affected group in every industry shift. Phrases like "de-distributorization, no middlemen to earn the difference" and "90% of distributors will die in the future" are common. However, is this really the case? After visiting a group of distributors recently, despite the prevailing pessimism, they showed positive and rapid development. The key insight is that the historical mission of distributors has changed!
任文青AndyGlobal Major Trading Company Insights | McLane, with Annual Sales of $52.6 Billion, Under Buffett's Berkshire Hathaway
This article introduces McLane Company, a U.S. wholesale supply chain service company owned by Berkshire Hathaway, which achieved $52.6 billion in revenue in 2023. It details the company's history, its acquisition by Walmart and later by Buffett, its business model, and its competitive advantages.
任文青AndyRen Wenqing of New Distribution: Retailers Fight for Pricing Power, FMCG Brand Channel Systems and Organizations Face Adjustments
This year, we co-authored the 'China Hard Discount Development Report (FMCG Industry Insights 2024)' with Lemeng Software. Last October, we released the 'China Snack Hard Discount White Paper (FMCG Industry Insights 2023)' at our conference in Shenzhen. In nearly a year, the shift from snack hard discount to hard discount has dropped two characters, but the essence remains unchanged while its impact on the industry chain has grown. This year, I summarize hard discount in three phrases: wider distribution, more categories, and less resistance.
任文青AndyOmnichannel Operations Case: How C&S Paper Achieved 76% Business Growth in Regional Markets through Digitalization?
Under omnichannel digitalization in the daily chemical industry, decision-making AI helps achieve structural growth in offline markets. According to New Distribution's analysis of 78 listed FMCG companies' 2023 financial reports, 26 saw revenue declines and 29 saw net profit declines, accounting for over 30%. These companies are all leading brands in their categories, and based on the latest market conditions in Q1 2024, the trend of stagnant market capacity continues. China's population is declining, demographic dividends are disappearing, and consumer spending power and expectations are weakening...
任文青AndyServing Top Snack Stores like Mingming Busy and Hao Xiang Lai, Lemeng Helps Community Retail Return to Retail Essence
The wave of hard discount has begun and won't stop. Over the past year, New Distribution has published a hard discount white paper, held the FMCG Hard Discount Conference, written in-depth industry insights, and shared discount retail cases. Recently, I had an in-depth exchange with Zhang Haibo, co-founder of Lemeng, whose insights on the industry's development and future changes are highly valuable. For the FMCG industry, Lemeng may not be well-known, but in the discount retail sector, especially the snack store industry, Lemeng is a household name.
任文青AndyDialogue with Biut's Meng Fanzhong: Taking Over Carrefour, the 7 Billion Regional Supermarket King, and Standard-Bearer of Supply Chain Reform
“Taking over Carrefour, some said we were foolish, wanting to see if we could really do it. But after we moved in, we achieved twice the sales with only half the original space,” said Meng Fanzhong, founder of Biut. In 2023, Carrefour closed stores across Northeast China, and Biut moved into those locations, quickly generating high-performance media reports, making this regional supermarket brand known to more people. Starting from Hegang, a small northeastern city with a population of just over 800,000, Biut established its headquarters in Harbin in 2017, moved to Shenyang in 2021, and is set to exceed 7 billion yuan in sales in 2024. After more than two decades of development, Biut has grown into the largest supermarket chain in Northeast China.
任文青AndyRetailers Overturn the Table: Is There Still a Way Out for Distributors?
A distributor friend recently called, anxious because a wholesale supermarket suddenly appeared in his county market, flipping small stores and causing customer loss. This reflects a broader trend: as market growth stalls, competition intensifies, and retailers are integrating distribution functions, forcing distributors to adapt or face extinction.
任文青AndyDistributors Losing Money: Time to Sell the Business
Distributors are increasingly finding their agency businesses unprofitable as brands pressure them to stock more inventory. The fundamental issue is that distributors are essentially outsourced teams for brands, earning a 'salary' rather than true profits. To survive, they must transform into independent supply chain platforms focused on serving customers, or consider exiting the business.
任文青AndyRetailers Are Fiercely Grabbing Distributors' Business!
In 2024, FMCG practitioners are focused on one thing: selling goods! Multiple brand executives have told me that as long as there is a channel and sufficient sales volume, factories can provide customized products with flexible specifications, packaging, and even prices. Short-term consumption recovery has not arrived, and in the long term, demand seems to be entering a phase of contraction with no signs of reversal. Currently, retailers are competing fiercely, distributors are competing, manufacturers are competing, and even different departments within manufacturers are competing. As the first quarter of 2024 passes, many manufacturers lament that there are truly no incremental channels left, yet growth targets remain! Everyone is anxious about selling goods.
任文青AndyRen Wenqing: Hard Discount is the Surface, the Essence is the Transformation of FMCG Distribution Models
At the 9th China FMCG Innovation Conference held in Chengdu from March 14-16, Ren Wenqing, COO of New Distribution and chief editor of the China Snack Hard Discount White Paper, delivered a keynote speech on March 15 at the 2nd China FMCG Hard Discount Conference, titled 'Through Hard Discount, Looking at the Transformation of FMCG Distribution Models and Its Impact'. He argued that hard discount is not just a retail phenomenon but a systemic change in the FMCG distribution model, driven by macroeconomic and industrial chain changes, and that the industry is transitioning from an old order to a new one.
任文青AndySnack Busy & Zhao Yiming Snacks: Strategic Expansion Northward, Aiming for 10,000 Stores!
Last year, we served over 600 million consumer visits, which not only reflects normal demand but also represents 600 million instances of being chosen and trusted, said Yan Zhou, founder and CEO of Snack Busy. On March 19, Snack Busy Group held its 'All Things Grow · 2024 Partner Conference' at the National Indoor Stadium in Beijing, with nearly 10,000 attendees including suppliers and franchisees. Four months after the merger with Zhao Yiming Snacks, the group unveiled its development strategy and goals.
任文青AndyExclusive: How Did Leerle Grow to 3900+ Stores and 40 Billion in Sales with Hard Discount?
Leerle founder Chen Zhengguo, with a non-standard Mandarin accent, often delivers memorable quotes about retail, the most famous being, "Redo all retail in the form of wholesale!" Starting from a 123-square-meter supermarket in 2011, Leerle has grown to over 3,900 stores with 40 billion yuan in sales. Before 2023, it was mainly known in Hunan and other southern provinces, but as snack discount stores boomed and hard discount became an industry hotspot, Leerle became a subject of study. Industry insiders call it the pioneer of hard discount in China. How did it grow? What is its approach to hard discount? And what implications does it have for the development of hard discount in China?
任文青AndyFactory Price 63, Retail Price 69.9: Who Is Hard Discount Really Taking Business From?
A supplier to Sam's Club reveals that their factory price is 63 yuan while Sam's retail price is only 69.9 yuan, highlighting the power of its supply chain. Hard discount models, including warehouse clubs and snack discount stores, are reshaping retail by offering high cost-performance, and this trend is forcing brands to rethink their strategies.
任文青AndyNo Slotting Fees, No Listing Fees, No Marketing—The Rise of Factory-Owned Brands!
A factory owner said, 'The brand we OEM for sells at 10 yuan, but we can sell the identical product at 6 yuan.' With the rapid growth of discount snack stores in 2023, many factories that previously only did OEM are now seizing the opportunity to launch their own brands, offering high quality at lower prices.
任文青Andy