AUTHOR ARCHIVE
Articles by 段文智
Browse 2 New Distribution articles by 段文智.
Published articles
2 articles · Page 1 of 1
Big Brands Bully and Force Stock on Distributors: What Should Major Distributors Do?
Many manufacturers' so-called 'transformation' is just a rebranding of the old coercive approach. 'Product upgrades' have reverted to stock-pushing dependency through product activity and order fulfillment rates; 'expense coercion' may squeeze out sales in the short term, but in the larger picture, it only deepens the contradiction between sell-through and inventory until collapse. Looking at increasingly worse data, Lao Zhang grows more alarmed. Lao Gao, a distributor of a famous FMCG brand, is seen by others as having a large business in the provincial capital's central area, with a self-owned compound of thousands of square meters, a four-story office building in front, large warehouses in the back, nearly a hundred vehicles, and a team of over 200 people—big and wealthy enough. But in reality, Lao Zhang's profits from this brand have been declining year after year.
段文智The Bloodbath of Distributor Stockpiling Triggered by Big Brands' 'Transformation'
Distributors in transition need a portfolio of brands. Which brands offer both reputation and profit? Which look good on the surface but are rotten inside, with thin margins, even growing by eroding their own and channel profits? Looking at the worsening data, Lao Gao grows increasingly alarmed. Lao Gao is a distributor for a famous FMCG brand. To outsiders, he seems prosperous: in the provincial capital's center, he owns a multi-thousand-square-meter compound with a four-story office building in front, large warehouses in back, nearly a hundred vehicles, and a team of over 200 people. But in reality...
段文智