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Articles by 周群
Browse 114 New Distribution articles by 周群.
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Small Shop Business Halved, Supermarkets Forced to Cut Prices: Discounts and Low Prices Impact Local Markets—Where Do Distributors Go?
Snack and discount stores are proliferating, accelerating their impact on local markets. Distributors must understand this trend and adapt by focusing on their core competitiveness, expanding categories and channels, and managing store relationships to survive the discount retail wave.
周群“External Pressure, Internal Efficiency”: Reflecting on 2023, the Uncertainties Facing Distributors' Business
As 2023 draws to a close, New Distribution has been actively engaged with distributors throughout the year. In May, preparations began for a distributor membership organization, leading to the official establishment of the Distributor Membership Club in June, which recruited over 200 outstanding regional distributors in less than two months. In August, preparations started for the first China FMCG Distributor Conference, which concluded successfully in October, where the club was upgraded to the Tower Alliance. In September, a survey on the operating conditions of Chinese FMCG distributors was initiated, involving nearly 300 distributors, and the "2022-2023 China FMCG Distributor Operating Conditions Survey Report" was officially released in October. In December, plans are underway for the first member representative assembly of the Tower Alliance and the formulation of key activities and work content for 2024.
周群Distributors Need Not Worry Too Much This Year, Because Next Year Will Be Even Harder
Distributors are facing increasing competition and shrinking profit margins as the market shifts from growth to stock. New models like snack hard discount and lightning warehouses are eroding their market share, and many are struggling to meet sales targets. To survive, distributors must focus on covering existing channels thoroughly, embracing new channels, identifying growth brands and categories, and optimizing their organizations.
周群Instant Retail Cannot Do Without Digitalization
According to the 'Instant Retail Industry Development Report' released by the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, instant retail has maintained an average annual growth rate of over 50%, with the market size reaching 504.286 billion yuan in 2022. It is expected that by 2025, the market size will triple that of 2022, far exceeding market expectations. Whether viewed from growth rate or scale, instant retail is a track that retailers cannot afford to abandon. In embracing instant retail, retailers also face many new problems: inconsistent online and offline data, multiple systems...
周群From B2b Transformation to Discount Retail: The Self-Revolution of Traditional Distributors!
Discount retail is a hot topic, with snack discount stores expanding rapidly and traditional retailers and brands exploring how to adapt. Distributors are feeling the impact directly, as aggressive expansion of snack stores has led to significant sales declines. Yu Xiuwei, founder of Tangshan Yihe Trading, shares his journey from traditional distributor to B2b platform and then to launching a local discount chain, offering insights on whether hard discount is a challenge or opportunity for distributors.
周群The New Battlefield of Instant Retail: Is Lightning Warehouse a Good Business?
After a recent visit to lightning warehouses organized by the New Distribution Dealer Member Club, many have asked about this business model. This article examines two cases—a traditional convenience store transformation and a B2B entrepreneur's venture—to illustrate the profitability and rapid growth of lightning warehouses, which are an extension of instant retail. It analyzes the model's advantages, such as low cost, high turnover, and broad coverage, and discusses implications for brands, retailers, and distributors.
周群Accelerating Evolution, Racing into the Trillion-Yuan Instant Retail Market
Instant retail is a must-do, not an option. With the growth of online shopping and the impact of the pandemic, instant retail has become a main shopping channel. Brands and retailers must evolve to seize the opportunities in this trillion-yuan market.
周群Instant Retail Omnichannel 2.0 Transformation Accelerates, JD.com Takes the Lead Again
Over the past three years, driven by internal and external factors, consumer scenarios have undergone significant changes. Instant retail has accelerated its entry into daily life, with 'instant gratification' becoming a normalized shopping need. The business growth from matching consumer demand with supply has drawn attention across the entire consumption chain. Brands, retailers, and e-commerce platforms are all accelerating their布局 in this track. As New Distribution mentioned in previous articles, the instant retail industry is gradually transitioning from the 'wild growth' 1.0 extensive stage to the 2.0 rational growth stage.
周群Deep Cultivation of Offline Channels, Covering 6,000+ Restaurant Outlets and 4,000+ Traditional Stores: The 26-Year Business Wisdom of a Traditional Distributor!
From the 1990s to today, the trading and distribution business has undergone tremendous changes, from the early dividends of information asymmetry to the rise of hypermarkets, the impact of internet e-commerce, and now the proliferation of fragmented channels. Distributors have continuously evolved with these changes; those who adapt grow larger, while those who don't are gradually eliminated. Recently, New Distribution interviewed Huang Silong, chairman of Guiyang Lingyun Trading Co., Ltd., who has been in the trading business for 26 years. Starting his business in 1997, he has grown from wholesale to a regional leading distributor, covering over 10,000 stores.
周群New Distribution x Meituan Flash Purchasing: A Successful Visit to Meituan Lightning Warehouse
On August 24, the third study tour of the New Distribution Dealer Member Club, in collaboration with Meituan Flash Purchasing's Flash Purchasing Lounge, concluded successfully with a visit to Meituan Lightning Warehouse. The tour focused on official interpretations of the Lightning Warehouse model, case studies on operating it from scratch, and discussions on opportunities and challenges for distributors amid its rapid growth. Despite strict registration limits, recruitment was completed in just three days, with over 30 dealer owners from across the country participating.
周群A 92-born Distributor's 10-Year Journey: Representing Totole, Chubang, Lotus and More, with Annual Sales of 80 Million
After 10 years of development, I have deeply fallen in love with this industry. Although many say business is tough, when you look back at other industries, the FMCG distribution business is enduring and growing stronger. This is the view of Fang Fan, a post-90s first-generation distributor and general manager of Guizhou Fang Wang Yuan Trading Co., Ltd. Graduating and immediately facing unemployment, he started his own business. This year marks his first year past 30 and his tenth year in business. In a decade, Guizhou Fang Wang Yuan Trading has grown from nothing, representing dozens of brands including Totole, Chubang, and Lotus, with a business scale of nearly 80 million yuan and an 8,000-square-meter three-dimensional warehouse to support existing brands and new categories like snacks, aiming for platform-based multi-category operations.
周群From Traditional Retail to Launching Meituan Flash Warehouse: 3 Years, 21 Stores, 20% Net Profit, Practical Experience Sharing!
In 2020, Meituan Flash Purchase launched Meituan Flash Warehouse, a pure online convenience store front-warehouse model focused on serving online users, with consumers ordering online and receiving delivery in as fast as half an hour. To date, Meituan Flash Warehouse has expanded to over 200 cities, with partner merchants opening more than 4,000 warehouses, achieving explosive growth. Many friends in the traditional FMCG industry have consulted New Distribution about whether Meituan Flash Warehouse's rapid development presents an opportunity to enter the market and how to do so. Recently, New Distribution conducted an exclusive interview with Liang Qizhi, founder of Guangzhou Youkeduo. In 2016, he started offline convenience stores in Guangzhou, and in 2020, he partnered with Meituan Flash Warehouse to establish Youkeduo. From opening his first Meituan Flash Warehouse store in 2020 to August this year, he has opened 21 stores, with average daily sales per store exceeding 10,000 yuan and top stores exceeding 18,000 yuan, achieving a net profit margin of over 20%.
周群Digital as the Engine: Lee Kum Kee Continuously Empowers Channel Partners for Efficient Business Growth
According to relevant data, offline business accounted for 89.6% of the condiment market in 2022. Looking further at offline channels, the 2 million+ small retail stores that are closer to consumers in near-field consumption will definitely become the mainstream of the condiment market in the future. Covering these 2 million+ small stores through traditional methods and a manpower-intensive approach makes it difficult to balance efficiency and cost. From the perspective of the condiment industry, what should be done? First, fully mobilize the power of distributors and work with them to tap into the potential of stores; second, use more efficient digital tools to expand coverage radius...
周群A Post-85s Entrepreneur Running a Trading Business with Over 100 Million in Sales, Representing Brands like Baixiang and Wolong
Insight into consumer changes and diversified business development. Author: Zhou Qun; Proofreader: Gou Gou; Layout: He Wen. In recent days, chatting with distributors, a very interesting topic came up: whether the distributor business has continuity. The distributor's answer was affirmative, because as can be seen from manufacturer meetings, many of those seated now are young people. Whether it's starting a business or inheriting one, as long as young blood continues to join, it shows that this business still has continuity. While preparing the 'New Distribution·Distributor Member Club', New Distribution visited many distributors...
周群Why Are Post-80s and Post-90s Distributors Doing Better, Despite Being 'Doomed'?
The article argues that the notion of 'eliminating middlemen' is a false proposition, as distributors actually reduce transaction costs. It highlights how young distributors (post-80s and post-90s) are outperforming older generations by learning from successful models and leveraging information gaps, and introduces the New Distribution Distributor Club as a platform for sharing best practices.
周群Distributors: The Harder It Gets, the More You Must Not Be Blind!
Recently, New Distribution spoke with a number of distributors about changes in their business, and many expressed a lack of confidence due to market shifts, channel reforms, and rising costs. This article summarizes successful cases of distributors who have achieved growth by focusing on internal organization and efficiency, as well as external transformation directions such as B2B, self-built terminals, and private labels.
周群The Crisis and Opportunity for Distributors!
In the past two months, while visiting the market and communicating with many distributors, the business situation shows a clear polarization. Some distributors are optimistic, with clear development directions and plans, and their business is improving. However, the majority feel that business is becoming more difficult and have a strong sense of crisis. Why does this phenomenon occur? Is it because the former's business is smooth sailing, or is the latter's market too poor? There are differences in different regional markets, but overall, the trend of market changes is converging...
周群Growth of 47% and Penetration Below 5%: Personal Care Brands Race into Instant Retail
In the past few years, retail has undergone significant changes, especially in the channel landscape, with nearly two-thirds of consumers shopping across channels. For personal care brands, the breakthrough lies in finding channels with capacity and incremental growth, and instant retail offers answers. According to the white paper, the personal care category in instant retail is expected to reach 171.2 billion yuan by 2027, accounting for over 20% of all channels, with a market growth rate of 47%.
周群Is There Still a Dividend for Distributors?
Data broadens distributors' understanding of their business, shifting focus from operations to strategic thinking. The next dividend for distributors lies in data, which helps them find growth opportunities and improve efficiency.
周群Distributors: Guard Against Fire, Theft, and Supermarkets—Should They Still Do Business with Big-Box Retailers?
Business must look forward and adapt to market changes. Distributors are increasingly abandoning big-box supermarket channels due to rising costs, extended payment terms, and the risk of store closures, which have turned once-profitable partnerships into loss-making ventures.
周群Why Do Many New Consumer Brands Fail Offline?
In specific scenarios, whoever solves the consumer's problem becomes their first choice. Many new consumer brands that thrived online are struggling offline due to different underlying logic and the complexity of offline operations.
周群Is Building a Self-Owned B2b Platform for Distributors a Good Way to Achieve Large-Scale Terminal Coverage?
Recently, due to company projects, I had in-depth discussions with several distributors about the distribution business, and the feedback was that most distributors are finding it hard to do business. First, in the past, with brand dividends, distributors could quickly open up channels relying on brand influence; without brands, channel advantages are greatly affected. Under this model, distributors mostly serve brands, execute according to brand operating models, and have weak control over terminal outlets; once brand momentum declines, their business follows. Second, in the past, with China's population dividend, distributors could thrive by relying on natural market growth and earning price differences, but as the demographic dividend fades, the stock market inevitably intensifies competition, making business harder.
周群Do Traditional Distributors Still Have a Chance in Online E-commerce?
A recent Nielsen report shows that offline retail accounts for 60% of China's FMCG retail channels, while online channels are growing. As offline growth stagnates, many traditional distributors are turning to e-commerce for new growth. However, success requires overcoming mindset shifts, building professional teams, and mastering product selection and pricing strategies.
周群The 'Resilient' Distributor: Covering 13,000+ KTV and Other Special Channels, Redoubling Efforts in Local Community Group Buying Amid the Pandemic
This article profiles Shanghai Huanyu Yigou, a distributor specializing in special channels like KTV, cinemas, and bars, covering over 13,000 stores. Despite the pandemic's severe impact, the company has shown resilience by pivoting to community group buying, leveraging its supply chain strengths and innovative strategies.
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