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Articles by 李政权
Browse 35 New Distribution articles by 李政权.
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35 articles · Page 1 of 2
Is it that distributors and offices have lost the ability to launch new products, or is headquarters turning a blind eye?
The root of execution problems often lies with management, but blaming the team and its managers entirely is unfair. A case study of a leading FMCG company reveals that new product launches fail because regional offices and distributors lack the manpower and headquarters lacks oversight, compounded by a results-driven culture that prioritizes sales targets over new product initiatives.
李政权In the Internet Era, Can Distributors Still Operate?
Question: In the Internet era, can distributors still operate? Li Zhengquan answers: Of course they can, but it's inevitable that old-model distributors will find it increasingly difficult and unprofitable; they must transform! First, why are old-model distributors becoming harder to operate? 1. A common reason—channel flattening: first, terminals force change, as retail systems of any scale demand direct supply from manufacturers, pushing distributors to operate small chains and independent terminal customers; second, manufacturers compress, cutting out the once prevalent second-tier and third-tier distributors layer by layer...
李政权Several Details That Must Not Be Overlooked When Boosting Sales
When it comes to boosting sales, many people immediately think of advertising, consumer promotions, trade promotions, pushing inventory to distributors, or paying for display space. However, there are many other effective methods that are often overlooked, such as category management, solving out-of-stock issues, changing cooperation models, adjusting displays without a budget, and improving the promotional atmosphere. This article explores these details and provides practical advice for enhancing sales.
李政权Who Is Responsible for the 20% Sales Loss in the Traditional Supply Chain?
Almost every company has a poor supply chain, even those with annual sales of over 10 billion yuan. Issues like frequent stockouts of bestsellers and promotional items, or goods sitting in warehouses without timely distribution, can cause a company to lose 20% of its sales, turning a potential 10 billion yuan business into 8 billion yuan.
李政权The Future of Secondary Distributors: If Second-Hand Passers Face Transformation, Can Third-Hand Passers Escape?
A few years ago, our team assisted Hengan International Group, China's largest manufacturer of household paper and maternal and child hygiene products, in developing and implementing a 'Sales Management Transformation Project.' One key component was reorganizing the secondary distributor channel. In this book (From Trends to Action: The New Business Ecosystem of the Next Decade), we share three key principles: Transform, Stop, and Manage.
李政权Future-Oriented Management: Companies Can Change Their Stride
Over 30 industry experts, 100 B2B platform founders, and 800 manufacturer and distributor friends gathered in Fuzhou to discuss the internet transformation of the FMCG industry. The article emphasizes that in the mobile internet era, companies must change their approach to management and embrace future-oriented strategies to stay competitive.
李政权Traditional Enterprises Are Undergoing Disruptive Restructuring: Will You Be Destroyed or Reborn in the Future?
Traditional enterprises are undergoing disruptive restructuring. The scary part is that many companies caught in this wave are unaware of the threat of destruction or the opportunity for rebirth. Such companies lack a future. Let's run toward the future now. The direction toward the future: change your posture.
李政权The Key to Channel Reform Is to Reverse Losses and Follow Trends! Nongfu Spring's Big Customer System Will Surely Backtrack!
As a benchmark in China's food, beverage, and FMCG industry, Nongfu Spring's every move attracts attention. Recently, rumors about its drastic reduction of distributors in favor of a big customer system have circulated, sparking various discussions. In my view, times have changed; Nongfu Spring's implementation of the big customer system is temporary and it will inevitably backtrack. Has the time truly matured for Nongfu Spring to implement the big customer system? While everyone emphasizes intensive channel cultivation and regional deep cultivation, the news of Nongfu Spring adopting the big customer system has surprised many...
李政权Foresight: We're in Danger if We Get Involved with These 17 Types of Distributors [Marketing Management]
Few companies can do without distributors, but few are satisfied with the ones they have. Many companies fail because distributors are inattentive, uncooperative, or break market rules, turning markets into 'half-baked' failures. However, these problems are not solely the distributors' fault; many issues stem from our own choices, such as not being discerning enough when selecting distributors.
李政权Distributor's Internet+ Transformation: If You Can't Lead the Future, Use Others' Business Technology to Change Your Own
Only a few enterprises and individuals can lead the future of business; the vast majority can only be led. Even so, how can we seize the future of business from being led? This article presents a case from the book "From Trends to Action: New Business Ecology + Enterprise Transformation and Change in the Next Decade": a third-tier market distributor uses business technology to carry out transformation in the mobile Internet era.
李政权The Era of Consumer Refinement Replaces Channel Refinement Has Arrived
Views like 'terminal is king' and 'channel is king' have been popular in the business world for over a decade. The author, who once advocated such ideas, now argues that channel push is giving way to consumer marketing penetration, ushering in a new era where consumer refinement replaces channel refinement.
李政权The Past and Future of Secondary Distributors: The 'Doomed' Narrative Was a Joke, but Dealers and New Technology Will Defeat Them
This article is excerpted from Mr. Li Zhengquan's new book 'From Trends to Action: The New Business Ecosystem of the Next Decade + Enterprise Transformation and Change', published by CITIC Press, November 2015. The editor made changes during publication. Over a decade ago, we discussed whether secondary distributors would die out amid channel flattening, direct supply to terminals, and direct control. Many believed they were doomed. In the past, the 'secondary distributors are doomed' theory was a joke. Now, it's clear it was a joke! Today, from township markets to county-level and prefecture-level markets, we see secondary distributors thriving like greenhouse chives that never stop growing.
李政权14 New Trends in Promotions for the Next Decade: Old Promotion Dogmas Are Out! The Era of Interconnected Promotions Has Begun!
In the old world of marketing, there are many promotion dogmas that are increasingly outdated and hindering. Now, let's forget the old rules that said this is impossible, that is impossible, this condition must be met, that condition must be met, because the baseline for satisfaction has been lowered almost without limit, and the boundaries of impossibility are nearly impossible to find. 1. Eight trends in promotion development that break the old and establish the new: 1. Promotions have become more reversible: in the past, our promotions were irreversible, like spilled water; however you set them, that's how they ended up.
李政权31 Trends in Traditional Channels Over the Next Decade: The Future Won't Need So Many Distributors, Second-Tier Dealers, Outlets, or Even Sales Representatives
The article outlines 31 trends in traditional distribution channels over the next decade, predicting a significant reduction in the number of distributors, second-tier dealers, and retail outlets, as well as sales representatives, due to the rise of e-commerce, mobile technology, and data-driven operations. It covers changes in distributor, second-tier dealer, and terminal channel trends, as well as transformations in physical stores.
李政权Block, Entice, Pressure, Force, Surround: 5 Tactics to Make Distributors Exclusive
Every company, regardless of size or strength, desires exclusive distributors. This model transforms distributors into quasi-subsidiaries, enhancing cooperation and execution. However, distributors may resist the transition, so a systematic approach using five strategies—block, entice, pressure, force, and surround—is necessary.
李政权This Stop: Consumer Marketing Reigns Supreme!
Views like 'terminal is king' and 'channel is king' have been popular in the business world for over a decade. The author, who once advocated such ideas, now argues that the push of channels is giving way to the penetration of consumer marketing, ushering in a new era where consumer marketing capabilities determine a company's future.
李政权Next Stop: Consumer Marketing Reigns Supreme
Views like "terminal is king" and "channel is king" have been popular in the business world for over a decade. The author, Li Zhengquan, also published related views in publications like Sales and Marketing in the early 2000s, and was even credited with proposing the idea of "channel is king, win at the terminal" by scholars. However, in recent years, the author has begun to argue that channel push is increasingly giving way to the penetration of consumer marketing, signaling a new era where consumer marketing dominates.
李政权Three Major Distortions in Trade Promotion Policies and Countermeasures
From manufacturer to consumer, all policies related to management, regulation, incentives, penalties, payment collection, and other profit-driven measures—such as advertising, promotions, and systems—can be categorized under "channel policies." Given the broad nature of channel policies, the author focuses on the distortions in trade promotion policies for weak brands and their prevention. For weak brands, increasing product distribution reach and depth is a key marketing priority, with relatively generous trade margins and additional promotional benefits serving as important tools to counter strong brands and direct competitors.
李政权Three Major Distortions in Trade Promotion Policies and Countermeasures
From manufacturer to consumer, all management, regulation, incentive, penalty, payment collection, and other profit-driven policies related to advertising, promotion, and systems can be categorized under 'channel policy.' Given the broad concept of channel policy and the aim to be substantive, the author focuses on the distortion of trade promotion policies for weak brands and preventive measures. For weak brands, increasing product distribution reach and depth is a marketing priority, with relatively generous trade margins and additional promotional benefits serving as key tools against strong brands and direct competitors.
李政权Want Exclusive Dealers? Use the Four-Pronged Strategy: Divide, Entice, Pressure, Surround!
As long as some regions take action, we have a basis for punishing laggards. Accelerating the stratification of the originally united dealer groups is an inevitable process from collective hesitation to breaking the ice. Regardless of size or strength, every company desires exclusive dealers. This model, which requires dealers to dedicate all resources to a single brand or establish independent teams or exclusive stores, can transform dealers into quasi-subsidiaries or quasi-offices, greatly enhancing their cooperation and execution.
李政权Sales Needs Not Just Results, But the Process
This article argues that when a sales team lacks execution, the fault lies with their managers, not the frontline staff, due to a common 'results-only' mentality. It emphasizes the need for managers to supervise the execution process, improve information feedback, and equip salespeople with execution skills.
李政权Six Principles for Boosting Natural Sales
Increasing natural sales is challenging in a competitive buyer's market where consumers are rational and rivals use aggressive marketing. This article outlines six principles—product strength, sales push, channel competitiveness, effective marketing carryover, seeking competitor pressure, and brand support—to help companies achieve higher natural sales without heavy advertising.
李政权Counting the Unselectable Distributors: The '3 Most, 3 Many, 3 Wrong, 8 Without'
Few companies can do without distributors, but few are satisfied with the ones they have. Many markets fail because distributors are inattentive, uncooperative, or break market rules, yet the fault often lies with the manufacturer's own poor selection criteria. This article outlines the types of distributors to avoid—those with the 'most' money, scale, or experience; those with 'many' expansions, debts, or competing products; those with 'wrong' brand, market, or profit philosophies; and those 'without' people, facilities, money, experience, network, integrity, confidence, or attitude—and offers guidance on choosing the right partner.
李政权7 Execution Problems and 6 Solutions for Successful New Product Launches
It is often said that countless new products are launched each year, yet 99% fail. While factors such as product positioning, pricing, margin structure, selling points, and promotional investment contribute to this high failure rate, the execution capability of the marketing team is a crucial determinant. This article explores how to ensure execution during the new product launch phase to improve the success rate, identifying seven common execution problems and six corresponding solutions.
李政权