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How Can Distributors Ensure Their Profits Are Not Carved Up?
Case: A 'bloodbath' caused by forced stockpiling. Lao Gao, a distributor for A-brand liquor, faces a common dilemma: sales are up but profits are down, and he's being 'held hostage' by the manufacturer's demands to stock up, leading to a vicious cycle of discounting and eroding margins.
New DistributionAttention! Someone is impersonating salesmen to push 'fake Red Bull'!
Recently, Boss Wang, who runs a supermarket in Longfeng District's Shidi Fuyuan, encountered a troubling issue. He reported to a journalist that a few days ago he suffered a big loss when someone posing as a Red Bull salesperson sold him more than a dozen cases of 'problematic Red Bull'. To verify the situation, on the afternoon of August 28, the journalist visited Mr. Wang's supermarket to conduct an interview. The supermarket owner discovered that the dates on the bottom of the 'Red Bull' cans had been altered.
New DistributionHow Should Distributors Select Talent?
Distributors often struggle with hiring, managing, and retaining employees. This article argues that instead of blaming staff, bosses should reflect on their own systems and choose talent based on virtue, versatility, fit, and a balance between external hires and internal development.
New DistributionUnveiling Yonghui Superstores' Partnership System: How to Handle 'Coasting' Employees!
A major issue in the supermarket industry is that frontline employees do the dirtiest and most tiring work while earning the lowest wages, leading to extremely high employee turnover. Yonghui Superstores' chairman Zhang Xuansong discovered during a store visit that when frontline employees earn only around 2,000 yuan per month, they barely make ends meet and lack motivation, essentially just going through the motions. Customers rarely see smiles on their faces, which is a huge problem for brick-and-mortar retail under the impact of online shopping.
New DistributionCoca-Cola Acquires Costa: To Rival Nestlé or to Secure a Way Out?
Coca-Cola has agreed to acquire Costa Coffee from Whitbread PLC for £3.9 billion (about $5.1 billion), marking its entry into the hot beverage market. The move comes as Coca-Cola faces declining carbonated soft drink sales and aims to diversify its portfolio, following Nestlé's $7.15 billion deal for Starbucks' retail business.
New DistributionDistributor Commits Suicide After Supermarket Fails to Pay 400,000 Yuan Debt
A distributor in Huaibei committed suicide on August 22 after a supermarket repeatedly failed to pay a debt of over 400,000 yuan. The incident highlights the severe consequences of credit sales, as more than 85% of distributors are now refusing to supply large supermarkets due to unfair contract terms and squeezed profits.
New DistributionBreaking News | Dali Foods Issues Another Price Increase Notice! Weilong Issues Statement Against 'Unqualified Inspection' Incident; Bottled Water Landscape Changes Again! Ditching Master Kong, Ganten Enters Top Three...
Dali Foods has issued another price increase notice following the August hike for Lehu, citing rising costs. Weilong has issued a statement refuting the 'unqualified inspection' finding. Ganten has overtaken Master Kong to become the third-largest bottled water brand with a 9.6% market share.
New DistributionWhy Distributors Can't Make Money? The Biggest 'Loophole' Is This!
Inventory management is a key component of a distributor's own operations, not simply using a generic system for purchase, sales, and inventory or stocktaking. What is inventory management? Simply put, it is the distributor maintaining a reasonable inventory level of agency products, reducing the occurrence of short-dated and expired products, and maintaining reasonable purchase quantities based on product flow speed and inventory levels. Distributors/manufacturers face warehouse management drawbacks such as inaccurate inventory counts, lack of basis for product stocking, and poor coordination between warehouse, finance, and business operations.
New DistributionNews Flash | Suntory Makes a Move, Another Company Enters Functional Beverages! Yili Shares Plunge After Interim Report; Huiyuan Juice Continues Suspension, Interim Report Delayed...
Suntory's Lucozade Sport partners with Skipping Rocks Lab to launch edible Ooho packaging for sports drinks. Yili's shares fell sharply after its interim report showed high marketing expenses. Moutai prices have dropped, Huiyuan Juice remains suspended, and JD.com launches a global wine alliance.
New DistributionOffend Anyone but the Supply Chain! Red Bull Finds True Friendship in Adversity, While JDB Seems to Fall from Grace
Red Bull and JDB are currently the 'miserable siblings' in the beverage market, both plagued by brand disputes and unprecedented market pressure. At this time, the supply chain's attitude and actions towards them have become the 'bottom line of life and death.' ORG, a leading food packaging company, with three-piece cans (mainly for Red Bull) and two-piece cans (mainly for Tsingtao and JDB) as its main business, went public in October 2012. According to ORG's financial report, the company's accounts receivable were 2.342 billion yuan, of which 11 customers had overdue credit periods, and after multiple collection attempts, bad debt provisions reached 204 million yuan due to uncollectible amounts or deteriorating customer operations.
New DistributionDeep Marketing: Open One Market at a Time, Work One Township at a Time, Run One Event at a Time!
There is a model that has been successfully marketed in China for nearly 20 years, and companies that execute it well essentially have no rivals. This is the deep marketing model, which is particularly suited to China's market conditions: first, the urban-rural and regional differences are large, the population is dense, and the market has many levels, with relatively asymmetric consumer information and highly fragmented channels, so no brand can unify the market by planting its flag from first-tier directly into third- and fourth-tier markets. Second, the population is very dense, market integration is poor, but regional market consumption density is relatively high, making it ideal to first dominate a region and then expand progressively.
New DistributionCOFCO Packaging Chairman Zhang Xin: Starting March This Year, We Won't Make a Single Can for JDB!
At a mid-year results meeting in Hong Kong, COFCO Packaging Chairman Zhang Xin announced that the company had stopped supplying cans to JDB from March this year, following a dispute over an equity investment. The move comes amid ongoing arbitration between the two companies and JDB's denial of financial data disclosed by Zhonghong Holdings.
New DistributionMengniu's H1 Revenue Reaches 34.474 Billion Yuan, Up 17% YoY; Net Profit 1.562 Billion Yuan, Up 38.5%; Yashili Revenue Surges Over 55%
Dairy giant Mengniu released its half-year results, showing high growth in both revenue and net profit. Surprisingly, Mengniu's net profit surged 38.5%. On the evening of August 29, Mengniu Dairy (2319.HK) announced its 2018 interim results in Hong Kong. In the first half, Mengniu achieved sales revenue of 34.474 billion yuan, up 17% year-on-year; net profit was 1.562 billion yuan, up 38.5%, far exceeding industry levels. So far, this is the best performance among major dairy companies that have published their half-year reports.
New DistributionNestlé Launches 'Acti-V' New Product, Targeting China's Ambient Yogurt Market!
Ambient yogurt, a hot category in recent years, is favored by consumers. In terms of industry landscape, ambient yogurt is a major business for China's top three dairy companies (Bright Dairy, Yili, and Mengniu), and competition is fierce. However, the 'three-way battle' may soon be broken, because Nestlé is here! The development of ambient yogurt: As a nutritious and healthy food, yogurt accounts for over 50% of the liquid milk market in some developed countries and regions. (Data source: China Business Intelligence Network) In recent years, with the enhancement of Chinese residents' health awareness, dairy...
New DistributionRed Can Return Falls Through, JDB Mired in Trouble
JDB has recently faced turmoil, with reports of supply shortages during peak season and a denial of a debt restructuring agreement disclosed by Zhonghong Holdings, which also revealed JDB's 2017 net loss of 582 million yuan. JDB disputes the accuracy of the disclosed financials and denies involvement in the agreement.
New DistributionFirst-Hand Account: A Three-Step New Product Distribution Showcase, Traditional Distributor Defeats Competitors to Win New Product Agency!
Lao Chen, a veteran distributor in Nanchang, Jiangxi, specializing in beverages for over a decade, learns that Company C is launching a new energy drink and that its current traditional channel distributor is failing. Seeing an opportunity, he secures a trial distribution chance and executes a three-phase strategy: a tasting event to generate buzz, a focused distribution push to create a model market, and a market tour to drive orders, ultimately achieving over 85% distribution and winning the full agency contract.
New DistributionAfter 3 Years of R&D, Creating 8 Industry Firsts, This Liquor Aims to Be the No.1 Happy Baijiu Brand. What Do You Think?
This article introduces the new baijiu brand 'Wei Xiaozui' (唯小醉), which after three years of development claims eight industry firsts. It positions itself as the 'Happy Baijiu No.1 Brand' by leveraging the ultimate value of joy in the baijiu industry and the 'small drunk' culture. The brand employs entertainment marketing with eight interactive features including QR code red packets, social text and image sharing, Douyin influencer collaboration, free doodling, drinking games, and physical bottle combinations.
New DistributionFocusing on the Breakfast Market in the Catering Channel, Jiajia Noodle Fresh Soy Sauce Upgrades Again to Create Ultimate Word-of-Mouth!
For most southerners, a new day begins with a bowl of hot and chewy noodles. In 2010, a soy sauce named 'Noodle Fresh' was launched, giving noodles their own exclusive soy sauce and making breakfast more delicious. Eight years later, 'Noodle Fresh' has been fully upgraded, aiming to enter the breakfast market through the 'Double Hundred Project' and drive a new wave of sales.
New DistributionMizone Nanyang Distributor Vanishes with Millions in Prepayments! Where Is Integrity?
Why are more and more manufacturers and distributors absconding? They could simply do business properly, so why choose illegal, fraudulent paths? Cases of distributors absconding are increasing yearly. On one hand, we remind distributor friends to be vigilant; on the other, we analyze the core reasons behind this phenomenon: The Mizone distributor in Nanyang absconded. In recent years, we've seen many cases, but few as 'extreme' as this one. Numerous details indicate that the Nanyang Mizone distributor's absconding was a planned, strategic 'runaway'—more precisely, a 'textbook-style default.' The distributor didn't actually flee; she continued living at home but transferred all her assets, leaving customers who had paid her with no chance to seize the warehouse.
New DistributionZheng Hongyan: JD New Channel Does Not Fight Price Wars, Must Fight Value Wars!
The FDIC 2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the FMCG Branch of China Electronic Commerce Association, was grandly held from August 22 to 24 at the Shanghai Baohua Marriott Hotel Conference Center. The event attracted thousands of industry professionals including distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. On August 24 at 9:00 AM, the second day's main forum officially began, with Zheng Hongyan, Vice President of JD Group and President of JD New Channel Business Unit, delivering a keynote speech.
New DistributionIndustry Leaders Gather: A Regional Distributor Development Alliance Event Just Beginning!
The FDIC2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the China E-Commerce Association FMCG Industry Branch, was held grandly at the Shanghai Baohua Marriott Hotel Conference Center from August 22 to 24. It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. On the afternoon of August 22, four parallel forums were held: the New Distributor Forum, the Deconstructing New Marketing Forum, the Brand Innovation Growth Forum, and the Interpreting Regional Dominance Forum. The following content is an excerpt from the 'Interpreting Regional Dominance Forum' hosted by Zhongke Shangruan and New Distribution.
New DistributionForeseeing the Future: A Grand Event in the FMCG Sector, Are You In?
The FDIC2018 China FMCG Digital Innovation Conference, hosted by New Distribution and co-organized by the FMCG Industry Branch of the China Electronic Commerce Association, was grandly held from August 22 to 24 at the Shanghai Baohua Marriott Hotel Conference Center. It attracted over a thousand distributors, manufacturers, and internet companies from across the country, with a full house and unprecedented scale. On the afternoon of August 22, four parallel forums were held: the New Distributor Forum, the Deconstructing New Marketing Forum, the Brand Innovation Growth Forum, and the Interpreting Regional Dominance Forum. The following content is an excerpt of the wonderful speeches from the 'Interpreting Regional Dominance Forum' co-hosted by Medline and New Distribution.
New DistributionNiu Enkun: Dispelling the Fog of Marketing
Niu Enkun, chairman of Liangjian Consulting and an expert in internet community marketing, shares insights from two years of studying new marketing cases, emphasizing the need to understand underlying logic and causal patterns to see through marketing illusions and achieve sustained success.
New DistributionMilk Tea Sales Sluggish, Xiangpiaopiao Revenue Surges but Losses Widen
Xiangpiaopiao (603711.SH), known for selling 1.2 billion cups a year, reported a 55.38% revenue increase to 870 million yuan in H1 2018, but net loss widened to 54.586 million yuan, up 78.92% from a year earlier. The company attributes the loss to seasonal factors and rising costs, while heavy marketing expenses and intense competition also weigh on profitability.
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