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Widespread Price Inversion in Baijiu: How to Break the Deadlock?
China, as the world's second-largest consumer market, has a vast and deep domestic unified market. Since the reform and opening-up, it has maintained nearly 40 years of rapid growth, with the advantage of its super-large market scale being particularly prominent. Starting in 2012, consumption surpassed investment and exports to become the strongest driver of economic development, with total retail sales of consumer goods doubling in eight years. In the first half of this year, consumption contributed 77% to GDP growth. The baijiu industry, as a traditional food and beverage sector highly dependent on domestic demand, is now facing a deep adjustment period due to multiple demand-side factors, leading to widespread inventory buildup, price inversion, and weakening confidence. This article offers three suggestions for price management: source governance, manufacturer-dealer collaboration, and BC integrated marketing.
王丹华Is the Relationship Between Salespeople and Store Owners Worth Anything?
Stores are where products are sold, serving as the link between products and consumers, and are the most critical link in product distribution. Winning stores means winning the market, and seizing stores has become a key to marketing success. However, stores require good relationships (keqing), and with strong relationships, greater sales can be achieved. In past reports by New Distribution on distributors, especially during the three years of pandemic lockdowns, many distributors who invested in relationship-building saw positive results, avoiding losses and even growing against the trend. China is a society that values personal connections, so in terms of salesperson skills, they are divided into three categories: attitude skills, relationship skills, and business skills. Among these, relationship skills are considered the most important, accounting for 80% of the factors in closing deals.
高级研究员 海游How Partnership Models Help Distributors Scale
A distributor partnership model can align managers, employees, and owners around long-term profit—but only when the business is profitable, transparent, and willing to share real upside.
New DistributionTardiness and Absenteeism? Your Attendance System That Lets Employees Coast Is Dragging Your Company Down!
During recent market research, a common remark from sales teams is that when a company starts enforcing attendance, it signals decline, as thriving companies have no time to police attendance. While attendance itself adds no value or efficiency, it establishes rules and discipline. This article explains the significance of attendance for marketing teams, what to track, and key considerations for implementation.
高级研究员 海游Where to Go and How to Get There: The Two Most Important Strategic Questions for FMCG Companies Today
This article discusses the two most critical strategic questions facing FMCG companies and distributors: where to go and how to get there. It highlights the anxiety among industry players due to stagnant growth and emphasizes the need to go out, abandon illusions, and prepare for battle. The article also promotes the upcoming Fifth China FMCG Conference and the First China FMCG Distributor Conference in October 2023 as platforms for finding answers.
陈思廷Xinchao Media Zeng Jian: Everything for Growth, Everything for Winning!
On August 18, at Xinchao Media's Shanghai headquarters, New Distribution interviewed Zeng Jian, co-founder and senior vice president of Xinchao Media. As China's largest community media platform, Xinchao Media serves as a barometer of the FMCG economy's prosperity. The interview provides a comprehensive perspective on the 2023 FMCG economy. Zeng Jian, a serial entrepreneur, led the company's expansion from regional to national, building the largest advertising sales team in China's offline media industry. Since 2020, he has built the KA team, serving nearly 300 well-known brands and creating several classic brand cases.
陈思廷Fan Shikai: Jinsha Distillery Integration Proceeds Smoothly, Will Achieve Set Goals as Planned
On September 2, the third 'Celebrate Harvest, Promote Harmony: Jinsha Red 2023 Harvest Celebration' was held in Jinsha County, Guizhou Province. Since 2021, Jinsha Distillery has held this event for three consecutive years, making the 'Jinsha Red Sorghum Festival' a unique annual brand IP event. In the afternoon, Jinsha Distillery also held a symposium with nearly a hundred media representatives. This year, after China Resources Beer officially took over Jinsha Distillery, the industry and media have paid close attention, with various opinions circulating. At the symposium, Fan Shikai, Vice President of China Resources Beer and General Manager of Jinsha Distillery, responded positively and in depth to many industry concerns for the first time.
陈思廷Is Attacking the Lower-Tier Market a False Proposition for New Consumer Brands?
In 2023, the most discussed topic in FMCG is offline terminal construction, with the lower-tier market being the hottest point. Many recognize it as a future channel and growth opportunity, but results are minimal. The author argues that the lower-tier market is not a false proposition; rather, the issue lies in strategy management and a lack of precise marketing and operational capabilities. The so-called lower-tier market refers to the distribution business in third-, fourth-, and fifth-tier cities, including prefecture-level cities and county/township networks.
程英奇How Can FMCG Companies Achieve a Second Takeoff Through Channel Digitalization?
In the past two years, my consulting projects have all been related to channel digitalization. Brand owners have put great effort into digital transformation, often switching system suppliers. I have participated in several bidding projects and have deep insights. The main reasons for switching are not price but the marketing team's bottom-up disapproval, often due to misuse of the system and decreased efficiency, leading to misunderstandings. This article discusses how to achieve a 'soft landing' for system implementation through business scenario research, system adaptation, and step-by-step planning.
海游Distributor Boss's Personal Account: A Post-90s Female Boss, Agent for Mengniu, Achieved Regional Benchmark Market in 7 Years
Liu Fen, founder of Hubei Quanjielai Trading, started her business in 2014 with 2 million yuan from her parents, becoming a Mengniu distributor in Yunmeng County, Xiaogan. Over seven years, she expanded to Xiaogan city and Yingcheng County, and in 2020 won Mengniu's Outstanding Contribution Award (only 10 distributors nationwide). This article shares her business insights, including market entry strategies, management of frontline staff, and handling e-commerce price chaos.
刘芬Consumption Polarization: Market Opportunities and Pitfalls in the Downward-Moving Society
Ma Laomiao's most memorable market observations this year include a mushroom stall in Nanjing that sells only premium mushrooms, generating daily revenues of 6,000-7,000 yuan and even tens of thousands during holidays, and an industry expert's remark that few companies are growing well post-pandemic. This reflects the broader trend of consumption polarization: while mass consumers tighten spending, high-end segments like luxury goods, premium liquor, and high-end cars are booming, driven by the decline of the middle class and the emergence of an M-shaped society.
响马老苗How Can Community Group Buying Brands Trapped by Price Undercutting Be Saved?
In the previous article, the author discussed the surging trend of community group buying. Following its publication, rumors emerged that JD.com would acquire Yonghui, though multiple sources suggest this is unlikely. However, Liu Qiangdong's involvement, the competitive dynamics between Douyin and Pinduoduo in community group buying, and the resurgence of this channel have become increasingly clear. Behind the acquisition rumors lies the market's concern for traditional channel power and the confusion of brand owners and distributors regarding community group buying.
老陶Money is Hard to Earn, People are Hard to Manage! This is a Common Ailment of FMCG Enterprises!
Distributor bosses often lament: money is hard to earn, and people are hard to manage. Indeed, over the past decade or so in the FMCG industry, many companies have exhausted their product innovation capabilities, leading to severe product homogenization and price wars. This has triggered a chain reaction: declining distributor profits, shrinking team incomes, and unstable staffing that degrades service quality. Strong brands survive on brand power, but new and weak brands struggle. A few years ago, Jinmailang's four-in-one model caused a stir in the FMCG circle, suggesting that the more decentralized the distribution rights, the stronger the initiative and market competitiveness. Many companies have since explored partner models to decentralize distribution rights, and some have found sustainable survival methods in the highly competitive FMCG industry. This article discusses partner recruitment.
高级研究员 海游Hou Xiaohai: Growth, Rapid Growth, and Quality Sustained Growth is the Primary Strategy
China Resources Beer (CR Beer) released its impressive 2023 interim results on August 18, with revenue of RMB 23.871 billion, up 13.6% year-on-year, and profit before interest and tax of RMB 6.245 billion, up 21.1%. The company continues to lead the beer industry, with premium beer sales surging 26.4% and Heineken® brand growing nearly 60%.
陈思廷“Where to Go and How to Get There” Are the Two Most Important Strategic Questions Today
A Shandong distributor, Mr. Zhou, flew over 60,000 kilometers in the first half of the year to visit distributors across China, seeking direction for his company's transformation. The article argues that with the decline of traditional growth drivers—population growth, rising purchasing power, and increasing product penetration—brands and distributors must abandon illusions and prepare for battle, with the key being to go out and find answers to the strategic questions of direction and method. The 5th China FMCG Conference and 1st China FMCG Distributor Conference in October will provide a platform for this exploration.
陈思廷In 2023, a Batch of Leaders in the FMCG Industry Will Fall
Continuous learning and exploration are the only way for executives to stay relevant, and the best choice for corporate development. This article discusses three essential capabilities for senior executives: global vision, balancing sunk and opportunity costs, and strategic thinking.
高级研究员 海游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In the Fiercely Competitive Juice Market, How Does Leyuan Continue to Innovate and Stand Out?
China's beverage industry is growing rapidly, with the juice category experiencing high-speed growth. According to Nielsen's May 2023 FMCG market monthly insight report, juice sales in offline channels have grown rapidly for two consecutive years, with a growth rate of 16.2% from April to May 2023, maintaining the upward trend after the pandemic. However, the juice industry faces challenges such as increasing consumer demand for healthy products and intense market competition.
青山依旧Surveying 15 Markets: How Do 20+ Distributors Optimize Their Organizational Structures?
Operating a business is about managing people; besides objective factors like timing and location, harmony among people is even more critical. This article, based on a survey of 15 regional markets and in-depth interviews with over 20 distributor owners and their professional managers, explores how distributors can build organizational structures that match their business status to reduce costs and maximize sales and profit contributions.
高级研究员 海游How 'Old Lulu' Brands Bloom in China's Over 90-Billion-Yuan Plant-Based Milk Market
While many consumer sectors in China are cooling down, the plant-based milk market is heating up. According to the '2020 Plant Protein Beverage Innovation Trends' report, the market grew by 800% in 2020, with buyers increasing by 900%. Qichacha data shows over 5,000 plant-based milk companies in China, including internet-famous brands like Oatly, Guanghe Boshi, and Plant Label, as well as traditional giants like Yili, Mengniu, Nestlé, Six Walnuts, and Chengde Lulu. However, the market remains fragmented with no clear leader yet.
林格木From the Nationwide 'Little Apron' Initiative: Jinmailang's New Path to Public Welfare
Recently, Douyin has been flooded with videos of children wearing red aprons cooking noodles at home, making the 'Little Apron' a viral hit. These videos come from the 'Little Apron Plan' jointly launched by Xinhuanet and Lamian Fan, which gave children a meaningful 'homework' this summer. The initiative's public welfare value and food education significance have boosted Jinmailang's brand power.
New DistributionHow Should Distributors Evaluate the Performance of Regional 'Small Bosses' in a Partnership Model?
This article discusses how distributors can effectively evaluate the performance of regional contractors, or 'small bosses,' in a partnership model. It emphasizes moving away from a 'contract and forget' mindset, and instead using structured performance metrics and incentives to guide and motivate these partners for sustainable growth.
高级研究员 海游China Resources C'estbon 'Accelerates', Dual-Driven by Products and Channels!
On July 20, China's well-known packaged drinking water company China Resources C'estbon released its latest report card, with its 2022 performance growing against the trend, attracting attention. Under the 'dual-engine' strategy, the company not only achieved a record high market share in packaged drinking water, but its beverage business with a stream of new products is also becoming a new growth point, with new faces such as chrysanthemum tea joining the '100-million-yuan single product club'.
New DistributionSales of Large-Format Beverages Up 200% Year-on-Year
This summer, large-format beverages have seen a surge in sales, with one distributor reporting a 200% year-on-year increase. The trend is driven by factors such as extreme heat, the recovery of the banquet market, and strategic pricing that offers better value to consumers.
王庆丰