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In-depth | How Can Distributors Break the "Curse" of Difficulty in Making a Profit from Unified Warehousing and Distribution?
Chinese FMCG distributors are traditionally small but complete "four-in-one" operations, combining commerce, logistics, information, and capital flows. As market growth slows and costs rise, many are turning to unified warehousing and distribution (统仓统配) to reduce costs, but profitability remains elusive. This article explores why the model often fails and offers strategic pivots, such as expanding beyond FMCG, restructuring distribution layers, and leveraging platform influence to partner with individual entrepreneurs.
袁来Two Years, Tens of Thousands of Square Meters of Warehousing, and a Tech Team of Nearly 100: He Uses His Own Experience to Show You That 80% of Unified Warehousing and Distribution Is Done Wrong!
A former senior engineer at Microsoft and Facebook returns to China to start a business, targeting the FMCG sector. He explains why a tech company invests heavily in warehousing and distribution, and why 80% of unified warehousing and distribution is done wrong.
新经销刘少德Mengniu Executives Reshuffled: How Foreign-系 President Lu Minfang Is Deploying His Forces
Mengniu Dairy has undergone an internal reshuffle, replacing the general managers of its low-temperature, ice cream, and milk source divisions, effective September 12. President Lu Minfang, known for his performance-driven and iron-fisted management, is focusing on narrowing the gap with industry leader Yili.
杨泽世Over-management: A Hidden Trap in Business Operations
Over-management can cause significant harm to a business while being difficult to detect because it is disguised as strengthening management. This article explores the concept of over-management, its causes, and measures to avoid it, emphasizing the importance of focusing on customer value creation.
蔡海彬Marketing Technology: A New Growth Engine Every CMO Should Value
The fundamental challenge facing enterprises today is sluggish growth. While rapid technological iteration and market volatility provide fertile ground for innovation, the dividends from pure internet or digital technologies are diminishing. The new growth point may lie in marketing, the closest function to the market and users. In recent years, the MarTech trend has swept the globe, with Scott Brinker's latest marketing technology super-ecosystem map listing nearly a third more mainstream marketing technologies, reaching 6,829—more than the total from 2011 to 2016 combined. In contrast to the U.S. market's 6,000+ offerings, China has only about 100 marketing technology providers, indicating that MarTech is still in its infancy there.
学院君What to Do When Distributors Bypass You and Report Directly to Your Boss?
Some long-standing or well-connected distributors develop a habit of bypassing sales representatives to report directly to their superiors for better terms. This article offers strategies and principles for sales reps to handle such situations, including using humility, asserting professional responsibilities, and building strong relationships.
谭长春Dali, Panpan's Real Competitor: Taoli Bread?
Taoli Bread, with a CAGR of over 22% in revenue and profit, far exceeds the industry average of 12%, solidifying its leading position. Its 'central factory + wholesale' model and strong channel control have driven successful expansion beyond its traditional northeastern and northern China strongholds.
王梦溪How to Solve the Difficulty of Distributors' Payment Collection?
Payment collection difficulties for distributors are an indisputable fact in the food industry. This article explores the various manifestations and causes of these difficulties and proposes strategies to solve them, aiming to help distributors overcome payment collection troubles and reduce operational risks.
清风明月夜Transform or Die: The Ultimate Outcome of Transformation!
If you don't proactively revolutionize yourself, others will do it for you. But how can you successfully transform and upgrade? In the mobile internet era, victory is no longer determined by 'combat power' but by 'strategic dimension,' where you can win without fighting.
蒋军The Fallen Hero Carrefour China: How to Reverse Its Decline?
Carrefour China, once a dominant force in the Chinese retail market, has seen its market share and store numbers decline due to internal mismanagement, supply chain issues, and external competition from e-commerce and new retail formats. In response, it is partnering with Tencent and Yonghui to transform into a multi-format retail entity, but faces an uphill battle to regain its former glory.
刘旷公众号How FMCG Companies Operate Short-Term Products for a 'One-Shot' Deal
Short-term products are so named because of their short characteristics: short product life cycle, short promotion period, short channel length, and so on. However, once a short-term product is hyped up, its advantages become obvious: it can quickly increase distribution and coverage, effectively attack competitors, and make a quick profit in the short term. Therefore, flexibly applying the marketing 4P strategy to guide the operation of short-term products has significant practical relevance.
清风明月夜Three Orientations for Employee Assessment
Why assess employees? 1. The direction of assessment is the direction employees need to strive for in their work. 2. People are not that self-disciplined; assessment indicators are needed to constrain or urge employees. 3. Establish a fair mechanism where everyone's work value and benefits are calculated based on a common assessment standard. 4. Clarify the positive guiding role of assessment; otherwise, employees often think the boss is trying to find reasons to deduct their pay. These are the general principles. In specific assessment system design, there are mainly three orientations.
潘文富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 DistributionSettling Scores After the Harvest: Employee Resignations, Distributor Flight, and the Inevitable Demise of Liby's Contract System
The contract system, a grave-digger for FMCG companies. In 2015, Nice introduced it, boosting performance and wages, but within three years it backfired, leading to mass resignations and Nice's decline. Liby, following suit in 2016, now faces similar consequences: employee departures, distributor defaults, and a looming crisis.
纳兰醉天Chainpin Xu Weili: Regional Lean Operations Drive Efficiency Gains
This article is a transcript of Chainpin founder Xu Weili's presentation on "Regional Lean Operations Drive Efficiency Gains" at the FDIC 2018 China FMCG Digital Innovation Conference, edited by New Distribution. Xu shares how Chainpin improved operational efficiency through lean management and a shift to an S2B2C model.
徐伟力What's the Difference Between Yili and Moutai's Business Models? Interpreting Yili's 2018 Interim Report
No matter how excellent a company is, performance cannot grow linearly forever, so there's no need to overreact to short-term fluctuations; otherwise, it's just technical analysis chasing short-term results disguised as fundamental analysis. However, if short-term performance reveals long-term factors like business attributes and competitive advantages, we must pay attention. Yili released its interim report on August 31, with revenue of 39.943 billion yuan, up 19.26% year-on-year, and net profit of 3.469 billion yuan, up 3.00%. The market considered this report below expectations...
静逸投资The Transformation and Counterattack of Dali and Want Want Distributors: How Did He Grow from 20 Million to 200 Million in 3 Years?
“Traditional distributors will have no future if they don't transform, because being traditional means no way out.” This is the view expressed by Qin Xian at a meeting regarding the transformation period of FMCG channels. In Qin Xian's view, in the field of FMCG distribution, the distributor link has gone through three generations: from the initial supply and marketing cooperatives, to wholesale market merchants, to itinerant merchants who directly supply terminals for logistics and distribution. Nowadays, the internet brings more advanced technology and tools to distributors. Every distributor should actively embrace it, proactively seek change during the turbulent market competition and the transformation period of distribution channels...
袁来How 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 DistributionEternal Asia's New Decade Plan after Joining Hands with Shenzhen Investment Holdings: Advancing New Commercial Services and Implementing New Distribution Strategy
In the first half of 2018, Eternal Asia achieved operating revenue of 36.9 billion yuan, a 21.21% increase year-on-year. This is the first mid-year report card after partnering with Shenzhen Investment Holdings. The company's financial performance remained robust despite economic fluctuations, with total profit up 14.91% and net profit attributable to parent up 3.63%.
新经销刘少德In the Era of Industrial Internet, How Can B2B Truly Empower FMCG Brands?
Dr. Rui Yun points out that retail has entered a new era, where the core of all retail revolutions is efficiency, specifically improving brand operational efficiency and consumer lifestyle efficiency. B2B is the winning weapon to connect factories to endpoints in the new maritime era of FMCG.
芮赟How Should Distributors Respond to the 'Disruptor' of New Retail?
At the recent 'China FMCG Digital Innovation Conference' hosted by New Distribution, industry players discussed how traditional distributors and manufacturers, facing disruption from new retail platforms like Alibaba's Retail Link, must adapt. The article argues that rather than resisting, they should embrace these platforms strategically, leveraging their data and promotional tools while maintaining control over core channels and customers.
邢仁宝Mengniu'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 DistributionWang Jinghua, Founder of Miduo Big Data: The Underlying Logic Behind 10x Growth for FMCG Brands in the DT Era!
This article is a transcript of Wang Jinghua's speech at the FDIC 2018 China FMCG Digital Innovation Conference, where he discusses the underlying logic behind 10x growth for FMCG brands in the DT era. He emphasizes the shift from product-centric to user-centric approaches, the importance of user data asset privatization, and the role of One Product One Code in building user account systems.
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