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Zhoupu Data Completes Series B+ Financing, Continues to Drive Digitalization of FMCG Channel Distribution
At the start of 2022, Zhoupu Data, a provider of digital upgrade and big data services for China's FMCG industry, announced the completion of approximately RMB 150 million in Series B+ financing. The round was led by SoftBank Ventures Asia and Professor Zeng Ming, former Chief of Staff of Alibaba Group, with existing shareholder FreeS Fund following. The funds will be primarily used to strengthen technology R&D and market expansion.
New DistributionFMCG Enterprise KA Model Selection: Direct Supply or Indirect Supply?
As offline foot traffic declines, it's crucial for FMCG companies to maintain their offline channels through professional management. This article discusses the differences between direct and indirect supply models for key accounts, arguing that direct supply is the trend due to digital transformation, but a hybrid model will be common.
曹扬Why Is BC Integration an Upgrade of the Deep Distribution Model?
BC integration has become a hot topic in the industry since the pandemic began last year. In summary, it is a distribution model that leverages the LBS advantages of mom-and-pop retail stores and digital tools to solve B-end store marketing and digital management while also connecting and marketing to C-end consumers in the store's surrounding community. It uses digital tools and methods to solve distribution and sell-through issues. The tools used in BC integration can be roughly divided into three categories: SFA for managing business and terminals, mini-programs for online transactions and consumer marketing, and one-code-per-item for product and consumer marketing.
赵波Raw Material Prices Are Soaring: Should Product Prices Follow? And How?
During recent market visits, conversations with distributors, wholesalers, and retail outlets inevitably turned to the increasing difficulty of doing business, compounded by rising product prices. Three scenarios emerged: some brands haven't raised prices but are threatening to; some price increases failed due to consumer resistance and squeezed channel profits; and some succeeded without losing market share. This article discusses how brands should approach price increases, covering pre-increase preparation, execution, and post-increase monitoring.
高级研究员 海游Upstream Manufacturers Raise Prices, Downstream Dares Not, Terminal Sales Sluggish: Frozen Food Distributors Face the Hardest 'Peak Season'!
In early December, at the Zhongyuan Siji Aquatic Products Logistics Port in Zhengzhou, the largest cold-chain logistics hub in central China, loading worker Lao Zhang basks in the sun with little work, as the market is unusually quiet. Distributors are squeezed by upstream price hikes and downstream reluctance to accept increases, leading to sluggish sales and heavy inventory pressure, making this the toughest peak season they've ever faced.
头条君Key Account (KA) Management System: A Comprehensive Guide
This article introduces the Key Account (KA) management system, covering its five modules and five key performance indicators (KPIs), and explains how it helps companies achieve profitable growth and improve management efficiency.
曹扬FMCG Manufacturers Need More Than Just a System—They Need a Great Coach
A recent visit to an FMCG brand revealed that while SaaS vendors pitch powerful features, brands often remain confused about their own needs. The article argues that brands require not just a system but a coach who understands their operational pain points, and as dealers increasingly become the end users, vendors must also grasp dealer economics to ensure successful adoption.
高级研究员 海游Understanding Their Needs and KPIs Better Than KA
As offline foot traffic declines, it's crucial to maintain and optimize offline channels through professional management. This article, part of a series by New Distribution with former Coca-Cola China executive Cao Yang, emphasizes that understanding customer KPIs is essential for effective KA management, moving beyond mere relationship-building to achieve mutual business goals.
曹扬The Sharp Tool for Extracting Digital Oil: Intelligent Image Recognition Systems
This article discusses the concept of digital transformation in the FMCG industry, using Liu Run's analogy of oil extraction to explain the process from data collection to wisdom. It emphasizes the importance of accurate data collection and introduces image recognition technology, specifically Baidu's EasyDL retail version, as a key tool for precise data extraction in various retail scenarios.
高级研究员 海游Upgrading Deep Distribution: The Digital "Six Doubles" Operating System
Transformation is not a simple individual change but a systemic one, requiring a shift from the old system to a new one that matches the new environment. This article proposes a "Six Doubles" digital operating system—dual paths, dual private domains, dual scenarios, dual shelves, dual delivery, and dual middle platforms—based on three principles: bC integration, online-offline integration, and the integration of manufacturer, distributor, and store. It also discusses the technical, organizational, and process guarantees needed for implementation.
刘春雄 刘馨忆The Changing and Unchanging Impact of Internet E-commerce on Offline KA
KA is not just hypermarkets; it is a collection of the most important customers across various channels. Consumer behavior has given rise to different channel types, and key accounts are the most important customers selected from each channel, including hypermarkets, supermarkets, convenience stores, etc. Only by fully understanding the differences and connections between KA and hypermarkets can we further discuss how to respond to the impact of the Internet on KA. Sometimes it's easy to blame the Internet for declining hypermarket sales. If we ask corporate managers about the problems in cooperating with hypermarkets, the answers are roughly as follows.
曹扬Is KA Just a Hypermarket?
The decline in offline foot traffic is an indisputable fact, but it doesn't mean offline channels are no longer important. Compared to embracing new retail formats, it's more critical to hold the baseline of offline channels through meticulous management and professional practices. To this end, New Distribution, in collaboration with Mr. Cao Yang, former General Manager of Coca-Cola China's Key Account Management Group, launches the "Key Account (KA) Management Practice" series, aiming to provide frontline channel managers with a complete methodology for managing offline key accounts in a turbulent market. This is the first installment, focusing on cognition.
曹扬FMCG Companies' Deep Distribution Model Urgently Needs Upgrading
The Chinese market is characterized by multiple tiers, diverse retail channels, and a lack of integrated logistics, with millions of mom-and-pop stores being a key distribution channel. The deep distribution model, while effective in the past, now faces challenges from declining foot traffic and the rise of omnichannel retail, necessitating upgrades in management, value chain, and consumer marketing.
赵波Where to Start with Channel Digitalization?
Many business owners ask me, 'Teacher Zhu, is it too early for our company to start digital transformation?' I express my view in three sentences: digital transformation must be early, must be difficult, and must be done. There is much discussion about digitalization from various angles and positions. Here, I mainly stand from the perspective of brand owners, discussing how enterprises can achieve digitalization through channels. The main problems faced by traditional channels are profit distribution and sell-through at all levels. Simply put, someone is willing to sell, and someone is willing to buy. One is the physical space grab for shelf space, and the other is the occupation of mind space.
朱朝阳Offline Foot Traffic Down 30%, Is KA Still Worth Heavy Investment?
As offline foot traffic continues to decline, is the importance of offline channels for FMCG brands diminishing? What problems have brand owners faced in KA (Key Account) management? What can leading FMCG companies' KA management teach the industry? Facing uncertainty, what is the real significance of doing KA management well? With these questions, New Distribution interviewed marketing expert Mr. Cao Yang to gain his insights.
任文青Feihe, Mead Johnson, Wyeth and Other Dairy Companies Deny Price Hikes; Raw Milk Cost Share Is Low, Hard to Affect Terminal Product Prices
Amid the Double 11 shopping festival, the shadow of price increases has spread to the dairy industry. Despite rising international milk powder raw material prices, major Chinese formula makers like Feihe, Mead Johnson, and Wyeth deny any price adjustments, citing minimal cost impact and existing inventory buffers.
朱欣悦What Is the First Step in Enterprise Digital Transformation?
At the China FMCG Conference held by New Distribution in September, we concluded that the first step in digital transformation for FMCG companies is not studying digital patterns or making decisions based on numbers, but ensuring authentic data collection. Without authenticity, having data is more dangerous than having none. If the team doesn't love the terminal system, pause the digital transformation.
高级研究员 海游Every Distributor Deserves to Re-Engage the Terminal Market
Many distributors dismiss the idea of re-engaging the terminal market, believing that offline sales are declining irreversibly. However, a case study of a Jinluo distributor shows nearly 10x growth by systematically re-conquering stores with dedicated promoters and aggressive in-store tactics. The article argues that offline growth comes from seizing competitors' share, not from category growth, and that distributors must evolve into large-scale operators by focusing on efficiency, multi-category expansion, and terminal dominance.
袁来2022 Annual Planning: Less Empty Talk, More Focus, Practicality, and Detailed Work Items
As the year draws to a close, many FMCG manufacturers and distributors are once again contemplating their strategies for the coming year. Faced with increasingly complex internal and external environments, the biggest concern for every sales manager is how to 'view, handle, and execute' effectively, and how to formulate marketing strategies that truly align with brand development and market realities. Drawing on recent experiences in corporate strategy discussions, the author shares a methodology that may offer some inspiration. Common pitfalls in strategy formulation include: 1. Content too vague, applicable everywhere...
邢仁宝Four Channel Coverage Priorities for Bottled Water Success
A product placed anywhere will find buyers, but not every location qualifies as a distribution channel. The essence of channels is how to reach consumers efficiently, cost-effectively, at scale, and through diverse touchpoints. Manufacturers must assess whether a channel is worth the investment, considering current and future profitability and its impact on other channels. Channel selection should align with product attributes to find the most suitable sales venues.
高级研究员 海游No New Model Can Overturn Deep Distribution!
This article aims to help brand owners establish the underlying logic for channel coverage design and planning in 2022. It presents two diagrams from the China FMCG Conference in September, showing the changes in FMCG distribution channels over the past decade. Despite changes in the number, types, and transaction structures of channels, certain factors remain constant: the endpoints (brand to consumer), the persistence of existing channels, the growth of 2C channels without major shifts in primary/secondary status, and the human-driven nature of channels. The core competitive factors are efficiency, cost, scale, and diversified consumer reach.
高级研究员 海游The Iteration of Deep Distribution—BC Integration: Operating C-End, Empowering B-End
Terminals will never disappear, and brand owners cannot sustain or take root without offline channels; regardless of channel fragmentation, offline sales remain the primary sales. Offline sales come from the number of terminal outlets multiplied by per-store sales. The number of outlets should be neither too many nor too few, like farming—too dense and they won't grow, too sparse and they grow but in small numbers. A reasonable density ensures high yield. Similarly, a reasonable number of outlets in a regional market ensures both consumer convenience and terminal recommendation enthusiasm. The premise of BC integration is deep distribution, and its core is to connect C-end through B-end, activate B-end with C-end, and achieve a closed loop in channel operations.
朱朝阳Opportunities and Challenges for Brands Going Direct-to-Consumer in New Channels and Scenarios
Feng Yuehai, Head of InStore Business at Qiesheng Technology and CEO of Miya Technology, delivered a keynote at the 'BC Integration' forum. Titled 'Opportunities and Challenges for Brands Going Direct-to-Consumer in New Channels and Scenarios,' he analyzed how FMCG brands can choose digital tools, build consumer awareness around O2O scenarios, and leverage integrated online-offline channels to drive sales, proposing three core insights: both emerging and traditional brands have opportunities in 2B2C under new scenarios and channels.
冯越海Yonghui's Pivot: Abandoning High-End Route, Betting on Affordable Warehouse Stores
Yonghui Superstores, in urgent need of turning around, has made a 180-degree shift in its business format direction. After abandoning the high-end new retail route represented by 'Super Species,' Yonghui has opened warehouse stores featuring affordability and accessibility. From the first store in Fuzhou, within just five months, Yonghui has opened over 50 warehouse stores nationwide, covering more than 10 provinces and regions. Meanwhile, Super Species, which once received substantial resources, has been seeing store closures.
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