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Worst Year in Over a Decade: Even Veteran Frozen Food Distributors Are Baffled! Why Is This Year So Tough?
Frozen food distributors are baffled as sales drop 20%-30%. Wang Bing, who had seen continuous growth for over a decade, faced his first major downturn starting in March, with declines across all channels except closed systems like group meals. Despite efforts, sales continued to deteriorate in April and May, reflecting a broader industry slump.
关关Zhao Bo of New Distribution: Great Companies Are Born in an Era of Shrinking Volume
After visiting member distributors of the Tower Alliance, Zhao Bo reflects on the systemic difficulties facing the FMCG industry, where old rules and high costs hinder efficiency. He argues that low prices driven by supply chain optimization and reduced intermediaries are a positive trend, and that great companies often emerge during economic downturns.
赵波Brand Owners, Stop Forcing Inventory on Distributors!
The FMCG market's dismal Q2 2024 performance has left many unprepared brand owners, including major ones, in a growth dilemma: products aren't moving at the terminal, sales teams are exhausted, and to meet KPIs, they're forcing inventory on distributors. This only worsens the situation, as distributors already struggle with retail discounting, leading to a vicious cycle that ultimately reduces revenue. The article argues that in a shrinking market, brand owners must adapt to new retail realities, focus on product innovation, and avoid extreme inventory pressure to survive.
张振宇All of Today's Sorrow Is but the Prelude and Overture to a New World
This article's viewpoint may not be accepted by many, but acceptance is not what matters most—it is still worth reading carefully. Recently, many articles and videos about the difficulties and pressures faced by manufacturers and distributors have caused great resonance in the industry. Many distributors have expressed that seeing the entire industry facing the same huge challenges has helped vent emotions and provided some comfort. But after venting, the question of what the future holds and what to do remains a mess. Today's sorrow is merely the prelude and overture to a new world. We...
陈思廷Distributors Launching B2B Supply Chain Platforms: Don't Rush, Don't Overdo It!
As a senior editor at New Distribution, I've observed a growing trend of distributors pivoting toward local B2B supply chain platforms as a new growth avenue. While this is promising, many face practical challenges. This article shares insights on avoiding common pitfalls, emphasizing the importance of real transactions over mere registrations, continuous optimization, and a steady, patient approach to building a sustainable local channel moat.
袁来Discount Retail Trends, Distributor Transformation, O2O Practical Implementation and Other In-depth Research Reports, All Here!
A 'brain-burning feast' for a thousand attendees. From August 20-22, the 'Crossing the Shrinking Volume Era' 2024 6th China FMCG Conference, the 3rd China FMCG Hard Discount Conference, and the 3rd China FMCG Distributor Conference will grandly open in Shanghai. Standing at the tail end of a consumption cycle, we urgently need to know what the future holds and what to do next. This conference will bring together all roles in the FMCG industry chain, including brand executives, top national distributors, traditional retail representatives, discount retail founders, and industry research experts.
New DistributionAiming at the Trillion-Yuan Market, Lai Yifen Launches Channel-Customized Brand 'Jicui' to Enter the Distribution Track
As the era of linear growth in FMCG comes to an end, distributors are under immense pressure from brands to increase sales targets. Lai Yifen, the 'first snack stock,' is responding by launching a new channel-specific brand 'Jicui' at its partner conference, aiming to empower distributors with a 'champion product' and achieve win-win growth.
田静Distributors: Change is Painful, but Not Changing Means Elimination
In recent exchanges with distributors, first-half sales generally fell short of expectations, leaving many anxious. Market pressure is forcing distributors to attempt changes—whether in organizational structure, compensation, business models, or software—but the process is painful. This article shares common challenges and solutions, emphasizing that distributors must not be held hostage by employees, should tie pay to market performance, reduce reliance on secondary wholesalers, master small-store management, develop sell-through capabilities, use digital tools effectively, and approach B2B cautiously.
周群Over 100 Million in Revenue but on the Brink of Losses: What Should FMCG Distributors Do?
Many distributors are asking why business is so difficult this year and when it will improve. A decade ago, bosses were already lamenting the difficulty, but back then, despite the challenges, business was barely manageable; today, it's nearly unsustainable. When growth becomes hard, large companies habitually squeeze downward—both their distributors and smaller brands through price and cost wars. One milk distributor told the author that in 2023, with revenue exceeding 100 million yuan, after deducting all expenses, they found themselves losing hundreds of thousands. With sales scale exceeding 100 million...
陈思廷Distributors: Should They Hang On or Let Go?
This article, inspired by a social media post from marketing expert Wei Qing, explores the dilemma facing many distributors: whether to continue in a shrinking market. It argues that the traditional trading model is outdated due to the supply chain revolution and the rise of B2B platforms, and suggests two viable paths forward: transforming into B2B platform operators or focusing on brand promotion. The article advises that if neither is possible, an orderly exit may be the best option.
刘春雄Zhao Bo from New Distribution: Finding Growth Opportunities in a Shrinking Market
The article discusses the challenges facing China's FMCG industry amid economic downturn, including shrinking market demand, intense competition, and changing consumer behavior. It emphasizes the need for companies and distributors to adapt by finding incremental opportunities in new scenarios, channels, and consumer needs, while also optimizing existing business operations.
赵波Dealers in Small Ponds Should Aim to Be 'Big Fish'
Recently, the author visited over twenty dealers across various markets, from first-tier to county-level, covering categories like snacks, condiments, and beverages. A clear observation emerged: the era of aggressive expansion is over, and competition for markets, channels, and customers has intensified. This article shares insights from these visits, highlighting the distinct challenges faced by dealers in large cities versus small towns, and offering strategies for survival and growth in a shrinking market.
何雯In the Era of Overcapacity, Finding a Responsible Manufacturer Gets Harder for Distributors
In a shrinking market, if one company grows, it's at the expense of others. Competition intensifies, especially in FMCG, leading to higher breakeven points and industry consolidation. For distributors, growth requires choosing the right brand partners and continuously improving operational capabilities.
高级研究员 海游China's Leading FMCG Companies Haven't Launched a Game-Changing Blockbuster Product in a Long Time
The problem lies in shrinking volume, while the opportunity lies in gear-shifting blockbuster products. Blockbuster products cure all ills. Use gear-shifting blockbusters to open up the industry ceiling. FMCG manufacturers are having a tough time recently, and even leading companies are no exception. Many regional managers have been replaced, even in batches. Many sales executives have also been replaced entirely. The reason is simple: growth has hit a major obstacle, and with the current situation, there is no immediate solution.
刘春雄Distributors: It's Not About Selling Products at Low Prices, but About Low-Cost Operating Capability
In an increasingly competitive environment, distributors must possess the confidence and capability to sell at low prices, which stems from low-cost operations rather than simply lowering prices. The article highlights five key insights from a seminar, including the importance of finding profitable stores and brands, implementing tiered management, and designing compensation based on gross profit contribution.
袁来Early Bird Tickets: Only 5 Days Left! 2 Industry Reports and a 200,000-Word Dealer Case Collection—All in One Ticket!
From August 20 to 22, the 2024 6th China FMCG Conference, the 3rd China FMCG Hard Discount Conference, and the 3rd China FMCG Dealer Conference will grandly open in Shanghai, China. In a shrinking market, challenges and opportunities coexist. China's consumer market is vast, deep, and diverse; as long as you find the path to segment the market by population, channel, and product, you can discover incremental opportunities. As a decade-long cycle comes to an end, we urgently need to know what the future holds and what to do next.
New DistributionLay's "Win a Free Pack" Summer Campaign: A Boost for Distributors
This summer, Lay's is launching an unprecedented consumer campaign, "Win a Free Pack," with over 100 million packs of core flavors available nationwide, offering 100% winning odds with cash rewards and prizes. The campaign, which started on June 15, aims to drive sales and support distributors, creating a win-win situation for consumers, channels, and the brand.
冯瑶Zhao Bo of New Distribution: How FMCG Professionals Can Make Good Use of AI
AI has been a hot topic for a while, but few have applied it at the enterprise level, let alone in the FMCG industry. As a content industry professional, I use AI frequently and share my insights. First, install AI tools on your phone, such as Doubao, Wenxin Yiyan, Tongyi, Kimi, Yuanbao, and if you can, ChatGPT, Gemini, Poe, and Perplexity. AI is a powerful productivity tool for information gathering, data analysis, content processing, and copywriting, but it's like a fresh graduate assistant—you need to communicate clearly with prompts.
赵波10 Business Insights from Meeting 100 Distributors in the First Half of the Year
In the first half of 2024, I met with over 100 distributors across more than ten cities, engaging in deep exchanges. From these interactions, I distilled 10 core business insights, reflecting the real market conditions and offering strategic thinking for distributors navigating a challenging and changing environment.
袁来The Son of China's Richest Man in Daily Chemicals Has a Tough Job
Liby, a giant in China's daily chemical industry, is facing intense competition and slowing growth, leading to layoffs and downsizing. The founder's son, Chen Zebin, has taken over as chairman but faces challenges from rivals and internal resistance to his digital reforms.
让商业更具价值Retailers Overturn the Table: Is There Still a Way Out for Distributors?
A distributor friend recently called, anxious because a wholesale supermarket suddenly appeared in his county market, flipping small stores and causing customer loss. This reflects a broader trend: as market growth stalls, competition intensifies, and retailers are integrating distribution functions, forcing distributors to adapt or face extinction.
任文青AndyIn the Next 3-5 Years, Three Mountains Will Crush a Large Number of Distributors, Even More Than 50%
This is the best of times, and the worst of times. — Dickens. The entire FMCG industry is in extreme pain, but the darkest hour has not yet arrived! It is no exaggeration to say that with the deep advancement of retail discounting, in the next 3-5 years, three mountains will continue to crush a large number of distributors, with the proportion even exceeding 50%. What are the three mountains? 1. Large discount systems cooperate directly with manufacturers, bypassing distributors (at most retaining the distributor's credit function), depriving them of business; 2. Traditional retail systems themselves suffer severe sales declines, poor sell-through, and increasingly severe payment delays for distributors, as well as compressed business space due to price-matching discount systems; 3. Brand owners, driven by growth anxiety, continue to push inventory onto distributors, but terminal sell-through cannot be improved, leaving a pile of short-dated inventory to handle.
张振宇Wahaha, Dayao, Wanglaoji... All Focusing on This Track in 2024!
In 2024, the niche juice category of double pomelo juice is gaining momentum, with brands like Youxianggu, Wahaha, Dayao, Wanglaoji, and Pukou entering the market. Youxianggu's Song You Zhi sold nearly 1.1 billion yuan in two years by developing distribution channels in Zhejiang, and the company aims to make it a 10 billion yuan product by 2027.
New DistributionEarly Bird Tickets Now Available! Four Exclusive Benefits, First Come, First Served!
From August 20-22, the 2024 6th China FMCG Conference, the 3rd China FMCG Hard Discount Conference, and the 3rd China FMCG Distributor Conference, themed 'Navigating the Shrinking Market Era,' will grandly open in Shanghai, China. The shrinking market presents both challenges and opportunities. China's consumer market is vast, deep, and diverse; as long as we find ways to segment the market by population, channel, and product, we can discover opportunities for growth. Every decade marks a cycle, and standing at the tail end of a consumption cycle, we urgently need to know what the future holds and what steps to take next.
New Distribution