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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 DistributionRising in a Fourth-Tier City: A 30-Year Distributor's Business Playbook Combining Centralized Warehousing and B2B
Zhang Xiaoli began her distribution career in 1995. Since 2017, she has boldly embraced digital transformation, first implementing centralized warehousing and distribution, then expanding products and channels, and eventually transitioning to a B2B platform. Now, with nearly three decades of experience, she serves as the Executive President of Hebei Chengde Deyun Supply Chain Management Co., Ltd. (Chengde Deyun). Through this transformation, she and her company have achieved digitalization and scale in their operations.
冯瑶Two Years into the Snack Store Boom: How Are Distributors Faring?
Over the past year, snack discount stores have sprung up across China, especially in central and southern regions, dominating the market. Amid this retail revolution, the trend of 'disintermediation' has left many distributors at a loss. However, some distributors have bucked the trend, stabilizing or even growing their businesses by adapting and finding new opportunities.
赵胜男Five Distributor Meetings in Six Months: Manufacturers 'Seek Advice from the People, Need from the People, to Benefit the People'
Many comments point to a truth: distributors' market confidence is collapsing, and their sense of security is disappearing. In the past decade of linear growth, deep distribution and high terminal coverage meant easy success, but now the industry chain is transforming, China's FMCG market has entered a shrinking phase, and distributors face immense pressure, with selling goods being the biggest challenge. Recently, during a market visit by New Distribution, a distributor from Guangxi...
田静Distributors with Over 100 Million in Revenue Are Also Losing Money—Headache!
Hello friends. I'm Yuan Lai from New Distribution. Recently, many distributors have called me to discuss market and business topics, and the common feeling is anxiety and confusion. One distributor told me, 'After over 20 years in the trading business, I've been losing money for the past two years and feel particularly lost. The salespeople are still as numerous, but they just can't produce results. Is it that my thinking can't keep up with the market?' He continued, saying he initially wondered if his business volume of 30-40 million was too small to compete in stores. But after chatting with distributor friends with over 100 million in revenue, he found they were all the same—also losing money in recent months. Despite the large scale, they're actually very troubled.
袁来From Store Buyer to Distributor: Focusing on Instant Retail, How Did He Achieve Annual Sales of Over 200 Million?
“In the next five years, the only channel that can maintain growth in a shrinking market is instant retail,” a view shared by Zhao Bo, founder of New Distribution, during a recent market visit. Driven by the new retail wave, platform-based home delivery models like JD Daojia and Pupu Supermarket have emerged alongside traditional FMCG channels, while traditional supermarkets such as Walmart, Yonghui, and RT-Mart are also embracing instant retail by digitalizing local stores. Previously, distributors had weak participation in new retail channels, with most managed directly by manufacturers, but instant retail, as part of localized business, offers new opportunities for distributors.
何雯From the Consumer's Perspective, Why Isn't Your Product Selling?
Product sell-through is a multifaceted issue involving many layers that need comprehensive attention. In terms of competitive landscape, to beat competitors and secure a market position, three competitive forces must be emphasized: product competitiveness, channel competitiveness, and consumer competitiveness. Using the Fogg Behavior Model to understand consumer purchasing behavior, which posits that behavior occurs when motivation, ability, and triggers are simultaneously present, simplified as B=MAT.
高级研究员 海游Distributors Losing Money: Time to Sell the Business
Distributors are increasingly finding their agency businesses unprofitable as brands pressure them to stock more inventory. The fundamental issue is that distributors are essentially outsourced teams for brands, earning a 'salary' rather than true profits. To survive, they must transform into independent supply chain platforms focused on serving customers, or consider exiting the business.
任文青AndyMeituan Flash Delivery Warehouses Accelerate Supply Chain Layout: Where Are the Opportunities for Distributors?
Recently, we visited several distributors and discussed industry changes, noting a shift from purely offline thinking to integrated online-offline business development. Distributors are increasingly interested in local instant retail, particularly Meituan's Flash Delivery Warehouses (Flash Warehouses), and are asking whether they can participate in this business model.
周群Zhang Jixue of Xinchao Media in Dialogue with Chen Siting, CEO of New Distribution: Brand Survival Rules in the Era of Shrinking Volume
On May 14, Chen Siting, CEO of New Distribution, and Zhang Jixue, founder and chairman of Xinchao Media, discussed brand survival strategies in the era of shrinking volume. In 2024, the consensus of a shrinking market has formed, and FMCG brands are exploring ways to navigate this new reality.
New DistributionNongfu Spring Releases List of Twenty Online Rumors
On the evening of May 20, Nongfu Spring's official Weibo account published a summary of rumors spread since February 25 against the company and its founder Zhong Shanshan, including those about its relationship with Wahaha, product packaging materials, water source standards, and tax evasion. The company clarified the twenty rumors, emphasizing that truth and factual judgment matter more than traffic.
New DistributionDistributors Have Lost Their Sense of Security
Distributors are feeling increasingly insecure as markets stagnate while manufacturers keep raising sales targets, terminal stores show little loyalty, and talent becomes hard to recruit and retain. To regain security, distributors must focus on self-improvement through digitalization, broader terminal coverage, and better compensation plans.
周群Zhao Bo of New Distribution: The Logic and Direction of Channel Transformation in the FMCG Industry
This article is a foreword written by Zhao Bo, founder of New Distribution, for the book "The Password to Channel Construction: Digital Development and Practice of Consumer Goods Channels." It analyzes the evolution of China's retail and distribution channels, the rise and limitations of deep distribution, and the necessity of digital transformation in the face of changing market dynamics.
赵波The Core of Distributor Morning Meetings Is Helping Salespeople Make Money
Morning meetings, the simplest and most basic daily management routine, seem to trouble many frontline execution teams. This article discusses how to prepare and conduct efficient morning meetings, emphasizing that the key is to use data to show salespeople how to earn more money, turning management into motivation.
高级研究员 海游“Even a delivery guy like me can tell something's wrong with this year's market!”
A salesperson's observation that even a delivery person can sense market problems leads to an investigation revealing sluggish sales, aging inventory, credit sales turning into bad debts, and distributors overwhelmed by stock pressure.
张雨薇Winning at the Point of Sale: Lee Kum Kee Joins Hands with Distributors to Create Rapid Market Growth
Recently, Lee Kum Kee held its national channel partner conference in Guangzhou, with the theme 'Win at the Point of Sale, Win with Lee Kum Kee,' underscoring the company's strategic commitment to terminal operations. The insights shared by business leaders at the conference conveyed a strong sense of confidence in winning at the retail level. Among the attendees were many outstanding distributor partners excelling in various channels. The author had the opportunity to meet a distributor from Henan, Xinxiang Zhihua Changwang Trading Co., Ltd. (hereinafter referred to as Zhihua Trading), and visited Xinxiang for a face-to-face interview with this distributor.
孟云FMCG Distributors' Business Is Getting Harder!
Hello friends. I'm Yuan Lai from New Distribution. Recently, I've been conducting market research and sharing insights with offline distributors of Kimberly-Clark (China) and C&S Paper, and had in-depth discussions with several distributor friends. It's clear that offline FMCG distributors are facing increasingly tough business conditions, primarily due to declining foot traffic and sales at retail stores.
袁来Dealer Strategy Is Not About Scale, but About Building a Moat
Recent visits to dealer members of the Tower Alliance have revealed that many dealers are struggling with transformation, often without a clear strategy or thorough validation. The direction of business upgrade and transformation varies by region and market demand, making a standard template impossible. Dealers must focus on building a moat based on their mission, resources, capabilities, and cognition, rather than merely pursuing scale or profits.
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