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Rising 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 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Nongfu 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 DistributionZhao 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.
赵波Alibaba's Retail Link Retreats, Distributors Step Forward
Recently, a B2B distributor expressed regret over Alibaba's Retail Link, noting that while the physical warehouse part was profitable in his region, Alibaba lacked patience. New Distribution's visits to regional B2B distributors confirm that many succeed in both high-tier and low-tier cities. The article explores why internet giants fail at FMCG B2B while distributors excel, emphasizing density, cost efficiency, and the shift from transformation to career change for distributors.
周群Business Down 50%, Thresholds Higher: What Can Still Be Done with Campus Channels in 2024?
Campus channels, once a stable and lucrative market for distributors, are now facing declining sales and rising costs due to changing consumer habits and e-commerce competition. This article analyzes the challenges and offers strategic adjustments for distributors to remain viable.
张雨薇Why Are There More Major Distributors in South China, East China, and Southwest China, While Fewer in North China and Central-South China?
At a recent meeting, I sat next to a major distributor from South China with annual sales exceeding 10 billion yuan, which reminded me of the differences in major distributors across regions. In North China, a distributor with 100 million yuan in sales is already considered major, highlighting the significant disparity. The presence of major distributors varies greatly by region, influenced not only by individual capabilities but also by geographical factors. For instance, South China, East China, and Southwest China have more major distributors, while North China and Central-South China have relatively fewer, with notable differences in the ceiling of distributor scale.
刘春雄Retailers Are Fiercely Grabbing Distributors' Business!
In 2024, FMCG practitioners are focused on one thing: selling goods! Multiple brand executives have told me that as long as there is a channel and sufficient sales volume, factories can provide customized products with flexible specifications, packaging, and even prices. Short-term consumption recovery has not arrived, and in the long term, demand seems to be entering a phase of contraction with no signs of reversal. Currently, retailers are competing fiercely, distributors are competing, manufacturers are competing, and even different departments within manufacturers are competing. As the first quarter of 2024 passes, many manufacturers lament that there are truly no incremental channels left, yet growth targets remain! Everyone is anxious about selling goods.
任文青AndyIs Warehousing and Distribution the Lifeline of Distributors, or Will It Be Their Downfall?
At the 2018 'Opening Class', when I mentioned that warehousing and distribution functions would be separated from distributors and outsourced to third parties, a distributor in the audience asked a soul-searching question: Without warehousing and distribution, is a distributor still a distributor? Before that, warehousing and distribution were indeed the lifeline of distributors. In 2012, Midea Group underwent digital transformation, with its subsidiary Annto Logistics implementing 'One Inventory' and integrated delivery and installation. Not only did distributors not touch the goods, but retailers also did not. 'One Inventory' greatly reduced the number of loading and unloading times from factory to user, from 6 times to 2-3 times.
刘春雄Can Distributors Switch to Retail? Li Xinmin of Youtong Convenience Gave the Answer 20 Years Ago
In recent years, as market conditions have changed, distributors' businesses have become increasingly difficult, prompting many to explore new paths for transformation and upgrading. New Distribution has reported on numerous transformation cases, such as B2B and snack stores. In fact, trading has never been an easy business, and each era has its own challenges. Twenty years ago, many distributors sought transformation due to limited growth, but few succeeded. This article presents a successful case of a veteran with over 20 years in the FMCG industry who transitioned from distributor to retailer.
赵胜男How Established Distributors Can Adapt to a New Generation of Competition
Younger distributors are using data, digital platforms, standardized management, and shared incentives to compete without the market and brand dividends that built the previous generation.
New Distribution