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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 DistributionSell-Through Is the Real Test for China's Unsweetened Tea Brands
In a crowded unsweetened tea market, a new brand needs a defensible price tier, repeatable taste, reliable supply, channel margin, local execution, and reorders—not just traffic, listings, or first shipments.
New DistributionThe Future of Distributor Business: Outcompete Yourself, Eliminate Competitors
Distributors' business is peculiar: upstream brand owners can cover the whole country, and downstream retailers can expand across regions if successful locally. However, 90% of distributors operate locally within a single city, mainly due to brand owners' authorization management. Many distributors, after representing several first-tier brands and reaching annual sales of 30-40 million (or even 70-80 million to over 100 million), believe there is little room for growth. In this context, where should distributors' future business go? How should they achieve 100 million, 500 million, or even 1 billion?
袁来Two Growth Paths for FMCG Distributors: Product and Supply-Chain Innovation
In a saturated market, distributors can build new growth by turning logistics into a professional supply-chain business and by selecting or developing innovative products in the right categories.
New Distribution"Jinsha Huisha Wine" Trademark Remains Valid and Legally Protected
Recently, the Supreme People's Court ruled in a retrial case that the use of "Jinsha Gusha" by Guizhou Jinsha Andi Doujiu Co., Ltd. and Guizhou Jinsha Gujiu Co., Ltd. constituted infringement of the "Jinsha Huisha Wine" trademark owned by Jinsha Distillery. The court affirmed that the trademark remains valid and should be protected by law. In response, Jinsha Distillery stated it will further focus on brand protection and intensify rights enforcement.
New DistributionHow Did He Achieve Annual Sales Over 100 Million in a County Town with a Million Population, Representing Brands like Mondelez, Lay's, and Qiaqia?
A distributor in a county town with a population of over one million achieved annual sales exceeding 100 million by transforming from a brand agent to a channel supply chain company, focusing on the snack category, optimizing channel structure, and improving salesperson efficiency through a 'salesperson + merchandiser' model.
周群The Sales Code Under the Transformation of New Retail Channels
A common sentiment is that business has become increasingly difficult in recent years—where have sales gone? The market is harder to control, with more channel conflict and price management challenges. Wang Jichao, General Manager of Zebra Business Operations Co., Ltd., a platform focused on local life e-commerce, has led projects in community group buying, e-commerce, and Meituan Flash Shopping. At the 9th China FMCG Innovation Conference & the 2nd China FMCG Hard Discount Conference & the 2nd China FMCG Distributor Conference, he shared insights on the sales code under new retail channel transformation, offering new ideas for distributors.
王继超A Big Opportunity? Retail Tong's Shutdown Brings Triple Dividends—Dealers' Chance to Win!
Recently, a major event occurred in the FMCG distribution industry: Alibaba's Retail Tong, once the industry leader, announced it would suspend operations. This presents an excellent opportunity for local FMCG dealers who can seize it to reap significant benefits. Today, we will analyze the impact of this event on the industry and explore how dealers can capitalize on this wave of opportunity. The platform's model flaws may have predetermined its fate; Retail Tong's closure was not accidental. Its ambition to integrate and absorb local dealers to achieve scale was unrealistic.
订货宝“In the First Year of Entrepreneurship, We Only Treated Ourselves to Dumplings at Year-End” — How Did This Distributor Achieve 70 Million in Three Years After Restarting?
Recently, during market research visits in Shandong and Anhui, many distributors reported that business is tough, especially in lower-tier markets, with many being eliminated or forced to downsize. Against this backdrop, Weifang Beibei Le Food Co., Ltd. not only survived but thrived, maintaining 20% annual growth. General Manager Sun Xiaojing, who has been in the trading business for 17 years, restarted her business in 2021, focusing on snacks, baking, internet-famous and fresh-box foods, and has achieved sales exceeding 70 million yuan.
何雯Lai Yifen: Attack and Defense in the New Economic Cycle
From March 14 to 16, the 9th China FMCG Innovation Conference with the theme 'Supply Chain Revolution' was held in Chengdu. During the conference, over a hundred speakers and more than two thousand manufacturer representatives and FMCG professionals from across the country explored how distributors and brand owners can seek growth in the current environment. Among them, Mr. Zhao Hanli, Vice President of Lai Yifen, delivered a significant sharing session titled 'Lai Yifen: Attack and Defense in the New Economic Cycle', which sparked lively discussions among the attendees. New Distribution specially reports on the highlights for our readers.
赵汉利Why Is “Five-Code Integration” the Infrastructure for FMCG Channel Digitalization?
Liu Chunxiong comments: 1. Codes are the most convenient way to connect channel customers and end users. 2. The “five codes” evolved from baijiu: inner cap code, outer cap code, inner box code, outer box code, and pallet code. For FMCG companies, these can be understood as user C code, promotion code, terminal b code, distributor B code, and logistics code. All five channel objects are within the codes. 3. “Five-code integration,” also called “five-code association,” establishes a logical chain among all channel members at once, making channel relationships transparent and simplifying full-chain digitalization.
潘洪玉&林德燊Zhao Bo of New Distribution: Why Low-Price Retail Will Spell Doom for the Entire FMCG Supply Chain?
The article explains the underlying logic of sluggish consumption, attributing it to real estate asset de-leveraging and pessimistic expectations. It argues that low-price retail strategies, especially by traffic giants like Douyin, will squeeze profits across the entire FMCG supply chain, hinder brand innovation, and ultimately lead to industry ruin. The article also discusses the necessity of supply chain optimization in mature markets and the need for brands to adapt to sophisticated consumers.
赵波A Disruptive Channel Model Innovation: How It Is Shaking Up the Dairy and Beverage Industry?
The FMCG industry is becoming increasingly competitive. According to the '2022-2023 China FMCG Distributor Operating Conditions Survey Report' released by New Distribution, 60.6% of distributors reported a decrease in revenue compared to the first half of last year, with 31.9% seeing a decline of over 20%; 51.7% reported a decrease in profits, with 16.9% experiencing a reduction of more than 20%. In this context, a disruptive channel model innovation is emerging in the dairy and beverage industry, offering a new way forward for distributors.
李雷Jiapin Yunshi Achieves Annual Sales of 1 Billion in 6 Years: What Did They Do Right?
In six years, Xi'an Jiapin Yunshi reached annual sales of 1 billion yuan. At the 9th China FMCG Innovation Conference, founder Fan Qi shared the company's journey, emphasizing that choosing the right path is more important than doing things right, and highlighting the importance of determination, patience, and perseverance.
樊奇Exclusive Insight | New Distribution Yuan Lai: Urban X Trade Circulation Business Development Model
At the 9th China FMCG Innovation Conference held in Chengdu on March 14, Yuan Lai, Chief Content Officer of New Distribution, released an exclusive industry insight titled "Urban X Trade Circulation Business Development Model" at the 2nd China FMCG Distributor Conference on March 16. The speech outlines the evolution of distributor business models, from brand-oriented to category- and retail-oriented, and proposes a development path model with five stages, emphasizing the shift from distributor to urban trade circulation enterprise.
袁来Channel Coverage Models Evolve from 'Horse-drawn Carriage' to 'Automobile' – How to Effectively Activate Distributors?
Using the analogy of treating a pimple, the article explains that brand owners should address the root cause of distributor inefficiency by redesigning channel coverage models rather than applying temporary fixes. It traces the evolution of six channel coverage models and provides a framework for optimizing distributor systems, including selecting the right distributors, defining roles, and implementing operational SOPs.
高级研究员 海游POSM Visual Strategy: The Next Competitive Frontier in Snack Foods
At the 9th China FMCG Innovation Conference held in Chengdu from March 14 to 16, themed 'Supply Chain Revolution,' He Luyi, co-founder and CEO of New Can Factory, delivered a keynote on POSM visual strategy as the next competitive battleground for snack foods. Her insights sparked lively discussions among manufacturers and distributors on how to enhance offline sales through effective POSM design.
何璐伊Tong Xuewei of Liangduoduo: Survival and Entrepreneurship Principles for Distributors in Winter
Everyone loves spring and its stories of growth and prosperity. For most distributors who have thrived in spring, today may be their first 'winter' in business. Tong Xuewei, founder of Liangduoduo Liquor, believes that winter is not scary; many great companies were either born or rose during winter. The key lies in discovering and following the principles of product selection and entrepreneurship in winter.
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