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The Distributor Business Can Thrive for Another Decade
Despite shrinking margins and rising costs in the FMCG industry, one distributor in Bijie, Guizhou, has achieved nearly 30% annual growth for three consecutive years. Fang Fan, general manager of Guizhou Fang Wang Yuan Trading, shares his 11-year journey from scratch to over 100 million yuan in scale, emphasizing market penetration, team management, and future strategies.
周群A 40 Million Yuan Business, Yet the Distributor Sees No 'Way Out'
During a recent market survey, a distributor in a county with a population under 800,000 had built a paper and hygiene product business to 40 million yuan, yet when asked about 2024 plans, he said, 'We'll take it step by step; we're still looking for a way out.' This reflects the widespread confusion and anxiety among distributors, especially those with mid-sized operations, as they face declining sales, difficult collections, high factory targets, and chaotic pricing.
张雨薇Zhao Bo of New Distribution: Why Is the FMCG Industry Undergoing a Profound Supply Chain Revolution?
The FMCG industry is undergoing a profound supply chain revolution driven by changing consumer behavior, fragmented channels, and the rise of new retail formats. This article analyzes the social background, the shift from competition to survival, and provides strategic recommendations for brands, distributors, and retailers to adapt and thrive.
赵波Acting as an Agent for Brands like Vinda, Kotex, and Saky, How Did He Make His Own Paper & Hygiene Brand the No.1 in Local Supermarkets?
Creating one's own brand is almost every distributor's dream, but few succeed. This article discusses a practical case: Hongdi Trading in Taizhou, Zhejiang, which represents brands like Vinda, Kotex, and Saky, and has made its own brand Lvya tissue the top-selling paper & hygiene brand in local supermarkets. In a recent in-depth interview with New Distribution, General Manager Lu Zhengfu shared his journey from wholesale to leading local daily chemical trading and his strategies for building a successful private label.
张雨薇Business Down 15%-30%, Should Snack Food Distributors Open Their Own Stores?
A snack food distributor with annual sales of 60 million yuan opened his own snack store and found it beneficial. The article argues that distributors should open a few community snack stores not to become chains, but to understand retail logic, optimize product assortment, serve their existing retail customers, and digest slow-moving inventory.
袁来Distributors: Brand Agency is 1, Store Service is 0, and How Big Your Business Depends on Stores!
Hello friends. I'm Yuan Lai from New Distribution. Recently, I met with several distributor friends to discuss current business difficulties and ways to break through. Combining these discussions with past exchanges, I observed that many distributor bosses spend their time and energy on brand owners rather than store customers. This article explores this issue and offers advice on refocusing on store service.
袁来Baijiu Inventory Pressure Mounts: After Reaching 10 Billion Scale, 1919 Unveils Two Retail Innovations to Disrupt the Industry
1919's 'Kuaihe' and 'Chihe' digital empowerment of tobacco and liquor stores and restaurants aims to solve the challenge of baijiu sales. As the industry faces inventory pressure and internal competition, these innovations represent a significant opportunity for local FMCG distributors to transform and upgrade.
陈思廷I Make 3 Million Yuan a Year as a Distributor in a County Town
In the long run, relying on distributors to develop our sales network is the right path. The so-called decentralization is poison, a lack of understanding of sales, Tang Binsen reflected at Genki Forest's 2022 distributor conference. In China, distributors are a huge group. Beverage giants like Coca-Cola and Nongfu Spring have mature distribution channel management systems. As of May 2020, Nongfu Spring had 4,454 distributors covering over 2.43 million terminal retail outlets nationwide.
胡楠楠Pessimism with Hope: Distributors' 'Attack' and 'Defense' in the Context of the Supply Chain Revolution
The future of distributors is not optimistic, even pessimistic. In the future, distributors will undergo significant differentiation, with the advantaged becoming stronger and the weak gradually disappearing from the industry. Facing the fierce market competition in 2024, Li Feng of New Distribution invited Liu Chunxiong, a proponent of new marketing, channel digitalization expert, and associate professor at Zhengzhou University, to discuss strategies for distributors to break through.
刘春雄Brand Factory 'On-Site Procurement Fair': Top Distributors Across the Country, Take Action!
The deep distribution model faces marketing dilemmas: manufacturers struggle with new products not being sold, while distributors find big products unprofitable. To address this, New Distribution launched the 'Extreme Supply Chain' Brand Factory On-Site Procurement Fair, which proved successful with over 4 million yuan in orders, and plans to scale it up at the 9th China FMCG Innovation Conference in March 2024.
陈思廷Chengde Lulu Trapped by Almonds
Chengde Lulu, a leading Chinese plant-based beverage company, has seen stagnant revenue for a decade despite profit growth, and is now pushing into southern markets through new products and distribution expansion, but faces challenges from high prices and regional brand perception.
付艳翠Once You Pass 50 Million in Sales, Stop Working for the Brand
Hello friends. I'm Yuan Lai from New Distribution. Recently, I visited over a dozen distributor owners, and as the year ends, we reflected on our experiences. I'd like to share some insights: many distributors still have a 'working for the brand' mentality, but the real core competency lies in distribution and sell-through capabilities based on store control. Growth comes from where you invest your time, and even single-category distributors can succeed in B2b platforms by starting with their existing resources and building stable relationships with retail stores.
袁来Small Shop Business Halved, Supermarkets Forced to Cut Prices: Discounts and Low Prices Impact Local Markets—Where Do Distributors Go?
Snack and discount stores are proliferating, accelerating their impact on local markets. Distributors must understand this trend and adapt by focusing on their core competitiveness, expanding categories and channels, and managing store relationships to survive the discount retail wave.
周群As Spring Festival Approaches, How Should Distributors Handle Inventory Pressure?
As the Spring Festival approaches, distributors face significant inventory pressure. This article discusses strategies for transferring inventory pressure, clearing channel inventory, and achieving a successful start to the new year.
高级研究员 海游Downgrading is Lazy Governance!
Labeling a complex environmental change with a simple 'downgrade' tag is lazy governance. Recently, I discussed several topics about the macro environment with friends, including self-rescue in quagmires, the unexpected success of Dongfang Leaves, and a listed company's strategy to increase dealer profits by 3-5 percentage points. The key is to focus on opportunities rather than problems, as success comes from seizing opportunities, not just solving problems.
刘春雄The Ceiling of a City Distributor's Business: 50 Million, 100 Million, 300 Million, or 1 Billion?
This article explores the maximum scale a distributor can achieve in a local city market, considering factors like offline-only operations, focus on prefecture and county-level cities, and excluding top-tier cities. It argues that while many distributors believe 30-40 million is the ceiling, with strategic category expansion and supply chain innovation, reaching 500 million is possible, and the industry holds significant growth potential.
袁来Don't Let Digitalization Become a Burden for Distributors
Digitalization is a double-edged sword. As channel digital terminal software becomes more prevalent, brand owners increasingly require distributors to use their terminal systems, but this often burdens distributors and their sales staff. To succeed, digital transformation must be based on empathy, balance, and a focus on managing tasks rather than people.
高级研究员 海游“Seizing Share, Boosting Sales”: The Battle for a Strong Start Begins—How Can FMCG Manufacturers and Distributors Break Through?
As the Chinese New Year approaches, FMCG companies are gearing up for the annual 'strong start' campaign. This article offers practical incentive strategies for distributors, wholesalers, retail outlets, and staff to boost performance during this critical period.
邢仁宝Distributors Becoming B2b Platform Operators: Great Opportunities, but Also Great Risks!
Transitioning to B2b is both an opportunity and a challenge. Recent visits to the Sichuan market show many distributors planning B2b layouts, seeing it as an opportunity, but they have concerns about using their own funds. This article shares insights on these issues. Currently, B2b is trending toward rational operations, presenting both opportunities and challenges. Using internet technology to improve operational efficiency and optimizing profit through supply chains is inevitable in FMCG development.
高级研究员 海游Inventory Clearance in 2023: Can We Travel Light in 2024?
Grasp the macro trends, manage marketing actions aligned with those trends, and continuously accumulate marketing successes; quantitative changes lead to qualitative changes. In the era of self-media, it's common to follow media buzzwords in marketing, which can be both beneficial and harmful. At year-end, industry and professional fields select top ten phenomena, often based on media buzzwords. If I were to pick the most overlooked marketing phenomena of 2023, I'd choose 'inventory clearance' and 'difficulty in recruiting distributors (or launching new products)', which are interrelated.
刘春雄As Spring Festival Approaches, How Should Gift Box Distributors Stock Up This Year?
With only about forty days until Spring Festival, the annual gift box sales season is upon us. This year, the market shows mixed signals: while rural areas remain strong, urban consumers increasingly prefer value over packaging, and many retailers are cautious about stocking up. Distributors should focus on high-end gift boxes for loyal customers, maintain flexible inventory for low-end products, and adapt to changing consumer habits by integrating online and offline channels.
高级研究员 海游10 Pitfalls to Avoid for Distributors Becoming Local B2B Platform Operators
The key to a distributor's sustainable business is achieving distribution coverage of retail stores. This article provides 10 practical guidelines for distributors planning or already operating local B2B platforms, based on real cases and lessons learned.
袁来Genki Forest's Return to Tradition: Becoming 'Partners' with Distributors
Genki Forest has outlined four principles for cooperating with suppliers: 'partnership, closeness and clarity, cost reduction, and openness.' After a year of institutional refinement, organizational restructuring, and direct communication, equality, integrity, and transparency are now the new definitions of the 'partnership' between Genki and its distributors.
林辰重磅｜TOP500中国经销商供应链联盟年度会议暨相信年轻人集采交流会圆满成功！
On December 19, 2023, the Top500 China Distributor Supply Chain Alliance (referred to as "Tower Alliance") successfully held its "2024 Tower Alliance Annual Work Conference and Believe in Young People Collective Procurement Exchange" in Beijing. The event brought together the five founding units, over 50 member units, and the core team of "Believe in Young People" invested by Challenger Capital. The morning session focused on the annual work review and 2024 planning, while the afternoon featured the alliance's first collective procurement exchange.
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