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Baijiu Industry in 2023: The Trouble of 'Inventory'
The Chinese baijiu industry faced significant inventory challenges in 2023, leading to price inversions and postponed expos. Companies employed various strategies like supply control and marketing to destock, with mixed results as the industry transitions from active to passive inventory reduction.
Kyra“External Pressure, Internal Efficiency”: Reflecting on 2023, the Uncertainties Facing Distributors' Business
As 2023 draws to a close, New Distribution has been actively engaged with distributors throughout the year. In May, preparations began for a distributor membership organization, leading to the official establishment of the Distributor Membership Club in June, which recruited over 200 outstanding regional distributors in less than two months. In August, preparations started for the first China FMCG Distributor Conference, which concluded successfully in October, where the club was upgraded to the Tower Alliance. In September, a survey on the operating conditions of Chinese FMCG distributors was initiated, involving nearly 300 distributors, and the "2022-2023 China FMCG Distributor Operating Conditions Survey Report" was officially released in October. In December, plans are underway for the first member representative assembly of the Tower Alliance and the formulation of key activities and work content for 2024.
周群Year-End Sprint: How Should FMCG Manufacturers and Distributors Execute?
In late October, China's Q3 economic data showed improvement in retail and service consumption, yet FMCG brands presented a mixed picture. For manufacturers and distributors, the first post-pandemic year-end requires stabilizing existing business while seeking growth. Using the beverage industry as an example, this article offers insights on aligning goals, rational rewards, data-driven analysis, problem-solving, and leveraging festivals to win the final sprint.
邢仁宝Behind Lao Gan Ma's Declining Performance: Has the 'Big Distributor System' Reached Its End?
According to the 'Top 100 Private Enterprises in Guizhou' list, from 2016 to 2021, the revenue of Guiyang Nanming Lao Gan Ma Flavor Food Co., Ltd. (hereafter 'Lao Gan Ma') was approximately 4.549 billion yuan, 4.447 billion yuan, 4.389 billion yuan, 5.022 billion yuan, 5.403 billion yuan, and 4.201 billion yuan respectively. In particular, in 2021, Lao Gan Ma's revenue hit a six-year low, down about 22.25% year-on-year from 2020. Given the current market conditions, Lao Gan Ma is facing unprecedented challenges, especially its long-held 'big distributor system' channel model, which seems no longer suitable for the current era.
调料人都在关注的County-Level Distributors Transforming to B2B: A Practical Path from Zero to One
Facing extreme pressure from manufacturers and clients, many distributors are struggling to survive. Jia Yongshun, general manager of Xuzhou Jintong Food Trading Co., Ltd., successfully transformed his traditional distribution business into a local B2B supply chain platform, achieving daily sales of over 20,000 yuan and covering more than 1,000 small stores. This article shares his practical experience and strategies for other distributors considering B2B transformation.
李锋Instant Hit: Jinmailang's "Green Beef" Noodles Swim Against the Tide
A city distributor sold 10,000 units of Jinmailang's zero-fried noodles in a single month, while a county-level distributor moved 1,000 units monthly. The viral Douyin trend for banmian (board noodles) is part of Jinmailang's "0-Fried Healthy Noodles" series, now in short supply online and offline. Amid post-pandemic sales declines, Jinmailang's Lanfanfan zero-fried line is bucking the trend, backed by 20 years of R&D and a bold green packaging strategy.
AmyGenki Forest: A Long Farewell
If a company only starts considering gross margin three years after its founding, and only rethinks its distribution channels six years later, is it too late? Different industries may have different answers. Generally, a three-year-old company is still a startup. In the tech and internet industry, many companies don't even consider revenue, let alone gross margin. However, a startup in the ancient FMCG industry, facing competitors like Coca-Cola, one of the most powerful brands on Earth, is quite bold to ignore gross margin for three years and not systematically think about channels until after six years.
房煜Distributors Need Not Worry Too Much This Year, Because Next Year Will Be Even Harder
Distributors are facing increasing competition and shrinking profit margins as the market shifts from growth to stock. New models like snack hard discount and lightning warehouses are eroding their market share, and many are struggling to meet sales targets. To survive, distributors must focus on covering existing channels thoroughly, embracing new channels, identifying growth brands and categories, and optimizing their organizations.
周群Oriental Leaf Makes a Comeback, China's Richest Man Rakes It In
The taste of tea hasn't changed; it's consumers' mindset and palate that have evolved. A beverage distributor told me that Oriental Leaf is the only brand that's truly hot, with people seeking it out rather than the other way around. After researching its history, I concluded that the only long-termism in the world is having money.
IC实验室How Did These Discount Store Franchisees Lose Their Money?
As the hottest retail format of 2023, hard discount has indeed attracted attention. New Distribution has always believed that the discount model will be one of the important retail models in the future. At the same time, we also note that 'low price' is the most impactful competitive means in current retail competition, but the skill of 'making money with low prices' is not easy to master. In a new business form, a large proportion of the first wave of pioneers often become martyrs. The purpose of this article is to remind brand owners, distributors, and discount store franchisees not to only see the opportunities of the hard discount trend, but also to be aware of its huge traps at this stage.
陈思廷Solidifying Channels and Holding the Market, Genki Forest Is Growing into a Forest
Genki Forest's official WeChat account describes itself as 'from a seed to a forest.' Indeed, born in 2016, Genki is striding forward from a seed to a forest, and industry evaluations are becoming more favorable: Genki Forest is one of the few new consumer brands that has successfully transitioned from online to offline, solidified its channels, and held its market. The company has done two things right: it proposed the slogan 'reduce costs, increase efficiency, all in on sales,' unprecedentedly valuing distributors and co-building the market with them; and it continues to innovate in category dividends...
田静From B2b Transformation to Discount Retail: The Self-Revolution of Traditional Distributors!
Discount retail is a hot topic, with snack discount stores expanding rapidly and traditional retailers and brands exploring how to adapt. Distributors are feeling the impact directly, as aggressive expansion of snack stores has led to significant sales declines. Yu Xiuwei, founder of Tangshan Yihe Trading, shares his journey from traditional distributor to B2b platform and then to launching a local discount chain, offering insights on whether hard discount is a challenge or opportunity for distributors.
周群Bulk Snack Supermarkets Down 30%, Standard Products Down 15%: Can Snack Distributors Survive This Winter?
Hello friends. I'm Yuan Lai from New Distribution. Recently, while preparing for the first China FMCG Hard Discount Conference in Zhengzhou, I spoke with over a dozen major food and beverage distributors. They unanimously reported significant declines: standard snack products in supermarkets down 10%-20%, and bulk snack products down around 30%. One distributor noted that no store is immune, with return rates rising and promotional costs increasing. This article explores whether distributors can open stores, how to maintain local supermarket business, and what else they can do to offset declines.
袁来Is the Condiment Industry Really Stagnating?
Recent Q3 financial reports from major listed companies show that half of the top ten condiment companies experienced declines in both revenue and net profit. However, industry experts argue that high inventory levels and performance declines do not necessarily indicate a stagnant market, as the overall condiment market remains stable and is evolving towards healthier, zero-additive trends.
何雯Distributor Annual Meeting Training: Brand Owners Should Stop Being Vague and Talk About Something Practical!
Recently, I've been asked: 'How should we define the direction of distributor annual meeting training?' My answer is often: increasing distributor cohesion and brand owner centripetal force through slogans, mobilization, and vague propaganda has little value. What distributors care most about in the current sluggish market are: how to make profits, how to improve cost-effectiveness, and how to enhance management team capabilities to retain talent. The best training for distributors is to combine the company's next-year business strategy, doubts, and difficulties to provide operational guidance, improve distributors' money-making ability, enhance their spending efficiency, and strengthen team management. It's more important for them to learn something practical that can be applied in the market than anything else.
高级研究员 海游How to Design Distributor Compensation and Performance Systems That Fit the Business
The key to ultimately achieving profit growth lies in people; the core action for bosses is to activate personnel, and only by distributing money well can they use people well. Distribution is essentially a selling business, and the most important people in selling are sales representatives. Whether salespeople can create profits for distributors depends on whether the compensation system can motivate them. Traditional assessment methods influenced by conventional thinking not only fail to generate profits but also lead to a rapid decline in distributor profits, making it crucial to pursue new, effective, and efficient compensation systems.
李锋Distributors Can't Be Eliminated, But They Are Always on the Path of Differentiation
Every few years, claims emerge that distributors will be eliminated or replaced, but over the years, in FMCG, distributors have persisted, and some are thriving. As FMCG enters the consumer era, with severe product oversupply and a focus on brand service, a wave of distributor 'optimization' has occurred, yet many distributors have evolved with top brands, transforming their organizations, mechanisms, and models to fulfill their historical mission. The supply chain revolution is now underway, and while some say there is no place for distributors, each channel change presents opportunities for new types of distributors to emerge, making differentiation inevitable.
高级研究员 海游Industry Turning Point: The Dealer Supply Chain Revolution Officially Begins!
This year, dealers are struggling. Small brands are risky, big brands are hard to get; new channels are inaccessible, old channels are being cut; offline business is shrinking, online business is tough; transformation seems daunting. In this new environment, what role should dealers play, and how can they change to survive? The focus of the industry is on 'cost-effectiveness' and 'disintermediation.'
New DistributionHard Discounts Arrive, Accelerating the Reshuffling of Local Distributors
The rise of hard discount retail formats such as snack discount stores and warehouse discount supermarkets is accelerating the reshuffling of local distributors. Large distributors will grow larger, while small distributors will gradually be eliminated. Distributors must adapt by adjusting their business strategies, such as expanding into other channels and becoming super suppliers in core categories.
袁来Surviving and Thriving with Distributors: How Nongfu Spring, Genki Forest, and Master Kong Do It
“I've lived a full life!” “I'm betting my life on this bed!” On October 21, Kuaishou influencer Xinba shouted excitedly in his livestream, after selling 1 billion yuan worth of domestic mattress brand DeRUCCI in a single session, breaking the Guinness World Record for single-product sales. While online sales boom, offline channels suffer, and distributors are increasingly marginalized as manufacturers directly partner with top livestreamers, a common trend in many consumer industries. “The distributor business is getting tougher; we now just handle delivery and payment,” lamented Lao Wu, a decade-long beverage industry veteran.
新商业价值媒体Leveraging Sports Marketing: How ChouBao Luosifen Boosts Product Sell-Through
What makes a good product? This is a question many distributors ponder. New Distribution observes that while hundreds of thousands of FMCG products launch annually, few survive market tests. Today's market demands more than shelf presence; it requires strong sell-through power. ChouBao Luosifen, through sports marketing collaborations like with People's Sports, enhances product appeal via distinctive packaging, gold medal prizes, and emotional connections, activating broader consumer groups and establishing a 'scenario' sell-through model.
田静How to Set Support Strategies When Distributors Develop Management Partners?
As a distributor's business matures, its rights and responsibilities can be divided into three layers: the owner focusing on product rights, the general manager focusing on operational management rights, and market operators focusing on sales and maintenance rights. The general manager is the key contact for brand owners, and converting this role from employment to partnership is a common and effective way to maximize its function. This article shares practical support strategies from brand owners for these 'management partners', including daily work guidance, expense support, and management mechanisms.
高级研究员 海游Distributors: In the Era of Thin Margins, Profit is Designed
Baihui Trading's mission is to become China's most professional category supply chain, with a vision of providing Chinese families with better, healthier, and more environmentally friendly products. Despite challenges in the micro-profit era, the company maintains double-digit growth through strategic planning, focusing on category management, and designing profit structures.
聂必权China's 100-Billion-Bottle Water Industry: A Hidden War
Chen Xiaojing, have you noticed that there are more and more bottled water products on store shelves, with traditional brands holding steady and new brands emerging constantly. Especially as the summer drinking water peak season approaches, the battle for shelf space in major supermarkets is about to erupt. The bottled water business is characterized by high gross margins and high-frequency demand, attracting terminal merchants, distributors, and bottled water companies to come and go with satisfaction each year. The success of bottled water sales is closely related to a company's control over water sources. Major brands are locked in intense competition upstream for water sources, with frequent reports of land grabs. China's four major high-quality water source regions—the southwest, Changbai Mountain, the Pearl River Delta, and the Yangtze River Delta—are already crowded with mainstream bottled water companies. In some scarce and high-quality water source locations, a situation of multiple brands and companies coexisting has formed.
陈晓京