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Dealer Operations

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
Brand Marketing

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
Consumer & Categories

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
Consumer & Categories

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
Dealer Operations

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
Dealer Operations

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
Capital, Earnings & M&A

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
Brand Marketing

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
Dealer Operations

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
Dealer Operations

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
Dealer Operations

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 Distribution
Dealer Operations

Hard 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
Dealer Operations

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
Brand Marketing

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
Dealer Operations

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
Dealer Operations

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
Brand Marketing

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
Dealer Operations

The Only Way for Distributors to Achieve 'Leapfrog Growth': Platform Distributors

Liu Chunxiong points out that the internet revolution is nearing its end, while the supply chain revolution is just beginning. The question is whether the internet, which claims to 'eliminate' distributors, or the supply chain revolution, which 'bypasses' them, has a greater impact. This article is based on Liu Chunxiong's sharing at the closed-door meeting of 'Anneng Zhilian Supply Chain' at the 5th China FMCG Conference in Shenzhen.

刘春雄
Dealer Operations

Zou Wenbiao: Re-recognizing the Value of Distributors in the Digital Intelligence Era

This article is based on the keynote speech by Mr. Zou Wenbiao, co-founder and president of Zhoupu Data, at the 5th China FMCG Conference. Zhoupu Data currently serves nearly 40,000 active distributors across the country with an annual GMV exceeding 400 billion yuan. As a leading distributor business system service provider, Mr. Zou offers insights from a service provider's perspective, urging distributors to reshape their thinking, focus on efficiency, scale, and digital collaboration to seize opportunities in the era of industry consolidation.

邹文标
Dealer Operations

Laojin Mofang's Zhu Yingying: Unlocking the Creative Power of New Chinese-style Health Consumption

At the 5th China FMCG Conference and the 1st China FMCG Distributor Conference held in Shenzhen from October 9-11, Zhu Yingying, CEO and Partner of Laojin Mofang, shared insights on how the century-old brand leverages the 'medicine and food homology' concept to innovate in the health consumption sector, addressing evolving consumer needs and market opportunities.

朱盈盈
Dealer Operations

New Distribution Exclusive Release | 2022-2023 China FMCG Distributor Business Survey Report

Over the past two years, China's commercial distribution business has continued to evolve. Traditional business models are changing, with digitalization and local supply chain integration becoming the direction for more distributors. New retail formats such as hard discount snack stores and front warehouses are rising, forcing distributors to expand into more channels. Distributors' capabilities are strengthening, and more brand owners are co-managing markets with local distributors. However, there is a gap between distributors' business goals and brand owners' expectations. Based on this, New Distribution, together with Zhoupu Data, conducted a survey of 279 medium and large FMCG distributors across China to release this report, providing insights into distributor operations, management, efficiency, and trends.

New Distribution
Brand Marketing

Liu Chunxiong: Six Steps in the Digital Evolution of Traditional Enterprises

On October 10, at the 'bC Integration' parallel forum of the 2023 Fifth China FMCG Conference and the First China FMCG Distributor Conference, Liu Chunxiong, a channel digitalization expert, advocate of new marketing, and dean of the Marketing Digitalization Research Institute, attended as a guest. At the conference, Mr. Liu delivered a speech titled 'Six Steps in the Digital Evolution of Traditional Enterprises.' To this end, New Distribution has compiled the essence of Mr. Liu's speech (with deletions and modifications) for readers. How should we understand the current macro environment facing China's FMCG marketing? I...

刘春雄
Brand Marketing

Multiple Hit Products Ignite Autumn Sugar Fair, Xiangpiaopiao Becomes Distributors' 'Best Partner'

On October 14, the 109th National Sugar and Wine Fair concluded, showcasing new products, trends, and injecting vitality into the consumer market. Xiangpiaopiao's participation was a resounding success, with its high-quality products earning unanimous praise from visitors and distributors, shining as the 'popularity king' throughout the event.

月河
Dealer Operations

Bulk Snack Chains and Traditional Distributors: A Zero-Sum Game?

As China's economy grows and consumer preferences evolve, the leisure snack market has expanded, with bulk snack stores offering exceptional value rapidly emerging. From the 2010 introduction of the 'bulk snack' concept by Laoban Daren to current mergers among leading brands, these stores have disrupted the market like a catfish among sardines, bringing vitality and challenges, and will eventually achieve a new equilibrium. Public opinion is divided: some believe bulk snack stores will replace distributors, while others argue that 'you get what you pay for' and that distributors will prevail. However, it is worth reconsidering whether the two are necessarily in a replacement relationship.

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