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Dealer Operations articles

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Dealer Operations

Brand Owners' Development Bottleneck: More Management, Less Empowerment for Distributors

The three-year pandemic served as a thorough health check for all FMCG manufacturers, exposing issues that have become increasingly apparent after the lifting of restrictions. This article discusses the significance, methods, and approaches of brand owners empowering their distributors, moving beyond the outdated habit of 'more management, less empowerment' from the demographic dividend era.

高级研究员 海游
Dealer Operations

Breaking Through the Pass: How a Liquor Distributor Went Directly into the Bar Business Over Three Years

By following visible trends with down-to-earth execution, the market naturally responds. In 2013, a viral Weibo post about an incident at Chengdu's Jiuyanqiao bar street marked the start of the city's rise as a nightlife hotspot. Three years ago, the party stopped, and now bar owners face empty venues. One liquor distributor, Chen Zhi, decided to open community bars directly, launching 10 profitable stores in a year, with an average payback period of six months.

林贻佳
Dealer Operations

Is There Still a Dividend for Distributors?

Data broadens distributors' understanding of their business, shifting focus from operations to strategic thinking. The next dividend for distributors lies in data, which helps them find growth opportunities and improve efficiency.

周群
Dealer Operations

A Traditional Distributor Discovers a 'New Gold Mine,' Sales Grow by 20 Million in 2022!

In 2022, despite the challenges of the pandemic, Chen Yongle, founder of Changle Hongcheng Trading Co., Ltd., achieved over 100 million yuan in sales by focusing on 'heart-centered' business, developing new channels like associations and rural banquets, and driving sales of a long-dormant product.

田静
Dealer Operations

The Rise of White Labels: Awakening of Channel Partners in China's FMCG Sector

The rise of white labels signifies the emergence of channel brand power, a redefinition of manufacturer-channel relationships, and an awakening of channel partners' business consciousness. This trend is driven by both demand-side factors like consumer preference for value-for-money products and supply-side factors such as the shift of commercial profits from manufacturers to channels.

刘春雄
Dealer Operations

After All the Twists and Turns, Distributors Are the Real Moat for Channels

This article discusses how brands of different sizes can build a moat through offline distributors. It argues that after the exhaustion of online traffic and rising costs, offline distributors have become the fundamental base for FMCG brands, and provides strategies for top-tier, second-tier, and new consumer brands to empower, operate, and select distributors respectively.

袁来
Brand Marketing

The Growing Tensions Between Major Brands and Distributors: Where Does the Problem Lie?

Cooperation leads to win-win outcomes, and maintaining common interests requires joint efforts from both sides. This article explores the escalating conflicts between major brands and distributors, analyzing the root causes and offering practical solutions to alleviate tensions.

赵胜男
Brand Marketing

New Opportunities for Distributors and Retailers: Going White-Label Instead of Branded

Whoever creates consumer awareness gets the brand premium. Profits come from higher sales volume or higher premiums. When growth peaks, premium capability becomes the core of business. Brand premiums belong to manufacturers (brand owners), while white-label premiums belong to distributors or retailers. Going white-label instead of branded reflects a new game between manufacturers (brand owners) and merchants. Business ideas have positions. 'Going white-label instead of branded' is a business view applicable to distributors and retailers, not manufacturers (brand owners). White-label vs. generic brands: when discussing white-label, some might say it's just generic brands!

刘春雄
Dealer Operations

Stabilize the 2023 Foundation: A Practical Guide for Distributors After the New Year

After the Lantern Festival, distributor teams should refocus and avoid falling back into old habits. This article provides practical steps for stabilizing this year's business foundation, including strengthening relationships with key customers, reviewing sales data, and coordinating with brand personnel on cooperation formats for key outlets.

高级研究员 海游
Dealer Operations

Why B2B Operations Are the Future for Large FMCG Distributors

After a decade of market education, Chinese FMCG B2B has entered a more mature phase. Distributors with sufficient scale can use digital ordering, operations, warehousing, and delivery to become regional supply-chain platforms.

New Distribution
Dealer Operations

In 2023, Dealers Should Make Improving the Speed of Making Money Their Top Priority

Dealers need to improve their capabilities, but more importantly, they need to improve their speed. In 2023, dealers should make improving the speed of making money their top priority. This article explains how to do this through three concepts: return on investment, turnover rate, and operating cycle.

任文青Andy
Dealer Operations

Without Adding a Single Employee, How Did This Distributor's Sales Surge 60% in 2022?

Distributors must excel in two strategic choices: 'path selection' and 'digital operations.' This article introduces the experience of Beijing Guoyingjian, a distributor that achieved a 60% sales increase in 2022 despite market challenges, by focusing on brand operation and digital transformation.

陈思廷
Dealer Operations

Which Types of Distributors Will Win in the Next 5 Years?

The future performance of distributors depends on the boss's depth, height, and strength. This article explores these three dimensions, emphasizing deep thinking, strategic vision, and leveraging teams to seize opportunities.

任文青Andy
Dealer Operations

Distributors in 2023: Focus on Profit, Not Sales Volume

In 1998, marketing expert Jin Huanmin proposed 'Don't focus on brand, focus on sales volume,' which was well-received. Now, a new viewpoint is proposed: 'Don't focus on sales volume, focus on profit.' With profit, sales volume becomes easier. Sales volume and profit are mutually causal. This article argues that in the current low-growth era, distributors should shift from a sales-volume-centric approach to a profit-centric one, exploring new paths such as high-end products, white-label products, and a 2C organization.

刘春雄
Dealer Operations

Post-Pandemic Era: Manufacturers Should Accelerate the Creation of Four Types of Consumption Scenarios

Channels most affected by the pandemic are rebounding the strongest and offer the greatest growth potential. After three years of the pandemic, both macro-economic aggregates and micro-industrial structures have undergone dramatic changes, and FMCG channel dynamics are now influenced by non-market factors.

高级研究员 海游
Dealer Operations

Starting Small: Concrete Actions in Digital Transformation

The essence of digitalization is still a tool, while the essence of sales is business, which relies on good product selection, pricing, distribution, and promotion. Digitalization is not the core of business but a tool to enhance it. The current hype around digitalization is overblown; without it, not everything is wrong. In your business, if the main product selection is wrong, digitalization won't make it sell well. Digital transformation, whether for channels or management, primarily solves management issues, not the core 4P of business. The real benefits come from improving efficiency in daily operations, not from grand projects. Start with three online processes: business process, inventory, and data analysis.

渠成君
Dealer Operations

Why Products Don't Sell: A Packaging Perspective

Packaging is a crucial medium for communicating with consumers, and design must provide a reason to buy. This article outlines eight key points for creating effective packaging that drives sales, including distinctiveness, usability, memorability, avoiding information overload, and conveying value.

赵波
Dealer Operations

Distributors: Guard Against Fire, Theft, and Supermarkets—Should They Still Do Business with Big-Box Retailers?

Business must look forward and adapt to market changes. Distributors are increasingly abandoning big-box supermarket channels due to rising costs, extended payment terms, and the risk of store closures, which have turned once-profitable partnerships into loss-making ventures.

周群
Dealer Operations

2023, How Distributors Can 'Look Up at the Road and Pull the Cart'

The Spring Festival of 2023 is expected to be the most prosperous in the past three years, presenting a rare opportunity for distributors. This article shares insights from Li Wei, head of Mengniu Modern Dairy's Henan-Shanxi region, on how distributors can navigate the changing market, channel shifts, and seize the festive season.

李伟
Dealer Operations

Exploring Markets, Seizing Products, Expanding Channels... Here Are the Key Words for Distributors' Strong Growth in 2023!

With the end of the pandemic, economic recovery is inevitable but takes time. This article provides eight key words for distributors to focus on in 2023, including product structure, profit models, channel structure, team structure, manufacturer-distributor cooperation, online-offline integration, continuous learning, and rebuilding confidence.

高级研究员 海游
Dealer Operations

Annual Review | Six Common Problems in Distributor Operations

Regularly reviewing business results is key to ensuring effective alignment and implementation of goals, organization, mechanisms, and strategies. This article outlines six common problems distributors face, such as profit loss after price increases, rising costs with falling sales, high handling costs for aged inventory, shrinking profits despite scale growth, finding new growth sources, and determining optimal daily store visits.

高级研究员 海游
Dealer Operations

Ten Key Issues FMCG Distributors Need to Diagnose in Annual Planning | Highlights Review

Finding the root cause is the key to the right remedy. As 2022 has passed, distributors have navigated a challenging year amid uncertainty. Some achieved growth against the trend, while others struggled with declining sales and profits, along with rising costs. How can distributors diagnose their own issues and achieve their goals in the new year? In the New Distribution live series, mentor Li Feng analyzed these questions in detail.

李锋
Dealer Operations

Proposal for the Launch of the China FMCG Digital Distribution Alliance

Distributors transitioning to B2B need to unite and join the alliance to engage in dialogue, exchange, growth, and development together.

New Distribution
Dealer Operations

Sales of 12.1 Million, Penalized 1.77 Million: Distributors Must Avoid This Mistake!

The future of the industry belongs to distributors who are willing to comply and continuously strive for compliant operations. This needs to be viewed separately. For modern channels like KA and CVS, invoicing is standard due to customer compliance requirements. However, for circulation, wholesale, and various e-commerce channels, customers often do not require invoices, leading some distributors to underreport income to reduce tax burden.

蔡艳富 任文青