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Why Are Distributors Not Making Money?
Distributors' business efficiency is the core issue. When asked about their current business, most distributors say it's getting harder due to e-commerce and the pandemic, but the real problem lies in outdated business models and system structures. Only by changing the business structure and system elements can distributors achieve sustainable growth.
袁来How a Financial Elite Crossed into FMCG and Became a Leading Regional Dairy Distributor in Four Years
Even the strongest companies will struggle if they don't take action for the future. 2022 was tough, but no one expected it to be this tough. The recurring pandemic has lasted three years, impacting all industries to varying degrees. Facing this uncertain future, what should distributors do? There's no standard answer. For distributors, the core is to focus on the present, deeply cultivate regional markets, monitor competitors, and stay 'half a step' ahead. This 'half step' lead was mentioned by Mr. Liu Wanqing of Shenyang City Dairy Co., Ltd. during an interview.
周群Ten Suggestions for FMCG Manufacturers Amid the Lingering Pandemic
The recent COVID-19 outbreak in Shanghai has deeply affected the nation, with daily confirmed cases in the thousands and asymptomatic cases in the tens of thousands, prompting many regions to adopt full or partial lockdowns. Logistics disruptions, consumer restrictions, and declining purchasing power are impacting all industries. GDP growth in Q1 2022 is expected to remain below 5% due to the pandemic and geopolitical tensions, and this article offers ten practical suggestions for FMCG manufacturers to navigate these challenges.
高级研究员 海游Going Offline: The Urgent Task for Brand Owners is Dealer Sorting
In late 2013, Nongfu Spring's annual sales had just exceeded 10 billion yuan, but growth hit a bottleneck, prompting the company to reform its dealer network. As an assistant to the operations director, I developed five evaluation indicators for dealers—supply chain capability, financial strength, channel coverage, operational efficiency, and organizational strength—and successfully adjusted several dealers. This reform proved crucial for future growth. The article emphasizes that brand-dealer cooperation success depends on matching, and provides frameworks for evaluating dealers, including six key capability indicators and three critical points for adjustment.
高级研究员 海游Spring Plowing Has Arrived: How Distributors Can Choose Products to Seize the Wind and Make Big Money
As spring begins, distributors are adjusting their product portfolios. In today's market of overcapacity and stock competition, there is no shortage of products, but choosing products with strong sell-through is half the battle. Distributors focus on four key factors: brand strength, product strength, precise market timing, and consumer reach assurance. This article uses the new product logic of leading company Labixiaoxin to address these pain points.
张宇Cross-regional Selling: Why Does It Persist?
A market survey in Henan and Hebei reveals that cross-regional selling remains rampant, undermining price systems and dealer confidence. The article analyzes the causes from channel differentiation and logistics evolution perspectives, and proposes solutions including technology, pricing strategy, and management.
周群Opinion on Accelerating the Construction of a Unified National Market: A Boon for Distributors and the B2B Industry
On April 10, the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Accelerating the Construction of a Unified National Market," proposing to build a unified national market from aspects such as basic institutional construction and market facility construction. The Opinions specify key tasks from six aspects, including the "five unifications" from the perspective of "establishment," such as unifying market basic institutional rules and promoting high-standard connectivity of market facilities.
赵波Haitian Distributors' 'Three Axes': Can They Still Cut Through Today's Market?
During the bonus period, business was easy; after it ends, business becomes hard. Twenty-five years ago, condiment distributors could make money by simply shipping goods for any brand. Five years later, a Haitian salesperson convinced a Hengshui distributor to take on the brand, promising regional dominance. Now, as the market shifts to a zero-sum game and pandemic disruptions persist, can Haitian distributors' traditional tactics—pull, push, and gamble—still work?
调料人都在关注的From Frontline Salesman to Founder of a Trading Company: How Did He Achieve Over 100 Million in Sales in Just Seven Years?
“Business is tough, hard to do,” this is the current situation of some distributors seen during market research in Henan and Hebei provinces in the past two weeks. Indeed, the industry has changed significantly in recent years, with new business formats, models, and products emerging one after another. “Online intrusion, offline involution” has led to shrinking business year after year. Undeniably, the difficulty in doing business is partly due to market changes, but more so because the right direction has not been found in the face of change. We have seen some distributors actively trying to explore transformation in such an environment, and they have achieved good results...
周群Oat Milk Market Heats Up: Should Distributors Enter?
The plant-based milk track is getting increasingly crowded, especially with oat milk. Recently, global oat-based brand OATLY announced its Q4 and full-year 2021 financial results, showing full-year revenue of $643.2 million, up 52.6% year-over-year, with Asia revenue of $126.9 million, up 136.5%, indicating the strongest growth momentum. Meanwhile, in China, the oat milk and plant-based milk market has entered an acceleration phase, with forecasts suggesting the plant milk market will exceed 300 billion yuan by 2025.
田静What Is the Essence of Channels?
A channel partner worries about brand owners going direct or switching partners. The article argues that the essence of channels is low-cost, scalable reach to potential consumers, and advises channel partners to accurately assess their core competency and innovate by aggregating offline traffic into private traffic pools or grouping people in online public traffic based on common interests.
刘润Interview with Luoyang Rongcheng Yigou: What Has Digitalization Brought to Distributors?
“All business trends favor the leaders, and digitalization is no exception.” China's commercial circulation business has experienced several major dividends since the 1990s. The first was the product dividend, when goods were scarce and anything sold. The second was the channel dividend, as supply and marketing cooperatives gave way to private businesses. The third was the hypermarket dividend, with giants like Carrefour and Walmart showing the potential of single-store output. The fourth was the e-commerce dividend, which early adopters on Taobao and JD.com profited from. Now these are past, and the next 5-10 years will see digitalization become increasingly important, with distributors facing survival of the fittest. So how should distributors adapt? This article explores this through an interview with Luo Kai, general manager of Luoyang Rongcheng Yigou, a digitalization benchmark distributor in the PepsiCo 'Ru Hu Tian E' project.
周群Qingshan Capital: Dear Consumer Entrepreneurs, Please Face Reality
Products suddenly stop selling, capital retreats, and supply chains break. Qingshan Capital urges consumer entrepreneurs to abandon illusions, accept reality, and refocus on fundamentals, as short-term traffic and capital dividends are gone, but long-term consumption-driven growth, tech commercialization, and brand-building remain unchanged.
与创业者同行的E-cigarettes: Finally Settled
With the countdown to the ban on fruit-flavored e-cigarettes, the industry is in turmoil. The new regulations will ban all flavored e-cigarettes except tobacco flavor, reshape sales channels, and trigger a major industry shakeout, favoring large players with capital and technical strength.
郑一鸣Returning to Offline: Channel Coverage Model Layout Strategy for FMCG Enterprises
Returning to offline and the fundamentals are highly popular terms in the FMCG industry this year. Previously, 2C e-commerce optimized the supply chain from brand to consumer; later, B2B optimized it from brand to terminal outlets; and in the past two years, community group buying optimized it from distributor to consumer. Within the entire F2B2b2C supply chain, driven by capital and internet tools, these innovations captured nearly 30% of market sales, prompting a renewed focus on the 70% offline operations.
高级研究员 海游Coke Gets Angry Again: A 28-Year Siege
The production of carbonated drinks is simple: inject carbon dioxide under pressure into sugar water. Interestingly, Coca-Cola and Pepsi, the two giants of global carbonated drinks, are like a bottle of cola—they fizz over if anyone loosens their cap. According to media reports, at the start of 2022, the two cola giants issued a threat: "This year, we are determined to bring down Genki Forest." "By 2022, there will be no more Genki Forest sparkling water in the market." A downstream distributor of Coca-Cola told The FunTalk that they had heard the rumors, but so far, Coca-Cola has not taken any specific targeted actions.
最话团队As the Pandemic Rages, the Market Is Even Slower Than the Off-Season. What Should Distributors Do?
The pandemic is once again spreading across nearly 30 provinces. Compared to the sudden outbreak in early 2020, although there is still concern and inconvenience from lockdowns, past experience has made prevention and control more composed. This round is likely the final battle against the pandemic. The resurgence has impacted distributors' businesses, especially in logistics, personnel visits, and sales turnover. In this context, distributors should use this short period, which is even slower than the off-season, to make business plans—not just annual plans, but 3-5 year strategic plans to explore the direction and model of their trade.
袁来In the 40 Billion Yuan Chili Sauce Market, Neither Laoganma nor Hubang Can Save It
Laoganma, which is appearing less frequently, has raised prices, breaking the price benchmark in the chili sauce market. As new brands like Hubang enter, the market may expand, but Laoganma's dominance is challenged by changing consumer tastes and increased competition.
关注老干妈的An "Alternative" Distributor's Transformation: Abandoning First-Tier Brands to Focus on Second- and Third-Tier Brands, Building a Channel Moat with 200 Sales Associates!
New Distribution has previously reported on many practical cases of distributor transformation, covering areas such as business management, organizational change, warehousing and logistics, and channel expansion. However, cases involving brand transformation are rare. Since the brands a distributor represents form the foundation of their business, this might seem like a topic with little to discuss. But after reading today's case, you will surely admire the boldness and courage of this distributor. As is well known, holding the agency for a well-known first-tier brand is like having a "treasure" for a distributor...
袁来Digital Security for Chinese FMCG Enterprises: Lessons from the Russia-Ukraine Conflict
The Russia-Ukraine conflict highlights the risks of digital dependency, as global software giants like Oracle and SAP exit Russia. This article urges Chinese FMCG brands and distributors to build digital capabilities and contingency plans to safeguard their business and data security.
君子不器Channel Distributors, of Course, Have Value
A channel distributor expressed concern about their future value. The article argues that distributors are valuable due to their efficiency in reaching users, and outlines five core capabilities: lower-cost user reach, stable inventory maintenance, lower capital costs, higher turnover, and better risk management. It advises distributors to recognize and leverage these strengths to remain indispensable.
刘润A 98-Yuan Box of Jelly Sold Out on Its First Day?! What's Liuliumei's Secret?
Recently, a news story about a box of jelly priced at 98 yuan selling out on its first day went viral, sparking widespread discussion. The jelly, which turned out to be Liuliumei's groundbreaking new category 'Mei Dong', saw explosive sales upon launch, with distributors scrambling to order it.
小新Price Hikes: A 'Wolf in Sheep's Clothing'
Every grain of dust in the era falls on each individual like a mountain. The recurring pandemic and the sudden Russia-Ukraine war, seemingly unrelated, affect everyone. For instance, price hikes. In 2021, a wave of price increases began, especially from the second half of the year when condiment giant Haitianwei announced price adjustments from October 25. Other companies followed suit, including Hengshun Vinegar, which announced price increases of 5%-15% from November 20. The trend accelerated with the outbreak of the Russia-Ukraine war.
田静Covering Over a Thousand Stores with Annual Sales Exceeding 100 Million: How Did This Traditional Snack Food Distributor Become a Regional Benchmark?
Recently, I visited Lao Wang (pseudonym), a snack food distributor in Hubei who covers over a thousand stores with annual sales exceeding 100 million yuan. When asked if distributors will always exist, he believes the market may not need distributors, but it needs intermediaries—whether as delivery agents or operators. His strategy is to focus on the present and solidify his base, as his business is still growing.
周群