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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Stuck in the Middle: The Awkward Position of 30 Million Distributors
Recently, I had exchanges with several distributor friends, each with a business scale around 30 million yuan. After in-depth discussions, it became clear that distributors of this size share distinct characteristics and face growth bottlenecks, with their businesses stagnating for years. Frankly, the 20-30 million yuan business scale is mainstream in the current trade and distribution sector. Facing the shift to online consumption, declining store traffic, and intensifying brand competition, how to break through and grow is a question every distributor owner must consider.
袁来Channel Digitalization: Distributors Have Their Own Calculations
This article explores distributors' real experiences and concerns during brand owners' push for channel digitalization, highlighting issues like vested interests, role anxiety, short-term efficiency, and process habits. It argues that successful digitalization requires treating distributors as partners, understanding their specific concerns, and creating benchmark distributors, while distributors themselves must proactively embrace change.
任文青AndyIt's Time for Distributors to Consider B2B
Distributors have been facing tough business conditions recently, with rising manufacturer targets and intense market competition. High costs and low human efficiency make the current model unsustainable. Most distributors in prefecture-level cities with annual sales between 20-50 million yuan are stuck in a dilemma: unable to scale up, reduce costs, or manage staff effectively. B2B has passed the trial stage and is now widely accepted, offering a potential path for growth.
赵波Do You Remember 'New Retail'? It Has Truly Arrived
The author reflects on the rise and fall of the 'New Retail' concept proposed by Jack Ma in 2016, which was widely hyped but often lacked substance. He argues that true New Retail is not about buzzwords but about using technology to serve consumers as professional buyers, and notes that the real opportunity now lies in the early 'climbing phase' of the technology hype cycle, where genuine innovation is quietly taking root.
响马老苗This Year's Spring Sugar Fair Has Changed? These Companies Can't Come!
As the Chengdu Sugar and Wine Fair approaches, distributors face the annual challenge of selecting authentic, new, and major-brand products with high profit and quality from a myriad of options. To promote industry self-discipline and upgrade, the Pinyinhui Premium Beverage Theme Exhibition strictly screens exhibitors with its 5A certification, ensuring zero complaints and rejecting 247 brands so far, providing a trustworthy platform for distributors.
品饮汇Channel Digitalization: Strengthening or Bypassing Distributors?
Distributors stand on the front line of digitalization. Channel digitalization, far from weakening distributors, actually strengthens their value. The dual-private domain model emphasizes the role of retailers, but distributors are essential for connecting, activating, and co-operating with users. They must transform from distribution-focused to operation-focused roles, becoming the main players in B2C operations.
刘春雄The 'Bitterness' of Second-Generation Distributors
Recently, I discussed business plans with a second-generation distributor, and the conversation turned to succession. This article aims to address the topic from the perspective of second-generation distributors themselves. Most current distributors started their businesses around 1990-2000, following the reform of department stores and supply and marketing cooperatives. If they started in 2000, they are now 52; if in 1990, 62. Thus, the industry is experiencing a wave of second-generation succession, and these successors face various forms of 'bitterness'—not physical hardship, but a lack of meaning and value.
袁来From Today, China's FMCG Will Venture to the World
Amid intense domestic competition, China's FMCG industry seeks new blue oceans. At the 7th China FMCG Channel Innovation Conference in March 2022, New Distribution will host the first salon on Chinese FMCG venturing abroad, featuring pioneers who have already expanded into markets like Nigeria, Italy, and Africa.
陈思廷bC Integration: A Trap or an Opportunity for Distributors?
Recently, New Distribution has extensively reported on bC integration cases. Distributors still play an indispensable role in goods delivery and regional market operations, but from the historical development of FMCG channels, their role is weakening as brands get closer to the end market. With bC integration now brand-led, connecting directly to retail stores via mini-programs, the question arises: besides passive cooperation, do distributors have other options? Is it a trap or an opportunity? Where should they turn?
任文青AndyPrepared Dishes Are So Hot, Should Distributors Get on Board?
Prepared dishes have become the hottest track at the start of 2022, following community group buying and the metaverse. Lu Zhengyao, recently ousted from Luckin Coffee, has officially entered the prepared dishes sector with his new venture 'Shejian Workshop'. The model involves sourcing fresh ingredients, processing them into semi-finished products, and distributing via cold chain to retail terminals. With low franchise thresholds, the company has already secured 30 letters of intent. The market is booming, with projections of reaching trillions in scale, but distributors should carefully consider opportunities and challenges.
道农Why Should Distributors Follow You?
Making distributors bigger and stronger has become one of the company's biggest consensus. We deeply recognize that only when distributors grow strong together with the company can we win the victory of 'decisive battle for high-end, quality development'. Product premiumization and accelerating consumption upgrades have not improved distributors' profitability, and they feel the company is fleecing them. Competition has changed profoundly, but distributors' capabilities have not kept pace with the new normal, still relying on experience and traditional methods. How to make distributors follow the brand's growth pace and become effective partners?
刘 刚New Distribution's Reflections on Mission, Vision, and Values
Looking at the world with a broad vision, the media industry has obvious ceilings. New Distribution has been wandering and hesitating over this in recent years, making many attempts. Recent reflections, especially from Tiger Bang Chili Sauce founder Lu Wenjin, revealed the energy a true entrepreneur should have: certainty about the present, not rushing to grow big, but focusing on doing things well, as he puts it: 'growing grain on bluestone slabs.' As long as you want to do it, you can definitely do it well. Yes, it's this 'doing well' that gave me tremendous inspiration. Beginning...
赵波Kotler's Cao Hu and Zhao Bo in Dialogue: From a Marketing Perspective, How Will Channels Evolve in the Future?
This article is a transcript of a live-streamed dialogue between Dr. Cao Hu of Kotler Consulting Group and Zhao Bo, founder of New Distribution, on the topic of channel evolution in 2022, covering trends such as channel fragmentation, digitalization, and the shift toward omnichannel strategies.
科特勒增长实验室Wholesalers/Distributors Will See a Wave of Transformation to B2B
Wholesalers/distributors are the smallest operating units in the commercial circulation field in China, supplying goods to millions of mom-and-pop stores. They face increasing difficulties due to rising labor costs, thin margins, and intense competition, but they hold unique value in proximity and customer relationships. The article argues that a wave of B2B transformation is inevitable, driven by brand digitization and platform education, and provides guidance on how wholesalers can adapt.
赵波Raw Material Prices Are Soaring: Should Product Prices Follow? And How?
During recent market visits, conversations with distributors, wholesalers, and retail outlets inevitably turned to the increasing difficulty of doing business, compounded by rising product prices. Three scenarios emerged: some brands haven't raised prices but are threatening to; some price increases failed due to consumer resistance and squeezed channel profits; and some succeeded without losing market share. This article discusses how brands should approach price increases, covering pre-increase preparation, execution, and post-increase monitoring.
高级研究员 海游FMCG Distributors Are 'Quitting the Group' in Droves—Is Group Buying 'Killing' Traditional Channels?
FMCG companies now have too many channel options—traditional distributors, e-commerce, and emerging community e-commerce, community group buying, and livestream e-commerce—like five horses pulling a chariot. But if the horses pull in different directions, the chariot may be torn apart. A report on January 11 highlighted a franchisee's losses due to high channel prices, and many distributors in 2021 faced similar issues, leading some to 'quit the group' as emerging channels undercut prices and disrupted the traditional system.
李振兴Looking Ahead to 2022: 8 Changes Distributors Should Watch
As 2021 ends and 2022 begins, New Distribution reflects on visits with dozens of FMCG distributors over the past year, observing shifts such as the trend toward larger distributors, second-generation succession, digitalization, logistics specialization, private labels, private domain traffic, livestreaming, and community group buying. These insights aim to help distributors find direction in an uncertain 2022.
周群