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In-Depth: 10 Theoretical Foundations of New Distribution's Understanding of the Industry and Channels
New Distribution has long provided in-depth interpretations of the FMCG industry and its channels, guided by a set of cognitive models. This article compiles these foundational frameworks, including concepts like customer delivered value, consumer behavior types, three-dimensional space, retail scenarios, consumer sovereignty, infinite shelves, supply surplus, industrial vs. information civilization, and the roles of distributors and wholesalers, to share with readers.
赵波Consumers Are the Starting Point and Endpoint of Digital Transformation for FMCG Companies
Digital transformation is a hot topic among executives at major FMCG companies, with many making it a key project for 2021. The three unavoidable questions are: where to start, where to end, and how to measure success. Consumer behavior is the starting point, consumer value is the endpoint, and the total cost to consumers is the ultimate measure of success.
吴建荣Liu Zhao of Field 365: Channels Don't Innovate Actively; They Just Respond to Rapid Changes in Consumption Scenarios, People, and Fields
The 6th China FMCG Channel Innovation Conference, hosted by New Distribution, a professional new media platform for FMCG, was grandly held from April 1 to April 3 at Chengdu Agile Howard Johnson Hotel. The event attracted 3,000 industry professionals including distributors, community e-commerce platforms, brand owners, and internet companies from across the country, with a full house and unprecedented scale. On the morning of April 1, at the conference, Mr. Liu Zhao, CEO of Field 365, delivered a keynote speech titled "Channel Innovation in the Era of Data Explosion."
刘昭From Wholesaler to 160 Million Yuan Annual Sales in Snacks: How She Achieves 20% Yearly Growth
The article traces the evolution of a trading business from a supply and marketing cooperative to a wholesaler, then to a traditional distributor, and finally to a service provider. It highlights the transformation of Wuxi Dadexing Trading Company, which grew from 50 million to 160 million yuan in six years by focusing on imported snacks, building a robust organizational structure, and implementing strategic product selection and customer service.
周群The Future of Intermediaries: A Once-in-a-Century Opportunity
2021 marks the end of the old business cycle and the beginning of a new one, characterized by intelligent commerce. All entities in the supply-demand chain—producers, suppliers, and distributors—are being redefined, modularized, and reorganized. This shift from industry position competition to ecosystem competition presents a historic opportunity for intermediaries.
任小东Bo Chuanchuan of Fenxiang Xiaoke: Four-in-One to Accelerate Channel Digitalization
At the 6th China FMCG Channel Innovation Conference, hosted by New Distribution, Bo Chuanchuan, R&D Director for FMCG at Fenxiang Xiaoke, shared insights on accelerating channel digitalization. He emphasized the importance of aligning with human nature, rapid iteration, and a four-in-one platform (SaaS, PaaS, BaaS, BI) to ensure successful digital transformation.
薄川川Unilever Invests 1.3 Billion Yuan, Genki Forest and Heytea Are Also Doing It: How Attractive Is the DTC Model?
Behind the boom of new consumer brands lie hidden issues, such as increasingly expensive traffic and marketing costs accounting for over half, or even 60%, of revenue for many brands. Amid brands' lamentations, the DTC (Direct-to-Consumer) concept is gaining traction. Originating in the U.S., DTC refers to brands interacting with consumers directly through their own official channels (websites or apps abroad, WeChat mini-programs or Moments in China) without intermediaries or third-party platforms.
FBIFSettled: Budweiser China Signs Exclusive Distribution Deal with Red Bull Austria in China—Who Is the Wedding Dress for Whom?
On April 18, Budweiser China announced the official signing of an exclusive distribution agreement with Red Bull Austria for the Chinese mainland market. This puts an end to the rumors between Budweiser China and Red Bull, with the previously rumored partner, Red Bull Anji, replaced by the low-key Red Bull Austria. Months earlier, market rumors suggested Budweiser China might become the general distributor for Red Bull Anji in the southern market, splitting the north-south distribution with Yangyuan Group. However, Budweiser China quickly issued an official clarification denying any distribution cooperation with Red Bull Anji.
New DistributionXu Yonggang of Zhengzhou Swire Coca-Cola: Solving the BC Integration Challenge with a Game the Industry Has Played for 20 Years
At the 6th China FMCG Channel Innovation Conference, Xu Yonggang, Director and General Manager of Zhengzhou Swire Coca-Cola, shared his insights on BC integration. He introduced a formula of 'entry, traffic, and monetization' and highlighted two 'gold mines': customer databases and products, using a successful UTC promotion as a case study.
徐永刚Will Digitalization Create Channel Squeeze?
Digitalization squeezes stores in two ways: platforms that are rarely used sink to the bottom and are effectively squeezed out, and digitalization limits store owners' choice of products, squeezing out products that cannot enter stores. This results in non-well-known brands and their distributors being pushed out of channels in the digital era, forming a digital barrier that is higher than traditional channel barriers.
刘春雄Digitalization Led by Major Distributors
Marketing digitalization involves four main entities: platform-led, retailer-led (new retail), brand-led, and major distributor-led. While platform and retailer-led digitalization have plateaued, 2020 saw significant growth in distributor digital systems, especially for major distributors who can also digitalize small brands. Major distributors must build comprehensive systems including warehousing, B2b ordering, supply chain, and b2C modules to avoid digital silos and achieve full-chain efficiency.
刘春雄Chen Yuchi of Evergreen Group: The Road to New Retail Transformation in Traditional Industries
At the 6th China FMCG Channel Innovation Conference, hosted by New Distribution, Chen Yuchi, Director of New Retail at Evergreen Aquatic Products, shared insights on transforming traditional industries through new retail. He emphasized adapting to changing consumer needs, product innovation, and channel diversification.
New DistributionZihaiguo Ignites Chengdu Spring Sugar Fair, Convenience Food Market Set for Reshuffle!
As a major event in the sugar and wine food industry, the Sugar and Wine Fair attracts distributors from all over the country every year to select products and exchange ideas. Last year, due to the impact of the epidemic, the Spring Sugar and Wine Fair was canceled, making this year's fair exceptionally noteworthy for distributors. During a visit to Chengdu, reporters found that various hotel exhibitions were extremely lively, with many innovative consumer brand exhibition areas. As the hottest brand of 2020, Zihaiguo made its debut at the Spring Sugar Fair, attracting offline distributors to stop, linger, and discuss cooperation. In 2020, when counting which brands were hot in the consumer goods sector, I think...
New DistributionBrand Channel Digitalization: Start from B-end or C-end?
The endgame determines the direction, and the current state determines the starting point. The distance between the current state and the endgame is the path for future work. The current state of channel digitalization is: 1. Leading FMCG companies have basically connected B2B, i.e., F2B or F2B2b, with the last link being b2C. During research, I found that some leading companies have even connected township second-tier distributors. Of course, this process has not been without resistance from distributors and sales staff. Companies that first connected B2B generally focus on direct-operated terminals. When...
刘春雄Let Professionals Do What They Do Best: How Anneng's 'One Inventory' Helps FMCG Companies Strengthen Channel Power?
In the FMCG industry, traditional marketing relies on brand power and channel power. With media decentralization, channel power, especially deep distribution, has become crucial. Anneng Zhilian's 'One Inventory' solution integrates online and offline inventory to streamline supply chains, reduce costs, and enhance efficiency, enabling BC channel integration and helping companies adapt to diversified channels.
New DistributionSecond-generation distributor for Unilever, Darlie, Colgate and other daily chemical brands enters e-commerce, doubles growth in 3 years!
Du Xiaoying, a second-generation distributor, leveraged her audit background and a full organizational structure to grow her family's daily chemical distribution business online from 8 million RMB in 2018 to 48.5 million RMB in 2020. She shares her strategies for profitability, product selection, and the importance of systems and execution, offering insights for traditional distributors considering e-commerce.
袁来Distributors Entering Community Group Buying: Learn to Come Armed to the Feast
As community group buying becomes a major channel innovation, distributors must face this 'Hongmen Banquet' by partnering with brands, securing exclusive products, and building strong fulfillment capabilities to negotiate from a position of strength.
陈思廷2020 China Resources Snow Breweries Performance Review | Strengthening Brand Premiumization and Empowering Distributors to Grow Stronger!
On March 22, 2021, China Resources Snow Breweries released its 2020 performance report. The report showed that in 2020, the company's revenue was RMB 31.448 billion, a slight decrease of 5.2% year-on-year, mainly due to the impact of the pandemic. However, in terms of profit, the company's profit attributable to shareholders and earnings before interest and taxes increased by 59.6% and 42.3% respectively compared to 2019. In response, CEO Hou Xiaohai stated at the media conference held that day that domestic pandemic prevention and control has basically been brought under control, and it is expected that the beer market consumption will return to normal levels in 2021.
澄韵After Warehousing and Distribution Are Stripped Away, What Else Can Distributors Do?
As national warehousing and distribution platforms grow rapidly, distributors' warehousing and distribution functions are being stripped away. Distributors must transform into operators, whose core value lies in BC-integrated operations and user reach, which cannot be replaced by large platforms.
刘春雄A Good Product in the Eyes of Distributors
This year, I've been handling Unified's Laotan Sauerkraut Sauce, Shiitake Mushroom Sauce, and Liangpi, and recently I've been assisting the team in recruiting distributors. After visiting dozens of distributors, I've concluded that the definition of a 'good product' differs between brand owners and distributors. If you insist on talking about your product's excellence from the brand's perspective, you may fail to understand distributors' needs and miss cooperation opportunities. Today, I'll discuss what factors determine whether distributors consider a product 'good'.
高级研究员 海游Frontline Teams Resist, Distributors Don't Take It Seriously—How to Actually Pull Off Digital Transformation?
The tide of digitalization in the FMCG industry has reached the doorsteps of terminal stores, with the wreckage of companies that can't swim floating around, and boats full of system vendors. Distributor bosses are anxious, asking where to start and how to do it, having installed multiple terminal systems without success. This article offers advice for manufacturers and distributors on digital transformation, emphasizing the importance of data collection, distributor engagement, and a phased, people-first approach.
高级研究员 海游Customer Onlineization: A New Step in Business Reach for the FMCG Industry
Field Service 365 proposes that digitalization in the FMCG industry mainly consists of five onlineizations: personnel, customer, market activity, channel order, and channel inventory. Among them, customer onlineization is the foundation for business reach. In the past, FMCG companies mostly adopted multi-level distribution strategies, ignoring stores and not controlling them. Companies pushed goods to distributors, who were responsible for developing stores and stocking them, making it difficult for companies to know which terminals their products reached. A typical FMCG company has thousands of customers (terminal stores), and large ones have hundreds of types and hundreds of thousands of terminals, such as KA, BC, CVS, and special channels like hotels, internet cafes, restaurants, and schools. To obtain their locations, delivery frequencies, and complaint situations, companies had to invest heavily in manpower and verify information accuracy. Now, "those who win terminals win the world," and controlling terminals is core to competition. The first step is customer onlineization, which differs from traditional informatization by enabling real-time, two-way business interaction.
实现客户在线化的Digitalization Completely Transforms Channel Power
A review of several cases of BC integrated operations reveals that even unknown new brands can move through channels much faster than with deep distribution. The reason is that digitalization reaches C-end consumers, activating B-end channels through C-end resources, creating channel pull. When push and pull are combined in the same channel, the impact far exceeds traditional brand-driven or channel-driven approaches.
刘春雄Community Group Buying Is Here, Distributors Don't Be Afraid!
Scan the QR code in the image to register. Recently, I talked with a distributor named Wang Hua (pseudonym) who supplies to community group buying platforms. I thought he was doing well by catching the trend, but he complained bitterly about being scolded by a 90s buyer and facing fines and freezes. The article advises distributors to stay calm, focus on core competencies like product selection and promotion, and not fear the new model.
秦淮