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Intermediaries Will Always Exist, but Distributors Will Disappear
The article argues that while intermediaries will always exist, the traditional role of distributors is evolving. It outlines how digital transformation is leading to the emergence of four specialized service platforms that will replace the comprehensive functions of traditional distributors.
刘春雄First-Tier City Manager: First Check the Market, Then Diagnose the Distributor, One Upgrade Lasts Three Years
After the Chinese New Year, city managers face increasing pressure as community group buying platforms disrupt the market. This article advises city managers to conduct a comprehensive market check and distributor diagnosis, then upgrade the distributor network strategically—an upgrade that should last three years.
许翔 Ryan Xu8 Suggestions for Distributors: Business Is Difficult Every Year, but the 'Difficulty' Differs Each Year!
Scan the QR code in the image to register. In 2020, many distributors had a hard time. If you survived the past year without falling or being crushed, you should feel fortunate; in fact, you have outperformed many distributors around you. 2021 has officially begun, and although the shadow of the pandemic has almost dissipated, it is estimated that 2021 will not be easy for distributors either. Of course, every year is difficult, but the 'difficulty' faced each year is different. Therefore, this article offers 8 pertinent suggestions from the perspective of distributors.
高级研究员 海游Goodbye, Salesmen!
2020 marks the beginning of the digital marketing era, accelerated by the pandemic. As traditional channels and the internet fully integrate, the role of salesmen will be replaced by digital systems, turning them into 'human components' within these systems.
方刚Give the Function of Market Distribution Back to Distributors!
Scan the QR code in the image to register. Recently, visiting distributors in Shandong with sales of 10-30 million RMB, which is the main body of China's FMCG distributors. These distributors typically have years of business and some accumulation; they operate single categories with multiple brands; brand owners support sales staff and market expenses; they bear capital, warehousing, and logistics functions, as well as some wholesale sales. From an operational data perspective, gross margins are basically 7-8% to 12-13%, with some good categories reaching 15-16%. At the same time, operating costs are also around 7%-8%. Many distributors are at the break-even line; once there is any change in the external environment or brand owners, it's not uncommon to work for a month for nothing. This may be the general status of gross profit for distributors with 10-30 million in sales in China!
New DistributionBehind the 2020 Surge in Baijiu Stocks, Frontline Distributors See a Different Picture
While baijiu stocks soared in 2020, frontline distributors faced declining sales and increasing costs. This article shares insights from a Shanghai distributor, Chen Hua, on the challenges of urbanization, brand dominance, and the difficulty of scaling a relationship-based business, offering four strategies for survival and growth.
陈峰Distributors, Be Willing to 'Throw a Stone' to Test the Waters
This article discusses the importance of opportunity thinking for distributors, using a story about throwing a stone at a bird to illustrate that taking small actions to test opportunities is better than inaction. It argues that opportunity is not luck, and that distributors should stay curious, engage in external communication, and be willing to try new things to achieve sustained success.
陈思廷Distributors: Why Can't You Grow Your Business?
Many distributors face a common question: why, after years of hard work, is my business still not growing? This article analyzes the possible reasons, including product issues, business model problems, management coordination, and resistance to new operational models, and offers practical advice for overcoming these bottlenecks.
高级研究员 海游Cainiao Integrates 1,500 Mengniu Distributors, Covering 300 Cities, with Nationwide Unified Inventory!
Consumers order on their phones, and the brand delivers from the same-city distributor's warehouse, achieving half-day delivery. This is the new retail model being piloted by Mengniu and Cainiao Supply Chain. According to New Distribution, starting February 1, Mengniu launched a marketing campaign with Alipay's 'Collect Five Blessings,' where consumers scan the Mengniu logo to collect blessings and get coupons to buy milk. As Mengniu's supply chain service provider, Cainiao activated a customized plan, shipping from over 1,500 core distributors across China to ensure half-day delivery. Currently, the campaign is expected to give away millions of boxes of milk.
秦淮Why Are Large Distributors Valuable?
The trend of large distributors rising while small and medium distributors are being eliminated is becoming a reality. This article explains why the large distributor model is the future, its value, and how brand owners should adapt by supporting large distributors and focusing on their core competencies.
赵波 周群Prosperity in Both Urban and Rural Areas, Quickly Go to Market!
The 2021 Spring Festival saw over 100 million people staying put, boosting urban consumption, while compensatory spending lifted rural markets. Sales at key retail and catering firms reached about 821 billion yuan, up 28.7% year-on-year. The article urges bosses to visit markets, regain rhythm, and use data-driven decisions.
方刚What Will Baijiu Distributors Compete On in the Next Decade?
Despite the pandemic's lingering impact on the baijiu industry, one distributor argues that 2020 marks the start of a new decade of rapid growth for those who transform into brand operators. This shift requires embracing consumer-centric thinking and adapting to fragmented channels and scarce brand resources.
陈峰Distributors That Only Do Logistics and Delivery Have No Future!
Scan the QR code in the image to register. Research in third- and fourth-tier cities reveals many 'puffy' distributors with high annual sales but meager profits, lacking independent commercial flow capabilities. These distributors are essentially in the logistics and delivery business, not distribution, and are unsustainable. The article discusses the shift from the 'office + logistics distributor' model to empowering distributors with commercial flow capabilities, and offers strategies for preserving existing business and pursuing growth.
New DistributionDistributors: How to Tackle the Root Cause of Expiring Goods and Keep Losses Below 0.3%!
New Distribution has previously covered many topics on distributor business management, such as how billion-yuan distributors operate, their business models, organizational structures, and business management. However, we believe that while these provide inspiration and thought, they are not enough. Many distributors encounter trivial daily management issues beyond strategic concerns, such as handling near-expiry products, retaining good employees, employee leave during peak seasons, and drivers refusing to deliver in snowy weather. This article, the first in a series by Hongye Hengda Trading, focuses on how to systematically address the problem of warehouse near-expiry/expired goods piling up, offering practical steps and institutional solutions.
宏业恒大Personnel Online-ization: The Inevitable Path to Improving Human Efficiency in the FMCG Industry
As is well known, the FMCG industry employs a vast number of personnel. It is normal for a company to have hundreds of frontline staff, and large enterprises may have tens of thousands. Moreover, there are many roles among frontline staff, including basic sales personnel, promoters, supervisors, and grassroots managers. However, many of these frontline staff are often not online, making it impossible for companies to reach, observe, manage, or direct them effectively. When personnel are offline, they are like carrier pigeons released from a cage: they leave with a task, but whether they reach the destination, how long it takes, whether the task is executed properly, and what difficulties they encounter along the way are all unknown. The company can only sit at home and pray that the pigeon completes its mission.
实现人员在线化的2021 Dealers: Don't Repeat the Mistakes of the Past!
As the 2020 Spring Festival approaches, dealers are sharing their grievances about increasingly difficult business conditions worsened by the pandemic. Some complain about unsupportive employees, others about brand companies' inflexible sales targets and insufficient cost support, and some even consider quitting due to low profits. However, some dealers have thrived by leveraging product categories or business model innovations. This article addresses common dealer problems and offers practical solutions.
高级研究员 海游Dealers, It's Time to Get into Community Group Buying
A clear-headed person would not think that closing their eyes makes the world disappear. Yet many dealers, due to inner resistance, choose to stay away from community group buying. This article argues that dealers must embrace this rapidly growing channel and provides a course to help them do it from zero to one.
陈思廷Yili, Mengniu, and Bright Dairy Raise Prices Collectively: Who Will Give Us 'Milk Freedom'?
As the Spring Festival approaches, domestic demand for dairy products continues to rise, but this year manufacturers have not only refrained from discount promotions but have instead raised prices across the board. Companies uniformly attribute the increase to a significant rise in raw milk prices and surging cost pressures. Yili, Mengniu, Panda Dairy, and One Cow Raised by One Person have all implemented price hikes to varying degrees, with some consumers reporting that a certain brand's 250g×24-box pure milk has risen from 60 yuan to 75 yuan per carton. Once upon a time, dairy companies that championed 'a cup of milk a day keeps Chinese people healthy' have now left many netizens lamenting, 'Can't afford to drink!'
郑瑞龙A Beverage Distributor's Practical Case: Net Profit Up 10% in 2020 Through Price Adjustments
In the market, pricing determines success; it's both an economic issue (demand elasticity) and a psychological one (buyer psychology). This article shares a case study of a distributor's price adjustment strategy in 2020. The distributor, Mr. Zhang, operates in a third-tier city with a population of 1.6 million, generating annual sales of 25 million yuan for a beverage brand, facing a main competitor with 20 million yuan in sales. He navigated price, profit, and volume challenges to achieve a 10% profit increase.
高级研究员 海游Spring Festival Sales Battle: Practical Case Analysis on How Alcohol Distributors Boost Sales at Year-End
At year-end, especially during the Spring Festival, it is the peak season for alcohol sales, and most distributors rely on this period to make a good profit and have a good year. However, many distributors are unclear about how to proceed, often relying on intuition, which makes results dependent on luck. This article summarizes five simple, direct, and effective methods to inspire readers.
New DistributionA Nongfu Spring Distributor's Performance-Based Salary Reform: A Real Case Study
A former Nongfu Spring distributor, facing intense competition and declining market share, sought advice on improving team performance. Through a series of salary reforms—simplifying metrics, focusing on volume, developing outlets, introducing PK incentives, and removing base salary—the distributor successfully boosted sales and team efficiency.
高级研究员 海游Exclusive Investigation: Instant Noodles Suddenly in Short Supply, Will They Run Out During Spring Festival?
“Instant noodle supplies in our Xuzhou region have recently become tight, and distributors' warehouses are basically empty,” a distributor reader reported to New Distribution on January 26. New Distribution quickly conducted a market survey covering distributors and brand sales managers in Beijing, Hebei, Jiangsu, Shaanxi, and other regions. The survey found that instant noodle supply in multiple regional markets experienced a certain degree of shortage at the channel level. Many distributors in various regions saw their warehouses empty, but new stock was hard to order or still in transit...
陈思廷Can Viya Convert Traffic into Sales with a New 1.8 Million Yuan Food Company?
Viya, a top Chinese livestream e-commerce host, has established a new food company, Hangzhou Fengweipai Food Co., Ltd., with a registered capital of 1.8 million yuan, fully owned by her affiliated company Qianxun. This move highlights the trend of influencers entering the food industry, leveraging personal influence, consumer insight, and supply chain capabilities, though challenges remain in a competitive market.
FBIFChannel Digitalization Running with 'Toxins'
Digitalization is a hot topic, but most brands and distributors are still in the primitive stage of channel digitalization, with data fraud being a persistent problem. Experts suggest that without clean and real data, any digital system is just a castle built on sand.
陈思廷