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Post-Pandemic: Rising Inventory, Slowing Shipments, Urgent Need to Clear Stock!
The sudden outbreak has halted society and disrupted the traditional peak season for FMCG, putting distributors under immense survival pressure. While new channels and niche categories emerge, distributors face the immediate challenge of clearing increased inventory amid slowed shipments. This article outlines four key steps to tackle inventory clearance effectively.
Tyler WeiSingle-Channel Distribution Is Risky—Here's How to Build 5,000 Special Channel Outlets
The pandemic has hit many distributors hard, especially those focused on catering, wholesale, and gift boxes. However, multi-channel distributors have suffered less or even grown. This article shares two cases and insights from Hongye Hengda's executive president, Li Feng, on building special channels, seizing the fresh supermarket trend, and mastering modern trade.
李锋Vita Lemon Tea Poised to Become Next 5 Billion Yuan Product, But Faces Siege from Giants like Master Kong and Coca-Cola!
In recent years, the bottled tea market has seen a flurry of new products. Lemon tea, as a basic flavor in the tea beverage category, has evolved from being dominated solely by Vita Lemon Tea to attracting major players like Master Kong, Dongpeng, Coca-Cola, and COFCO, who have successively entered the market with their own offerings. As a niche segment, what does the future hold for the lemon tea market, and which brands might impact Vita Lemon Tea?
阿图When Wahaha Spends 200 Million on E-commerce: Never Go Against the Trend!
The situation is indeed stronger than the individual! A few years ago, Zong Qinghou, who had topped the Hurun Global Rich List (mainland China) three times, was skeptical of Jack Ma's e-commerce model. Now, at 74, he has finally embraced e-commerce by registering Hangzhou Wahaha E-commerce Co., Ltd. with 200 million yuan. From resisting to embracing e-commerce, Zong Qinghou's journey reflects the dramatic changes in China's business ecosystem.
电商君本尊Distributors' Second Venture into Community Group Buying: Whose Business Are They Really Taking?
Community group buying has become a familiar term to many distributors after the COVID-19 pandemic. While the trend might have fizzled out by 2019 without the pandemic, it was reignited in February 2020 due to the outbreak. This article, from a distributor's perspective, explores the differences between traditional distribution and community group buying, the platform business model, and clarifies that community group buying actually competes with hypermarkets and wholesale markets, not with fellow distributors or community stores.
袁来Why Do 80% of Distributors Fail with Professional Managers?
Many distributor owners find it hard to grow once their business reaches a certain scale, often due to limited personal energy, market conditions, or lack of management. To solve this, New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, to share insights on how distributors can find reliable partners or professional managers.
李锋Distributor Says: "What If We Can't Afford to Stock Up Due to Financial Difficulties?"
Case background: Dafa Trading is an important distributor under your management, having completed 49 million yuan in sales for the company last year; this year, the company requires Dafa Trading to grow by 5 million yuan, reaching 54 million. Although there is pressure, you think it can be done. At this moment, Lao Liu from Dafa Trading is anxious, saying there is no more money to purchase goods, making it difficult to complete the new sales growth. Lao Liu has been cooperative over the years and has performed well on sales targets; if it weren't for real difficulties, he wouldn't have raised it. What should you do? First, clarify what kind of problem this is...
刘华明How Can a Cross-Regional, Multi-Category, Multi-Brand Distributor Set Up a Branch Company Within 2 Weeks?
As e-commerce impacts first-, second-, and third-tier cities, distributors in these areas face increasing difficulties, while fourth- and fifth-tier cities and county-level markets are less affected, prompting more distributors to focus on county markets. To successfully expand into county markets, this article, based on the practical experience of Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, discusses the necessity of setting up a branch company and provides a step-by-step guide to establishing one within two weeks, including sales strategies for the startup phase.
李锋80% of Billion-Level Distributors Only Master 'Selling' Without Understanding 'Marketing'
This article discusses the common problem of large distributors who achieve high sales volumes but low net profits, described as 'strong outside but weak inside.' It offers practical suggestions across five areas: reducing return rates, implementing valuable promotions and ideal retail pricing, guiding unified consumer cognition, adjusting product mix toward new products, and refining operations to cut costs and increase efficiency.
海游Leading Condiment Company Haitian's Financial Report | Revenue of 19.797 Billion Yuan, Net Increase of 999 Distributors
On March 25, Haitian Flavoring & Food Co., Ltd., a leading Chinese condiment company, released its 2019 performance report. In 2019, Haitian's revenue reached 19.797 billion yuan, a year-on-year increase of 16.22% from 17.034 billion yuan in the previous year. Net profit reached 5.35 billion yuan, up 22.64% from 2018. However, gross margin declined by 0.83 percentage points year-on-year to 47.23%. Haitian stated in the annual report that the decline was mainly due to rising procurement costs and an increased proportion of oyster sauce sales.
New DistributionWhy Do Trading Companies Exist and Where Are They Headed?
This New Year has brought many challenges: the outbreak of the epidemic, mass quarantine, store closures, the surge of home delivery and group buying, some categories experiencing stockouts, and others oversupply. Amidst these pressures, sensational claims like 'New retail is here, the value of distributors has disappeared' have emerged. Distributors are left wondering why they still exist and where they are headed. There are many perspectives to answer these questions, but flashy new terms only cause anxiety. Sometimes, thinking through fundamental logic simplifies things. Below, we share a more basic line of reasoning.
刘华明In the Era of Omnichannel Distribution, Will Traditional Business Managers Be Eliminated?
As a veteran city manager, Lao Wang, who has long been relied upon by his company, is feeling frustrated and depressed after missing performance bonuses for three consecutive months. With the rise of new retail and digital channels, he wonders if he is being left behind. The article argues that while the FMCG landscape is fragmenting, traditional channels still account for 80% of sales, and business managers should expand their comfort zones by learning new skills rather than abandoning old ones.
许翔During the Epidemic! For Distributors to Survive, Cash Flow Matters More Than Selling Goods
During the epidemic, cash flow shortage has become the most severe problem for distributors, surpassing slow sales and high inventory. Distributors need safe, convenient, and low-cost financing tools like Cainiao Cloud Loan to survive and seize new opportunities.
New DistributionPost-Pandemic Dining Consumption Is an Opportunity: How Should Foodservice Distributors Seize It?
The sudden pandemic brought the entire foodservice industry to a standstill, putting the whole chain from consumers and restaurants to suppliers into a dormant state. Now that the pandemic is nearing its end and social order is recovering, while it is uncertain whether revenge spending or compensatory purchasing will occur, one thing is certain: post-pandemic gatherings and dining out will be essential, primarily in foodservice channels. So, suppliers, are you ready?
New DistributionHow Distributors Can Recruit and Retain Talent After Work Resumes
As of March, due to the pandemic, most distributors' businesses have been intermittent and essentially stalled for two months. Now is the real start of their business, and at this point, distributors need to consider recruitment, followed by management and retention. New Distribution invited Mr. Li Feng, Executive President of Anshan Hongye Hengda Trading, to share how distributors can efficiently recruit, manage, and retain talent, preparing for business growth in 2020.
李锋Understanding the Relationship Between Manufacturers and Distributors: A Look at Nongfu Spring
This article examines the manufacturer-distributor relationship through the lens of a competitor, Nongfu Spring. It argues that truly understanding competitors and their strategies is crucial, and that treating distributors as logistics providers is counterproductive. Instead, aligning with human nature and treating distributors as true partners, with contracts as business plans and investments that feel like their own, leads to better outcomes.
老章Report | 2019-2020 FMCG Retail Store B2B Competitiveness Report (Download Included)
With the rapid development and penetration of digital tools, e-commerce has become an indispensable part of people's lives. As a new procurement method for traditional retail stores, B2B platform ordering is increasingly accepted by small store owners. Especially after the entry of Alibaba's Retail Link and JD's New Path, the FMCG B2B industry has gained unprecedented attention from brand owners. To help FMCG professionals better understand the current development of the B2B industry, the procurement proportions of traditional retail stores across different channels, and the comprehensive competitiveness of platforms in various regions, the New Distribution research and consulting team has compiled this report.
新经销咨询团队Jiang Xiaobai Founder Tao Shiqiang: Anti-Fragility Thinking in Chinese Business
In recent days, I have been doing media live streams, not to promote Jiang Xiaobai's development or business, but to convey meaningful things to the industry and society as an enterprise, brand, and industry practitioner after the outbreak. The epidemic brings challenges to every enterprise, practitioner, family, and individual, with challenges outweighing opportunities, leading to widespread anxiety. I want to share some thoughts to help alleviate this anxiety. Today, I will share on the topic of 'Anti-Fragility Thinking in Chinese Business.'
陶石泉The "Iron Triangle" of FMCG Channels: Distributors, Frontline Sales, and Product Specialists Form Small Teams to Fight on the Front Lines
Amid China's economic slowdown, fragmented consumer demand, e-commerce disruption, and squeeze competition, traditional FMCG channel models are under pressure. In response, New Distribution, with Professor Gao Song from East China University of Science and Technology, launched the 'Gao Song: Channel Empowerment' column to explore new channel models, strategies, and methods. This ninth installment focuses on building frontline team combat mechanisms for FMCG manufacturers, drawing on Huawei's Iron Triangle model adapted for consumer goods.
高松Distributor Boss's Personal Account: How Did He Turn Around from Mars Wrigley Distribution to Snack Food Category Distributor?
Before 2018, Zhicheng Trading in Linquan County, Anhui, was a multi-brand, cross-category distributor. After 2018, it successfully transformed into a single-category snack food supplier, experiencing short-term sales fluctuations but rapid net profit growth. Now, Zhicheng Trading has over 2,000 terminal outlets, 11 salespeople, 1,500 SKUs, with annual sales growth exceeding 30% and self-operated category sales growth over 100%. The following is the 'distribution development history' of Zhicheng Trading, as told by its founder, Mr. Wang Lei.
王磊Overnight, Community Group Leaders Were All Snapped Up!
If there was one of the hottest keywords in 2020, it was community group leaders. Major FMCG brands from beer to beverages to food to condiments to daily chemicals suddenly made the position of community group leader the top searched job in the FMCG industry, becoming the apple of every FMCG company's eye. Overnight, community group leaders were all snapped up! The community group buying channel was enthusiastically embraced by manufacturers, who placed their hopes on it as a lifeline during the pandemic. My article 'Ten Questions: The Marketing Model of Recruiting Community Group Leaders in FMCG' also sparked heated discussion among FMCG practitioners and marketing gurus.
1号子弹Distributors Want to Try Community Group Buying? Stay Calm and Prepare for a 'Second Start-Up'!
The pandemic has reignited community group buying, prompting many distributors to enter this business. However, it's far more complex than it seems, requiring a shift from B2B to B2C thinking, daily category planning, and operational expertise. Distributors should approach it cautiously, ideally with a fresh team and a pilot project, while recognizing the broader trend of channel diversification.
袁来50,000+ N95 Masks Available – Click Here If You Need Them
The outbreak has disrupted all plans for 2020, and some distributors fear bankruptcy if conditions don't improve. With stores closed and consumers staying home, distributors face slow sales, but demand remains; they need effective methods to move inventory, such as offering masks, which are in high demand. A New Distribution client has over 50,000 medical masks available at a low price to help businesses in need.
New DistributionNongfu Spring, C'estbon, Ganten and Others: The 'Water Head Battle' Is About to Erupt in These Special Times!
Due to the impact of the epidemic, most beverage companies have just resumed work, but some warehouse and road closures still exist. In previous years, companies would have finished order meetings and started terminal layout. This article reviews the process and provides strategic insights for beverage manufacturers to adapt their 'water head' (seasonal pre-season) layout under the special circumstances, emphasizing the need for integrated manufacturer-distributor operations and B2B/B2C integration to seize the upcoming peak season.
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