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The Key to Channel Transformation Is Distributors: If Distributors Don't Make Money and Cooperation Is Low, Everything Is Empty Talk!
Amid China's economic slowdown, fragmented consumer demand, the impact of online e-commerce, and a squeeze-style competitive market, the traditional channel model in the FMCG industry is under pressure, with sales generally hitting bottlenecks. Against this backdrop, New Distribution, in collaboration with Professor Gao Song from the Business School of East China University of Science and Technology, launched the 'Gao Song · Channel Empowerment' column to explore new channel models, strategies, and methods for FMCG manufacturers and distributors in the new era. As market demand changes and competition intensifies, FMCG brand owners are generally facing growth bottlenecks.
高松Redefining the "Distributor": The Brand's Marketing Frontline, the Terminal's Business Advisor, and the Consumer's Category Expert
Amid China's economic slowdown, fragmented consumer demand, the impact of online e-commerce, and intense market competition, the traditional channel model in the FMCG industry is under pressure, with sales generally hitting bottlenecks. Against this backdrop, New Distribution, in collaboration with Professor Gao Song from the Business School of East China University of Science and Technology, launches the "Gao Song: Channel Empowerment" column to explore new channel models, strategies, and methods for FMCG manufacturers and distributors in the new era. Facing the drastic impacts of online sales, channel digitalization, and socialized warehousing and distribution, the traditional business model of distributors is unsustainable. What is the future direction of transformation, and what role should distributors play in the future channel ecosystem?
高松60% Repurchase Rate, 100% Sell-Through: How Did This Small Walnut Achieve It?
China has become the world's largest producer and consumer of nuts and roasted seeds, and also the fastest-growing country. In recent years, the nut industry has maintained double-digit growth annually. However, rapid expansion has led to severe homogenization, intense competition, and declining profits. How to win in this brutal red ocean? The answer is differentiation. Lvling Roasted Walnuts has carved a path of differentiation from product to channel to marketing since its inception. Today, Lvling Roasted Walnuts boasts a repurchase rate exceeding 60% and 100% sell-through, making it the undisputed king in this niche.
New Distribution60% Repurchase Rate, 100% Sell-Through: How Did This Small Walnut Achieve It?
China has become the world's largest producer and consumer of nuts and roasted seeds, as well as the fastest-growing country in this sector. In recent years, the industry has maintained double-digit growth annually. However, rapid expansion has led to severe homogenization, intense competition, and declining profits. The answer to winning in this brutal red ocean is differentiation. From product to channel to marketing, Lvling Roasted Walnuts has carved out a differentiated path since its inception. Today, with a repurchase rate exceeding 60% and 100% sell-through, it has become the undisputed leader in this niche segment.
New DistributionDistributors: There's 'Great Wisdom' in Numbers!
Data management is a mindset, not about big data or small data, and it can be unrelated to the internet. Lin Biao's use of captured lists to locate the enemy headquarters during the Liaoshen Campaign, and Wang Yongqing's rice delivery method, both demonstrate that data awareness is more important than the data itself. Without data awareness, more data is useless.
刘春雄"No Middleman to Earn the Difference" — Nonsense!
The article argues that middlemen (distributors) in the FMCG industry are not obsolete but essential, providing logistics, capital flow, and information flow that improve efficiency and reduce costs. Despite the rise of e-commerce and B2B platforms, distributors will not disappear but will evolve, becoming more specialized and important in the supply chain.
袁来Dairy Giants Battle for High Margins in the Chilled Fresh Milk Market
The chilled fresh milk market is becoming increasingly crowded. As traditional product markets saturate, dairy companies are turning to high-margin chilled fresh milk. Junlebao's recent entry into the market intensifies competition, posing new challenges for regional players.
栾立“First-tier brands have thin profits, second-tier brands have weak terminals, and third-tier brands die fast!” How should distributors choose products correctly?
Recently, I was invited by a friend to discuss how distributors choose products, so this article will talk about product selection. A distributor's ability to make money is directly related to their product portfolio. It is irresponsible to select products without maximizing portfolio profits and to lead your team towards prosperity without a clear plan. So how exactly should one choose products to sell?
海游Case Analysis | Distributors Achieve New Product Success in "Eight Steps"
How can distributors ensure the success of new products in regional markets? While each experienced distributor has unique insights, commonalities exist. This case study analyzes the general approach and methods of an excellent distributor in launching new products.
张宇Distributors That Only Do Warehousing, Financing, and Wholesaling Are Basically Close to Shutting Down!
The harder business gets, the more distributors should think about how to run their business in the next 2-3 years, especially in an era of new retail rise, online e-commerce blockade, and B2B e-commerce competition. New Distribution has predicted that regional distributors will evolve into three types: brand operators, category operators, and regional supply chain enterprises. Frankly, there will be fewer regional supply chain enterprises, about 1-3 in a region, and the requirements are higher, making it not the best choice for most distributors. Becoming brand operators or category operators is relatively easier, and adjusting direction based on existing distribution resources is a good option.
袁来Distributors' Year-End Cash Crunch: Keep These Six Points in Mind, and Funding Shortages Will No Longer Be a Problem!
In this marketing era of 'terminal is king' and 'channel wins', although some distributors in the channel are growing their businesses, they often feel cash-strapped and face turnover difficulties. Especially during the year-end sales peak, when food companies offer attractive sales policies and terminal consumption opportunities tempt them, many distributors feel increasingly powerless and short of funds. What exactly causes such cash shortages?
潘文富Do Distributors Really Have No Value?
The sales position of distributors has been largely overlooked by marketing gurus, but it is often extremely important in actual market operations. This article argues that distributors still hold significant value and provides a step-by-step guide on how to develop and manage distributors effectively.
海游Why Is It So Hard for FMCG Distributors to Make a Living?
When the distributor business is no longer profitable, how many are willing to persist? In recent years, few newcomers have entered the FMCG distribution industry, leaving only companies that have struggled for years or decades. As market competition intensifies and profits decline, the industry faces challenges from macro factors, changing consumer demand, and internal management issues.
刘永国It's Time to Give the Market Back to Distributors
The author recently visited distributors in Hebei and Shandong, with sales scales mostly between 10-100 million yuan, representing the main body of Chinese distributors. These distributors share common traits: years of business accumulation, local influence, single-category multi-brand operations. Most operate with brand support for sales staff and marketing expenses, while distributors handle capital, warehousing, logistics, and some wholesale sales. Their gross margins are generally low, typically 7-13%, with some categories reaching 15-16%. This is surprising, as distributors above 10 million yuan usually have operating costs of 7-8%, so low margins put them near breakeven, making them vulnerable to external changes.
赵波Movement is the Foundation: Master the Two Forces at the Terminal to Achieve Rapid Sales Growth
As new product production and total consumption decline, and as food products penetrate lower-tier markets intensifying regional competition, the era when simply placing products on terminal shelves with promotional policies could solve consumer choice is over. Solving the problem of terminal product movement has become the top priority for manufacturers and distributors. Sales without movement, merely pushing inventory to terminals, only converts industrial inventory into commercial inventory and is unsustainable. Channel push and consumer pull are the two main directions to solve terminal movement.
张选Year-End Chinese New Year Stockpiling: Creating "Big Sales"
For FMCG sales, the critical battle of the year is the Chinese New Year, and the core task is stockpiling inventory and pushing goods to dealers. When, how, and how much to stockpile? This is essential sales skill. With Chinese New Year 2020 falling on January 25, time is running out. Success in this battle determines your annual performance and income.
罗宏文After Receiving a New Product, How to Quickly Capture the Market?
During the distribution process, distributors follow the principle of speed to win, quickly and effectively getting products to the point of sale to meet consumer demand and achieve zero inventory. This principle is reflected in several aspects: first, focus on major areas and make incremental progress; second, sow widely and cultivate key accounts; third, use small incentives to attract large deals and follow up repeatedly; fourth, combine product bundles for rapid sales; fifth, leverage existing strong brands to support new products; sixth, cooperate with strong local distributors for indirect control; seventh, persist with repeated follow-ups; and eighth, use team-based distribution to create momentum.
牛恩坤Distributors Revolutionize Themselves
A distributor with thousands of square meters of frozen meat inventory feels mixed emotions during the recent surge in meat prices: excitement over profits but concern about long-term sustainability. Chen Mu, a second-generation distributor, is focusing on transformation and reform, emphasizing that distributors must revolutionize themselves or be eliminated.
凌燕Defensive Battle of Strong Brands | Nongfu Spring's Dealer Reform in 2014
Before discussing how strong brands defend their dominance, one must deeply understand what they are defending and its significance. This article explains the concept of strong brands, how they defend their position, and how Nongfu Spring adjusted its dealers to counter competitors.
海游7 Steps for Distributors to Win the New Product Launch Battle
Launching new products is a challenging task that enriches market product structure, increases profit margins, and extends brand vitality. Distributors must clarify whether the brand is a leader or a newcomer, and follow seven steps: market positioning, gross profit estimation, market planning, cost investment, personnel investment, task decomposition, and execution review, to ensure success.
New DistributionDistributor Lao Zhang's Worries, Marketing Director Lao Cao's Pain: What's Wrong with the Traditional Channel Model?
To vividly illustrate the problems in the current FMCG industry's channel model, this article creates two characters—distributor Lao Zhang and marketing director Lao Cao—to reveal the drawbacks of current channels through their pains and worries, and on this basis, outlines the direction of future channel transformation.
高松Annual Sales Nearly 400 Million: The 'Three Moves' of Haitian and Hengshun Distributors: Category Distribution + Foodservice Distribution + Centralized Warehousing and Delivery
A viewpoint recently caught our attention: in the next 5-10 years, 70%-80% of small and medium-sized enterprises will be cleared out. Reflecting on New Distribution's coverage and observations of distributors over the past year, we are convinced of this. From a macro perspective, the market has entered a phase of 'grabbing the pie,' where sales growth is not made but fought for. In the existing market, there will inevitably be winners and losers, and the most direct manifestation is the exit of distributors in the middle. Liu Run, founder of Runmi Consulting, once said: 'During the dividend period, there is no difficult business; once the dividend period is over, there is no good business.' This logic fits the distributor industry perfectly.
袁来Dealers Should Never Pin Their Hopes on a Single Brand
More than half of 2019 has passed, and all dealers are complaining about poor market sales. Manufacturers have raised prices multiple times to balance their books, but whether consumers will accept the increases is a huge test for dealers. In the early days, dealers aspired to represent big brands, but now representing them has become a dilemma—abandoning them is a pity, while keeping them is exhausting.
New DistributionThe Company Behind JDB Herbal Tea, Kunlun Mountain Mineral Water, Pechoin Herbal, and Jiangzhong Jianwei Xiaoshi Pian...
This article tells the legendary stories of brands like Pechoin, which grew from 200 million to 17.7 billion yuan in 8 years, surpassing L'Oreal and Olay to become China's leader; Wanglaoji, which surpassed Coca-Cola in 8 years to become 'China's No.1 beverage can', growing from 120 million to 36 billion yuan; Jiangzhong Jianwei Xiaoshi Pian, which has been the No.1 OTC drug in China for 12 consecutive years; and Xiwang Corn Oil, which grew from 65 million to 2.6 billion yuan, surpassing Arawana to become the No.1 in the corn oil category. All these successes are attributed to positioning, and the positioning for these brands came from a master-level company: Chengmei.
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