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Distributors: Several Mental Hurdles Factory Owners Can't Get Over!
Almost everyone is subjective, habitually viewing others from their own perspective, with 'I think' being paramount, and personal values often replacing worldview. Empathy is theoretically possible but practically difficult, and mutual understanding is even more unlikely. This applies to manufacturer-distributor relations: manufacturers don't understand distributors, and vice versa. The root of many conflicts is asymmetric understanding and the belief that one's own view is correct. However, manufacturers often dominate, with factory owners viewing distributors as subordinates needing to follow orders, showing little interest in understanding them. This article outlines several mental hurdles factory owners struggle to overcome, including controlling distributors, insisting on delayed benefits, prioritizing sales growth over cost increases, focusing only on their own product sales, expecting quick distributor recruitment, and believing distributor profits come from the manufacturer.
潘文富The Times Have Changed: Where Exactly Are Distributors Losing?
Many distributors ask me about transformation, often seeking software recommendations or advice. I don't answer directly because there's no standard model; instead, I ask about their sales, brands, and regions. After analyzing cases, I've identified three core traits: efficiency, opportunity, and partnership.
袁来Under Economic Downturn Pressure, Which Distributors Are Hard to Replace?
During a recent training session for distributors of a French company in Ningbo, Zhejiang, a student asked which distributors are hard to replace under economic downturn pressure, especially with channel flattening and new retail becoming more prevalent. This article explores six types of distributors that are less likely to be replaced, including technical, brand, system, OEM, new-type, and category buyout distributors.
清风明月夜Is it that distributors and offices have lost the ability to launch new products, or is headquarters turning a blind eye?
The root of execution problems often lies with management, but blaming the team and its managers entirely is unfair. A case study of a leading FMCG company reveals that new product launches fail because regional offices and distributors lack the manpower and headquarters lacks oversight, compounded by a results-driven culture that prioritizes sales targets over new product initiatives.
李政权Yuan Renguo Expelled from Party and Public Office: Is He Really the Sinner of Moutai?
According to the Guizhou Provincial Commission for Discipline Inspection and Supervision, Yuan Renguo, former deputy secretary of the Party Committee and chairman of China Kweichow Moutai Distillery (Group) Co., Ltd., and former chairman of Kweichow Moutai Co., Ltd., has been investigated for serious disciplinary and legal violations. The Central Commission for Discipline Inspection and National Supervisory Commission stated that Yuan seriously violated political discipline and rules, using Moutai's distribution rights as a tool for personal gain and political advancement, and engaged in power-for-money deals, severely damaging Moutai's marketing environment.
New DistributionHow Can Distributors Build an Internal Employee Entrepreneurship Platform?
Assuming that internal entrepreneurship projects are good, the most critical factor is the people. No matter how favorable the timing and location are, without good people and teams to operate, it won't work. All things in the world are done by people, and people with different abilities and responsibilities achieve different results, so everyone values the human factor in business operations. The concept of internal entrepreneurship platforms has been prevalent in the corporate world in recent years, and we are familiar with successful cases like Wangpin Group's Lion King Plan, Handu Yishe's small group system, and Haier's internal entrepreneurship incubation model, as well as unsuccessful ones like Huawei's 'Harbor Bay' incident.
马方Internal and External Troubles: Distributors Having a Hard Time!
Everyone knows the saying 'A rabbit doesn't eat the grass near its own burrow,' but there's a second half: 'A rabbit always returns by the same path.' From this perspective, wild rabbits die from experience. Pressure from manufacturers: 'Half joy, half sorrow.' Task pressure: manufacturers set sales targets for distributors. For example, one company requires distributors to achieve at least 30% annual sales growth; otherwise, they are dropped. Many distributors are unwilling but must comply, which is the way of strong companies.
戈军珍Unified Warehousing and Distribution: A Good Business or a Bad One?
Distributors are struggling, a consensus across the industry. With sales plateauing and external growth constrained, internal cost reduction becomes key: 800,000 distributors/wholesalers correspond to 800,000 warehouses and millions of delivery vehicles, which is economically unreasonable. Many local governments are encouraging unified warehousing and distribution (统仓统配) through logistics parks, but is it a good business? This article explores the debate, highlighting that while it can be a winner-take-all opportunity, poor management often turns it into a bad business.
袁来Why Can't You Outperform Other Distributors?
This article explores why some distributors thrive while others struggle, outlining six critical stages in a distributor's growth and the key mindsets and skills needed at each step, from product selection to channel management and beyond.
黄润霖Why Is Channel Digitalization So Difficult for FMCG Companies?
Cao Jun, CEO of Molihutong, argues that the core of channel digitalization is not implementing systems or collecting data, but enabling salespeople and distributors to earn more money. He emphasizes that true digitalization requires transforming business models, not just adding technology.
曹峻Why Are Wholesale Markets Still Thriving Despite Predictions of Their Demise?
Like traditional mom-and-pop stores, the vast number of secondary distributors currently serve as the 'capillaries' and 'ant armies' accelerating the circulation of FMCG products in China. This article explores why serving small retail stores can be costly, why wholesale markets persist, and the value secondary distributors and wholesale markets bring to the FMCG distribution landscape.
新经销刘少德Community Group Buying and Distributors: Tax and Financial Compliance Is No Small Matter!
On the evening of May 15, New Distribution's internal community organized an online sharing session titled 'Coping Strategies for Community Group Buying in a Compliance Environment.' We invited Li Xinhao, a partner of New Distribution Consulting and a tax and financial expert, to share insights in the community e-commerce CEO group, with simultaneous live streaming to other internal groups. The editor believes that in today's changing business environment, especially as the state increasingly emphasizes corporate and tax compliance, bosses who don't understand tax and finance may suffer significant losses. Particularly for individual bosses in the FMCG industry, who have often neglected tax and financial matters in the past, the editor suggests that the following content is worth careful study. As the sharing lasted one hour and the transcript exceeded 10,000 characters, we have organized it into three articles to be pushed this week. This is the first article, focusing on the impact of compliance environment changes on enterprises.
李新浩Yuan Renguo Steps Down, Li Baofang Overhauls Moutai's Distribution Channels
Yuan Renguo, who spent his career helping Moutai overcome difficulties, faced his own challenges. Nearly a year after stepping down as chairman of Moutai Group, Yuan was removed from his positions in the Guizhou Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC). From a frontline liquor worker to the top leader of Moutai, the 63-year-old Yuan is a figure of both legend and controversy. During his 18 years at the helm, Moutai overtook Wuliangye domestically and surpassed global giant Diageo to become the world's top liquor company, with market value once exceeding one trillion yuan.
黄嘉祥Red Bull Anji: How Can Distributors Avoid Becoming Cannon Fodder?
As the summer promotion battle approaches, distributors of Red Bull Anji are anxious due to the brand's late entry and weak brand recognition. To avoid becoming casualties in the fight between Red Bull and Anji, distributors must prepare by strengthening their teams, developing new channels, and cooperating closely with brand owners.
澄韵Winning Over Group Leaders Is Not the Way Forward for Community Group Buying!
Community group buying is essentially a wholesale-plus-retail model, where each group leader acts as a 'small shop owner.' Can group leaders be retained through persuasion? All community group buying platforms try hard to win over group leaders because user assets are in their hands. However, as buyers for community residents, group leaders focus more on providing quality products to their customers. This leads to two issues: if a group leader operates well, they negotiate with the platform; and as competitors enter and poach, loyalty drops. The real competition lies in product, service, and supply chain efficiency.
赵波No Price War! Uni-President Makes More Money in Mainland China
Uni-President Enterprises reported record first-quarter results, with revenue of NT$107.791 billion (approximately RMB 23.768 billion) and net profit after tax of NT$5.276 billion (approximately RMB 1.163 billion), up 99.85% quarter-on-quarter. Its mainland China business, Uni-President China Holdings, saw net profit surge 48% to RMB 380 million, driven by value marketing and healthy channel inventory management.
New DistributionDealer Transformation: The "Hot and Cold" of Unified Warehousing and Distribution
On May 6, a dealer surnamed Zhang from East China called to ask if unified warehousing and distribution was still viable, noting that the trend had gone quiet. This prompted reflection on why the once-hot model has cooled, and whether it remains an opportunity or a trap.
袁来To Distributors: The Distribution Rights You Hold Are Granted by Manufacturers, and This Will Soon Be a Thing of the Past!
FMCG B2B emerged in 2014, but by 2018, many FMCG B2B ventures had already failed. Consequently, some industry insiders began to dismiss FMCG B2B as a false business logic, even predicting it would be as short-lived as the 'group buying' and 'O2O' trends of a few years ago. But is that really the case? In my view, for FMCG, the transformation brought by B2B is just beginning. It is a T2B2C revolution driven by technology. As more participants join, every node in the FMCG supply chain will be connected, assigned more specific and clear missions and values, and together build an ecosystem, becoming a community that co-creates a digital ecosystem.
杜建芳Moutai Distributors 'Purge'! Suspected of Benefit Transfer, 80,000 Shareholders Outraged: This Is 'Robbery'!
2019 is a major year for Kweichow Moutai's marketing adjustments, with frequent and significant actions. Previously, Moutai's main marketing or sales companies were led by the listed company, but this time the group's marketing company is indeed different, with doubts focusing on the group marketing company competing with the listed company for profits. As a super star in the capital market and the absolute leader in the baijiu industry, Kweichow Moutai's steadily rising stock price suddenly took a hit, losing 110 billion yuan in market value in three trading days, leaving 80,000 shareholders stunned... The parent company established a marketing company, which at the group level was initially seen as good news, but unexpectedly sparked doubts and protests among A-share investors.
New DistributionHow to Dominate the Summer Beverage Peak Season: Seize the Cold Cabinet!
In the summer beverage peak season, the cold cabinet is the absolute core of sales. The display space in cold cabinets equals sales volume. By using a creative promotional tactic with bottled water, a distributor successfully motivated retailers to actively display their product, clearing a four-month inventory in just two months.
快消小强Anergy Launches: What Should Red Bull Distributors Do?
Recently, news of Anergy's launch has resurfaced. According to disclosed information and leaked photos of Anergy shipments, industry insiders reveal that the first batch has arrived at distributors' warehouses in Jiangsu and Zhejiang, with market distribution preparations underway. A veteran Red Bull distributor of over a decade expressed anxiety, noting that since the brand licensing dispute between China Red Bull and Thai Tencel began in 2016, distributors have been walking on eggshells, constantly wary and preparing contingency plans.
澄韵Without Increment, Cannot Hold Onto Stock
China's reform and opening-up succeeded due to a key technique: shelving stock and reforming increment. This led to incremental reform inevitably driving stock reform. In Chinese marketing, stock has been capped since 2013, and with the rise of e-commerce, stock is no longer secure. Without increment, stock cannot be maintained. The article discusses the three battlefields of new marketing, new retail, and new distribution, emphasizing the shift from 2B to 2C to create increment and influence stock.
刘春雄Former Chairman Yuan Renguo Removed from Provincial CPPCC Positions; Kweichow Moutai Distributor Reshuffle Continues
On May 5, 2019, according to Guizhou Radio and Television's "Dynamic Guizhou" report, the 10th meeting of the Standing Committee of the 12th Guizhou Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) decided to remove Yuan Renguo from his positions as Standing Committee member, Deputy Director of the Economic Committee, and member of the Provincial CPPCC. Previously, on May 11, 2018, the listed company announced that Yuan Renguo had stepped down as Chairman, Director, and legal representative of Moutai Group.
梅岭How Can Distributors Earn a Reasonable Profit Margin? This Article Explains It All!
A distributor's profitability is directly tied to its product portfolio. FMCG products can be broadly divided into three categories: first-tier, second-tier, and third-tier brands. First-tier brands typically offer low returns (6-7% margin plus 1% rebate), while second-tier brands yield 12-20% and third-tier brands can yield over 30-40% but with higher risks. The optimal strategy is a balanced portfolio with 40% first-tier, 40% second-tier, and 20% third-tier brands, maximizing returns and stability.
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