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Dealer Transformation Handbook
Over the past three decades, China's traditional FMCG distribution channels have grown rapidly, but with an aging society and rising costs, traditional distribution models are no longer viable. This article categorizes dealer transformation paths into three types—organizational, business model, and commercial model innovation—and provides detailed guidance for each, emphasizing the importance of digitalization and adaptability.
袁来Mengniu Slow Burn Agents Face Refund Difficulties, Review Their 'Operation' Experience
Agents of Mengniu's Slow Burn meal replacement shake are frustrated after waiting over a month for refunds. They discuss operational issues, some resolved, others under negotiation, testing their faith in the brand.
张夏雨The Winning Strategy for Traditional Distributors: Steady "Micro-Innovation"
This is an era of "chaos and upheaval." Internet technology, as an engine driving commercial progress, is continuously entering the traditional offline distribution sector. Under the backdrop of consumption upgrading, changes in demand have become "bewildering." Coupled with internet-based entrepreneurs gradually building retail scenarios closer to consumers, traditional distributors seem somewhat at a loss in this volatile era. Many distributors lament that business changes too fast now; previously, they only needed to coordinate with upstream manufacturers and downstream small shops and KA stores, but now they must also be wary of national B2B platforms, and even former peers may have ventured into B2B, leaving them in a dilemma of whether to cooperate or not. Smart unmanned vending machines and office unattended shelves sell products within their territory (under exclusive offline agency agreements with manufacturers), yet the goods are not sourced from them...
袁来Surviving in the Cracks: What Really Constitutes Core Competitiveness for Distributors?
Distributors that survive in the future will not be those that only react when disaster strikes and struggle to make payroll; they will be those that anticipate change and actively prepare and transform now. This is the warning from Yang Su, chairman of Zhongshan Wanrong, P&G's largest offline distributor in China, about distributors who keep their heads down and operate like frogs in slowly boiling water. In his view, transformation is imperative in the current market environment, and it has reached a point where there is no choice but to change.
袁来New Retail Is Not the Rebuilding of 'People, Goods, and Places', but the Rebuilding of 'Production, Supply, Wholesale, and Retail' Relations!
The competition among value chain members is superficially a conflict of interests, but in essence, it is a conflict of discourse power. The saying 'the shop bullies the customer, and the customer bullies the shop' is an eternal business principle. Although the concept of 'New Retail' was proposed as early as 2016, 2018 is the first year of New Retail. This year, various New Retail species began to gain momentum, traditional retailers started their New Retail transformation, and original retail formats also put on the New Retail hat. From manufacturers and brand owners to distributors and logistics providers...
苗庆显Bestore Dianjia: Full-Chain Service Products Open Up
On November 28, at the 2018 Brand Partner Conference themed 'Smart Retail, Linking the Future', Bestore Dianjia, under Best Group, announced its strategy to open up full-chain service products, leveraging digitalization, AI algorithms, and solutions to collaborate with brand enterprises in supply chain coordination and IT sharing services.
New DistributionSpace Cooperation Helps Master Kong Embark on a New Journey; Dealers Say: Follow Them, It's Motivating!
Recently, FMCG giant Master Kong has been making frequent moves, from its Han Yang Quan mineral water appearing on Tmall's 11.11 live broadcast gala to announcing a smart business ecosystem at the World Internet Conference, signing a strategic cooperation agreement with Retail Link, and launching a space-themed food safety science exhibition in Xi'an. As an industry leader, Master Kong's strategic moves naturally influence the industry's development, reflecting new trends and its commitment to innovation and social responsibility.
袁来From Products to Scenarios: What Do Three Squirrels, Master Gao, and Kaola Select Have in Common?
Today, Alibaba Group CEO Daniel Zhang announced an organizational upgrade, upgrading Tmall Supermarket to 'Big Tmall' to drive brand digital transformation and new retail. New Distribution believes this reflects a deeper shift from products to consumption scenarios, as exemplified by Three Squirrels' offline stores, Master Gao's craft beer, and community group buying platforms like Kaola Select.
New Distribution2019 Food & Beverage Industry Predictions: Which Trends Should Brands and Distributors Pay Attention To?
With 2018 drawing to a close, market research firms are releasing their 2019 industry trend forecasts. Mintel and Innova Market Insights have each published their top trends for the food industry, while New Nutrition Business, Whole Foods Market, and The Kroger Co. have also weighed in on the future of food and beverage.
New DistributionSales Keep Falling, Costs Keep Rising: Where Is the Way Out for Traditional Distributors?
Optimizing warehouse and distribution systems is the simplest transformation and upgrade path for distributors. This article explores why traditional distributors face increasing survival pressure, how they can focus on core functions amid social division of labor, and whether opportunities remain for them as giants like Alibaba and JD.com enter the FMCG channel.
新经销刘少德Six Hidden Leaks Behind Distributor Profits
Distributors often see their gross margins eroded by hidden costs, leaving them with only a few points of net profit. This article identifies six common leaks—employee turnover, accounts receivable, product mix, employee theft, returns, and internal coordination—that drain profitability.
潘文富Beer Business Model: A Game Theory Perspective in FMCG
The beer industry, with its long supply chain and complex channel and terminal systems, exemplifies game theory in the consumer goods sector through interactions among producers, distributors, and terminals. This article analyzes the beer business model from three dimensions: regional market structure, price band structure, and channel structure, highlighting the importance of profit pool markets, the trend of premiumization, and the bargaining power dynamics in distribution channels.
New Distribution8-Person Workshop Produces Counterfeit Niulanshan Erguotou, Involved 40 Million Yuan in Two Years
A family-run counterfeit operation produced fake Niulanshan Erguotou, with a dedicated online network developing over 100 downstream sellers across the country. In July 2017, police in Daxing'anling discovered low-priced Niulanshan Erguotou being promoted, leading to a crackdown on a manufacturing base in a Hebei village and a Beijing transit hub. On August 29, 2018, police arrested all 8 members of the gang led by Qian and Guo in Beijing, Zhuozhou, and Ruichang, seizing over 300 boxes of counterfeit liquor and uncovering sales to 147 people in 15 provinces, with over 70,000 bottles sold and 40 million yuan involved.
张彤Why Are Dealers' Businesses Getting Harder Despite Record-Breaking Singles' Day Sales?
On November 12, Alibaba's unaudited data showed that the 2018 Tmall Singles' Day global shopping festival reached a total transaction value of 213.5 billion yuan, a 26.93% increase from 168.2 billion yuan in 2017, and over 4,000 times the 50 million yuan recorded in 2009. Over the past decade, e-commerce has transformed from a niche to the absolute mainstream, while traditional dealers have lagged behind in adopting technological changes, leading to increasing difficulties in their businesses.
专注供应链升级的Annual Performance Soars 8-Fold, Terminal Sell-Through Surprisingly Strong, GM Reveals the 'Killer Move' Behind It...
Entering 2018, while peers lamented a tough market and hard-to-sell products, one company grew rapidly. As of now, its walnut milk product sales have surged 4-5 times year-on-year, with full-year performance expected to nearly octuple. More impressively, the company doesn't pressure distributors to stock up or set sales targets, yet terminal sell-through is remarkably strong. What's the secret? Recently, a reporter visited Hebei Lvling Kangwei Food Co., Ltd. to hear General Manager of the Beverage Division, Chen Pu, discuss the 'killer moves' behind the product's hot sales... 'Distribute first, then cooperate'...
New DistributionHow Can Distributors Master Community Group Buying?
Community group buying has become popular, offering a relatively simple and clear business logic that makes the O2O model more reasonable and feasible. However, among the influx of new players, how can distributors find a more suitable pace and avoid detours? This article explores how distributors can leverage this new model by breaking down four key questions: what community group buying is, its value and significance for distributors, the advantages and disadvantages, and key points to consider.
王军Distributors Struggling to Collect Payments? Try This Trick!
From the lighting capital of Guzhen to Shenzhen, goods flow from component suppliers to brand manufacturers and finally to distributors and stores. Behind this flow are various 'deferred payment' tools, which exist due to credit sales and advance payments, but they may become bad debts, crushing the last holder. In 2013, Xiongji Lighting's boss fled due to unpaid wages and debts, and similar stories repeat across industries. Distributors often face the dilemma of easy credit but difficult collection, with over 90% using credit sales and 82% experiencing collection difficulties. This article introduces a smart collection tool: the Enterprise Red Packet Bill, which uses red packets to encourage customers to pay, improving cash flow and efficiency.
New DistributionIf the Probability of a Distributor Successfully Transforming into Urban Distribution is Only 1%, Then Others Might Not Even Reach 1%!
On October 24, 2018, at the "2018 China FMCG Urban Distribution Logistics Conference" hosted by New Distribution, Mr. Rong Jun, Chairman of Jiangsu Huashang Urban Distribution, delivered a speech titled "Some Thoughts on the Transformation of Distributors." New Distribution has organized the speech content for readers. Today, my topic is "Some Thoughts on the Transformation of Distributors." Besides my personal thoughts, it also includes the difficulties, problems, and successful experiences encountered during Huashang's transformation exploration. I hope that the pitfalls and mines I have encountered, you will not have to go through again...
戎君Big Brands Bully and Force Stock on Distributors: What Should Major Distributors Do?
Many manufacturers' so-called 'transformation' is just a rebranding of the old coercive approach. 'Product upgrades' have reverted to stock-pushing dependency through product activity and order fulfillment rates; 'expense coercion' may squeeze out sales in the short term, but in the larger picture, it only deepens the contradiction between sell-through and inventory until collapse. Looking at increasingly worse data, Lao Zhang grows more alarmed. Lao Gao, a distributor of a famous FMCG brand, is seen by others as having a large business in the provincial capital's central area, with a self-owned compound of thousands of square meters, a four-story office building in front, large warehouses in the back, nearly a hundred vehicles, and a team of over 200 people—big and wealthy enough. But in reality, Lao Zhang's profits from this brand have been declining year after year.
段文智Unveiling the Invisible 'Movers' of FMCG Distribution
In FMCG, the term 'mover' refers to distributors who transport goods to retail stores, but data is also 'moved' invisibly. This data is crucial for companies to monitor sales and inventory, yet it changes as it passes through different systems. Shanghai Welink Information Technology Co., Ltd. acts as a 'data mover,' providing EDI-based solutions to collect and standardize channel data for brands, and offering supply chain finance services to distributors, including a new 'red packet bill' tool to facilitate early payments.
袁来Mu Wei of Zhoupu Data: Driving Unified Warehouse and Distribution Efficiency with Technology
At the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution on October 24, 2018, Dr. Mu Wei, CTO of Zhoupu Data, delivered a keynote speech on using technology to improve the efficiency of unified warehousing and distribution. He emphasized that without technology, unified warehousing and distribution cannot achieve cost savings, and introduced Zhoupu Data's full-process system and data-driven approach.
慕巍The Logic of 2C is the Pitfall of 2B: FMCG Distribution Doesn't Play by the Rules!
At the '2018 China FMCG City Distribution Logistics Conference' hosted by New Distribution on October 24, 2018, He Yan, Senior Director of Market Operations at Fengwang, delivered a keynote speech on 'Shared Warehousing and Distribution: The Foundation and Core of the Second Half of the Internet'. He emphasized that retail and FMCG industries require integrated supply chains, not just warehousing and distribution, and that the key is to connect the flows of commerce, logistics, capital, and information.
贺岩Liu Chunxiong: Embrace New Retail with a "Gun"
Professor Liu Chunxiong shares his insights on how brand owners can survive and thrive in the new retail environment by adopting new marketing strategies. He outlines the logic of new retail, compares it with new marketing, and provides a framework for brand owners to build their own private traffic and compete with new retail platforms.
刘春雄Distributors: Differences Between Traditional Warehouse and Distribution and Digital Warehouse and Distribution
At the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution on October 24, 2018, Xu Yonggang, CEO of Madeline, delivered a keynote speech on the differences between traditional and digital warehouse and distribution. He emphasized that while traditional warehousing meets the needs of the industrial age, digital warehousing addresses consumers' demands for freshness and efficiency in the internet era.
徐永刚