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Why Do Distributors Have Thin Margins but Not High Volume?
Thin margins yet not high volume is a situation many county-level distributors face reluctantly. This thin margin is not a subjective choice but a response to competition, while the low volume is due to increased competition from more manufacturers, products, and distributors, which diverts customers. To solve this, distributors must address two core issues: why consumers buy their products and why downstream clients purchase from them, through strategic product assortment, effective terminal display, and comprehensive downstream client management.
New DistributionThe Divine Water of the East: Moutai Falls from Its Pedestal!
In 2013, Shanghai Securities News reported on a Moutai investor who analyzed monthly sales data from Shenzhen supermarkets and found an anomaly: prices were soaring while sales were declining month over month. He concluded that large quantities of Moutai were hoarded by wholesalers or speculators, not reaching consumers. Despite his sophisticated analysis, Moutai's stock price decupled within five years, and the brand's myth persisted, with Moutai becoming an investment vehicle and a symbol of Chinese consumption upgrade.
你兽爷Fu Chifeng: Thoughts on Key Factors of Unified Warehousing and Joint Distribution
At the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution on October 24, 2018, Fu Chifeng, Deputy General Manager of the Marketing Center of Cloud Warehouse Distribution, delivered a speech titled "Thoughts on Key Factors of Unified Warehousing and Joint Distribution." He shared insights from his company's decade-long experience in FMCG logistics, emphasizing that success in unified warehousing and joint distribution requires an enabling mindset and capabilities, rather than merely aggregating traffic or profiting from distributors.
付驰峰How Can Distributors Break Through When Peers Refuse to Enter Warehouses in Same-City Logistics Transformation?
At the 2018 China FMCG City Distribution Logistics Conference, a panel of distributors who transformed into same-city logistics providers discussed how to persuade fellow distributors to use their warehousing and distribution services. Key strategies included offering low prices, providing value-added services, forming partnerships or equity alliances, and focusing on local market depth.
新经销团队Dealer Sales Multiply by 10: You Must First Clarify This Issue!
When thinking about problems, we must focus on the essence to grasp the root of the problem and find the key points and true solutions. Why do terminals sell your product? High profit? Good customer relations? Brand? These are not the obvious reasons. From another angle, what is the real reason terminals don't accept your product? Some say poor customer relations, product profit can't move terminals, new products unknown if they sell well. Actually, it all boils down to one word: 'fear'—fear it won't sell, occupying their space, capital, and energy. So terminals accept your product because they feel good about the product and the person, recognize the market operation method, and believe the product can bring value—selling well and fast. Therefore, if we only consider high profit and good customer relations without thinking about how to make the product sell fast and well for terminals, they won't accept it. That's normal. If terminals accept your product due to good customer relations, how long can that last?
朱志明Want Want's Midlife Crisis
Want Want, a brand that carries the childhood memories of a generation, has seen its main business decline for years and its market value shrink by over 100 billion Hong Kong dollars. The 'national snack' seems to have entered a midlife crisis prematurely, with weak new products and poor distribution channels.
有趣有料的Manufacturers vs. Distributors: What Has Changed in the Internet Era?
The relationship between manufacturers and distributors in China is complex, shaped by factors such as scale asymmetry, goal misalignment, functional overlap, and business models. The internet is now simplifying these relationships, binding them through technology, creating shared interests via C-end systems, and making benefit distribution more transparent.
刘春雄Zhao Bo of New Distribution: Intra-city Logistics is One of the Most Effective Paths for Distributors' Transformation and Upgrading!
This content is the on-site sharing of "Intra-city Logistics is One of the Most Effective Paths for Distributors' Transformation and Upgrading" by Zhao Bo, founder of New Distribution, at the "2018 China FMCG City Distribution Logistics Conference", edited and organized by New Distribution for readers. The article discusses how changes in the consumer side affect the functions of distributors, and proposes that intra-city logistics is an effective path for transformation.
赵波5 Strategies for Efficient Regional Market Distribution to Accelerate Product Sell-Through
Distribution is a critical task for FMCG companies and sales personnel. Throughout the year, key activities include distributor meetings, second-tier distributor orders, initial distribution at the start of the year (including new product launches), terminal promotions, and consumer publicity campaigns. Executing these well typically yields good results, while poor execution leads to mediocre performance or even widespread losses. Distribution is vital due to FMCG characteristics such as rapid, widespread distribution, impulse buying, and random consumption.
蒋军A Non-Tier-1 Beverage Distributor Transforms into a B2B Platform, Achieving Daily Sales of 6 Million Yuan Through Online Ordering Meetings—How Did She Do It?
A Master Kong distributor friend recently asked the author about building his own platform, inspired by a speech at a New Distribution conference. The speaker was Yan Lu, GM of Daqing Tao Daqing E-commerce, who transformed her beverage distribution business into a B2B platform, achieving remarkable results.
袁来Warning | Distributors, These Five "Bargains" from Manufacturers You Must Not Take!
Distributors must stay vigilant and not be fooled by manufacturers' sweet talk. The article warns against five tempting but dangerous offers: advance payment subsidies, unusually large promotions, excessive returns on prepayments, inventory subsidies, and attractive shelf-stocking policies, all of which can lead to financial losses.
崔自三Soy Sauce 'Quality Inspection Gate' Incident: Distributors Speak Out: 'A Local Agency Can Smear Products Without Bearing Responsibility!'
The seemingly settled soy sauce 'quality inspection gate' incident continues to ferment, with higher-level agencies stepping forward to 'slap the face' of local testing agencies. Amid the questioning of 'whether it really exists,' the most injured are the companies and distributors. Although all levels say 'no problem,' the question mark seems to remain.
李珂First Visit to a Distributor: What Psychological Adjustments Should a Manufacturer's Sales Rep Make?
Generally, work progress and results are influenced by two factors: technique and mindset. Mindset includes attitudes toward work, the company, customers, and oneself, rooted in habits of thinking. For a first visit to a distributor, sales reps often have concerns like fear of failure or doubts about their company's competitiveness. Adjusting mindset involves understanding that no company is perfect, selling oneself before the product, recognizing that business has no absolute right or wrong, viewing benefits broadly, leveraging resources through borrowing, avoiding rushing, and seeing the distributor as a stepping stone to the market.
潘文富Last Mile: Pie or Trap? How Did This Post-90s Entrepreneur Achieve Profitability in Last-Mile Delivery That Even Giants Struggle With?
This article profiles Ren Ci, a 94-born entrepreneur who founded Zhitongcang, a company using front warehouses to provide last-mile delivery for FMCG brands and B2B platforms. It details his entrepreneurial journey, the rationale behind the front warehouse model, and how he achieved profitability with 3-hour delivery and monthly revenue of 25 million yuan.
新经销刘少德Distributors: At the Autumn Sugar and Wine Fair, Besides Selecting Products, These Things Are Equally Important!
Market conditions are unpredictable, with dark horse products emerging at any time, but also the possibility of a large influx of similar products in the short term, creating intense competition. Timely understanding of market trends helps distributors make rational choices when seeking agency products. Amid the overall economic downturn, surveys show that only a few distributors attend the Sugar and Wine Fair solely to select products. Negotiating with partner manufacturers to resolve market legacy issues, discussing this year's operational direction, engaging in in-depth exchanges with peers to share market experience, and attending third-party training sessions and industry forums for self-improvement are becoming the main attractions for distributors at the fair.
New DistributionGood News Keeps Coming: Lvling Walnut Milk Proves Its 'Hot Sales' with Facts!
In the beverage industry, sales peaks during the Spring Festival and Mid-Autumn Festival largely determine annual performance. During the recent Mid-Autumn and National Day holidays, Lvling Walnut Milk, a plant-based protein drink with a health label, saw explosive sales, with three market reports confirming its popularity. The product's success is attributed to its full industry chain, quality ingredients, and strategic marketing, positioning it for continued growth in upcoming festivals.
New DistributionChen Siting: For Traditional Distributors to Transform into Professional Warehouse and Distribution Service Providers, the Difficulty Is No Less Than Evolving from Apes to Humans!
The transformation of distributors into warehouse and distribution service providers is a hot topic, but Chen Siting argues that 99% of such attempts are a false proposition. He believes that distributors' future lies in commerce flow rather than logistics, and that traditional distributors lack the genetic makeup to become professional logistics providers.
陈思廷The Core Work of C-End Deep Distribution Is 'Ignition' and 'Sell-Through'
Traditional B-end deep distribution has become counterproductive, as terminal stores now profit from selling traffic rather than goods. The new approach, C-end deep distribution, focuses on creating incremental sales for terminals by igniting regional word-of-mouth and connecting with consumers, thereby shifting power from terminals to brands.
刘春雄The Decline of the Distribution Industry: Old Soldiers Never Die, They Just Fade Away!
The 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha on October 23-24. Industry experts have sent their blessings via video. The article discusses the rise and challenges of FMCG B2B, arguing that the revolution is just beginning and that distributors must transform or face extinction.
杜建芳'Seeing' Jiangxiaobai: Big Success in a Niche Market
From October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Jiangxiaobai, a newcomer to the liquor industry, broke through 700 million yuan in sales by 2017, achieving success through a focus on young consumers, unique product design, and social marketing.
杨勇胜、李泽明Big Distributors Are Walking the Road to Bankruptcy!
Every distributor dreams of scale, profit, longevity, and success, but reality is harsh. In 2017 alone, at least 50 distributors with annual sales of no less than 30 million yuan collapsed, including those for major brands like Master Kong, Yanjing Beer, Yangyuan, Want Want, and Yili. This article analyzes the common causes of their downfall, such as becoming mere delivery agents, being dragged down by supermarket arrears, rising management costs, forced inventory loading, and resistance to new trends.
王冠群Struggling to Recruit and Retain Staff? How a Distributor Kept Employees Motivated and Made Them Work for Themselves
While many distributors are trying various transformations, a condiment distributor in Rongchang District, Chongqing, Mingwang Trading, took a different path: upgrading operations and honing internal skills. By introducing the Amoeba management model and breaking down into smaller organizational units, they made every employee an independent operator. Recently, New Distribution interviewed this county-level condiment distributor, which serves a population of 700,000 in Rongchang County (now Rongchang District), with annual sales of nearly 50 million yuan and covering over 1,800 outlets. Despite the sluggish distribution market, this company has maintained a 30% profit growth in the past two years.
袁来Two Intractable Problems in Regional B2B and Supplier Cooperation
Regional B2B platforms face two awkward problems when cooperating with suppliers: they cannot act as agents and cannot help brands achieve precise distribution of personalized categories. This leads to the consequence that regional B2B can only be a non-profitable super second-tier distributor at this stage.
赵波Latest | The Most Complete Guide to the 99th Changsha Autumn Sugar and Wine Fair: Exhibition Hotels, Transportation, Food and Fun... All in One!
The 99th National Autumn Sugar and Wine Fair, known as the 'world's first fair' and a barometer of the industry, returns to Changsha after a decade, marking the city's sixth time hosting the event. This guide provides a comprehensive overview of exhibition hotels for food, beverages, and condiments, the layout of the Changsha International Convention and Exhibition Center, transportation tips, and local dining and entertainment recommendations.
New Distribution