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How Distributors Can Manage Their "Relationship" with Manufacturers
Many distributors struggle to please manufacturers and often feel like a disadvantaged group, even those with substantial wealth. This article offers practical advice on how distributors can build healthy, productive relationships with manufacturers to avoid being replaced or mistreated.
唐江华Can Shared Sales Representatives Replace Distributor Sales Reps as a Tool for Brands to Achieve Deep Distribution?
Since 2014, almost all FMCG B2B matching platforms have entered the market with shared sales as a key strategy, but most have not performed well, with few success stories. The reasons for failure are simple: either they directly conflict with frontline brand sales reps, making it nearly impossible to replace them, or they target non-first-tier brands or distributors, leading to conflicts with regional distributor sales reps and ultimately burning money on traffic.
杜建芳Distributors, Don't Rush Your Children into Taking Over the Business—Let Them Study More!
Life is severely punishing those who refused to study hard. Many first-generation distributors, who started from poverty and built their fortunes through hard work, now face management challenges. They attend training courses with sincere eagerness, but their lack of education and learning habits makes it hard to absorb and apply knowledge. The article urges them to let their children study more, as the most valuable things learned in school are not knowledge itself but learning habits, comprehension, and the ability to summarize and extrapolate.
魏庆Will Same-City Unified Warehousing and Distribution Platforms Kill Fellow Distributors?
Traditional distributors transitioning to unified warehousing and distribution platforms may seem unrelated to your distribution business, but these platforms could actually disrupt your operations. While they promise efficiency gains, cost reduction is questionable, as seen in Jingmen where platform logistics costs are higher than traditional delivery methods.
袁来JDB's Distribution Channels on the Brink of Collapse! Some Distributors Have Defected to Wong Lo Kat, Can It Survive Until Next Year?
JDB's market share has fallen to less than 30%, and distributors' advance payments are hard to reimburse. It has been exposed as insolvent, and without a rescue, it may not survive until next year. Zhonghong Co., Ltd. announced a debt restructuring and management trusteeship agreement with JDB, disclosing financial data showing a net loss of 583 million yuan in 2017, which JDB denied. The dispute has raised many doubts.
陈妮希Hundreds of Stores Stocked, Yet Sales Barely Move: The Reasons Behind This Are Thought-Provoking!
For many distributors, product distribution can be done quickly, but market activation after distribution is slow. Once products fail to sell through, it leaves a bad impression on retail stores, affecting long-term relationships and making it difficult to distribute new products in the future. Terminal sell-through is the most direct and important indicator of a distributor's performance, as it is the final step where consumers decide to buy and where distributors realize profits.
师顺宽Distributors, Your Business Is Being Destroyed by Your Salespeople
A distributor's business is not this month's sales volume, but the number of active customers multiplied by the number of items. Is your business being destroyed? The article explains that sales volume comes from two indicators: active purchasing customers and items per customer. It emphasizes that distributors should focus on customer and item counts rather than just sales, and provides management strategies to prevent business decline.
魏庆老师How to Play 'Joint Operation' for Distributors? Three Models to Consider!
Generally, channel joint ventures in the FMCG industry led by manufacturers follow a four-in-one model: manufacturer-distributor-sub-distributor-retailer. However, in market operations, there is also a more 'alternative' channel joint venture model led by channel members at various levels. How do they operate? Let's explore their specific operational models.
清风明月夜How Big Is the Impact of Social Security Reform on the FMCG Industry?
Starting from January 1, 2019, all social security taxes will be uniformly collected by the tax authorities, signaling a new harsh winter for FMCG companies and trading firms. On August 27, the State Taxation Administration issued the latest notice that from 2019, social security will be uniformly collected by the tax authorities, and the handover of social security premiums and the first batch of non-tax revenue collection responsibilities must be completed by December 10 this year. The news has caused a stir online. In short, in the past, most companies paid social security at the minimum standard rate, and it was uniformly collected by the human resources and social security departments. This time, the shift to tax authorities will directly affect social security payments.
袁来How Can Distributors Ensure Their Profits Are Not Carved Up?
Case: A 'bloodbath' caused by forced stockpiling. Lao Gao, a distributor for A-brand liquor, faces a common dilemma: sales are up but profits are down, and he's being 'held hostage' by the manufacturer's demands to stock up, leading to a vicious cycle of discounting and eroding margins.
New DistributionSettling Scores After the Harvest: Employee Resignations, Distributor Flight, and the Inevitable Demise of Liby's Contract System
The contract system, a grave-digger for FMCG companies. In 2015, Nice introduced it, boosting performance and wages, but within three years it backfired, leading to mass resignations and Nice's decline. Liby, following suit in 2016, now faces similar consequences: employee departures, distributor defaults, and a looming crisis.
纳兰醉天The Transformation and Counterattack of Dali and Want Want Distributors: How Did He Grow from 20 Million to 200 Million in 3 Years?
“Traditional distributors will have no future if they don't transform, because being traditional means no way out.” This is the view expressed by Qin Xian at a meeting regarding the transformation period of FMCG channels. In Qin Xian's view, in the field of FMCG distribution, the distributor link has gone through three generations: from the initial supply and marketing cooperatives, to wholesale market merchants, to itinerant merchants who directly supply terminals for logistics and distribution. Nowadays, the internet brings more advanced technology and tools to distributors. Every distributor should actively embrace it, proactively seek change during the turbulent market competition and the transformation period of distribution channels...
袁来How Should Distributors Select Talent?
Distributors often struggle with hiring, managing, and retaining employees. This article argues that instead of blaming staff, bosses should reflect on their own systems and choose talent based on virtue, versatility, fit, and a balance between external hires and internal development.
New DistributionThe Dead End and the Way Out for Distributors...
Are you heading for a dead end or seeking an innovative way out? Obviously, the latter! But before finding a way out, you must first consider why you ended up at a dead end. In the FMCG industry, food and beverage distributors typically act as delivery agents, lacking the essence of distribution; whereas in the cosmetics industry, distributors are called agents but often perform the role of distributors. This is the difference between having no team and having a team to drive sales! Despite the differences, both complain of exhaustion. They almost turned to micro-commerce... When the role caught in the middle becomes increasingly undervalued, they express confusion about their way out.
古歌读舒JDB vs. Wanglaoji: Competition for Existing and Incremental Markets!
JDB has recently faced a series of troubles, including cooperation disputes with COFCO Packaging and ORG, and a restructuring dispute with Zhonghong Holdings, which disclosed JDB's insolvent financial statements. Despite rumors of declining market share, product shortages, layoffs, and unfulfilled promises to distributors, a visit to several supermarkets revealed that red-can JDB products are still available with recent production dates, indicating that the situation may not be as dire as reported.
金枫海客Distributor Commits Suicide After Supermarket Fails to Pay 400,000 Yuan Debt
A distributor in Huaibei committed suicide on August 22 after a supermarket repeatedly failed to pay a debt of over 400,000 yuan. The incident highlights the severe consequences of credit sales, as more than 85% of distributors are now refusing to supply large supermarkets due to unfair contract terms and squeezed profits.
New DistributionDealers' Lack of Loyalty Is Justified
If you still believe that dealers are disloyal and get angry about it, you are naive about the market. All pursuits are driven by profit; in business, focus on competition. Consumers have no loyalty, retailers have no loyalty to dealers, and dealers have no loyalty to brands—only mutual interests. Loyalty is voluntary and stems from solving dealers' problems, not from demanding it.
古歌读舒The Butterfly Effect of Salesperson Shelf Management: How Many Distributors Are Still in the Dark?
As living standards rise and the consumer market grows rapidly, competition in the FMCG industry has become intense, and market operations have entered an era of refinement. The criteria for market excellence have shifted from mere sales volume to terminal performance, including distribution rate, image promotion, pricing system, and shelf display. In particular, almost all FMCG manufacturers now recognize that supermarket and terminal store shelves are where products intimately meet consumers, sparking a vigorous 'land grab' movement.
刘连喜Zheng Hongyan: Building a Half-Hour Living Circle, Digital Layout Should Further Tap Data Productivity
On August 24, Zheng Hongyan, Vice President of JD Group and President of JD New Channel Business Unit, attended the FDIC 2018 China FMCG Digital Innovation Conference hosted by New Distribution and guided by the China Electronic Commerce Association, and delivered a keynote speech titled "Tapping Data Productivity." During the break, Zheng Hongyan accepted an exclusive interview with New Distribution, hoping his views and opinions could bring some thoughts to everyone.
赵波Why Distributors Can't Make Money? The Biggest 'Loophole' Is This!
Inventory management is a key component of a distributor's own operations, not simply using a generic system for purchase, sales, and inventory or stocktaking. What is inventory management? Simply put, it is the distributor maintaining a reasonable inventory level of agency products, reducing the occurrence of short-dated and expired products, and maintaining reasonable purchase quantities based on product flow speed and inventory levels. Distributors/manufacturers face warehouse management drawbacks such as inaccurate inventory counts, lack of basis for product stocking, and poor coordination between warehouse, finance, and business operations.
New DistributionFive "Military Rules" That Distributors Must Follow When Organizing Their Own Promotions!
In high-margin industries such as automobiles, real estate, and electronics, both distributors and manufacturers have significant profit margins, so either party may unilaterally cut prices or launch promotions without the other's knowledge or consent. For example, Fuji announced a price cut for one of its digital cameras online first, then calculated distributors' inventory and compensated them for the difference. In the food industry, where margins are thinner, distributors organizing their own promotions without manufacturer support must adhere to the following five "military rules." First, proactively report the promotion process and results to the manufacturer...
陈小龙How Should Distributors Respond to the 'Disruptor' of New Retail?
At the recent 'China FMCG Digital Innovation Conference' hosted by New Distribution, industry players discussed how traditional distributors and manufacturers, facing disruption from new retail platforms like Alibaba's Retail Link, must adapt. The article argues that rather than resisting, they should embrace these platforms strategically, leveraging their data and promotional tools while maintaining control over core channels and customers.
邢仁宝Social E-commerce Channels Have Become One of the Channels That Cannot Be Ignored, Following Traditional Distribution and Shelf-Based E-commerce!
The classic chain of traditional channels is from brand owners to agents, distributors, retailers, and consumers, delivering value from wholesale to retail. When the economic level of our era has developed to the point where we no longer fear for safety and survival, we are granted freedom. With freedom and tools, we find that organizational walls are opened and boundaries are broken. — Zhuang Jianzhong, Founder of Meinian Changxiao. When discussing channels, there are physical channels and e-commerce channels. When talking about e-commerce, most people refer to Tmall and JD.com, which we can define as shelf-based e-commerce. So far, a new channel is emerging as the third most watched channel after physical and e-commerce channels, which we define as social e-commerce channels.
庄建忠The Second Path for Traditional Distributors to Survive: Outrun Your Peers, Hone Your Skills, and Enlarge the Pie!
Xu Yonggang, founder of Madeline, argues that distributors must transform their core competitiveness into 'the speed of precise service' to outpace competitors in harsh market conditions. By leveraging digitalization to achieve 'connectivity' and 'computation,' distributors can optimize operations, reduce costs, and increase efficiency, thereby capturing market share from weaker rivals.
徐永刚