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The Innovator's Dilemma in FMCG Channel Transformation: Insights from Cross-Regional Selling
This article examines the persistent issue of cross-regional selling (channel stuffing) in China's FMCG industry through three case studies, analyzing its root causes and the challenges established brands face in adapting to market changes. It argues that while current distribution models remain effective, brands must overcome the 'innovator's dilemma' to embrace new opportunities and avoid being disrupted.
赵波The Phased Value of Distributors to Manufacturers
Manufacturers partner with distributors for different reasons at different stages: cost savings during market launch, leveraging local reputation during market cultivation, and shifting financial and inventory burdens during stable growth. Distributors, having learned from experience, manage brand promotion and business share to protect their own interests.
潘文富How Can Traditional Distributors Win the Local Battle Against B2B Platforms? Defend Your Existing Market!
Facing the wave of Internet+, affected distributors clearly understand the advantages of the B2B model, yet they remain on the sidelines. Zhongke Shangruan, with over a decade in the retail industry, has found that while there are many successful cases of regional B2B platforms, many distributors who stand by are not lacking the ability to integrate resources but are constrained by their own mindsets and fail to realize the power of collective development. The success of B2B in regional markets largely depends on regional distributors uniting and sharing resources. To grow against the tide, distributors need to think and plan in three areas: brand competition, supply chain competition, and To C capability competition.
王神兵The Dead End and Way Out for Distributors...
Distributors in the FMCG industry are often reduced to mere delivery roles, losing their true value. To survive, they must strengthen their 'distribution' function by focusing on management and marketing, not just sales, and become indispensable partners to brands.
古歌读舒In Bypassing Distributors to Directly Supply Retailers, Alibaba and JD.com May Both Be Wrong!
With the rise of B2B platforms, various entry points have emerged, but the best approach is to focus on distributors, empowering them to transform into local service providers, integrating online and offline operations, and serving both brands and retail outlets efficiently.
杜建芳If You Don't Want to Be Played by Manufacturers, It's Worth Reading This
This article discusses the various ways manufacturers can harm distributors, such as canceling distribution rights, reducing territories, or withholding reimbursements. It provides practical precautions distributors can take to protect themselves, including vetting key personnel, diversifying product sources, and maintaining open communication with multiple levels of the manufacturer's organization.
潘文富“No Middlemen to Earn the Difference” Is Indeed a Lie, but the Good Old Days for Distributors Are Gone Forever!
The transformation of traditional distributors is not a new topic, having been explored for over a decade. With the rise of B2B platforms since 2014, the internet has injected new vitality into this old issue. The article analyzes what disintermediation in the FMCG industry removes and what it retains, and suggests directions for traditional distributors to transform.
杜建芳Uni-President's Secret Vending Machine Strategy: 1 Year In, Significant Results, Another 450 Million RMB This Year!
Uni-President China is accelerating its vending machine business in mainland China, with 2018 capital expenditure up nearly 90% to RMB 1.3-1.5 billion, 30% of which will expand vending operations. After a year of pilot testing, the company is now aggressively entering the market, facing competition from Nongfu Spring, Wahaha, and others.
袁来Deep Dive | Red Can JDB's 'Comeback' Hits Snags: When Will Oligopolistic Competition in the Herbal Tea Industry End?
Fifty days after JDB announced the re-launch of its red-can product, it remains scarce in the market, with analysts attributing this to inventory pressure from gold cans. The company's plan to have both red and gold cans available within 45 days has not materialized, and a recent 1.441 billion yuan judgment against JDB in a trademark dispute with Wanglaoji adds to its woes.
刘志刚互联网江湖Three Squirrels Leverages Retail Link for Offline Distribution: Can It Overtake on the Curve with the B2B Expansion Dividend?
Three Squirrels, the internet-famous snack brand, is expanding offline via Alibaba's Retail Link platform, achieving over 4.5 million yuan in sales on its first day. With rapid penetration into hundreds of thousands of small stores, the move aims to address over-reliance on online channels and leverage B2B growth to accelerate its IPO prospects.
袁来Want Want's Midlife Crisis: Executive Reshuffle and Lackluster Distributors
China Want Want Holdings has undergone another executive reshuffle, with nearly a quarter of its board replaced, amid declining profits and waning distributor enthusiasm. The company's restructuring efforts, including a shift to regional management and new product launches, have faced challenges in revitalizing its brand.
吴容Yili and Master Kong Distributor, with Annual Sales in the Hundreds of Millions, Becomes a Local Powerhouse, Now Pivoting to B2B!
Distributor transformation has become a hot topic in the FMCG distribution sector, but there is no one-size-fits-all answer. In the view of New Distribution, the path depends on various factors such as regional market conditions, accumulated resources, and the boss's mindset. This article features an interview with Zhang Hang, general manager of Meizhou Xiduoduo Supermarket Chain Co., Ltd., who has been deeply cultivating the regional market for 20 years and proposed a 'full embrace of the internet' strategy in 2018, including building a B2B platform.
袁来Distributors Who Don't Understand Management Won't Succeed No Matter How Good Their Performance Is!
Why do businesses fail? Because they don't make money. For distributors, the reasons for not making money can be divided into two levels: operational and managerial. Operational reasons include market shrinkage, product accidents, and poor market fit, while managerial reasons include poor personnel management, low customer service quality, and lack of organizational structure. Ultimately, distributors often lose money due to poor management, which eats into the profits earned through operations.
潘文富Distributors Struggling with Transformation and Upgrading? Maybe You Don't Know How to Leverage Brand Owners!
This article explains how distributors can leverage brand owners' industrial internet marketing platforms to transform and upgrade. It defines key concepts, discusses the necessity of transformation and upgrading, and provides a step-by-step guide on how to use these platforms to increase efficiency, reduce costs, and boost revenue.
王焕之Post-85s Takes Over as Second-Generation Distributor: He Says, 'Second-Generation Successors Should Observe More, Do More, and Change Less!'
Xu Zhouming, general manager of Taizhou Haoxiang Trading Co., Ltd., believes that second-generation distributors should observe more, do more, and change less, maintaining a respectful attitude towards their parents' distribution business. As China's first-generation FMCG distributors age, succession has become an unavoidable topic, and Xu is exploring new possibilities by combining traditional business with community-based micro-commerce.
袁来Being a Valuable Salesperson to Distributors Starts with Teaching Them Product Display!
Product display plays a crucial role in the sales process. Poor display can undermine the entire sales effort, while effective basic terminal display can significantly increase consumer attention and purchase probability. This article discusses how to secure and utilize terminal display resources, emphasizing the importance of salesperson capabilities, customer relationships, and continuous execution.
New DistributionMaking Urban Distribution from the Perspective of "Saving Money" for Distributors? Then Your Model Might Be Wrong!
Urban distribution transformation is a hot topic among distributors, but profitability remains elusive. The core issue is that urban distribution should not be about saving money for distributors but about providing end-to-end retail logistics solutions for brands, which requires breaking existing distribution hierarchies and reallocating channel profits.
赵波Relying Solely on a Cup of Bayberry Juice, Annual Sales Reach 20 Million Yuan—How Did He Do It?
Wang Chengyou, founder of Chengyou Wangji, turned a traditional bayberry drink into a best-selling 'internet-famous' beverage, achieving annual sales of 20 million yuan. Through persistent innovation in packaging, strategic use of freezers, and expansion into scenic spots, he built a distribution network of over 50 dealers without a single salesperson.
徐璐From Second-Generation Merchant to Second-Generation Innovator: Innovative Distribution Model Boosts Business 10-Fold in One Year!
“At first, when we started doing business through the B2B platform, many manufacturers' salespeople were worried and opposed, cursing us daily, saying we were poaching offline outlets and ignoring the offline wholesale business. But after a year of operation, Chunxia Mingpin's B2B platform business has grown 10-fold, and the original wholesale business has also grown by 50%,” said Zhang Wei, founder of Nanjing Chunxia Mingpin. Over 30 years of reform and opening-up in China, early distributors who ventured into business have accumulated considerable wealth, but most are now in their sixties, facing the issue of succession by their children.
新经销100人Distributors Turn Offline Sales into Scenarios, Outperforming Online Double 11!
The retail ecosystem is shifting from formal, professional stores to warm, humanized ones. This article explores where products should be sold in the future, introducing the 4W model for scenario-based innovation in offline sales, with examples from tea and other products.
黄润霖From Traditional Distributor to Fresh Food Convenience Store King of the Northwest: His Personal Experience Proves There Is a Third Path for Distributor Transformation
Zhang Mingyang, founder of Mingzhe Bianli, gave up a million-yuan distribution business to open fresh food convenience stores, achieving over 200 franchised stores in Xi'an and annual GMV exceeding 400 million yuan. His case demonstrates that traditional distributors can transform into convenience store operators, leveraging fresh produce as a key differentiator and community e-commerce to increase store traffic by 20% and monthly revenue by over a million yuan.
新经销刘少德30 Years in Distribution, 800 Million in Annual Sales, She Says: There Are No Old Distributors, Only Those Who Fall Behind the Times
Zhang Meilan, general manager of Shijiazhuang Zhongshan Daily Chemicals, shares how her company, founded in 1985, has thrived through decades of industry changes by embracing transformation and maintaining a customer-centric approach. In 2017, the company achieved sales of 800 million yuan.
袁来Brands Are Dead, IPs Have Arrived: Why Distributors Should Abandon Products Without Content Communication Capabilities?
Why have TV ads become ineffective? In the past, consumption was about following the crowd; now it's about leading. Consumers no longer seek mass conformity but niche self-expression. With the rise of subcultures, communities, and individuals, brands and marketing face uncertainties. In the internet age, if a brand cannot build strong relationships with users, it will be overwhelmed by information. The best methodology is IP, which can turn weak relationships into strong ones, enabling user acquisition, content distribution, and transaction generation.
赵波Distributor | What Should a Distributor Do When Competitors Are Promoting but the Upstream Manufacturer Doesn't Support?
Promotions are a common market stimulus, but when a competitor launches a promotion while the distributor's own manufacturer has no scheduled promotion, the distributor faces a dilemma. This article analyzes the psychology of secondary wholesalers and retailers and proposes low-cost countermeasures, such as using information warfare to undermine the competitor's promotional impact.
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