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2017: Distributors, Make Your Company Smaller and Lighter to Maximize Profits!
The economic environment has been tough in recent years, especially this year, with declining consumer purchasing power, overcapacity, and severe product and marketing homogenization, making 2016 difficult for FMCG distributors. Some are even struggling to survive. Facing this objective market adversity, what should distributors do in 2017? By making the company smaller and lighter, they can focus on a specific channel or category for long-term development and breakthroughs; by being customer- and channel-oriented, they can escape the trap of cost-based operations and price competition, building true core long-term competitiveness.
快消君How Retail Tong Should Be Played
Whether e-commerce or offline, any business model must first have a sound commercial logic, meaning the inevitability, necessity, and key points of the business must be well designed. Without reasonable commercial logic, a business model is hard to sustain and will eventually collapse. Retail Tong and similar e-commerce wholesale platforms aim to leverage the efficiency of the internet to build open platforms for merchants and manufacturers, providing matching services for 5 million B-end small shops. There are three key points: platform efficiency, the integration capability of merchants and manufacturers, and a stable, valuable, and sales-effective market network.
鲍跃忠Major Start-of-Year Insight: Under Consumption Upgrade, B2B Replacing Distributors Is an Irresistible Trend!
The just-concluded 2016 saw China's economic transformation significantly impact shopping patterns, with declining sales of traditional FMCG products becoming the norm. From 2011, instant noodle sales fell for five consecutive years, dropping 12.5% in 2015; beer declined 1.4% year-on-year from January to October 2016, with over 20 months of decline only halting in November. Beverages also suffered, as Uni-President's 2016 interim results showed a 2.4% revenue drop, partly due to its beverage segment. This article argues that consumer behavior has fundamentally changed, making traditional channel-dependent marketing obsolete, and that B2B platforms, with their data-driven transparency, efficiency, and precision, are the inevitable future for distributing new, personalized products.
赵波Three Major Sins of Channel Stuffing: Squeezing Manufacturer and Distributor Profits; Distorting the Channel; Distorting Sales Work
Deep distribution, which has long supported sales growth, has in recent years been reduced to just one activity: channel stuffing. Whether for manufacturer salespeople or distributor salespeople, the basic work revolves around stuffing the channel. Stuffing, stuffing, and more stuffing—the channel is on the verge of collapse, yet the stuffing continues. At a company's annual meeting a few days ago, when the host mentioned the three major sales promotion activities for the year, I felt a sense of 'long time no see.' Indeed, some basic channel work that was once very effective is now a thing of the past. If channel stuffing had some justification over a decade ago, now I must say loudly: channel stuffing is a sin.
刘春雄15 Common Problems Distributors Often Face - Check Yours!
1. Low staff quality, difficult management. 2. Many daily orders, small value per order. 3. High distribution costs. 4. Multiple payment methods, generally long credit periods. 5. Complex supermarket fees, difficult reimbursement for advances. 6. Manufacturer prices rise, but customer price increases are hard. 7. Scientific collection is difficult, accurate payment is hard. 8. High internal staff turnover, good people can't be retained, bad people can't be let go. 9. Management by people rather than systems, bosses and managers are overwhelmed, many bosses were formerly salespeople and don't do what bosses should do...
樊忠宝How Should Distributors Survive in 2017?
As 2016 comes to a close, distributors face a new year with shrinking existing markets due to economic downturn and insufficient growth from upstream companies' lack of innovative new products. Rising labor costs, energy, raw materials, and other expenses, coupled with over-competition, have left many distributors in a state of imbalance. In 2017, if distributors cannot find new profit growth points while costs continue to rise, they must reform outdated practices and organizational structures to improve profits.
师顺宽Public Welfare: Dealer Bosses: 3,000 Anti-Haze Masks Available Here for Free!
In the face of haze, you may choose to stay indoors, but many workers continue to work outdoors. In the FMCG market, frontline salespeople are the ones who endure long hours and harsh conditions. New Distribution and Qianmi Network have jointly launched the 'New Distribution · Pure Breathing' public welfare campaign, offering 3,000 3M masks free to frontline salespeople nationwide.
New DistributionThe Invasion of Big B: Are Distributors Doomed?
Many distributors, especially channel dealers, are losing sleep over the entry of Big B (centralized B2B e-commerce platforms like Alibaba's 1688), which have capital, traffic, and location advantages. However, the author argues that the B2B era is not yet fully ripe, and even when it arrives, the process will be difficult and fraught with challenges.
黄润霖How Is the Traditional Distribution System Being Dismantled Step by Step?
Companies like Zhongshang Huimin, by building their own warehousing and logistics and setting up ordering and inventory systems, incorporate traditional grocery and retail stores into their distribution network, effectively cutting off traditional distributors. While this reduces intermediate layers, it doesn't necessarily lower operating costs or benefit consumers, as traditional wholesalers mainly handle distribution at low cost. Retailers may benefit from reduced ordering and inventory hassles, but brand manufacturers like P&G and Unilever avoid exclusive agreements with such distributors to maintain bargaining power, keeping traditional distributors relevant. However, traditional systems lag in inventory and ordering, and with limited investment, more retailers may defect. Traditional distributors can upgrade their systems with internet and O2O tools to compete, and startups can help them, offering a cooperative model versus the self-operated model of Zhongshang Huimin. Both models, self-operated and matchmaking, are growing, with coverage exceeding 400,000 stores each, and time is running out for traditional distributors to choose.
钱学林The Era of Low Prices as King Is Gone for FMCG: How Long Can the Nostalgia Card Last?
The era of low prices as king is gone. Young consumers neither look at brands nor prices, only at feelings. As the post-90s and post-00s generations become the new consumer主力, FMCG companies are changing their strategies, focusing on emotional engagement and brand upgrades to win over these new consumers.
陈琼Business Perspective: How Distributors Can Break the Curse of Operations
A recent viral article about a veteran dairy distributor suffering huge losses and owing 19 million yuan has sparked discussion. Marketing expert Liu Chunxiong noted that if such cases are isolated, it's the distributor's fault; if widespread, the company or industry has problems. Due to economic pressures, channel fragmentation, consumption upgrades, and overcapacity, FMCG distributors are struggling, many facing financial ruin after years of hard work.
醉行者A Successful Case of a Distributor's Market Operations in Northwest China
Since China's market economy began, especially after 2015, business has become increasingly difficult due to severe product homogenization. In 2016, the market crisis persisted, and manufacturers launched continuous promotions to boost sales. This article tells the story of Lao Wang, a small distributor in a county in Northwest China, who successfully increased product sales through strategic placement, promotions, motivating sales staff, investing in display cabinets, and building good relationships with stores.
王济保Who Leaked This FMCG Company's Chinese New Year Sales Plan?
Sales directors have been under pressure in recent weeks, with bosses urging them to submit sales plans for the period around Chinese New Year—plans that must be well-reasoned, practical, and executable. Before rushing to type, let's examine the unique aspects of Chinese New Year consumption. Unlike artificial festivals that rely on heavy spending to create a shopping atmosphere, Chinese New Year is the most important traditional festival. With New Year's Eve as the pivotal point, the 30 days before the lunar year's final day constitute the traditional peak sales season, and the Lantern Festival marks the campaign's conclusion. Pre-festival shopping for goods and post-festival visiting of relatives and friends naturally amplify consumer demand during this period, when consumers are least price-sensitive and average transaction values often double.
小镇青年朱迪In 2017, These Four Types of Salespeople Are Treated as Brothers by Distributors! Are You Brotherly Enough?
Everyone knows that the job of a salesperson is not easy, as they have to visit new clients every day, often facing closed doors or being shown the door, not to mention the emotional toll of being away from family for long periods. However, sympathy won't put food on the table; if you choose this career, you must bring passion and determination. In my work, I've encountered many salespeople, and some have truly impressed me.
New DistributionSmall Items Quietly Make Big Money, Yet You Turn a Blind Eye
Running a business is hard, especially in FMCG, with rising costs and shifting consumer preferences. Distributors face squeezed profits and slow sales. However, not all FMCG players are struggling; some niche players like Huawen Food's劲仔小鱼 are quietly thriving by focusing on small packages, low prices, and extensive small-store distribution, attracting major investment from Legend Holdings.
伯乐斋Practical Strategies for Small and Medium Distributors in Second- and Third-Tier Markets Operating in Retail Outlets
This article shares the successful experience of Lao Xiang, a distributor in a small southwestern city, who navigated the challenges of second- and third-tier markets by strategically selecting brands, negotiating favorable terms, and executing effective in-store promotions. His story highlights the importance of persistence, resource concentration, and targeted market penetration.
王济保B2B E-commerce: Friend or Foe? A Distributor's Perspective
One's stance determines one's perspective. B2B e-commerce is viewed differently by different channel players. From a distributor's viewpoint, this article addresses two key questions: Is B2B e-commerce a friend or foe to distributors? And can it solve distributors' current pain points?
刘春雄Distributors Face Numerous Difficulties This Year—Are You Still Planning to Do It This Way in 2017?
Recent articles have been debating the fate of distributors, with some saying they're thriving, others predicting their demise, and some using the situation to push their own agendas, such as e-commerce platforms. The author weighs in, starting with the fundamental question: what is the ultimate goal of doing business?
潘文富Meeting Consumer Demand ≠ Changing Packaging ≠ Acting Cute: How Should Distributors Cater to 2017 Market Trends?
To rescue declining beverage sales, companies rely on new products, but they often fall into misconceptions. This article analyzes Uni-President's mistakes, such as overemphasizing packaging and cuteness, and suggests that traditional Chinese ingredients like hawthorn and tangerine peel, with their health benefits, offer a promising market opportunity.
New DistributionAt Year-End, Distributors: The Dreaded "Cross-Year Date" Isn't as Scary as You Think!
Every year-end, many distributors face the confusing issue of "cross-year dates" on products, especially in late 2016 when the Spring Festival came earlier and upstream costs were rising. While manufacturers push for year-end targets, downstream retailers resist accepting products with old dates. This article analyzes why this issue has become more sensitive and offers practical advice for distributors on how to handle it.
New DistributionHigh-end Baijiu Prices Surge Before Chinese New Year: Moutai Up Nearly 200 Yuan in Three Months, Feitian Moutai May Reach 1,500 Yuan
High-end baijiu prices are rising as the year-end consumption peak approaches. In Changsha, 53-degree Feitian Moutai has increased by nearly 200 yuan in just three months since the Mid-Autumn Festival, with Wuliangye and other high-end brands also raising prices. Industry insiders predict that the market will continue to improve next year, with Feitian Moutai potentially reaching 1,500 yuan per bottle.
李金Is RIO Done? Losing 200 Million in Half a Year! Distributors Revolt! Why Did the Once Hot RIO Cocktail Suddenly Go Limp?
RIO, once a leading premixed cocktail brand in China, is now facing a crisis with nearly 200 million yuan in losses and widespread distributor complaints. The article analyzes the reasons behind RIO's rapid rise and fall, attributing it to over-marketing, overestimation of the market, and low customer loyalty.
尹太白Can FMCG B2B Really Compress the Supply Chain and Eliminate Middlemen?
In 2016, B2B e-commerce was booming, with Alibaba and JD.com entering the market and achieving notable results. Platforms aimed to improve efficiency by compressing the supply chain and eliminating middlemen. This article analyzes whether FMCG B2B can truly achieve this, arguing that while B2B can improve physical distribution efficiency, it fails to address communication efficiency in the channel, and for certain low-value, high-frequency categories, eliminating middlemen may be difficult. However, for many other categories, B2B can replace and compress links if certain conditions are met.
赵波Distributors, Are You Still Desperately Waiting for Next January's Shipments? Don't Be Foolish, My Friend
With the 2017 Spring Festival approaching, distributors are busy with channel stocking, but many are insisting on receiving January-dated products. This article argues that waiting for January shipments is unwise due to production capacity constraints, rising raw material costs, and the importance of timing in the competitive FMCG market.
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