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Rising Costs and Expenses: How Should FMCG Distributors Navigate the Current Phase?
An online article once went viral, titled 'It's Not That the Old Have Turned Bad, but That the Bad Have Grown Old.' The bottleneck in the FMCG market is similar: 'It's not that customers have decreased, but that channels have aged.' Comparing e-commerce platforms from ten years ago to today reveals a world of difference, yet comparing terminal stores from ten years ago to today shows little change, not even a year's worth. Since we've fallen behind, we must catch up. FMCG distributors now face declining channel sell-through rates, rising market expenses, increasing personnel wages, and high trial-and-error costs.
丁律宇Sorry, Business Is Tough This Year, No New Brands!
Distributors may slow down or stop taking on new brands, but have they carefully reviewed their existing ones? The deeper reason behind this is that under the new economic normal, distributors have failed to adapt quickly to changes in channels and terminals, and have not adjusted internal management to cope with fierce competition, leaving them passive and seeing their business shrink.
New DistributionWho Stole the Distributor's Last Kilometer Cheese?
The article discusses the concept of the 'last kilometer' in distribution, emphasizing that distributors who abandon their terminal retail presence lose their competitive edge. It argues that the responsibility for last-mile delivery is returning to distributors, and that professional service, not casual labor, is essential for success.
黄润霖Distributors Upgrading to the Internet: Look Here!
Since April this year, our official account has organized four B-end e-commerce inspection tours, leading over 400 domestic distributors to visit more than 10 representative B-end e-commerce platforms. Through on-site inspections, face-to-face exchanges, and professional training, distributors have gained a preliminary understanding of B-end e-commerce, and some have found methods and paths for business transformation. The fifth B-end e-commerce inspection tour will officially start from the 19th to the 24th of this month, visiting Beijing, Tianjin, and Tangshan, with inspections of five B-end e-commerce platforms: Beiquan, Tongying Tianxia, Zhongke Shangruan, Quanshihui, Huimin Wang, and Aixianfeng (pending). Interested friends can register by long-pressing the QR code or clicking the original text link.
赵波Why Do You End Up in a Bloody Fight When You Cut Off Your Distributors?
Distributors in China are a mixed bag, to say the least. The most extreme form of manufacturer-distributor conflict is termination, which often leads to violent confrontations. This article offers practical advice on how to handle distributor terminations with caution, using strategies like delaying decisions, verifying facts, and following three key principles to minimize conflict and avoid creating 'wrongful convictions.'
黄润霖Wahaha's Growth Slows to 2% in First Half of 2016, Seeks Breakthrough by Repairing Channels
Wahaha's development is hitting a ceiling. Zong Qinghou publicly told media that the beverage industry is facing a downward trend, with Wahaha's growth rate dropping from over 20% in previous years to over 4% last year, and only over 2% in the first half of this year. China's beverage market has entered a cold winter, and slowing growth is an indisputable fact. Hangzhou Wahaha Group, which has dominated China's beverage industry for decades, faces challenges in the mobile internet era that traditional store operation models cannot solve. With weak internal innovation and fierce external competition, Wahaha attempts to restructure its channels, but can this change become a breakthrough?
吕进玉Moutai Warns E-commerce Platforms Against Low-Price Sales, Urges Distributors to Follow Suit – No More Cheap Moutai!
Ahead of Singles' Day, Moutai issued an official notice to its distributors, warning them not to supply low-priced Moutai to e-commerce platforms. The notice states that Moutai has no business cooperation with platforms like Jiuxian.com, Zhongjiu.com, Goujiu.com, Womai.com, and 1919.cn in 2016, and reserves the right to pursue breach of contract.
消费日曝Talking Money Hurts Feelings, Talking Feelings Hurts Money—Smart Distributors Know How to Ask Manufacturers for Expenses!
Distributors care most about profits, but before profits come market expenses like entry fees and barcode fees. Manufacturers often delay reimbursements, squeezing distributor cash flow, or excessive and mismanaged market expenses can kill distributors. Manufacturer support is essential, but getting it is not simple—even reasonable expenses may be denied. This article offers strategies from experienced distributors on how to secure manufacturer expense support.
New DistributionThe 62-Character Principle for Rapid Distribution Success!
During the distribution process, dealers who follow the principle of speed-to-win can quickly and effectively get products to the point of sale, meeting consumer demand promptly and achieving zero inventory. This principle is reflected in several aspects, including prioritizing key areas, broad seeding with focused cultivation, using small wins to attract larger deals, and persistent follow-up.
牛恩坤Food Lecture Hall | Distributors Operating Private Brands: Quick Money, Hard Brand Building
Distributors, as key links between manufacturers and consumers, are increasingly establishing their own brands to diversify profits and gain more control. However, experts debate whether this shift is sustainable, as it requires significant brand-building efforts and may face challenges in competing with established manufacturers.
李娅How Should Distributors Choose the Right Products?
Since 2013, the baijiu industry has undergone adjustment and transformation. As the industry shows signs of recovery, new changes have emerged in baijiu sales. To achieve rapid development, distributors must select good products, considering factors such as product positioning, brand strength, product line planning, market operations, and personnel quality.
孙茂彬With One Simple, Unfashionable Method, He Went from Rookie to Monthly Champion in 7 Months!
A former self-employed dealer, who had never worked in a big company and didn't even know how to make a PPT, managed to outperform core regions and become the monthly sales champion in just seven months. How did this former individual business owner achieve it?
沈理Before Distributors Dive into B2B, You Need to Understand...
In 2016, B2B models disrupting the FMCG industry became a hot topic, with nearly a hundred platforms entering the supply and distribution sector, leaving distributors anxious about how to respond to internet-driven channel changes. While some distributors are attempting to transform by embracing the internet, joining platforms, or starting their own B2B companies, most lack understanding of these new concepts and terms, and have no good way to learn.
赵波Channel Innovation! Want Want Launches 8 New Products, Aiming to Develop 'Universal Distributors'!
In recent years, channel hot topics have been frequent: last year Uni-President laid out a 'second network', and this year Nongfu implemented a key account system. Recently, Food Business learned that Want Want is vigorously promoting an 'individual distribution' business model to explore new markets. What exactly is this about?
食品商Self-Operation Down, Matching Up
Self-operated FMCG platforms face high fulfillment costs that erode profits, making it difficult to achieve operational efficiency. Matching platforms, on the other hand, struggle to move existing transactions online but can drive industry restructuring through technology and efficiency gains.
赵波The Era of the 'Sitting Merchant' Is Over! Before Adjusting Product Structure, Distributors Must Do This...
As market competition intensifies, the era of the 'sitting merchant' is gone forever. Distributors need to adapt to the trend of consumption upgrading and reasonably adjust their product structure, with the first priority being thorough market research to fully understand the regional liquor market. The following are the key aspects of regional market conditions that need to be clarified.
New DistributionIn Market Development, Should You 'Catch Fish' or 'Raise Fish'?
This article analyzes the market challenges faced by liquor companies in W market, G province, where a large circulation distribution model has led to thin margins, regional cross-selling, and low-price sales. It proposes a strategic shift from 'catching fish' (pursuing short-term sales) to 'raising fish' (building market foundations) through channel restructuring, enterprise-led investment, and team transformation.
任圆Dealers Outsmart Cross-Region Sellers: When Manufacturers Won't Act, We Have Our Own Ways!
Small and weak dealers often feel helpless when facing cross-region selling (channel diversion). Asking the manufacturer for help often results in shelved feedback or empty promises, while retaliating against the instigator can lead to mutual destruction and a downward price spiral. So what should small dealers do? The following cases may offer some inspiration.
New DistributionGifts, Box Returns... 21 Channel Promotion Tactics You Need to Know—Use Them Wrong and You're in Trouble
In baijiu marketing, products seem unsellable without promotion. Without promotion, channels or terminals won't stock up, won't push your products, loyalty drops, and market share is quickly lost to competitors. This forces companies to invest heavily in sales promotions to expand market share and grow sales. Below are 21 channel promotion tactics seen in the market.
朱志明From the Distributor's Perspective: Can B2B Platforms Replace the Existing Channel Supply and Marketing Model?
In 2016, B2B models disrupting the FMCG industry became a hot topic, with nearly a hundred platforms entering the field, leaving distributors anxious about the changes brought by the internet. This article explores from the distributor's perspective whether B2B platforms can truly disrupt distributors and alter the existing supply and marketing model, considering the context of consumption upgrades and rising operational costs.
赵波How to Completely Eradicate the Chronic Problem of Channel Diversion?
Channel diversion is often described as a cancer or chronic disease affecting product sales and survival, with companies imposing heavy fines for violations. However, despite strict measures, diversion persists. This article categorizes diversion into three types and ten situations, and proposes principles and measures for distributors to control it, emphasizing understanding causes, turning blockage into guidance, and building strong market control.
李红权12 Key Points for Distributor Warehouse Management
Fierce competition requires customers to respond professionally on all fronts, and both the front line and the rear must be well organized. This article provides a brief analysis of distributor warehouse management to ensure good service and support market sales competition. Key points include scientific layout, safe stacking, FIFO, clear accounts, return handling, infrastructure, virtual inventory, emergency preparedness, safety stock, extended management, regular reporting, and rules and regulations.
宋锴What Gross Margins Should Supermarkets Set for Different Product Categories?
How to balance sales volume and gross margin? Supermarkets carry a wide range of products, and each department and category has different gross margins. Generally, food margins are relatively low, general merchandise margins are higher, and fresh produce is not profitable but is used to drive foot traffic. As a popular saying in the industry goes: 'Food drives sales, general merchandise drives margins, and fresh produce drives foot traffic.' The key is to pursue high gross profit amounts, not high gross margin percentages.
New DistributionHow Distributors Can First Make Money, Then Become Valuable: Starting with Product Portfolio
Making money and becoming valuable are two different mindsets, strategies, and tactics for a company. As the bridge and link in the traditional F2B2b model, distributors will play different roles, undertake different functions, shoulder different missions, and achieve different fates in the past, present, and future of manufacturers' business activities. The traditional relationship among manufacturers, merchants, and customers is contradictory: manufacturers focus on efficiency, customers on utility, and merchants on profit.
刘金伟