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Who Is Driving the Distributor's Business?
Distributors' basic profit model is simple: buy from manufacturers and sell to downstream customers, earning a margin. To succeed, they need at least one of four factors: product strength, customer recognition of the owner, customer recognition of sales staff, or a robust operational system. However, owners often control few of these, so they must rebuild personal relationships and establish systems to sustain growth.
潘文富Will Distributors Be Killed by B2B E-commerce?
Distributors will not be eliminated by B2B e-commerce, primarily because manufacturers are unwilling to let that happen, and secondarily because distributors evolve. Only poorly performing distributors will be replaced by manufacturers, and only if a better distributor emerges. B2B platforms cannot replace the functions of traditional distributors, such as brand exclusivity, obedience to manufacturers, and new product promotion.
刘春雄In-Depth: Where Are the Real Opportunities and Profit Models in Alcohol B2B?
As is well known, with the rise of 'find*' websites, B2B became a hot topic in 2015. From bulk commodities to FMCG, and from matchmaking to self-operated models, B2B quickly became a darling of the investment community. However, as capital's understanding of B2B deepened, it seemed that B2B faced a rapid cooldown overnight. Yet, amidst this heat and cold, one industry—alcohol B2B—has maintained sustained rapid growth, even standing out in the B2B field. Why alcohol B2B? Is it accidental or inevitable? Let's explore this mysterious and ancient industry.
悉昙Dealer Profits Are Hewn with an Axe
Many dealers are overly optimistic about their gross margins, which leads to neglect of cost control. In reality, hidden costs are high, and net profits are often only 3-5 points despite gross margins of 20-30 points. To increase profitability, dealers must cut unreasonable costs, clean up unprofitable customers, employees, and suppliers, and simplify their operations.
潘文富Alibaba Retail Link's Head of Backend Operations Tian Yuan: Retail Link Will Leverage New Technologies to Serve New Manufacturing and Practice New Retail
At the 2016 Yunqi Conference, Jack Ma predicted five major transformations in the next 30 years: new retail, new manufacturing, new finance, new technology, and new energy. Tian Yuan, General Manager of Alibaba Retail Link's backend operations, stated at the 2016 'New Food Era · New Distribution' China FMCG + Internet Summit that Retail Link will use new technologies to serve new manufacturing and practice new retail, transforming traditional distribution models and empowering community retail stores.
New DistributionYijiupai Announces $100 Million Series C Funding: Supplier and Distributor Open Platform Model Launched!
On October 18, Beijing Yijiupai E-commerce Co., Ltd. (Yijiupai) held its national partner recruitment and Series C funding announcement conference in Fuzhou, revealing $100 million in Series C funding and a new open platform model for suppliers and distributors. The company has raised a total of 1.142 billion RMB in two years.
微酒Field 365 Liu Zhao: In the Internet Era, Improving Efficiency Is the Way for Enterprises to Survive
At the '2016 China FMCG + Internet Summit' held on October 16, Liu Zhao, CEO of Field 365, delivered a keynote speech titled 'The Survival Path for Traditional Enterprises in the Internet Era.' He emphasized that efficiency is the lifeblood of enterprises, yet due to low domestic labor costs, traditional enterprises generally neglect efficiency, leading to problems such as low personnel management efficiency, low order processing efficiency, and low warehousing and logistics efficiency.
刘昭Yang Lixiang of Zhanghe Tianxia: Zhanghe Cloud Factory Will Become an 'Online Sugar & Wine Fair' to Help Upgrade 'Traditional Distribution'
At the 'New Food Era · New Distribution 2016 FMCG + Internet Summit' held in Fuzhou on October 16, Yang Lixiang, founder and CEO of Zhanghe Tianxia, a benchmark enterprise in the FMCG B2B field, delivered a keynote speech. He emphasized that traditional manufacturers and distributors need to change their thinking and concepts, and that Zhanghe Cloud Factory, positioned as an 'online sugar & wine fair', will help them upgrade and embrace the Internet.
杨利祥New Distribution Zhao Bo: It's Not the Internet That Defeats Distributors, but High-Efficiency Models Will Always Replace Low-Efficiency Ones
If one word were to describe the state of the FMCG industry in 2016, it would be 'decline.' In the first half of 2016, among 42 FMCG companies that disclosed financial reports, 33 saw revenue growth of less than 10%, 17 saw declines (41%), and 22 saw net profit declines (54%). Master Kong's revenue fell 13.9% to 27.99 billion yuan, with net profit down 64.8% to 614 million yuan. Wahaha's performance dropped from 72 billion to 49.4 billion yuan, a decline of 22.6 billion yuan, marking a new low in years.
赵波Nongfu Spring Streamlines System Drastically: Where Should Distributors Go?
Following Mondelez's layoffs, Nongfu Spring is overhauling its distribution system by implementing a 'major distributor system' starting in October, which will eliminate small distributors and raise annual sales targets to at least 5 million yuan. The company aims to stabilize sales and give more autonomy to selected distributors, but the move has mixed reactions among distributors.
贾顺谊Breaking Through the Channel: Where Is the Real Way Out for Distributors?
Distributors in China's FMCG industry are facing a difficult transition as the market evolves. The article argues that the key to survival lies in shifting from channel operations to service operations and from single-business to specialized operations, ultimately requiring distributors to reinvent themselves.
New DistributionA 20-Year Veteran of the Beverage Industry: The Contents Cost Only 50 Cents
A veteran beverage industry employee with 20 years of experience reveals that the production cost of a 600ml sports drink is less than 1.4 yuan, with the contents costing just 0.5 yuan. He analyzes the industry's high gross margins but thin net profits due to heavy sales expenses and taxes, and discusses challenges such as declining sales, inadequate advertising, and channel conflicts.
New DistributionThe Awakening of Distributors: No More Anxiety and Confusion After Reading This
Distributors can enhance their value in win-win cooperation by building a comprehensive service platform with a multilateral effect model, providing all relevant data externally and supporting workflows internally. Trust, underpinned by a traceability system, is essential for such a platform. In an era of product surplus, distributors must upgrade, transform, and innovate to improve their value in the supply chain.
CBME 中国Who Is the Biggest Culprit Behind Haifuxin's Predicament? An Article That Sends Chills Down Distributors' Spines
The article analyzes the financial difficulties of Beijing Haifuxin Trading Co., Ltd., attributing them to the high cost of financing and blind sales expectations, which are the biggest culprits. It warns that many other distributors may face similar fates.
陈崖枫Will Wholesalers Die? Not Necessarily
In a rapidly changing business world, the wholesale industry seems stuck in the past. However, changes are occurring, and while many secondary wholesalers face extinction due to e-commerce and channel optimization, some are thriving by developing unique strategies and transforming their businesses.
王剑冰Jing Bozi's View: Most FMCG Distributors Will Transform into Regional Equity Partners in the Future
At the upcoming 2016 National Autumn Sugar and Wine Fair in Fuzhou, industry experts and distributors will gather to discuss the internet transformation of the FMCG industry. The author, Hu Wei, argues that most FMCG distributors will transform into regional equity partners, and regional managers will become regional contractors, based on three reasons: rising marketing labor costs and difficulty in recruiting new distributors, the ongoing transformation of both large and small distributors, and the shift from transactional to co-operative manufacturer-distributor relationships.
胡伟（净泊子）Why Are Some Large Distributors with Over a Decade of Experience and Ample Capital Seeing Their Business Decline Day by Day?
This article explores why some veteran distributors with years of experience and substantial funds are struggling, while newcomers with less capital thrive. The key difference lies in their business philosophy and management style, which determines their ability to adapt to market changes.
New DistributionWhere Should Grain, Oil, and Condiment Distributors Turn for Transformation?
With over 30 industry experts, 100+ B2B platform founders, and 800+ manufacturer and distributor friends gathering in Fuzhou, the industry is exploring the path of Internet transformation for the FMCG sector. As the business environment shifts, distributors face increasing pressure from both upstream suppliers and downstream channels, making transformation a critical survival strategy. This article outlines four key transformation directions: downstream terminals, upstream manufacturers, logistics centers, and professional segmentation, with detailed strategies and case studies.
陈小龙The Space for Innovation in FMCG Channels Is Dead
Recruiting distributors is becoming increasingly difficult as distributors have become more mature and rational. The era of grand marketing is over, and channel construction now requires meticulous, down-to-earth efforts. The best products are those that are marketable, and the best companies are those that are unpretentious and focused on execution.
尚域董事长郭成林2016 Survey on the Survival of Distributors
Since 2015, almost all FMCG manufacturers in China have been struggling. In the first half of 2016, Kangshifu's revenue fell 13.9% year-on-year, and net profit dropped 64.8%. Wahaha's revenue plummeted from 72 billion to 49.4 billion yuan, the lowest in years. Distributors are facing even harsher conditions, with pressure from manufacturers to stock up, leading to despair and abandonment.
赵波In Depth: The Disappearing Mass Market
The article discusses how the mass market for consumer goods is disappearing as brands face fragmentation, the rise of niche and cross-border e-commerce brands, and the growing influence of Chinese local brands. It highlights the need for brands to adapt to changing consumer preferences and the importance of engaging with fans and leveraging digital marketing.
林仲旻Big Distributors Planning to Expand Channels? Hold On! Even with Strong Strength, Take It Easy!
Big distributors are the elite in the distribution sector, with annual sales typically above 10 million yuan, even exceeding 100 million. They have strong financial resources and channel control, but expanding into new channels without adequate preparation can lead to failure. This article uses two cases to illustrate the risks and provides advice on how to expand channels more prudently.
刘雷Column Launch: Old Zhang Shares Interesting Reading Selections with You
Starting today, this official account has invited renowned internet commentator and senior O2O expert Zhang Chenyong to open a column called "Old Zhang's Reading Selections" on our platform, dedicated to curating valuable and in-depth content about the internet, retail, and traditional enterprise digital transformation. Each day's content is concise but carefully selected from the vast online information, aiming to be helpful to all friends.
张陈勇Legends of Hunan in the Internet World
The original 'FMCG Distributor Professional Management Consulting' has been renamed to New Distribution. This article explores the legends of Hunan natives in the internet industry, highlighting the success of figures like Zhang Xiaolong and Yao Jinbo, while lamenting that their companies are not based in Hunan. It then introduces Xingaoqiao, a B2B e-commerce platform founded by Hunan native Tang Guangliang, which aims to become the first notable internet company from Hunan.
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