NEW DISTRIBUTION RESEARCH TOPIC

How can brands grow beyond price competition?

Evidence and cases on product strategy, category innovation, marketing, and channel coordination in China’s consumer market.

Related research and analysis

4701 articles · Page 38 of 196

Consumer & Categories

Snack Stores Take Away 30% of Business, 200,000 Distributors Face a 'Life-or-Death Race'!

In June, a friend added me on WeChat and said that distributors, especially those handling big brands, are struggling to survive. He is a distributor in a county-level city in Hubei, mainly supplying leisure food to supermarkets, but his business has been hit hard by the rise of snack discount stores, which have opened about 50 stores in his area and caused a 50% decline in his main client's sales. This article analyzes the phenomenon of snack hard discount stores, their impact on traditional distribution, and offers strategic advice for distributors.

任文青Andy
Capital, Earnings & M&A

Yili, Uni-President, Coca-Cola... 16 Beverage and Dairy Companies Release Financial Reports, 15 See Revenue Growth

In the first half of 2023, well-known domestic and international beverage and dairy companies reported frequent good news! Companies such as Dongpeng Beverage, Uni-President Group, Swire Coca-Cola, Liziyuan, Coca-Cola, Nestlé, PepsiCo, Danone, and Huanlejia all achieved performance growth. Besides the gradual improvement in the global economic environment, the main reasons for the performance growth of some beverage companies also include the expansion of new products and new business areas, injecting new vitality into the company's long-term development through diversified development strategies. In addition, some companies raised product prices, which also contributed to performance growth. This...

勾勾
Consumer & Categories

2023 Beverage Market Single-Point Surprise: Nongfu Spring's Oriental Leaf Unsweetened Tea Growth Exceeds 100%

This is the third consecutive year of high growth for Oriental Leaf. On the evening of August 29, Nongfu Spring announced its first-half 2023 results: revenue of 20.462 billion yuan and profit of 5.775 billion yuan, up 23.3% and 25.3% year-on-year respectively; the tea beverage segment (Oriental Leaf and Tea π) achieved revenue of 5.286 billion yuan, up 59.8% year-on-year. Based on the financial data in the announcement, it is estimated that tea beverages may have contributed nearly 30% of profits in the first half. Tea beverages have become Nongfu Spring's second growth curve and new profit source.

New Distribution
Brand Marketing

Man Xiaobao: Going Offline Is a Difficult but Right Move

This article analyzes how Man Xiaobao, a new consumer brand, achieved rapid growth by expanding into offline channels, reaching nearly 1 billion yuan in sales last year and 150 million yuan in offline business within half a year. It highlights the brand's product innovation, marketing strategy, and partnership with distributors.

冯瑶
Brand Marketing

How FMCG Distributors Can Compete for Scarce Shelf Space

Shelf space is shaped not only by brand investment but also by the distributor's local position, operating efficiency, retail knowledge, and ability to build demand at store level.

New Distribution
Brand Marketing

A Battle Between Bestore's Premium Strategy and the Snack Discount Track

The rise of bulk snack stores has triggered a new round of channel transformation in the industry, with 'low price' and 'discount' becoming key words. In this changing environment, can Bestore's premium route still work? Upon reflection, the high-end market of an industry will never completely disappear. Although consumers' shopping intentions have become more rational after the pandemic, this does not mean their interest in high-quality products has waned.

勾勾
Brand Marketing

The 'Simp Economy' Is No Longer Selling

In daily consumer goods, men's purchasing power has long been questioned as being inferior to that of dogs. If businesses want men to spend frequently, the best marketing is 'paying for the one you love.' Whether it's cosmetics, flowers, or luxury items like branded bags and jewelry, the users are women, but a certain proportion of the bill is paid by men. Online, this behavior of spending money to please the opposite sex is called the 'simp economy.' Now, this consumption behavior is facing challenges. Perhaps due to the overall economic environment, simps' expectations for love have also declined. Facing tight wallets and high sunk costs, men's spending on courtship is decreasing. In contrast, they are spending more money on pleasing themselves.

续紫君
Capital, Earnings & M&A

Food, Beverage, and Liquor Listed Companies Release 2023 Semi-Annual Reports!

In the food sector, falling raw material costs boosted revenues, with康师傅 (Master Kong) leading in revenue at 40.907 billion yuan and 亲亲食品 (Qinqin Food) seeing the highest net profit growth of 481.79%. In beverages and dairy, core products drove growth, with东鹏饮料 (Dongpeng Beverage) leading in revenue and profit. Beer companies all achieved positive growth, with华润啤酒 (China Resources Beer) leading, while in the baijiu sector,贵州茅台 (Kweichow Moutai) outperformed with over 20% growth in both revenue and net profit.

杨玉琳
Consumer & Categories

Leaving 7-Eleven and FamilyMart Behind, Lawson China Marches Toward 10,000 Stores

When foreign convenience store chains lower their proud heads. The term '10,000 stores' is no longer rare, with Mixue Bingcheng in tea drinks, Luckin Coffee in coffee, and Meiyijia in convenience stores. But for foreign brands, cases of setting and steadily pursuing a 10,000-store goal are few. Lawson is one, aiming for '10,000 stores in China by 2025.' Despite the pandemic's impact on offline retail, Lawson has maintained rapid expansion, adding 1,175 stores in 2022, second only to Meiyijia among top 10 brands, and achieving its first profit in China in two years.

任彩茹
Brand Marketing

How Can Community Group Buying Brands Trapped by Price Undercutting Be Saved?

In the previous article, the author discussed the surging trend of community group buying. Following its publication, rumors emerged that JD.com would acquire Yonghui, though multiple sources suggest this is unlikely. However, Liu Qiangdong's involvement, the competitive dynamics between Douyin and Pinduoduo in community group buying, and the resurgence of this channel have become increasingly clear. Behind the acquisition rumors lies the market's concern for traditional channel power and the confusion of brand owners and distributors regarding community group buying.

老陶
Consumer & Categories

Snack Stores Are Busy, FMCG Manufacturers Are Panicking!

“Now many are proactively coming to discuss cooperation, including top-tier brands, and they bring their CFOs—sales directors are useless, as it ultimately involves cost accounting,” said a founder of a snack discount store brand about upstream manufacturers. In 2017, Snack Busy appeared on the streets of some Hunan cities. “Selling snacks at low prices—can that be a good business?” “Just a passing fad!” Many were pessimistic, including upstream FMCG brands. But the market is like this: consumers are the real players with the final say...

任文青Andy
Brand Marketing

A 92-born Distributor's 10-Year Journey: Representing Totole, Chubang, Lotus and More, with Annual Sales of 80 Million

After 10 years of development, I have deeply fallen in love with this industry. Although many say business is tough, when you look back at other industries, the FMCG distribution business is enduring and growing stronger. This is the view of Fang Fan, a post-90s first-generation distributor and general manager of Guizhou Fang Wang Yuan Trading Co., Ltd. Graduating and immediately facing unemployment, he started his own business. This year marks his first year past 30 and his tenth year in business. In a decade, Guizhou Fang Wang Yuan Trading has grown from nothing, representing dozens of brands including Totole, Chubang, and Lotus, with a business scale of nearly 80 million yuan and an 8,000-square-meter three-dimensional warehouse to support existing brands and new categories like snacks, aiming for platform-based multi-category operations.

周群
Brand Marketing

Franchise Expansion and Low-Price Strategy: Who Still Buys Moutai Ice Cream?

Despite the popularity of Moutai ice cream, it is not a lucrative business for franchisees. The product's high price and limited variety, coupled with a shift towards affordable ice cream and increased competition from new tea drinks, pose challenges. Moutai's primary goal is brand rejuvenation, but the long-term conversion of young consumers to high-end liquor remains uncertain.

林京
Brand Marketing

Hao Huan Luo Exclusively Sponsors Successful Rocket Launch, Luosifen 'Reaches the Universe'

Recently, Hao Huan Luo's 'hardcore marketing' went viral across the internet, attracting attention from the entire branding industry and earning praise from netizens. On August 10, the Ceres-1 (Yaoqi) Hao Huan Luo carrier rocket was successfully launched from the Jiuquan Satellite Launch Center (mission code: LUCKY 7), precisely placing seven satellites into their预定 orbits. The launch was exclusively sponsored by Hao Huan Luo, the leading brand of Liuzhou luosifen. This 'out of this world' marketing campaign not only made the Liuzhou luosifen brand 'reach space' but also spread its joyful brand spirit to the universe, letting the world fall in love with the taste of Liuzhou.

New Distribution
Brand Marketing

Brave the World SuperX Joins Forces with "One and Only" to Create a New Paradigm of Film Crossover Marketing

During the 2023 summer box office season, total revenue surpassed 17 billion yuan, marking the first time since 2020 to exceed 10 billion. Brave the World SuperX collaborated with the film "One and Only" and its brand ambassador Wang Yibo to launch a series of marketing campaigns that successfully leveraged online and offline traffic, setting a new benchmark for brand-film crossover marketing.

New Distribution
Brand Marketing

The Dealer Development Led by First-Tier Brands Such as Yili, Mondelez, Unilever, and Haitian Is Being Replaced!

Hello friends. I am Yuan Lai. "In the past, first-tier brands led the development of local dealers' businesses; in the future, it will be the competition among local dealers that shapes the business landscape of local dealers." I have been saying this on many occasions recently. In the past, the rise of dealers was often due to catching a good brand and following it, accompanied by demographic dividends and supermarket dividends, gradually growing from an individual or family business into a trading company with dozens of employees.

袁来
Consumer & Categories

Fruit Stores: A New Frontier for Snack Sales

Fruit stores are emerging as a new sales channel for snacks, beverages, and ice cream, attracting brand attention. One fruit store owner reported that raw chocolate ice cream was his best-selling product last month, while another noted that adding beverages and water increased foot traffic and fruit purchase frequency. Snacks have entered fruit stores in three stages: bulk roasted goods, pre-packaged nuts, and full-category snacks.

全食在线
Consumer & Categories

I Quit My Job to Open a Snack Store and Lost My Shirt

In my neighborhood, there was once a street known as 'Milk Tea Street,' lined with milk tea shops that opened and closed in succession. This year, I noticed that several snack stores had suddenly appeared in their place. Indeed, many snack stores have been popping up like mushrooms recently. Searching for 'snack collection stores' on social platforms like Xiaohongshu and Douyin reveals rows of brightly colored, neatly arranged shelves. Netizens in the comments are hotly debating: 'Is it worth it?', 'Is it reliable?', 'Can it make money?'...

小肥良
Brand Marketing

C'estbon as the Official Drinking Water of the Chinese National Team: What Does It Mean in the Channel?

Recently, New Distribution visited a distributor in Guangzhou, where trucks were constantly coming and going, and dozens of employees were busy loading and unloading goods. The distributor said that among the over 1,000 mom-and-pop stores he serves, C'estbon is the best-selling drinking water brand, with consistent growth year after year. Why C'estbon? New Distribution observed that C'estbon has frequently appeared at various competitions of national team athletes in recent years, and through long-term support of the Chinese national team, it has continuously shaped the joint brand image of 'Chinese National Team × C'estbon'. This year, C'estbon updated its brand proposition to 'Official Drinking Water of the Chinese National Team'.

田静
Brand Marketing

Returning Offline in 2023: Channel Digitalization Takes Center Stage

After the 2023 Spring Festival, leading FMCG companies launched large-scale channel digitalization, becoming the most notable phenomenon in digitalization and marketing. Channel digitalization, also known as full-chain or long-chain digitalization, involves all four channel links: F (manufacturer), B (distributor), b (retailer), and C (consumer). The prerequisite for full-chain digitalization is deep offline distribution, a strength of FMCG leaders. This article explores the drivers, obstacles, principles, and best practices, including Coca-Cola's experience.

刘春雄
Brand Marketing

Ailingshi Takes Control of Local Chengdu Brand, Snack Retail Industry Enters Merger and Integration Mode

On August 9, 2023, Ailingshi, a snack retail chain based in Changsha, announced it had taken control of the local Chengdu snack retail chain Konglongheteddy, bringing its store count in Chengdu to over 300 and in Sichuan to over 350, making it the second-largest local snack retail brand in Sichuan. On the same day, Snacks Busy announced a strategic investment of tens of millions of yuan in Qiahuopuzi, and the two will jointly consolidate advantageous regions and develop the national market. This signals that the snack retail industry has entered a phase of merger and integration as competition intensifies.

任文青Andy
Brand Marketing

Chengdu Universiade Concludes Successfully, Blue Moon Demonstrates Chinese Brand Strength with Professional Cleanliness

On August 8, the 31st Summer Universiade concluded successfully in Chengdu, fulfilling its promise of a simple, safe, and splendid sports event. The Chinese delegation topped the medal table with 103 gold, 40 silver, and 35 bronze medals, a historic best. Blue Moon, as the official exclusive supplier, provided professional cleaning services and showcased Chinese brand excellence.

New Distribution
Consumer & Categories

The Midfield Battle of Chinese Ice Cream

From the fragmented early market dominated by local brands like Guangming, Beibingyang, and Wuyang, to the market elevation driven by foreign brands such as Wall's and Nestlé, and then to the core market control by Yili and Mengniu leveraging raw materials, channels, and brand advantages, Chinese ice cream has completed its first half. The 'ice cream assassin' Zhong Xue Gao stirred the waters, bringing an opportunity for comprehensive premiumization of local brands and ushering in the second half of the Chinese ice cream market. Now, industry pillars like Yili and Mengniu are moving upward, while Zhong Xue Gao, caught in the middle, is testing downward, and more new players are entering the fray, with foreign brands also staying to seek new opportunities.

陈晓京
Brand Marketing

Betting on Niche Tracks: Can Snack Giants Rely on Sub-Brands to Weather the Storm?

AgeClub explores the 'second growth curve' for snack giants like Liangpin Shop, which has launched sub-brands such as 'Xiaoshixian' for children and 'Jie Tangyou' for diabetics. Despite the trend among major players like Be & Cheery and Three Squirrels to expand into niche sub-brands, most have seen limited success, raising the question of whether these sub-brands can help them overcome growth challenges.

大可