NEW DISTRIBUTION RESEARCH TOPIC
How can distributors keep growing across fragmented channels?
Front-line analysis of product selection, organization, channel strategy, profit models, and business transformation for FMCG distributors.
Related research and analysis
4622 articles · Page 118 of 193
Choosing the Right Channels for Terminal Distribution Is Crucial: A Complete Guide to Six Channel Types Including Supermarkets, Catering, and Special Channels!
Terminals are where products and consumers complete transactions, serving as the final link in the supply chain. For distributors, terminals are platforms for product display and layout, as well as the best places to observe market changes and maintain consumer engagement. With industry changes accelerating, distributors must understand the composition and characteristics of terminal channels in the current market. Only by mastering the most real-time and in-depth terminal information can distributors review their channel structures, arrange their strategies, and discuss optimal terminal layouts before each new marketing season.
刘海怀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 DistributionSix Golden Rules and Data for Supermarket Product Display! Can Display Affect 24% of Sales Achievement?
Product display is a highly technical practical operation that tests business wisdom. The following key points aim to improve frontline staff's business level and store efficiency. First, let's look at these golden rules for supermarket product display: 1. At a glance: place impulse-buying products such as bestsellers and high-profit items at eye level, with labels facing customers; for lower shelves that are hard to see, tilt the displayed products. 2. Within easy reach: avoid placing products too high, especially considering that housewives are around 160cm tall; provide tools for picking fresh food; place fragile items at chest height to avoid customer concerns about damage.
龙商网How 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Master These Five Product Combinations to Bring Your Products to Life at the Point of Sale (With Cases)
As consumer awareness evolves from basic satiety to mature leisure consumption and future health-oriented choices, the low technical barriers and high imitation in China's food industry make it increasingly difficult for new products to stand out. Distributors must retain consumers and build loyalty through superior display and rational product combinations, as illustrated by five practical cases.
钱益鹏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Vending Machine Terminal Battle: Annual Sales of Vending Machine Channel to Reach 100 Billion by 2020
With the rise of the internet and consumers' increasing demand for shopping convenience, China's retail landscape is undergoing profound changes. For FMCG companies, besides premium supermarkets and convenience stores, vending machines are opening another window with their convenience and 24-hour service. According to Kantar Consumer Index, when per capita GDP reaches $10,000, consumer demand for vending machines will explode. By 2015, areas covering 390 million people in China had reached this level. In the next five years, the domestic vending machine channel will become a major emerging market for FMCG retail.
New DistributionAlibaba 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