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

4620 articles · Page 38 of 193

Brand Marketing

Low-temperature Fresh-cut 'Shu Xiaohuang': Innovating the Potato Snack Category

Despite the pandemic hindering the foodservice industry, leisure snacks have emerged as a new wave of consumption. With the rapid development of China's e-commerce platforms, consumer demand is trending toward quality, health, and personalization, prompting snack brands to enrich their offerings and accelerate health-oriented development. For example, French fries: most people think of KFC or McDonald's fried fries, high in oil and calories, expensive, yet enduring in China for 30 years due to their addictive nature. Mai...

沙华
Brand Marketing

Startup Brands: If You Can't Win the "Area," Focus on Winning the "Store"!

Core terminals hold significant value for startup brands. 1. I propose that due to resource constraints, startups should shift from "outlet development" to "enhancing outlet competitiveness," and from "winning at the terminal" to "winning among core terminals." In short, with low sales, low profits, and limited budgets, survival requires focusing resources on select outlets, building core terminals, and collaborating symbiotically to gradually influence a wider area. 2. Startup brands need to leverage the brand power of retailers, for example...

高级研究员 海游
Dealer Operations

The Evolution of FMCG Offline Channel Coverage

In the FMCG industry, channel dominance has always been a strategic priority for manufacturers. Almost every successful company has a unique channel coverage model, such as Nongfu Spring's exclusive distributor model, Jinmailang's four-in-one partnership, Tsingtao Beer's two-tier distribution, and Coca-Cola's 101 model. This article reviews the history of China's FMCG offline channel coverage evolution.

高级研究员 海游
Dealer Operations

After Three Years of Losses, Why Do Traditional Distributors Still Abandon Supermarket Business and Fully Shift to Local B2b?

Starting as an agent for Yili in 2011, Yu Xiuwei has been in the FMCG distribution industry for over a decade, during which he tried cross-regional operations, O2O, and multi-category, multi-brand management. At the end of 2019, he launched his own B2b platform. Initially, he only wanted to use system tools to help his team manage multiple brands, but as more small stores chose to place orders independently on the platform, he decided to give up the supermarket business and focus on building a supply chain platform that serves local small stores. After nearly three years of operation, he has developed deeper thoughts on B2b.

任文青Andy
Distribution & Channels

FMCG Calls for 'High-Level Deep Distribution'

As internet dividends fade and online profits dwindle, FMCG companies are increasingly returning to offline channels. Marketing expert Liu Chunxiong proposes 'high-level deep distribution' as a response, emphasizing promotion over mere coverage, and using China Resources Snow Breweries' 'Five Points One Line' methodology as a successful example.

陈思廷
Dealer Operations

How a Traditional Distributor Achieved Break-Even in Six Months with B2B?

A distributor who grew annual sales from over 100 million RMB in 2013 to 300 million last year shares her experience building a B2B platform. By preparing thoroughly, launching in four months, and operating for about six months, she achieved break-even with online sales accounting for 10% of total revenue.

任文青Andy
Dealer Operations

The New E-commerce Ecosystem: Should Distributors Enter Douyin E-commerce?

Recently, many distributors have asked New Distribution whether they should enter Douyin e-commerce live streaming and invest in short videos. Amid repeated pandemic outbreaks and sluggish business, they wonder if they should seek online growth. This article explores the phenomenon and trend of e-commerce migration, the logic of interest-based e-commerce, and provides insights on product selection and scenario development, based on an interview with Gu Xiangshuai, head of brand e-commerce at Mingzhi Huatong.

田静
Dealer Operations

The 'Resilient' Distributor: Covering 13,000+ KTV and Other Special Channels, Redoubling Efforts in Local Community Group Buying Amid the Pandemic

This article profiles Shanghai Huanyu Yigou, a distributor specializing in special channels like KTV, cinemas, and bars, covering over 13,000 stores. Despite the pandemic's severe impact, the company has shown resilience by pivoting to community group buying, leveraging its supply chain strengths and innovative strategies.

周群
Brand Marketing

Goodbye, Million Sales Assistants

Today, whether in retail stores or restaurants, the most noticeable difference from a decade ago is the near disappearance of sales assistants. This article explores why the sales assistant model emerged, why it has vanished, and what brands can do at the point of sale in its wake.

陈思廷
Dealer Operations

New Distribution's Ten Judgments on FMCG B2B in 2022

01 After JD and Alibaba educated the market, the vacated market space has led to rapid growth for many regional B2B platforms this year. Recently visiting Pinpianyi, Xu Yi told New Distribution that they expect to reach about 23 billion yuan in 2022; Yijiupi's scale is still around 10 billion, and it is said that Lingshoutong has fallen below 10 billion; several larger B2B platforms in East China such as Caihua Commerce, Zhongshang Huimin, Kuailai Zhanggui, and Wanquan Supei are currently at 2-3 billion; regional players like Jiabin Yunshi and Weiran Jinhe have exceeded 1 billion; single-city, single-warehouse operations like Rongcheng Yigou, Wuhan Huxiaosheng, and Luoyang Hecai are mostly in the 100-300 million range. This is only a part; many local B2B platforms have seen significant growth in both speed and single-warehouse scale. Although JD and Alibaba are no longer the leading players, their exit has in a sense freed up the ecological niche, making the industry more prosperous. And the next decade will be even better.

赵波
Consumer & Categories

Tongue Hero closes stores in multiple cities, Weizhixiang's single-store annual gross profit is 6,820 yuan, who exactly is eating prepared dishes?

Recently, Lu Zhengyao's prepared dish brand Tongue Hero has seen closures in multiple stores across several cities, drawing attention. Earlier, a franchisee revealed that after four months of operation, they hadn't even earned back their electricity costs, and many franchisees said current store repurchase rates are low, with only 9.9 yuan products selling well. Similarly, someone calculated for the C-end prepared dish brand and listed company Weizhixiang: its 2021 annual report shows 1,319 franchise stores contributed 346 million yuan in revenue, averaging 262,300 yuan per store annually, with an average gross margin of 26.01%, resulting in an annual gross profit of only 6,820 yuan per store.

焦逸梦
Dealer Operations

Why Isn't Your Product Selling? A Consumer-Centric Perspective

This article explains why products fail to sell by examining consumer behavior through the Fogg Behavior Model and emphasizing the importance of understanding consumer needs. It advises marketers to view products from the consumer's perspective, focusing on motivation, ability, and triggers, and to conduct deep consumer insights to uncover real demands.

高级研究员 海游
Distribution & Channels

Four Approaches to Solving KA Store Execution Issues

Despite declining offline foot traffic, offline channels remain crucial. To maintain a competitive edge, companies must focus on meticulous management and professional execution. This article outlines four strategies for addressing KA store execution problems: improving communication to solve individual issues, institutionalizing problem-solving through regular business reviews, optimizing operational processes to systematically resolve common issues, and enhancing the quality of planning to prevent execution failures.

曹扬Geoffrey Cao
Brand Marketing

Genki Forest Goes to the Countryside: Who's Crying?

Genki Forest is expanding into lower-tier markets, posing a potential threat to local beverage brands. However, local brands may not need to worry as consumers in these markets are tolerant of multiple brands, and some regional brands are successfully going national by leveraging nostalgia and innovation.

市场风向标
Dealer Operations

FMCG Manufacturers: This Mid-Autumn Festival Should Be Celebrated 'Rationally'!

With the Mid-Autumn Festival approaching, market sentiment is weak, and channel partners are reluctant to stock up. This article offers rational advice for FMCG manufacturers and distributors, emphasizing respect for objective facts, scientific inventory pressure under channel digitalization, and lessons for holiday marketing.

高级研究员 海游
Dealer Operations

How Manufacturers and Distributors Can Jointly Build Digital Marketing Synergy?

An experienced beverage distributor, facing declining sales and rising costs, receives a visit from a manufacturer's sales director who identifies specific market issues and proposes digital solutions. They agree to collaborate on a pilot project to leverage digital tools and third-party platforms to enhance marketing synergy and competitiveness.

邢仁宝
Dealer Operations

The Overlooked "Visit Rate" by Distributors

An industry expert once said that in the FMCG industry, everyone talks about "distribution rate," but the premise of distribution rate is "visit rate." Visit rate is the cause, and distribution rate is the effect. Discussing distribution rate without considering visit rate is putting the cart before the horse. This key metric is often forgotten, a common mistake in marketing. Many distributors I know overlook this crucial indicator. Today, we discuss how to achieve sales growth through a scientific visit rate.

李锋
Brand Marketing

Why Distributors Struggle to Sell New Products?

Distributors often complain about thin margins, yet new products with better profit potential fail to sell well. The core issue lies within distributors themselves, specifically in their distribution and sell-through capabilities, as well as their sales teams' limited time and incentive structures.

周群
Distribution & Channels

Can Industries That Missed Deep Distribution Board the Group Buying Supply Chain Revolution?

This article discusses how industries that missed the deep distribution revolution, particularly fresh produce and other non-standard products, can now leverage community group buying platforms to undergo a supply chain revolution. It argues that while standard products have achieved channel revolution through deep distribution, non-standard products require a different approach, starting from the consumer end and tracing back to the source, with group buying platforms playing a pivotal role.

刘春雄
Dealer Operations

Excellent Companies 'Empower' Distributors, Mediocre Companies 'Use' Distributors!

In market visits, a phenomenon is observed: many top regional distributors have grown alongside one or two excellent brand companies, with partnerships lasting 5, 10, or even 20 years, significantly enhancing their operational capabilities. Conversely, some distributors with growth potential stagnate or decline due to their brand partners. For brand companies, marketing teams prefer to 'attach to big names' and seek strong distributors to ensure sales targets, but the reality is that top distributors are limited. The article argues that excellent companies 'cultivate' distributors, while mediocre companies 'use' them, and discusses how to define and improve distributor relationships.

高级研究员 海游
Distribution & Channels

How to Upgrade the Digital Capabilities of the Deep Distribution System?

Most companies' deep distribution systems face low visit rates, low per-capita output, high costs, management difficulties, aging teams, and serious talent attrition. Upgrading through digitalization can improve efficiency, reduce costs, standardize operations, leverage big data, automate transactions, expand contact surfaces, and extend transaction depth, but must address organizational rigidity, interest entrenchment, and lack of planning.

赵波
Distribution & Channels

Redo the Terminals All Over Again

For distributors, terminals are crucial as they convert products into consumer goods. Is it necessary to redo this link in market operations? Yes! This article argues that despite declining offline sales, distributors can still find growth by redoing terminals, focusing on grabbing existing market share, and becoming large-scale distributors.

袁来
Dealer Operations

10 Management Lessons from Conversations with Over 100 Outstanding Distributors

Over the past two to three years, we have visited over a hundred outstanding distributors across the country, discussing their business strategies and how they manage to resist risks, achieve growth, and expand despite rapid market changes. This article distills 10 practical management lessons from these visits, focusing on internal trade company operations and management, offering insights for distributors to break through in a changing environment.

袁来
Dealer Operations

In the Next 5-10 Years, 70%-80% of Small Distributors Will Be Eliminated

The article predicts that in the next 5-10 years, 70%-80% of small and medium-sized enterprises will be eliminated, and this is becoming a reality in the distribution sector. Traditional distributors are being phased out due to complex environments and new retail, while large distributors are rising and being supported by brands. The article analyzes the current forms of distributors, explains why the trend towards large distributors is inevitable, and advises brands to support large distributors and focus on their core competencies.

赵波