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

4621 articles · Page 56 of 193

Brand Marketing

Juneyao Health IPO Approved, but Why Did the Issuance Review Committee Question the Number of Distributors?

The CSRC website recently published the results of the 97th meeting of the 18th Issuance Review Committee in 2020, showing that Hubei Juneyao Health Beverage Co., Ltd. ("Juneyao Health"), which had previously suspended its IPO process due to its capital verification firm being involved in the Kangdexin financial fraud case, passed the review. However, during the review, the committee raised questions about changes in the number of distributors and the high proportion of OEM production.

New Distribution
Dealer Operations

Profit is the Only Criterion for Judging an Excellent Distributor!

The core of a distributor's business is first survival and development, ultimately achieving profitability, and profit is the only criterion for measuring whether a distributor is excellent. Nowadays, competition in the FMCG industry is increasingly fierce, and intensified market competition will inevitably lead to higher industry concentration and shrinking average profit margins. The opportunities and space for distributor development are getting smaller, and most distributors are facing difficulties in the market, reduced profits, and even elimination. Competition is eternal, but opportunities also exist. For FMCG distributors to survive and develop in the new industrial environment, they must find profit growth points and enhance profitability.

李锋
Dealer Operations

If the Funds Were Not Tied Up, Would Distributors Still Be Willing to Do Business?

If the business of distribution is not profitable, would you still be willing to do it? An outsider might think, "Nonsense, who would do a business that doesn't make money?" But in reality, many distributors work hard all year and still don't make a profit. Have you noticed that fewer and fewer people are entering the distribution industry, with almost no fresh blood, and those remaining are mostly "old hands" who have been through the market's ups and downs? Once upon a time, around 2000, a large number of people flooded into the distribution business, hoping to make a fortune. However...

周群
Distribution & Channels

Deepening FMCG Industry Expertise: Providing Recognition Services That Better Understand Refrigerator Display

A beverage company's business director planned to slow down refrigerator placement despite the approaching summer, citing the inefficiency of manual display checks. Leading companies are now using AI image recognition to automatically assess refrigerator displays, improving accuracy and reducing labor costs.

提升企业销售效率
Dealer Operations

On the Front Line | Using "High Pay" Tactics to Fix Bad Market Areas!

A distributor asks how to handle a market that isn't entirely bad but has areas with vastly different sales, where bad areas suffer from strong competition, high turnover, and difficulty attracting staff. The solution is to use high pay to attract "warriors" to challenge these areas, as demonstrated by a distributor named Wang who achieved high growth through this strategy.

高级研究员 海游
Dealer Operations

Mastering Distributor Account Management: The Key to Business Success

Account reconciliation is a major headache for most distributors, often leading to disputes, bad debts, and even lost customers. To solve this, distributors should focus on three core areas: sales operations, finance, and customer management, establishing standardized systems to prevent issues.

李峰
Dealer Operations

Distributors: Why Higher Sales Volume Means Lower Gross Margins, and What to Do About It

As market dividends fade and competition intensifies, many distributors work hard all year only to find they've made no money. The question is: where did the profits go? The answer lies with the distributors themselves—their control over operations and management largely determines their gross margins. This article explains how to analyze and improve gross margins from five dimensions and offers four practical methods to boost profitability.

刘华明
Dealer Operations

From Capital Provider to Distributor to Coverage Provider to Operator: The Bar for Distributors Is Getting Higher!

The emergence of the distributor community dates back to the 1990s, following the reform of the commercial circulation system, when the earliest batch of distributors appeared. At that time, distributors mainly came from the supply and marketing cooperative system, along with some who had not found suitable jobs and turned to buying and selling goods. In the 1990s, supply was less than demand, and materials were scarce, making business relatively easy. Some manufacturers' sales managers also joined the ranks of distributors.

袁来
Dealer Operations

12 'Food Stores' in a Wholesale Market, Annual Sales Over 100 Million, 30% Annual Growth: How Did This Distributor Do It?

A distributor who started in a wholesale market has built a chain of 12 snack food stores with annual sales exceeding 100 million yuan and 30% growth, by leveraging product selection expertise, scale advantages, and innovative distribution models.

袁来
Distribution & Channels

A Digital Revolution in FMCG Distribution Channels Is Underway...

New manufacturing and new consumption have evolved and been reshaped at both ends over the past few years, driven by technology and the internet respectively. However, the transformation of the distribution channel in between has rarely been discussed, despite being crucial for FMCG companies due to low value and high turnover. The efficiency of the channel often determines operational efficiency, yet traditional offline distribution digitization has been slow, facing issues like internal and external disconnection, and requiring a strategic, future-oriented approach rather than patchwork fixes.

道农
Distribution & Channels

How Much Is a Salesperson's Customer Relationship Worth in Closing a Deal?

Long ago, I categorized grassroots salespeople's skills into three types: attitude skills, customer relationship skills, and business skills. Among these, customer relationship skills are the most important, accounting for 80% of the factors in closing a deal. This article explores how to increase regional sales through stable customer relationships, using the example of a distributor who successfully leveraged customer relationships to capture market share from a competitor.

高级研究员 海游
Dealer Operations

Don't Want to Work All Year for Nothing: The Only Principle for Distributors' 2020 Product Selection: Profit

The drinking water market in China is changing, with pure water dominating due to low cost, but mineral water is gaining ground. The article highlights the current state of mid-to-high-end mineral water, introduces a new product, Xipin Tiancheng Buselenium Water, and explains why it offers distributors a profitable opportunity.

New Distribution
Dealer Operations

Distributors: Poor Customer Relations Means No Business Growth!

Recently, many distributors have asked me why sales haven't recovered even after the pandemic. I didn't answer directly but asked how long it had been since they visited the front lines. Most bosses have been away from the front lines for too long, unaware of how well terminal customer relations are maintained—a serious problem. Customer relations aren't built by routine visits and casual words; they require time, understanding, and trust. This process needs not only the efforts of salespeople but also the supervision and support of distributors.

李锋
Distribution & Channels

Online-Offline Synergy: JD New Channel Unleashes Super Momentum in 618!

At 24:00 on June 18, JD's Zhangguibao "Crazy 618" promotion concluded. JD New Channel's cumulative 18-day sales reached 220% of the same period in 2019, with the first 4 hours of the peak period hitting 5.6 times last year's figure. Despite the pandemic, JD New Channel achieved significant growth through its strong B2B2C full-chain penetration.

New Distribution
Dealer Operations

When the Fight Against COVID-19 Becomes a Protracted War, Where Will the FMCG Industry Head?

Recently, Beijing reported multiple new confirmed COVID-19 cases, with 45 throat swab tests positive, causing public concern and raising questions about a resurgence. However, experts like Zhang Wenhong from Huashan Hospital suggest that China will remain in a state of 'near-zero (local) cases' for a long time, not 'no cases', and over-prevention should be avoided. The pandemic's impact on the FMCG industry includes disrupted sales rhythms, large-scale overstock, SME reshuffling, and the highlighting of digital advantages, leading to trends in health consciousness and technological transformation.

道农 陈峰
Dealer Operations

Case Study: Insights from a Second-Generation Distributor on Community Group Buying

Community group buying has attracted numerous distributors due to its impressive sales figures, such as one group leader selling 1,146 units of Telunsu milk in a day. A second-generation distributor, Li Bingyuan, shares his experience and strategies for entering this channel, highlighting the challenges, opportunities, advantages, and key steps for success.

李炳元
Distribution & Channels

The Six Evolutions of Deep Distribution

Since Bao Zheng and Shi Wei proposed deep distribution around 2000, it has become the 'best Chinese marketing practice' and the standard for channel-driven FMCG over more than a decade. Since 2003, deep distribution has undergone multiple evolutions, up to its current integration with the internet. 1. Deep Distribution 1.0: The 'Eight-Step Method' version. The early eight-step visit method included: preparation, greeting, checking, sampling, inventory check, replenishment, POP posting, and farewell. Basic characteristics: customer relations equal distribution, and distribution equals sell-through. The eight-step method includes...

刘春雄
Dealer Operations

Manufacturers That Lead Distributors Forward: When Problems Arise, Provide Not Only Resources but Also Methods!

Distributor Lao Zhang, an agent for a leading beverage brand for over 10 years, has grown his business to nearly 100 million yuan in annual sales in a second-tier city. However, since last year, he has faced intense competition, limited manufacturer support, and eroding channel advantages, leading to conflicts with the manufacturer. A sales manager's strategic advice on market segmentation and collaboration helps Lao Zhang find a path forward.

邢仁宝
Dealer Operations

In a Red Ocean FMCG Market, How Should Distributors Make Choices?

A beverage distributor, facing inventory pressure, plans to enter the condiment market. The article advises distributors to follow the NO.1 principle, select markets based on '细分、大、高、强' (segmentation, size, growth, strength), and choose brands with awareness and core competitiveness.

刘华明
Dealer Operations

High Costs, No Profits? Dealers, It's Time for a 'Check-Up' on Your Company

In 2019, many dealer bosses across the country called me, mostly saying business is getting harder. The most common issues were rising costs and stagnant profits; some mentioned difficulty meeting brand tasks, especially new product promotions, leading to annual losses of hundreds of thousands from handling defective and near-expiry products; others faced management challenges, poor performance, and financing difficulties. These factors left many dealers confused, anxious, and living day-to-day, waiting for retirement, complaining but lacking internal drive to change. The pandemic further exposed unprecedented bottlenecks and crises for dealers with single channels or brands.

李锋
Dealer Operations

The Distributor's Three-Step Guide to Selling Goods

Distributors should not simply sell as much as possible or just meet factory targets. Instead, they must first surpass the break-even point to avoid losses, then complete factory sales tasks to secure resources, and finally achieve market leadership to maximize profits.

刘华明
Brand Marketing

From Specialty Store to Trading Company: How One Brand Achieved Annual Sales of 50 Million

In a prefecture-level city, achieving annual sales of 50 million yuan is not uncommon, but doing so with only one brand is rare. Honghua Trading, based in Qinzhou, Guangxi, focuses solely on Mengniu brand agency, serving 2,500 retail outlets with 25 salespeople in a fifth-tier city with a population of 1.38 million, reaching 50 million yuan in annual sales. Founder Fu Wenlong shares his 19-year journey from a specialty store to a trading company, maintaining growth in both sales and profits by concentrating on a single brand.

周群
Distribution & Channels

Push and Pull, Up and Down Linkage: JD New Channel's B2B2C Full-Chain Penetration Empowers Multi-Party Win-Win!

Another 618 has arrived, and the JD 618 promotion has become a national shopping festival. As the first national shopping festival after the pandemic, reviving physical retail stores has become a focus. This year, JD New Channel's 618 actions are worth exploring. Through its external communications, it's clear that the B2B2C full-chain value proposition is becoming increasingly clear and firmly implemented.

New Distribution
Dealer Operations

Dealer Bosses: Seize the Key Link and Excel in Channel Refinement!

Channel refinement is a constant theme for dealers, driven by both business needs and manufacturer requirements. However, few dealers seriously consider how to maximize sales and profit through channel refinement. A county-level dealer with 19 vehicles and 20 salespeople serving 1,000 traditional stores and 3 KA supermarkets achieved annual sales of 50 million yuan but complained about low profits, highlighting the importance of input-output ratio. This article invites Mr. Li Feng, General Manager of Hongye Hengda Trading, to discuss channel refinement strategies for mainstream channels, offering insights on organization, store management, and key operational points.

李锋