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 57 of 193
Deep Distribution Has No Substitute; Internet-Enhanced Deep Distribution Is the Inevitable Path
The US has over 10 million salespeople, while China has over 80 million sales reps. Salespeople target C-end, while sales reps target B-end. What are these sales reps doing? They are deeply cultivating fragmented channels. This is a last resort, as deep distribution has no substitute. However, indiscriminate visits and inefficient human-wave tactics can be abandoned. The internet makes precision distribution possible.
刘春雄Three Strategies for Distributors to Make Money: Adjust Structure + Stabilize Prices + Maximize Rebates
The most discussed topic recently is that distributors are finding it hard to make money. But not all distributor businesses are failing; as Jack Ma said, 'It's not that the physical stores are failing, but that your physical store is failing.' Distributors must make clear judgments and dare to change to survive. This article shares personal views on how to adjust channel and product structure, stabilize market prices, and maximize manufacturer rebates.
刘华明From Mondelēz and Mars Distributor to Category Distributor: How Did He Achieve Annual Sales of 50 Million in a County-Level Market?
Distributors often complain about tough business conditions, but a small group thrives. Wang Lei, general manager of Linquan Zhicheng Trading, entered the FMCG industry in 2009 and grew from a novice to the largest snack food distributor in his county, with annual sales of nearly 50 million yuan and direct service to over 2,000 outlets. His success stems from focusing on the snack category, strategic product selection, and innovative incentive schemes for both sales staff and retail stores.
袁来On the Frontline | What Exactly is Regional Contracting?
Recently, Wei Qing, a veteran trainer, shared six points against the contracting system in his marketing peer group. While respecting his views, the author offers a different perspective, arguing that regional contracting, when properly managed, can be beneficial. The article outlines the advantages, implementation steps, and key factors for success, emphasizing that no system is perfect and adaptability is crucial.
高级研究员 海游New Distribution Brand Growth Program — New Channels, New Distribution, New Brands, New Growth: New Distribution Brand Enterprise Membership Program
To support brand development and accelerate market building and channel connection for FMCG brand enterprises, New Distribution launches the Brand Growth Program. Leveraging years of accumulated channel and network resources, it helps brand owners efficiently connect with innovative channels such as B2B, community group buying, home-delivery e-commerce, and MCN platforms, enabling full-channel coverage and all-scenario marketing to seize channel dividends and win in distribution.
New DistributionWhy Do Distributors Earn Less as Their Business Grows?
A survey by New Distribution shows that while over 50% of FMCG distributors saw revenue growth in 2019, nearly 70% also faced higher comprehensive costs. The article argues that many distributors mistakenly believe that increasing scale alone will boost profits, and emphasizes the importance of both increasing revenue (through price adjustments and channel expansion) and reducing costs (through rational investment and inventory management).
刘华明Will Products Sell Well After Deep Distribution?
The answer is: not necessarily; it depends on whether the product's sell-through logic is satisfied. In fact, many brand owners and distributors make the same mistake. When a brand launches a new product, it simply requires a certain number of outlets and displays. After receiving instructions, distributors execute them, often resulting in more expired products and wasted display costs. A common problem in the market is that a low-brand-power product with optimal display and shelf placement still sees limited sales growth.
高级研究员 海游Is the Distributor Business Profitable?
Is the distributor business profitable? Some may laugh at this question, having been in the trade for decades, but the reality is that many distributors calculate their profits incorrectly, leading to different conclusions. The key lies in how you calculate, and this article analyzes the underlying logic of distributor profitability, emphasizing the importance of ROI and avoiding common pitfalls.
刘华明Community Group Buying Is a Good Business, but Why Do Most Distributors Fail at It?
Amid the pandemic, community group buying has once again become a focus of attention. While leading platforms like Xingsheng Youxuan, Shihuituan, and Shixianghui are expanding nationwide, this business model, which originated in 2018, is drawing increasing interest from brands, distributors, and retailers. For distributors, community group buying can be a good business, but most struggle due to a lack of fresh food category management, community operations, and supply chain organization capabilities. However, by partnering with platforms or software service providers, distributors can successfully transition.
New DistributionA Baijiu Distributor's Account: In This Battle Against the Epidemic, All We Want Is to 'Survive'
Recently, the baijiu sector has been frequently reporting good news, with the stock index rising for eight consecutive weeks, and companies like Moutai and Fenjiu continuously hitting new stock price highs... The overwhelming media coverage has led many industry insiders to exclaim that the industry is fully recovering and the situation is excellent! But is that really the case? To truly understand the current market situation of baijiu, a reporter interviewed distributor Mr. Wu to hear his perspective.
陈峰Passion Collides | Evergreen Group Leads Snacks into the Seafood Era
Recently, the product introduction of Evergreen Group, a seafood giant, has attracted high attention from FMCG peers. Over 500 distributors nationwide have eagerly inquired about details and predicted that Evergreen's seafood snacks are likely to become the biggest hit product of 2020. The rapid market recovery means distributors must be more cautious in product selection; only products that can enter the market faster, have stronger brand support, wider distribution channels, and healthier attributes can help distributors quickly capture market share. From the distributor's perspective, product selection must consider four dimensions: 1. Whether the category is in a high-growth blue ocean market; 2. Whether product quality and brand strength are robust; 3. Whether the product matrix meets the needs of consumers at all levels; 4. Whether the product has super sell-through potential.
New DistributionLive in the Present | Distributors: Pick Up Terminal Tools and Redo Deep Distribution!
Mr. Zhao, a veteran distributor with over a decade in FMCG, faces shrinking markets, high staff turnover, and brand pressure. After a market visit revealed poor terminal execution, he was advised to redo deep distribution using digital tools, which led to adding 500+ outlets and improved performance.
高级研究员 海游E-RTM in Practice: Is E-RTM a Channel or a Tool?
The article discusses the definition of E-RTM, arguing that it should be viewed as a tool for digitizing existing channels rather than a new channel, and explores its value in improving efficiency, visibility, and data-driven decision-making for FMCG brands and distributors.
孙大使Is the Distributor's Business Getting Better or Harder?
When seeing this title, I think 90% of people will be convinced that 'the distributor's business is getting harder!' But is that really the case? Are all distributors' businesses getting harder? If that were the only answer, there would be no need to discuss this topic. Before discussing whether distributors' businesses are good or bad, let's talk about two stories. In all low-income countries worldwide, what percentage of girls complete primary school? A. 20%; B. 40%; C. 60%. What is your answer? In a survey, only...
袁来Distributors Carry Many Products but Don't Make Money: It's a Product Structure Problem!
After the pandemic, some are happy and some are worried. A case in point: a distributor in Shandong with annual sales of about 10 million yuan, only handling one beverage brand from Tianjin in two specifications, mainly for catering channels and small shops. The pandemic exposed the fragility of such a narrow product structure. Many distributors have problematic product structures, and adjusting them is key. New Distribution invited Mr. Li Feng, CEO of Anshan Hongye Hengda Trading, to share practical insights on optimizing product structure to increase profits, reduce costs, and ensure stable development.
李锋Your Deep Distribution Isn't Done Well, Yet You're Crying That It's Failing?
During a recent visit to a Yili distributor friend (Mr. Li), I found him trying to retain a salesperson who had resigned. The salesperson, who had served for nearly 3 years with good performance, said the daily visits and sales targets were becoming increasingly difficult. Mr. Li lamented that business is harder, staff retention is tougher, online impact is growing, and deep distribution is weakening. After analyzing, I found his market coverage and service quality were poor, and we implemented a five-step improvement plan to enhance his distribution capability.
高级研究员 海游The Aftershocks of the Pandemic: A Survival Story of Beverage Distributors
The sudden outbreak of the pandemic became a 'black swan' event at the start of 2020, disrupting the rhythm of many distributors. The beverage market was no exception and suffered a significant impact. However, every major upheaval eliminates a group of people, as history dictates. For distributors, this pandemic brought not only panic but also more thoughts about the future. Now that the pandemic has largely passed and distributors' businesses are getting back on track, in the face of the pandemic's 'aftershocks', distributors should focus on what changes have occurred in the market and how to adjust their business strategies.
周群Revisiting the Market: Don't Forget the Starting Point While Walking Too Far on the Sales Road
Sales contribution, profit contribution, market performance, sales network, promotion operations—these marketing terms are familiar to every distributor or brand practitioner, but in reality, most people's understanding is fragmented. They can talk like experts on any single topic, but in practice, they are disorganized and patchwork, mainly because they lack an overall macro understanding of the market and cannot effectively combine all elements. I remember my former leader often said: 'Use market means to do sales, and go back to the starting point to see problems.'
高级研究员 海游Why Do Most Distributors Fail at Transitioning to Unified Warehousing and Distribution? Because They Got It Wrong from the Start!
Distributors are struggling, a consensus across the industry. With sales peaking and external growth constrained, internal cost reduction and efficiency improvement have become key focuses: 800,000 distributors/second-tier wholesalers correspond to 800,000 warehouses and millions of delivery vehicles, which is unreasonable from both commercial and economic perspectives. In recent years, many local governments have also intervened in warehousing and distribution, planning logistics parks and encouraging distributors or entrepreneurs to undertake unified warehousing and distribution (统仓统配) and other intensive, scaled operations...
New DistributionWhere Should My Products Be Sold and How Should the Channel Be Designed?
Where to sell products is a question every FMCG practitioner faces. Although mature companies have established channel models, channel design is not static. Given rapid market changes, increasing channel fragmentation, China's vast geography, and complex retail formats, designing an effective market channel is crucial for FMCG manufacturers' survival and growth.
潘利华Three Steps for Distributors to Break into the Hospital Channel and Boost Sales
Recently, I discussed breakthrough strategies with the head of a small mineral water brand in Shaanxi. After analyzing target consumers, product differentiation, and channel strategies, I recommended focusing on the hospital channel. For example, in Zhengzhou, bottled water sales in hospitals exceed 300,000 cases annually, highlighting the channel's potential. This article outlines a three-step approach: understanding the channel, building model stores, and rapid replication.
高级研究员 海游Frozen Food Distributor Benefit | Leyaoju Rice Burger Takes You to the Blue Ocean Market
The market currently lacks not products but super products that can move quickly. Coupled with the special circumstances of this year's pandemic, distributors are desperately seeking such products. Terminal store owners are not obligated to promote your products, so choosing products that can sell well is half the battle for distributors. The pandemic has taught us to improve our ability to withstand operational risks under extreme conditions. Distributors care most about four issues when selecting products: 1. Who is the product for? Where will it be sold? 2. Can it move quickly? 3. What is the market capacity? 4. What are the profit margins and how will it help their business?
New DistributionCity Manager in a First-Tier City: Beyond Execution, Think Deeper and More Thoroughly About Promotions!
It's raining today, and foot traffic in the store is sparse. In the quiet personal care section, there are more promoters than shoppers. Old Wang, with a worried look, has already paced back and forth several times from the main shelf to the floor display in the main aisle... "Manager Wang, I don't know why, but this promotion mechanism used to sell over 200 bottles a day, and now it's less than half. Is it getting tired?" asked A Ling, a star promoter who has worked at this supermarket for seven years. "A Ling, your observation is correct! The business environment has changed, and customers' shopping habits are also changing. If our promotion mechanisms and strategies don't change, we're dead."
许翔 Ryan XuFrontline | A Comprehensive Overview of Tactical Strategies for FMCG Regional Markets
This article is a companion piece to the previous one, focusing on practical tactics rather than strategy. It addresses common questions from distributors and brand managers about how to grow their market share, offering a systematic breakdown of tactical approaches based on different competitive scenarios.
高级研究员 海游