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 64 of 193
Deep Distribution in the New Era: Frontline Salespeople Evolve with 'Multi-Branch, Multi-Function' Mixed Operations
China is a super-large-scale market, and deep distribution has been the most effective channel solution in the Chinese FMCG industry over the past 30 years, without exception. Its internal logic is: large-scale factory production, wide-area communication through mass media, and finally large-scale distribution through deep distribution, with manufacturers and distributors joining forces to expand production and sales scale and share economies of scale. This is the most efficient sales system under the manufacturer-distributor combination. The purpose of deep distribution is to enable goods to reach consumers on a larger scale, with higher density, and more effectively. The core of deep distribution is 'sell-through', and its essence is the effective 'conversion' of shelf traffic, with the transaction logic being to achieve consumers' random and impulsive consumption through effective reach.
赵波Dealers Should Never Pin Their Hopes on a Single Brand
More than half of 2019 has passed, and all dealers are complaining about poor market sales. Manufacturers have raised prices multiple times to balance their books, but whether consumers will accept the increases is a huge test for dealers. In the early days, dealers aspired to represent big brands, but now representing them has become a dilemma—abandoning them is a pity, while keeping them is exhausting.
New DistributionJD New Channel and Unilever Upgrade Strategic Cooperation, Join Forces with Wall's to Build Intelligent Channel for Low-Temperature Products
On October 21, JD New Channel signed a strategic cooperation agreement with international ice cream brand Wall's. The two parties will combine their advantages in brand, channel, logistics, etc., to deepen cooperation, further promote retail model innovation, achieve complementary advantages, and build an intelligent channel for low-temperature category products. The signing ceremony was attended by Zheng Hongyan, Vice President of JD Group and President of JD Retail Group's New Channel Business Unit, and Xu Yucong, Vice President of Unilever's Ice Cream and Beverage Division and General Manager of Wall's.
New DistributionThe Company Behind JDB Herbal Tea, Kunlun Mountain Mineral Water, Pechoin Herbal, and Jiangzhong Jianwei Xiaoshi Pian...
This article tells the legendary stories of brands like Pechoin, which grew from 200 million to 17.7 billion yuan in 8 years, surpassing L'Oreal and Olay to become China's leader; Wanglaoji, which surpassed Coca-Cola in 8 years to become 'China's No.1 beverage can', growing from 120 million to 36 billion yuan; Jiangzhong Jianwei Xiaoshi Pian, which has been the No.1 OTC drug in China for 12 consecutive years; and Xiwang Corn Oil, which grew from 65 million to 2.6 billion yuan, surpassing Arawana to become the No.1 in the corn oil category. All these successes are attributed to positioning, and the positioning for these brands came from a master-level company: Chengmei.
New DistributionThree Minutes to Understand What AI Can Do for FMCG Companies
In fact, your terminal displays can be more vivid! Do you know that terminal shelves are messy, core products are not on the shelf, and the share of shelf space is not up to standard? Do you know that the purity of terminal freezers is insufficient, your product's shelf space is squeezed, and competitors are prevalent? Since 2019, brand owners have heard the most about digitalization and AI intelligence. At the Alibaba Cloud New Retail conference a few days ago, it was directly synthesized into: digital intelligence. For a time, major brand owners in the FMCG industry were talking about digital transformation and conducting AI image recognition POC selection, hoping to use AI technology to achieve vivid terminal displays for their enterprise customers, which is the "Perfect Store" plan that everyone is talking about.
提升企业销售效率Distribution is Important, but Merchandising is More Important
A story is told about a salesperson who, when delivering goods, found the store shelves full and left the products in the warehouse. On subsequent visits, he never checked the inventory or placement, just asked if the products were sold. The owner, embarrassed, said they weren't selling well. This illustrates that merely delivering goods without proper merchandising leads to poor sales. Effective distribution requires persistence, detailed records, and in-store merchandising.
师顺宽When a Distributor Marries a Manufacturer: How to Manage the Marital Relationship
The relationship between manufacturers and distributors is often debated, with various metaphors like fish and water, partners, or lovers. This article argues that the ideal relationship is akin to a marriage, characterized by equality, mutual love, benefit, and shared goals. It analyzes the needs of both parties and provides practical advice on how to maintain a harmonious and productive partnership.
海游Re-empowering Distributors: Brand Channel Transformation through Full Authorization and Small-Team Operations
Amid China's economic slowdown, market fragmentation, and e-commerce impact, FMCG companies face challenges in traditional channels and sales bottlenecks. This article explores how to innovate marketing organization and channel collaboration, break organizational boundaries, and create an enabling integrated marketing channel, using Yihai Kerry's marketing empowerment organizational transformation as a case study.
高松Explosive! Lvling Roasted Walnuts Can Be Sold Like This (Sales Report at Beijing-Hong Kong-Macao Expressway Service Area)
During the just-concluded National Day holiday, the peak season for snack foods arrived as scheduled. Major food companies went all out in fierce competition. Lvling Roasted Walnuts took a unique approach, focusing on the Beijing-Hong Kong-Macao Expressway service area, creating a spectacular scene that swept the entire food industry. The 'Golden Corridor' holds immense business opportunities. Since the policy of free passage for small passenger cars with 7 seats or fewer on expressways during the National Day holiday, the expressway has become one of the most crowded areas each year. This year's National Day holiday coincided with the Double Ninth Festival, leading to a significant year-on-year increase in expressway exit traffic during the Golden Week.
New DistributionYear-End: How Should Regional Managers Select Distributors?
As the fiscal year for beverage companies draws to a close, many are reviewing their performance, with a key focus on selecting distributors for the coming year. The relationship between brands and distributors is delicate—mutually dependent yet mutually exclusive. Choosing the right distributor can double your results with half the effort, while a wrong choice can have the opposite effect. This article explores several dimensions to consider when selecting regional distributors.
海游Want Want's Second Venture: Distributors' Future Earnings Lie in 'Management Profit' Rather Than 'Opportunity Profit'
Distributors have always focused on three things: managing people, reaching end consumers, and making money. However, the environment is changing as China's FMCG industry shifts from a growth market to a stock market. With product homogenization, low employee income, and channel saturation, distributors need to shift from relying on 'opportunity profit' to 'management profit'.
New DistributionShort Video + Live Streaming: Seven New Weapons for Manufacturers/Distributors to Drive Sales!
In the internet age, wherever users spend their time, business opportunities explode. On one hand, with the spread of mobile internet, user time is more fragmented, and the rise of 'micro' and 'short' new forces is irreversible. On the other hand, history keeps repeating itself: live streaming e-commerce continues TV shopping, show live streaming revives 1930s nightclubs, and 'laotie' economy interprets new master-apprentice fan guilds. Selling products has become the best monetization model for short video + live streaming. Is the grassroots + platform rhythm another opportunity to disrupt tradition, or just a flash in the pan?
王军Is the E-Cigarette Industry a Good Business at the Forefront?
Success is a 'downwind path'—contrary to common belief, it often involves leveraging experience and resources rather than overcoming obstacles. Chen Chaoxian, chairman of Niwo Group, has repeatedly succeeded by seizing market trends, and his new e-cigarette brand idols is now entering the Chinese market at a critical moment.
New DistributionTo Distributors: How Should You Treat Your Salespeople?
For trading companies, salespeople are one of the most important assets, and excellent salespeople are especially valuable. Bosses often don't know how to treat them properly. This article analyzes the concerns bosses have about salespeople and the needs of salespeople, and provides solutions to address these issues, such as improving recruitment and training, implementing CRM systems, offering competitive compensation, creating a comfortable work environment, and providing career development opportunities.
邓杰The Crazy Moutai
When sardines nearly vanished from the Monterey waters of California, traders began bidding against each other, driving up the price per can. One buyer opened a can to enjoy, but soon felt unwell and complained to the seller, who replied, "You don't understand—these sardines aren't for eating; they're for speculation." — From Seth Klarman's 'Margin of Safety'. On October 1st, while the nation watched the National Day parade, some were glued to Tmall, where 53-degree Feitian Moutai sold out instantly at 1,499 yuan per bottle.
老庞Is Credit Sales Suicide? That's Because You Don't Know How to Do It!
This article discusses a key task for the off-season: building market fundamentals. It argues that credit sales, when executed properly, can be a cost-effective way to expand distribution points and increase SKU per store, despite potential risks. The article provides a detailed operational plan covering product selection, process, verification, bad debt handling, and follow-up services.
海游Why Can Some Products Sell Without Being Produced?
Every Mid-Autumn Festival, people receive two kinds of vouchers: mooncake vouchers and the recently popular hairy crab vouchers. A reader asked how to view these vouchers and whether their own products could use this method. This article discusses the concept of commodity securitization, using examples like hairy crab vouchers and mooncake vouchers, and explains how separating the virtual value from the physical value can improve business efficiency.
刘润The Bottleneck for 50 Million Distributors: Success in Marketing, Failure in Management!
At the 2019 China FMCG Conference organized by New Distribution in August, Mr. He Jianfeng, founder of Chengpu Henghe, shared the 'Nine Swords of Digital Distribution' for digital distributors. This article interprets these principles to explore how distributors can improve internal operations and management in the digital era, emphasizing scale, standardization, and process optimization.
袁来Are You Withholding Company Funds?
A sales representative confronts a distributor about a promotional expense rate that appears lower than the company's allowance, but the distributor explains the math behind the actual rate and the complexities of promotional spending, ultimately clearing his name.
刘华明Practical Analysis of How Distributors Make Money by Handling First-, Second-, and Third-Tier Brands
A distributor's profitability is directly related to its product portfolio. FMCG products can be broadly divided into three categories: first-tier, second-tier, and third-tier brands. First-tier brands typically offer low returns (6-7% gross margin plus 1% rebate), while second-tier brands offer higher returns (12-20%) but require more capital. Third-tier brands offer the highest margins (30-40%+) but carry high risks. The optimal strategy is to combine brands from all three tiers, with a sales weight of 40% first-tier, 40% second-tier, and 20% third-tier, to maximize profit and stability.
New DistributionSnow Beer's "Flanking Move" to Integrate Wholesalers: A Blessing or a Curse for Distributors?
China Resources Snow Breweries has integrated distributors in Chengdu, forming a company from several primary distributors in the region, with the manufacturer holding no equity but retaining control over market spending and operations. This move aims to improve distributor profitability and support the company's mid-to-high-end product strategy, but it has sparked mixed reactions among distributors, with some fearing they may be reduced to mere delivery agents.
庞玉娇National Trend Goes Global, Domestic Brands Surge! New Opportunities for Distributors Are Coming
Who is the king of FMCG? P&G? That is a thing of the past. The marketing revolution brought by mobile internet has disrupted the FMCG industry, the 'national trend' fever continues, and domestic brands are rising strongly. With a huge FMCG market and strong manufacturing capabilities, after further enhancing brand influence, the future world-class FMCG king may well be 'Made in China'. At the Sino-French Brand Summit series events opening on National Day in Paris, the world's fashion capital, the performance of domestic brands such as Free, Yili, Hero, and Yunnan Baiyao became a strong footnote to this assertion...
New DistributionDifficult Product Selection, Difficult Channels, 90% of Distributors' Performance Declining?
In exchanges with distributors, many reported unsatisfactory performance this year, with some even saying, "The situation is bad, and it's estimated that 90% of distributors will see a decline in performance." What do you think about this data? Besides the registration dividend mentioned earlier, this topic is also worth exploring. The polarization is intensifying, with performance showing a stark contrast.
孙英Eleven Management Mistakes Distributors Should Avoid!
Having served many trading companies annually and observed various issues, I've compiled common management mistakes in trading companies, hoping you won't repeat them. First: bosses often blame employees for business failures, but success and responsibility belong to the boss.
曹庆兵