NEW DISTRIBUTION RESEARCH TOPIC
What structural changes are reshaping China’s FMCG channels?
Analysis of distribution restructuring, channel economics, and the changing roles of brands, distributors, and retail outlets in China.
Related research and analysis
2301 articles · Page 17 of 96
The Agency Model of Making Money from Backend Fees Has Reached Its End
The author recently visited distributors in Southwest and South China to discuss their business situations. These influential distributors shared their feedback and feelings, which are recorded for discussion. Cases include a leisure food distributor in Southwest China with annual sales of 130 million yuan, who relies on backend rebates for profits and has exited the KA system, and a top distributor of a famous liquor brand in South China facing severe price inversion and high growth targets.
赵波From Zero to 100 Million in Six Years: The Growth Story of a Distributor Representing 80+ Brands Including Lee Kum Kee and Totole, with 5,000+ Stores
Despite the general downturn in distribution, some distributors still find growth opportunities by seizing market share. Bajie Trading, a seasoning distributor in Nanchang, Jiangxi, achieved over 100 million yuan in sales within six years of its founding in 2014, by focusing on fine management and adapting compensation models to different stages of growth.
New DistributionFewer Post-90s in FMCG Sales Roles!
FMCG companies are always recruiting yet always understaffed. A common phenomenon is that frontline workers switch between companies, but fewer post-90s are joining FMCG teams. Many post-90s, even those with bachelor's degrees or higher, prefer delivering packages, food delivery, or ride-hailing over joining the FMCG workforce. This article explores why post-90s are reluctant to join and what FMCG companies need to fix. The oldest post-90s are now thirty, and the youngest are starting work...
New DistributionThe Surreal 2023 Chinese FMCG Market
This article focuses solely on FMCG. Although 2023 has not yet ended, I strongly feel the urge to label it as surreal. One moment we see side A of the market, then side B, then side C. Each side is different and can reverse. It is like blind men touching an elephant, each convinced they have grasped the truth. Because the market is multifaceted, trend judgment becomes harder and can even lead to errors. There are numerous theories and viewpoints explaining the current Chinese market. Each theory is self-consistent, all arguments have real-world basis, all viewpoints are supported by data, and all viewpoints have multiple counterarguments. This is an era lacking consensus, even an era that does not expect consensus. The fear of the surreal market lies in not knowing whether it is a post-pandemic aftermath or the new normal, and in the risk of misjudging trends or mistaking strong disturbances for major trends.
刘春雄Six Major Trends in the Food Consumption Market for the Second Half of the Year
As 2023 enters its second half, what trends are emerging in the food consumption market, and where are the growth opportunities? At the 2023 4th China Innovative Food Conference, Yu Jian, General Manager of Kantar Worldpanel Greater China, highlighted six trends: growing health demands focusing on both results and the process; the one-person economy requiring tailored products; price polarization favoring high-end and value-for-money products; retail fragmentation benefiting proximity formats and interest-based e-commerce; revenge travel boosting convenient and functional beverages; and sustainability needing to connect grand narratives with individual experiences.
沥金Community Group Stores Continue to Differentiate, Four Directions Gradually Become Mainstream
Since community group stores entered the industry's view, they have been accompanied by controversy. Some see them as a strategic opportunity for community group buying to break into offline retail, others as a new gimmick created by related media and service providers, and still others as a 'resurgence' of 'Dailuobo'. The existence of controversy reminds practitioners to rationally view small trends in industry evolution. The currently hot community group stores are still a subset of the community group buying industry, which itself is a subset of the retail industry. For practitioners, whether they have already achieved results or plan to enter, they must respect community group buying and retail.
黄腾飞C'estbon as the Official Drinking Water of the Chinese National Team: What Does It Mean in the Channel?
Recently, New Distribution visited a distributor in Guangzhou, where trucks were constantly coming and going, and dozens of employees were busy loading and unloading goods. The distributor said that among the over 1,000 mom-and-pop stores he serves, C'estbon is the best-selling drinking water brand, with consistent growth year after year. Why C'estbon? New Distribution observed that C'estbon has frequently appeared at various competitions of national team athletes in recent years, and through long-term support of the Chinese national team, it has continuously shaped the joint brand image of 'Chinese National Team × C'estbon'. This year, C'estbon updated its brand proposition to 'Official Drinking Water of the Chinese National Team'.
田静Snacks Are Busy Becomes Yanjin Puzi's Largest Customer, Brand Owners Collectively Enter Channel Transformation!
With the rapid development of bulk snack stores, the future market landscape will continue to evolve. Recently, financial reports from companies like Yanjin Puzi and Ganyuan Foods have been released, and according to market sources, Snacks Are Busy has become Yanjin Puzi's largest system customer! In recent years, channel evolution has given rise to the new bulk snack channel, and cooperation between established snack companies and emerging snack channel operators has become a focus of external attention. One side needs channel layout, the other needs brand traffic, and as this channel continues to expand, brand owners will inevitably pay more attention to it and actively embrace it.
勾勾How 'Old Lulu' Brands Bloom in China's Over 90-Billion-Yuan Plant-Based Milk Market
While many consumer sectors in China are cooling down, the plant-based milk market is heating up. According to the '2020 Plant Protein Beverage Innovation Trends' report, the market grew by 800% in 2020, with buyers increasing by 900%. Qichacha data shows over 5,000 plant-based milk companies in China, including internet-famous brands like Oatly, Guanghe Boshi, and Plant Label, as well as traditional giants like Yili, Mengniu, Nestlé, Six Walnuts, and Chengde Lulu. However, the market remains fragmented with no clear leader yet.
林格木Platform Workers | Mid-2023 Consumer Report
The report by Qingshan Investment Research Center explores the phenomenon of 'platform workers'—over 200 million people in China who earn income through digital platforms. It categorizes them into three types, profiles six major occupations, and analyzes structural changes, historical contributions, and future employment capacity of platforms.
青山投研中心Dayao Big Soda: The Story Beyond 3 Billion
As summer arrives, the atmosphere of the season is officially here. Night markets are bustling with烟火, and the summer night essentials include crayfish, barbecue, and that indispensable sip of coolness. This coolness isn't just about ice-cold beer; it also includes carbonated drinks that go 'pop' when opened and fizz in the mouth. In China's beverage market, besides the fierce competition in coffee and milk tea, the battle among domestic carbonated drinks, often described as 'one soda per city,' is heating up with the temperature. However, looking back at the past few decades, the domestic carbonated drink market hasn't always been as diverse as it is today, and its development has not been smooth sailing.
趋势君If It Could Be Done Over, What Should Evergrande Spring Water Have Done?
Reviewing the brand journey of Evergrande Spring Water, we believe it did many things right, but a proper brand positioning at the outset would have increased its chances of success. The brand correctly evolved the drinking water category by creating the natural mineral water segment, but it made critical errors in brand extension, competitor misjudgment, inconsistent slogans and endorsers, unrealistic positioning, and lack of category education.
张知愚A Comprehensive Analysis of the Snack Chain 'Jianghu Landscape'
This article provides an in-depth analysis of the snack chain industry, covering its evolution, overseas benchmarks, market potential, brand landscape, single-store models, competitive dynamics, key thresholds, and impacts on brand owners, concluding that the industry is entering a high-growth phase with significant opportunities.
任小东Opening 2-3 Stores a Week: An In-Depth Look at Shijiazhuang's Community Retail Benchmark Case
In 2022, Keke Select became one of the few cases of counter-cyclical growth during the pandemic. In 2023, it again became a rare case of dual growth in both store count and sales in the community retail sector. After two years of exploration, from a single-point group buying model to a group buying + convenience + discount model, Keke Select has continuously iterated and reversed its fortunes, forging a new integrated model under new retail.
田静Is a Larger Distribution Quantity Always Better? How Should It Be Managed?
Some companies emphasize product distribution rate and market presence, believing that achieving 100% distribution is the key to retail success. Others focus only on key outlets and oppose high distribution rates, considering them uneconomical and costly. How should we view distribution rate correctly, and how should we handle several relationships in distribution operations? Properly manage the relationship between 'outlet quantity' and 'outlet quality'. Although distribution rate is very important, attention must also be paid to the balance between outlet quantity and quality. If distribution rate is blindly pursued excessively, it will increase sales costs, waste resources, and affect the concentrated investment in A and B class key outlets.
New DistributionThoughts on Breaking into the City Market for Short-Shelf-Life Craft Beer
The primary issue that short-shelf-life craft beer brands must confront is the supply chain. Author Zhao Bo discusses how the current wave of craft beer in China differs from previous ones, with more approachable flavors and prices, yet most brands still struggle to truly break into the mass market. He analyzes the key factors for success, drawing lessons from Taishan Original Pulp's model, emphasizing the need for differentiated products, integrated supply and relationship chains, and strategic market ignition.
赵波My Views on Breaking Through with New Products in the Domestic Energy Drink Market
This article discusses the key to breaking through with new products in the domestic energy drink market by examining the development of domestic and foreign product lines. It highlights the failure of imitators and the challenges faced by foreign brands, and offers insights on how to succeed through solid foundations, thorough preparation, and effective execution.
人在中途Big Brands Become Chicken Ribs: Major Distributors and Major Manufacturers Face the Third Round of Structural Contradictions
Major distributors are abandoning major manufacturers, a surprising phenomenon that is increasingly common. Yuan Lai, a lead writer for New Distribution who has long tracked major distributors, has keenly observed this trend, quoting one major distributor: "There's volume but no profit, so why do it?" This marks the third round of structural contradictions between major manufacturers and major distributors since China's reform and opening up.
刘春雄How AI Technology Achieves the 'Normalization' of Outlet Authenticity Verification?
Verifying the authenticity of outlets is part of the digital transformation of offline distribution channels for FMCG companies. However, traditional 'database collision' verification methods have shortcomings in ensuring authenticity. To address this, Baidu has developed a 'Four-in-One' solution to improve verification accuracy and reliability. In this context, Liu Xiaobin, head of FMCG at Baidu ACG AI Platform Department, introduced the deficiencies of traditional verification methods, the specifics of the 'Four-in-One' solution, and its positive impact on refined operations. The following is Liu Xiaobin's speech...
柳小玢Leyuan: Building Channel Brand Power with User-Centrism
China's FMCG industry is entering a new era, and Leyuan Company, on its 25th anniversary, is implementing a user-centric strategy across its three brands to capture growth in the juice market.
田静Staying Local or Going Big? Decoding the Predicament, Strategy, and Breakthrough for Regional Brands
From 2011 to 2014, I spent three years at Yili Group accomplishing two major tasks: upgrading the packaging of Yili Yoghurt and launching Yili Ambrosial, a shelf-stable yogurt that achieved 1 billion yuan in sales in its first year. Since then, my work has focused on how regional brands and SMEs can survive and grow. This article explores three key concepts: predicament, strategy, and breakthrough.
顾凡Why Are Convenience Stores Like Meiyijia So Popular in 2023?
As a retail format, convenience stores originated in the United States, were transplanted to Japan in the late 1960s and developed rapidly, and were later promoted in Taiwan and Thailand. In 1992, foreign convenience store 7-11 opened in Shenzhen, pioneering convenience stores in mainland China. Since then, local convenience stores have gradually developed. In 2022, local chain brand Meiyijia became the largest branded convenience store chain in China with 30,008 stores. The market landscape of domestic convenience stores is changing. Meiyijia's breakthrough is not an isolated phenomenon, but is closely related to the development of the entire domestic convenience store industry.
勾勾From Deep Distribution to Precision Distribution: A Strategy for Incremental Change in Brand Channel Models
Brands in the FMCG industry face three common challenges: difficulty in recruiting quality staff, managing teams effectively, and maintaining high service quality at retail outlets. This article discusses shifting from traditional deep distribution to a more precise model, using Nongfu Spring's channel reform as a case study, and outlines a four-step approach for channel model transformation.
高级研究员 海游Positional Warfare and Infiltration Warfare in the Era of Premiumization
First, a question: What is premiumization? Is Moutai premium? Most would say yes. But today we found a vivid case: Dayao Beverages' President Yun's case. Cola sells for 3 yuan, Dayao sells for 6-8 yuan. Is Dayao premium? Yes, Dayao is the premiumization of carbonated drinks. So premiumization is not a leap to Moutai in one step; it's a series of steps upward. From level one to level two is premiumization, and from level two to level three is also premiumization. In the FMCG world, there are two approaches to premiumization: positional warfare and infiltration warfare.
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