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.
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2301 articles · Page 71 of 96
How Markets Get Killed: A Tribute to the Markets That Have Been Through the Wringer
In 2015, many FMCG companies saw poor sales performance, with the worst suffering significant declines and the better ones barely maintaining sales while facing losses. Amid the downturn, some excellent companies achieved growth, but at sharply reduced rates and profit margins. The media began to warn of the largest wave of layoffs in history. The growth rate of total retail sales of goods slowed dramatically in 2015, with more monks and no increase in porridge, putting even greater pressure on the surviving sales staff. Although the e-commerce wave has been strongly eroding traditional sales channels in recent years, offline channels still account for about 80% of the consumer goods market, so FMCG companies continue to seek ways to complete sales tasks offline.
杨挺Speculations on the Future of the FMCG Market: Traditional Channels Won't Disappear, But...
The consumer goods market has been in a downturn for two years, and the macro environment suggests that bad news is far from over. In the past 30 years, a company's sales growth in China has relied on a combination of four forces: market base, category penetration, category upgrade, and market share expansion. However, with population growth slowing and penetration rates plateauing, companies face challenges. E-commerce is disrupting traditional channels, and the industry is undergoing a reshuffle. Distributors will see channel flattening and consolidation, leading to the rise of B2B platforms. Retail channels will also transform, with convenience stores becoming key, while hypermarkets decline. Brand owners must adapt to new dynamics, including the emergence of super KAs and platform companies.
王烈Circulation E-commerce: A Tsunami Is Coming
An era without a safe zone: whether you like it or not, the internet is taking over China's economy. Every epoch-making industrial transformation means the rise of new industrial elites and the fall of one or more established classes. In this era of internet disruption, manufacturers, distributors, and retailers are all being forced to transform, but the circulation sector, the lifeline of the industry, is about to be conquered by e-commerce.
陈崖枫New Product Launch: What to Do When Employees Say the Price Is Too High?
Companies want to launch new products, but salespeople are the opposite—they fear new products the most. Why? Although new product launches can increase salespeople's volume, companies will undoubtedly keep raising sales targets. Before launch, salespeople must use their visit time for market research, surveying terminals, distributors, competitors, and consumers, and follow the orders of the "lazybones" in marketing who never go to market. During launch, they bear the burden of blanket distribution, and if products don't sell well, they face blame and must handle inventory. In short, nothing about new product launches is good for salespeople, and if it fails, it's even worse. Moreover, salespeople fear high prices most, as early adoption is tough. So what should they do?
谭长春Key Rectification and Cliff-Like Decline: Who Should Be Responsible for the Maca Market Collapse?!
On May 27, the China Food and Drug Administration issued a notice to launch a special campaign against illegal drug addition and illegal efficacy claims in health foods, prepared wines, and maca products, targeting maca marketed as a 'plant Viagra.' Since last year, maca raw material prices have plummeted, with yellow card bulb prices falling from 180 yuan per kilogram at the beginning of the year to 2 yuan by year-end, with no buyers. The combination of raw material market collapse and strict regulation makes the future of maca health products uncertain.
New DistributionTen Rules for Regional Managers: Eliminate the Weak, Win the Strong
Regional managers are grassroots managers in the marketing team, managed yet managing, and are the closest to the frontline as both managers and executors. To avoid being eliminated by the company and the market, they must follow ten rules to eliminate weaknesses and win in the workplace.
郭 旭The "Ten Steps" Standard for FMCG Terminal Visits
Terminal visit eight steps, according to legend, were created by Master Kong during its channel intensive cultivation. However, currently, it has become a basic skill in the FMCG industry. Today, we break it down into ten steps for detailed explanation.
方刚From the Development of the Internet to the Future Trends of the FMCG Industry
On April 20, 1994, China was fully connected to the international internet via a 64K international line, marking the beginning of the Chinese internet era. Initially, no one expected that the internet would become so closely linked to society and ordinary people, becoming an indispensable part of daily life within just 20 years. The article traces the evolution of the internet in China, from the first-generation portals to the account systems of BAT, and then to the mapping of businesses and organizations, concluding that traditional industries, including FMCG, must undergo internet transformation or risk being reshaped by internet giants.
庄建忠Goldman Sachs Report: Chinese Consumers' Purchasing Power Overestimated by the Outside World! Mainstream Daily Spending at $7, Only One-Fourteenth of the US
Rising incomes across Asia have spawned a huge new generation of consumers, with the largest growth coming from China: China's employed population exceeds the combined employed populations of Europe and the US. This employed population refers to 'China's mainstream consumers.' As their numbers and quality grow, their consumption demands and preferences will have a significant impact on the global economy. A profile of China's mainstream consumer groups: The purchasing power of China's mainstream consumers is not as strong as perceived by the outside world: of China's 770 million employed people, only 2% have incomes reaching the level for individual income tax, and only about 11% of China's population can be defined as 'middle class.' Meanwhile, their daily consumption averages only $7, compared to $97 for the average US consumer. This 'strength' is more about external confidence in China's macroeconomic development and expectations of consumption pattern shifts.
王家琦From the Evolution of Entertainment Programs to the Development Trends of the FMCG Industry
The advent of the Internet era has transformed the slow pace of societal development over millennia into a rapidly changing landscape, sweeping the globe and bringing about rapid economic growth and productivity gains. It has also changed people's daily lives at an astonishing speed, with all sectors inevitably experiencing the whirlwind of Internetization. In this context, we need to explore the development paths and directions of various industries with an Internet mindset. The evolution of entertainment programs and information dissemination channels indicates that the traditional FMCG market will inevitably undergo a shift from absolute centralization to fragmentation, with consumers playing an increasingly important role in shaping brands and channels.
庄建忠How to Carve Out Your Competitor's Terminal Blind Spots in the Market?
This article is excerpted from Mr. Fang Gang's book "FMCG Veterans Do It This Way: Regional Manager Playbook". High distribution rate and high share are basic features of a base market, but behind the impressive numbers, there are always terminal resistances that sell less or even refuse to sell your product—these are terminal blind spots. The article explains how to find, analyze, and attack competitors' blind spots to create market fault lines.
方刚2016 China B2B E-commerce Industry Research Report
China's B2B e-commerce transaction scale has grown steadily, reaching 11.8 trillion yuan in 2015. Application software service models provide technical support for bulk commodity trading B2B e-commerce. For SME B2B e-commerce, deep supply chain needs and the ability to provide comprehensive services will be future competitive points.
分析师 焦定坤Mastering Terminal Sales: Analyze Three Factors, Master Four Principles, Implement Five Countermeasures, and Check Six Points
This article is excerpted from Mr. Fang Gang's book "What FMCG Veterans Do: Regional Manager Playbook". The terminal sales management model is sales = number of terminals × turnover rate × number of SKUs. To achieve terminal sales, three key factors (occupancy rate, control rate, visit rate), four principles, five countermeasures, and six inspection points are discussed.
方刚Food Industry Trends Clear: Mixed Prospects, Not All Doom and Gloom!
China's food industry has grown at a relatively high rate over the past 24 years, reaching 10.89 trillion yuan in 2014, but growth slowed to 11.6 trillion yuan in 2015. The food industry's added value accounts for 11.9% of industrial added value, and about half of that translates to GDP, with food accounting for 6% of GDP. Currently, the international influence of domestic food and beverage independent brands is increasing, mainly in alcohol and canned foods. Quality assurance has been strengthened, and food safety levels have steadily improved. In terms of international food industry development...
New DistributionMultiple Employees Involved, Total Amount Exceeds 3 Million Yuan: This Wine Distributor's Salesmen Treat the Company as Their Personal 'ATM'!
On June 2, a video from Anhui TV's Science and Technology Channel was aired on Fengtai Xiaoyu Net, revealing that Anhui Fengtai County Xingyue Industry and Trade Co., Ltd. had uncovered an 'inside ghost'. Salesman Yuan, over three years, used fraudulent means such as forging IOUs in customers' names, underpaying or not remitting payments, and fraudulently obtaining wine to resell, illegally profiting over one million yuan from the company. Police investigation revealed this was not an isolated case; other salesmen had similar issues, causing total direct losses of over three million yuan. Root cause one: chaotic financial management is the fundamental issue. Police inquiry...
New DistributionMonthly Interest of 22%: A Scam Sweeping Northern China!
If someone tells you "You shop, they pay," would you believe it? Actually, such "good deals" do exist! But don't get too excited—it might be a massive Ponzi scheme! It's rampant in northern China, and few have noticed because it's well-disguised. "My Future Network": "You shop, I reimburse," warned by regulators. On May 19, the Weifang Financial Risk Prevention Office in Shandong issued a warning letter stating that "My Future Network" operates on a membership model where members purchase goods at prices three times higher than market rates, with 90% to 100% of the purchase amount returned after 36 days, involving a huge number of participants and posing significant risks.
New DistributionProducts Not Moving, Teams Hard to Manage: What Should a Regional Manager Do?
This article is excerpted from Mr. Fang Gang's book "FMCG Veterans All Do This: Regional Manager Playbook." It addresses two common problems: products not selling and teams being difficult to manage, offering self-check tools and management strategies.
方刚Salesperson: Are You Selling Yourself or Just the Product?
It's well known that without process there is no result. The results of sales work are simple: performance and payment collection, or more precisely, profit contribution. But what about the process—the common sales execution tasks such as distribution, display, customer relations, and promotion activities? These are done daily, consuming significant manpower and resources, yet actual effectiveness remains mediocre. Bosses complain about employees loafing, while employees complain the work is too hard. There must be a reason. Here, we shift to a fundamental perspective: before selling the product, one must first sell oneself.
潘文富Everyone Knows Bulk Products Are Profitable, But Do You Know How to Operate Them?
In recent years, with the economic rise of inland China and the continuous advancement of urbanization, the retail industry in mainland China has been provided with fertile soil and undergone earth-shaking changes. As a result, traditional and modern channels have flourished side by side. Especially the rapid development of modern channels has not only changed Chinese consumers' habits but also provided broader space and stage for the development of bulk food. Bulk food, due to its selectable and self-service characteristics, can satisfy the fun of participation in shopping and meet the demands of personalized consumption era. Therefore, it has increasingly become a new favorite among consumers and has created a number of comprehensive and distinctive brands.
朱丹蓬、饶壮New Product Distribution: How Many of These Fine Points Can You Master?
Distribution is the first step for a new product to enter the market circulation, and this step is crucial. The road to new product distribution requires careful planning and attention to detail. Before launching a new product, it is essential to understand the characteristics of distribution, the standards for distribution, and to correctly formulate distribution strategies. The following will detail the intricacies of new product distribution.
New DistributionJiang Zhiyu: Channel + Private Label Will Be the Mainstream B2B E-commerce Business Model in the Future
Jiang Zhiyu, founder and chairman of Jinhuobao, recently visited Hexun Club to discuss the company's core product, the B2B procurement platform Jinhuobao. He revealed that Jinhuobao will develop finance, data, IoT, and private labels in the future, and the company is currently in the midst of its Series B financing round, with potential acquisitions in related fields.
New DistributionYantai Yishang Model: Logistics is the Foundation for Transitioning to B2B E-commerce
Just like the development of C-end e-commerce, the evolution of B-end e-commerce also takes time. In this process, Yantai Yishang, a distribution e-commerce platform in Yantai City, Shandong Province, has firmly seized the emerging e-commerce opportunities and provided a good model and platform for a new round of distributor transformation. From logistics to platform, the two complement each other. Yantai Yishang Logistics is the largest modern warehousing and logistics platform in Yantai and also the largest B2B e-commerce platform locally. In simple terms, retail stores place orders for goods from various distributors on Yantai Yishang's online platform, and Yantai Yishang can quickly deliver the goods from various distributors to the stores in a unified manner.
杨留原Eighteen Strategies for Terminal Distribution: One Is Sure to Work for You
This article, written by Zhao Haiyong, a senior project manager at Shengchu Consulting, outlines eighteen practical strategies for terminal distribution in the white spirits industry, ranging from first-order bonuses and multi-tier rebates to travel incentives and honor awards. Each strategy includes a brief commentary on its applicability and effectiveness, providing a comprehensive guide for distributors to enhance market penetration.
酒业第一新媒体Rapid Summer Beverage Market Positioning: How Master Kong and Jinmailang Do Their Displays
As the peak sales season approaches, beverage companies are boosting terminal sell-through by securing freezer space and optimizing case-cut and shelf displays. This article examines how frontline marketers for Master Kong Youyue Water, Jinmailang Liangbai Kai, and Xiaoyang Lactate achieve rapid summer market positioning.
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