NEW DISTRIBUTION RESEARCH TOPIC
How is instant retail changing stores, platforms, and supply chains?
Coverage of flash warehouses, front warehouses, discount stores, supermarket transformation, and local commerce platforms in China.
Related research and analysis
2996 articles · Page 36 of 125
Private Brands: The Unspoken Woes of Gaoxin Retail, Yonghui, and Jiajiayue
On the evening of July 6, 2021, Zhang Jingyi, the 63-year-old former board secretary of Yonghui Superstores, posted a poignant WeChat Moment after leaving the company, lamenting 'We are going downhill.' This phrase not only captured Yonghui's struggles but also highlighted the broader challenges facing Chinese supermarket chains, which, after fierce competition with foreign giants and a golden era of expansion, now face store closures and a new period of pain. Despite efforts in new formats and private brands, most Chinese supermarket operators still struggle to achieve profitability, unlike their foreign counterparts who have thrived with robust private label programs.
抛砖重磅丨新经销独家发布《中国零食硬折扣白皮书（快消行业洞察2023）》
On October 9, the 5th China FMCG Conference officially opened in Shenzhen. On the morning of October 10, at the 'Snacks and Discount Stores' sub-forum, Ren Wenqing, COO of New Distribution, Dean of the New Distribution Digital Research Institute, and Chief Expert on Hard Discount Industry, released the 'China Snack Hard Discount White Paper (FMCG Industry Insights 2023)'. The following are the key points of the speech.
任文青AndyFierce Competition, Supermarket Saturation, and the Explosive Growth of Instant Retail
Instant retail has become a new growth engine, with the industry expected to surpass 500 billion yuan in 2023 and reach 1 trillion yuan by 2025, growing at a compound annual rate of 51%. As offline supermarkets face intense competition, platforms like Meituan, JD.com, and Alibaba are aggressively expanding their instant retail capabilities, presenting both opportunities and challenges for traditional retailers.
杨秀娟Snack discount stores surge: What should brands like Bestore do?
The fierce battle between traditional snack specialty stores and snack discount stores is unfolding across the country. During market research in Chengdu in July, I witnessed a real scene: on a street, a Bestore and a Snack Youming, only 10 meters apart, had vastly different foot traffic at the same time. A rough count showed that during peak hours, Snack Youming maintained about 15-20 customers in-store, while Bestore had only a few. With high cost-performance snack discount stores pressing hard, where should high-end brands like Bestore and Three Squirrels go? Snack discount stores are booming...
赵胜男Rethinking the Logic of the Shelf
The article discusses how the logic of shelves differs between online and offline retail, emphasizing that offline shelves must be adjusted by time and customer group, while online platforms use algorithms to offer personalized product combinations. It introduces the concept of three generations of retail models in China and argues that the emergence of the third generation (e.g., community group buying, discount stores, interest e-commerce) has fundamentally changed the value chain, transaction logic, and the importance of scenarios, requiring brands and distributors to adopt a three-dimensional channel perspective.
赵波Carrefour Loses Northeast China, Multiple Stores Change Hands to Biyoute
Since the beginning of this year, there have been constant reports about Carrefour's restricted shopping card usage and consecutive store closures. Meanwhile, the question of who will take over the closed Carrefour stores has drawn industry attention. On September 26, Biyoute's Shenyang Tiexi Longemont store opened, notably at the former site of Carrefour Longemont Metropolis store. Also, Biyoute's Benxi Hualian Xincheng store will open on September 28, marking the first store under the strategic cooperation between Biyoute and Benxi Hualian. A Biyoute official revealed that this year, Biyoute has taken over multiple former Carrefour sites...
联商网编辑部How Far Is Hema's Spring?
Hema, now eight years old, has experienced three rises and falls. Founded in 2015 with Alibaba's backing, it was seen as the 'next Taobao' and carried Jack Ma's expectations for new retail. Early Hema was a sought-after high-end destination, an 'aquarium you can eat'. Legends circulated of retirees fighting over a 'rare' Alaskan king crab, a Beijing mall manager witnessing doubled foot traffic after a Hema opened, and savvy agents adding 'Hema-zone housing' to property listings. But great dreams often carry a tragic hue. In May 2019, after opening over 100 stores, Hema closed its first store in Kunshan, sparking a bloody battle in fresh food e-commerce.
关注创新经济的重磅 | 中国零食硬折扣白皮书（快消行业洞察2023）
In recent months, more brand owners have been adding my WeChat via the official account, mostly discussing snack discount stores. They ask about shifting from distributor supply to direct supply, or want to understand the model and development of this channel. The white paper systematically analyzes the background, model, landscape, impact, and trends of snack hard discount, providing insights for brand owners and distributors.
任文青AndyThe New Battlefield of Instant Retail: Is Lightning Warehouse a Good Business?
After a recent visit to lightning warehouses organized by the New Distribution Dealer Member Club, many have asked about this business model. This article examines two cases—a traditional convenience store transformation and a B2B entrepreneur's venture—to illustrate the profitability and rapid growth of lightning warehouses, which are an extension of instant retail. It analyzes the model's advantages, such as low cost, high turnover, and broad coverage, and discusses implications for brands, retailers, and distributors.
周群Mass Store Closures and Vicious Price Wars Haven't Occurred; Snack Stores Still Have 80-90% Market Space to Unlock
Last Monday, I had a live-streamed conversation with Mr. Tan. Tan Zhiwang, a seasoned consumer investor with over 10 years of experience, witnessed the development of the tea beverage industry from 2016 to 2021, participated in fresh food chain investments in 2017, and entered the snack discount store track in 2021. He has invested in projects such as Guming, Yipin, Snack Cabin, and Aotle. Why invite him? Recently, New Distribution has published numerous articles on hard discount snacks and held multiple live streams. We hope to help everyone understand hard discount snacks more deeply and comprehensively from different perspectives.
任文青AndyHighlights First Look! CCTV and Hunan TV Mid-Autumn Galas Exclusively Sponsored by Blue Moon Air Tomorrow Night
As the Mid-Autumn Festival approaches, the 2023 CCTV Mid-Autumn Gala and Hunan TV Mango TV Mid-Autumn Night, exclusively sponsored by Blue Moon, will return as promised, offering audiences a splendid audio-visual feast on the night of 'Sharing the Moonlight from Afar'. This marks the tenth year Blue Moon has partnered with CCTV and Hunan TV to accompany Chinese people worldwide in celebrating the festival. The 2023 CCTV Mid-Autumn Gala will air on September 29, 2023, at 20:00 on CCTV-1, CCTV-3, CCTV-4, CCTV-15, and various radio and new media platforms, with a first-ever vertical screen viewing option. The 2023 Hunan TV Mid-Autumn Night will be live-streamed on September 29 at 19:30 on Hunan TV and Mango TV.
New DistributionFresh-made Snacks and Discount Snacks: A Head-on Clash
Unlike snack discount stores that sell long-shelf-life pre-packaged products, the fresh-made snack track, which has risen rapidly with features such as short shelf life and fresh and healthy attributes, has become a new force that cannot be ignored. In this regard, a snack brand CEO once mentioned in an internal speech, 'Three snack business models—offline specialty stores, fresh-made snacks, and bulk snacks—have fully blossomed.' The author notes that in recent years, besides hot snack discount brands such as Snacks Busy, Zhao Yiming Snacks, and Snacks Youming, fresh-roasted snack brands led by Xueji Roasted Goods and Panda Momo have successively attracted capital favor.
阳子Traditional Supermarkets Struggle in Instant Retail, Risk Becoming Cannon Fodder
Traditional supermarket giants like Walmart, Carrefour, Yonghui, RT-Mart, Lianhua, China Resources Vanguard, Better Life, and Zhongbai are increasingly struggling under the pressure of instant retail platforms such as Meituan Flash Purchase, JD Daojia, Ele.me, Taobao Fresh, and Hema. Forced online, they face declining foot traffic, massive store closures, and heavy losses, while their online efforts remain dependent on third-party platforms, leaving them at a competitive disadvantage.
抛砖Covering Over 40,000 Small Stores with Daily Order Value Exceeding 4 Million Yuan: The Replicable Supply Chain Platform Business of Rongcheng Yigou!
With the significant decline in traffic at KA hypermarkets and offline supermarkets, competition has shifted to communities and convenience stores, changing the role of distributors. In response, Li Feng, head of New Distribution and dean of the Distributor Academy, and Qin Xian, founder of Rongcheng Yigou, discussed in a live broadcast how distributors can undergo digital transformation and build their own B2B platforms, exploring the opportunities and challenges of self-built B2B for distributors.
李锋、覃宪Bianlifeng, known for direct operations, suddenly opens franchising
From loudly declaring 'all direct-operated, no franchise stores' to quietly opening franchising, has Bianlifeng burned through its $1.5 billion in total financing? Bianlifeng has not received new financing for three years. From $300 million in Series A in February 2017, $256 million in Series B in October 2018, to May 25, 2020, when Bianlifeng first publicly disclosed its financing and store profitability, a spokesperson said: 'Bianlifeng has cumulatively raised $1.5 billion.' Full direct-operated rapid expansion and digital teams require substantial funds, and without financing for three years...
石头A 20-Yuan Moutai Chocolate: The Taste of Being Taken for a Ride
A 20-yuan Moutai chocolate: slightly alcoholic, overly sweet, and not particularly tasty. On September 14, Dove and Kweichow Moutai announced the launch of their co-branded Maoxiaoling chocolate on September 16, which quickly topped Weibo's hot search. The author visited the Moutai ice cream flagship store in Beijing's Chaoyang Joy City, where the chocolate sold out within half an hour, sparking accusations of hunger marketing. The article questions whether the success of the earlier sauce-flavored latte can be replicated, noting that the chocolate's availability is limited and its appeal to young consumers may be waning.
叶丹璇Accelerating Evolution, Racing into the Trillion-Yuan Instant Retail Market
Instant retail is a must-do, not an option. With the growth of online shopping and the impact of the pandemic, instant retail has become a main shopping channel. Brands and retailers must evolve to seize the opportunities in this trillion-yuan market.
周群A Store Earning 80,000 Yuan a Month? A Super Franchisee Reveals the Secrets of His Snack Discount Store Business
A super franchisee in the snack discount store industry reveals that in northern China's county markets, a single store can generate daily revenue of 20,000-30,000 yuan and monthly profits of 60,000-80,000 yuan, with top performers reaching 100,000-150,000 yuan. He shares insights on investment returns, risks, and the industry's future, emphasizing the current dividend period and the importance of location and experience.
任文青AndyFreshippo's Busy 2023
On September 9, Freshippo officially revealed that it would open 30 stores in September, including 16 Freshippo stores, 3 Freshippo mini stores, and the first Freshippo 'Premier' black-label store. Freshippo stated that the 'Premier' store will feature many unique products and domestic first launches of some imported goods. Meanwhile, in a self-reform effort, Freshippo will fully transform into a discount store model across three dimensions: differentiated products, building a vertical supply chain, and controlling internal operating costs. Hou Yi said that the Chinese retail market still has many shortcomings and needs to develop a business model with Chinese characteristics and international advanced retail experience.
刘敏露Young Shoppers Are Losing Interest in Discount Stores' 'Wool'
Tian Yu recently felt frustrated shopping at 'Hi-Tech Go' when she found an extra 4 yuan on her bill for a face mask and two orange juices, due to the store's member and non-member pricing. She questioned why she should pay 99 yuan for a membership to enjoy better discounts at a discount store. Similar complaints are popping up on Xiaohongshu, reflecting a growing dissatisfaction with membership models at discount stores.
林京The 'Commercial War' Turns to Sugar-Free Tea
A new 'commercial war' is unfolding. Recently, consumers posted photos of Suntory oolong tea priced at 3.8 yuan per bottle on supermarket shelves, sparking speculation of a price war and trending on Weibo. However, Suntory denied any price adjustments. Despite the rumor, sugar-free tea is gaining popularity among young consumers for health reasons, with brands like Suntory and Oriental Leaf expanding their presence.
燃次元工作室Is the Relationship Between Salespeople and Store Owners Worth Anything?
Stores are where products are sold, serving as the link between products and consumers, and are the most critical link in product distribution. Winning stores means winning the market, and seizing stores has become a key to marketing success. However, stores require good relationships (keqing), and with strong relationships, greater sales can be achieved. In past reports by New Distribution on distributors, especially during the three years of pandemic lockdowns, many distributors who invested in relationship-building saw positive results, avoiding losses and even growing against the trend. China is a society that values personal connections, so in terms of salesperson skills, they are divided into three categories: attitude skills, relationship skills, and business skills. Among these, relationship skills are considered the most important, accounting for 80% of the factors in closing deals.
高级研究员 海游Nationwide Stores Exceed 3,300: Wanchen's Four Snack Retail Brands Merge Under 'Haoxianglai'
On September 12, 2023, Wanchen held a media conference in Beijing to announce the merger of its four snack chain brands—Haoxianglai, Laiyoupin, Luxiaochuan, and Yadiyadi—under the unified name 'Haoxianglai'. This move aims to accelerate synergy and integration in brand image, market expansion, operations, digitalization, and culture, further consolidating Wanchen's leading position in the snack hard-discount industry.
任文青AndyInstant Retail Omnichannel 2.0 Transformation Accelerates, JD.com Takes the Lead Again
Over the past three years, driven by internal and external factors, consumer scenarios have undergone significant changes. Instant retail has accelerated its entry into daily life, with 'instant gratification' becoming a normalized shopping need. The business growth from matching consumer demand with supply has drawn attention across the entire consumption chain. Brands, retailers, and e-commerce platforms are all accelerating their布局 in this track. As New Distribution mentioned in previous articles, the instant retail industry is gradually transitioning from the 'wild growth' 1.0 extensive stage to the 2.0 rational growth stage.
周群