On April 26, the "New Channel Conference & Growth Category Conference" hosted by the Maternal and Child Industry Observation was successfully concluded in Hangzhou. Focusing on "The Road to Breakthrough for Agents", Liu Huizhi, co-founder and CEO of Maternal and Child Industry Observation, Lin Letian, general manager of Ningbo Anren Trading Co., Ltd., Qin Yijun, general manager of Ningbo Beiqi Biotechnology, and Shen Weizhuang, general manager of Huzhou Baiqi Trading, discussed the following wonderful sharing:
The most intuitive market experience at the moment
Liu Huizhi, co-founder and CEO of Maternal and Child Industry Observation: When I communicated with many agent friends this year, I got a unified feedback: everyone feels that from 2023, especially this year, it is becoming more and more obvious that agents are caught between brands and retailers, and both parties put forward higher requirements for agents. In this forum, we specially invited several representative excellent agents in Zhejiang to talk about their coping methods and breakthrough roads. First of all, please briefly share, from the beginning of the year to the present, what is the most intuitive market experience?
Lin Letian, general manager of Ningbo Anren Trading Co., Ltd.: One feeling is that the top-level logical goal of the brand is to make efforts in the direction of price return, but because the practice is divided into multiple dimensions, and each dimension wants to be done, the intermediate transition is not coordinated; Another feeling is that downstream stores are short of money.
Qin Yijun, general manager of Ningbo Betsy Biotechnology: This year's feeling is that the volume is increased without price increase, and the increase in income does not increase profits, specifically the dealers are facing rising operating costs and profit margins are compressed. The shrinking profit margin is not due to stores, but due to the rapid transmission of information through new channels, coupled with the lack of timely information adjustment in the development process. In the first quarter, the zero complementary food fell by about 18% year-on-year, and the milk powder sector rose slightly in a stable manner. I think dealers need to make timely adjustments in this process.
Shen Weizhuang, general manager of Huzhou Baiqi Trading: I learned from the store that the number of newborns has increased this year, but the turnover of the store has not increased, which has led to the turnover of our agents not increasing.
The key for agents is to accurately link upstream and downstream
Liu Huizhi: Mr. Lin, from the perspective of agents, which categories are worth laying out now or in the future?
Lin Letian: The category with potential in the future is the allergy and cleaning and care sector, of which the cleaning and care category does not have too many brand concepts at present.
Liu Huizhi: What are the selection criteria?
Lin Letian: First, evaluate the strength and professionalism of the brand team, especially the brand owner/trader; Second, it will choose brands with brand awareness and promotion steps, but also need to be empowered by agents as the main line category, so as to improve profit points; The third is to combine the store positioning, choose the category that matches it, and choose the brand that can meet your needs and can be pushed down.
Liu Huizhi: In terms of choosing cooperative stores, what kind of stores do you think are worth embracing in the future?
Lin Letian: There are two types of cooperative stores: first, from the perspective of stock promotion, chain stores with a complete system and good reputation are very suitable; Second, from the perspective of new products or conceptual products, imported mother and baby stores or boutique mother and child stores with IP endorsement and consumer trust will be considered. Depending on the brand, the store you choose will be different.
Liu Huizhi: In the past two years, brands and stores have higher and higher requirements for agents, from your point of view, how do you view the transformation of currency agents to service agents, and what are the core difficulties?
Lin Letian: At present, the main difficulty is that the brand is required to do the work of a service provider according to the profit point given by the distributor, and the agent is definitely unwilling to do it. As an agent, you must first determine your own positioning, and the positioning is linked to the brand.
Liu Huizhi: How can agents play a better role between brands and stores?
Lin Letian: I think agents are the bridge between brands and stores, in the future, whether agents continue to deepen the distribution of goods, or transform into professional service providers, first of all, they should do a good job of accurately linking upstream and downstream, and promote the coordinated development of the format. The second is to help stores carry out dynamic sales.
Huizhi Liu: As an affiliate, what is the biggest challenge you face right now? Looking at the future from the present, what is the definitive way out and opportunities?
Lin Letian: Agents are indispensable as an intermediate sector, but the profits are meager. In the future, two types of agents may survive: one is the wholesaler similar to soy sauce and rice vinegar in the traditional market, and the other is the relatively high-end agent who integrates existing resources and plans a future outlet.
Dealers need to focus on product selection
Combine your own selection of subdivided categories
Liu Huizhi: Mr. Qin, Betsy Bio Zero Complementary Food has done a good job, what do you think is doing right behind it?
Qin Yijun: Although zero complementary food is a small category in the mother and baby store, in our company, zero complementary food is the first category. I think the dealer selection must be focused, the selection of the right segment is very important, each company's ability, resources, money are relatively limited, like we have also taken a detour before, tried diapers, nutrition, supplies, and finally decided to concentrate on making food. In addition, I always keep in mind the 8 words of "professionalism, dedication, service and innovation" when running the company.
Liu Huizhi: From your point of view, what are the biggest difficulties and challenges that hinder the business operation and profit growth of agents?
Qin Yijun: As far as the difficulties faced by agents are concerned, I have an obvious feeling this year, that is, high inventory and high indicators lead to the value of channels not being recognized and the market order being destroyed. According to my past experience, no matter how well a brand does and how fast it grows, as long as there are high indicators and high inventory problems, it will suffer backlash in the end. Therefore, I hope to have more chats with Party A and discuss the road to healthy growth of brands and agents.
Liu Huizhi: What is your strategy for coping?
Qin Yijun: Our coping strategy is very simple, to investigate each brand with a sincere attitude and do a good job in product selection, specifically there are two major criteria: the first is that the product quality is excellent and it is best to have a differentiated label, and the second is that the price system is reasonable, which can ensure the reasonable profit of agents and stores.
Liu Huizhi: In the past two years, everyone has been making nutritional products, what do you think of this category, and will it be laid out in the future?
Qin Yijun: I think it's a good direction to cut into the nutrition track when the birth rate is declining and conditioning stores are emerging, and the playing style and natural characteristics of nutrition products have really brought great help to stores. However, each category has its own characteristics, and before deciding whether to do it, you must first check whether you are familiar with this category and whether you have the ability to match it.
Be clear about your strengths
Give full play to the core value of agents
Liu Huizhi: Mr. Shen, Baiqi Trade Nutrition has done a good job, what do you think is doing it right?
Shen Weizhuang: I think the choice is very important. Since the establishment of the company, we have positioned ourselves as a nutritional product and milk powder, and we still adhere to it. If the selected brand is always doing the right thing, such as continuous marketing investment, category extension, and brand owner's sense of responsibility or industry mission, I will always insist on doing it.
Liu Huizhi: Are you optimistic about the nutrition of the whole family?
Shen Weizhuang: I am definitely optimistic about the outlet of family nutrition, but the concept of family nutrition is relatively broad and covers many categories. As a maternal and infant agent, we should be clear about our own advantages, focus on the current main business is strongly related, and have their own relevant advantages of the sub-categories for investment, in order to more steadily tap the nutrition dividend of the whole family, such as we have been deeply involved in milk powder and nutrition products for many years, then we will definitely do children's milk powder, middle-aged and elderly milk powder, children's growth, children's eye care and other sectors; If you don't have an advantage in adult nutrition, you won't do this sector.
Liu Huizhi: From your perspective, how can agents play a better role between brands and stores?
Shen Weizhuang: As an agent, it is not only to undertake the regional market sales given by the brand, but more importantly, to undertake the significance of being a regional agent, that is, whether it can lead the owners of maternal and child stores in this regional market to move forward, and make better communication and guidance through their own judgment.
Liu Huizhi: What are the commonalities of agents who do well? From the perspective of professional, service-driven growth, what is the core value of agents?
Shen Weizhuang: To put it simply, as an agent, you can't make money with the store must have no core value. Do a good job in the following three dimensions, and agents have core values: first, help mother and child stores make money; Second, in the process of industry changes, it can guide stores in a timely manner; Third, to provide store partners with high-quality products with good quality and profits.
Liu Huizhi: Finally, you will summarize around the "breakthrough road of agents".
Lin Letian: Everyone's concept of breakthrough is different, and how to break through depends on your company's positioning and future practices.
Qin Yijun: The wind and rain are heavy, and the opportunity is great; Do not be lazy in good times, and do not be discouraged in bad times; Believe in yourself, change quickly, and find your own ecological niche in the future market order.
Shen Weizhuang: There are many ways to break through, we must first stabilize our own advantages and basic market, and then find the outlet and go against the current.