Author丨Yuan Lai
Hello friends.
Seeing the words, I am Yuan Lai, the new distributor.
Some time ago, I have been doing research in the first-line market. At the same time, he also gave two sharing sessions to the offline dealer partners of Kimberly-Clark (China) and Zhongshun Jierou, and also had in-depth exchanges with several dealer friends before and after to discuss business.
It is obvious that it is becoming more and more difficult for offline daily chemical dealers to do business!
The reason for the difficulty of business is mainly manifested in the retail end of downstream stores. Affected by the overall environment, store traffic declined and sales declined. If the store business is not good, it will naturally transmit part of the pressure to the intermediate suppliers.
The increase in accounts receivable can be delayed for four months, or even half a year later, after two months. Capital turnover, not 3 times a year.
In addition to accounts receivable occupying funds, there is also an increase in various expenses of stores, and the risk of some single supermarkets shutting down and running away. Therefore, the external market environment faced by offline daily chemical dealers is unprecedentedly severe.
The challenge pressure of the external environment, the dealer can not change. If you don't want to lie flat, you can only bite the head, continue to dig deep into intensive cultivation channels, and maintain stability and do big business.
Focusing on the content of the exchange and discussion with dealer friends, we summarized the core 8 thinking and construction of the current daily chemical dealers, hoping to bring thinking and inspiration to the dealer boss.
The days of only distribution of goods to stores are over
In order to continue to develop and grow in the current market environment, today's daily chemical dealers must extend the perspective of operation and management to store category shelves and surroundings.
In the past, the perspective of business was basically closed in the store, and it was completed when it was placed in the warehouse or placed on the shelves, and no additional actions were required. But, not right now.
At least a few actions are needed, such as grabbing more shelves, doing product combinations, and doing consumption interception.
The best business is the monopoly business
About grabbing more shelves. A category has 15 sections of shelves, in the past you had 5 sections, peer A had 5 sections, and peer B had 5 sections. There are 3 peers in one store, 5 sections per person, and fair operation.
Sorry, not right now.
External objective business is declining, you want to have development, you want to grow, you want to have profits, in the context of today's account period is constantly being extended, you must grab 10 shelves, it is best to grab 15 shelves, 100% are yours.
The best business is the business of monopoly, and there is no need to question it, and monopoly is profitable.
Even if it is 100% yours today, if you don't know how to select products and don't study consumer demand, it is still difficult to have a good profit like in the past. But grabbing more shelves is the first step.
It is not profitable to sell only first-line bestsellers
Regarding the selection combination, today only sells first-line best-selling products, there is a lot but definitely no money, even if it is chartered, the profits are all eaten by the store. If you only sell second- and third-tier goods, and you have a gross profit margin but no gross profit, it will not work.
Daily chemical dealers must learn to make product selection combinations, there are 3 major logics:
First, the first-line products bring traffic at low prices to attract customers and expand the category capacity. Second- and third-tier high-value, Internet celebrity products bring gross profits, and instant conversion transactions make profits.
Second, in the past, the logic of charter dealers was that second- and third-tier products were regional brands, local brands, and low-quality goods, and only looked at gross profits. But the second- and third-tier products mentioned above are high-value, Internet celebrity products, which are on the Douyin list and have been planted by Xiaohongshu.
Third, the past product selection combination is a combination divided by price band, but the current and future combination must be based on the product combination under the consumption scenario and consumption function, and take consumer demand as the starting point.
Build a shopping guide system to intercept consumers
The proportion of daily chemical products in offline store business is getting lower and lower, and the category capacity is declining. Today, if you want to do business and grow in stores, you must learn to grab consumers and intercept consumers.
During weekends and schedule activities, instant purchases in the store are realized through shopping guides.
The "building a shopping guide system" here does not only refer to a full-time shopping guide, after all, the cost of raising one person in each store is too high. This refers to: brand full-time shopping guide, comprehensive shopping guide, peak promotion, weekend promotion and schedule activities.
Dealers should extend the tentacles of internal management to the shopping guide system. In the face of declining customer flow, what should be done is to take the initiative to go outside the store to find traffic, gather traffic, and do conversion.
It is difficult for a single brand to invest more
In the past, the key words of dealers doing business were orders, negotiations, policies, and account periods, but now they can't, and they have to add shelves, piles, shopping guides, product selection, sales materials, image atmosphere, special activities, etc.
Dealers must not think that this is the work of the manufacturer, careful dealers will find that in the past, a brand could do it, but now it can't be done. The input-output ratio of a single brand doing these actions is getting lower and lower, the cost is high, and it cannot be done.
The total capacity of stores is declining, and it is even more difficult to support a single brand to do this. Only the combination of daily chemical dealers and their multiple brands can do these well.
Whoever can do these jobs well will be the future brand owners who will go to!
Take the store POS as the main assessment starting point
In today's market environment, it is difficult to obtain relatively good profits by simply doing distribution coverage, and more than 90% of dealers should take dynamic sales as the core to carry out business management.
Reducing the business share of best-selling mature products to less than 30%, and continuously increasing the sales of non-best-selling items. At the same time, the store POS was adjusted as the main assessment direction of front-line salesmen.
The purpose of assessing the store POS is to focus on the sale of goods, not just the purchase of the store. Through the adjustment of the salary assessment items of front-line salesmen, the dealers' understanding of "dynamic sales" is improved.
Learning is the fastest path to business growth
Learning is the fastest growing path for a dealer's business.
I visited hundreds of dealers with more than 100 million yuan, and found that the dealers who can do big business are people who love to go out and learn.
Each dealer is doing business in their own city, learning from the benchmark excellent dealers in other cities, the business logic is the same, the business model is the same, and even the distribution categories are the same, and the comparison reference can be directly applied to their own market.
Even if you don't copy and copy, you can inspire yourself more in the process of learning and communicating, which is far more than scratching your ears and thinking about it.
Don't do agency business across categories anymore
If the daily chemical dealer achieves the absolute TOP1 in the local daily chemical category, such as 70 or 80 million in the prefecture-level city, at this time, it is not to do the agency business of rest, grain and oil, and milk across categories, but to change the track (note: it is not a new line and does not do business).
Based on its own advantages in the daily chemical category and the development trend of the industry, it is a relatively feasible path to carry out diversified categories and one-stop commodity distribution coverage around local small and medium-sized stores.
The daily chemical category business is the basic market of the business, and the FMCG supply chain business of small and medium-sized stores is the second growth curve. Finally, it is emphasized that the basic business should be the absolute TOP1 of daily chemicals, and it is difficult to engage in a supply chain platform for small and medium-sized stores instead of a business with a volume of 20 or 30 million!
PS: In order to better help dealers achieve business growth, we established the TOP500 China Dealer Supply Chain Alliance in June 2023.
Up to now, 320 dealer owners have participated, and the vision of our alliance is to build the alliance into a regional dealer information, capacity, and resource sharing center.
When faced with the confusion of business, looking inward is often unlikely to find the answer, but will fall into more involution; Looking outward, looking at the thinking and practice of more excellent businessmen from the outside may bring you different inspiration and thinking.
Dealers who are interested in alliance empowerment can contact customer service partners by private message: