China Food

The report of the two sessions mentioned that the offline economy should be revitalized and the FMCG industry should return to the era of “crowd”


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2022 is the beginning of the improvement of FMCG salesman.
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Recently, Premier Li Keqiang mentioned when answering the questions of Chinese and foreign reporters at the two sessions: the current consumer demand is relatively weak, mainly offline consumer demand… There are many shops in the long streets of the city… That is the bustling fireworks in the world. If it’s closed, it’s not lucky
This paragraph describes the current situation: the offline economic demand is weak, and young people prefer to deliver takeout rather than enter the factory. Of course, for FMCG personnel, more and more young people are not willing to be salesmen. This passage indicates the policy for some time to come: making the offline economy hot and more terminal stores will force some current riders to return to traditional industries.
FMCG industry is an industry relying on terminal stores and salesmen. In the future, FMCG industry may usher in a new outbreak period.

hierarchy of FMCG

In 2016, the Internet giant claimed to change the FMCG industry. Its theoretical logic is that the cost landing process of each FMCG industry is too complicated, resulting in a large amount of costs wasted in all links. These links can be simplified and tracked by Internet companies, so as to save this part of the cost for FMCG enterprises, so as to improve the profits of enterprises.
For example, the product flow of FMCG is from factory to primary agent, primary agent to secondary distributor, and secondary distributor to tertiary terminal; Of course, it is also possible for enterprises to set the terminal as level I, distribution as level II and dealers as level I, which will not affect the circulation of products.
In fact, a new level can also be added between the primary agent and the secondary distributor. There can also be distributors, postmen and so on from the secondary distributor to the tertiary terminal. Indeed, the more levels there are, the company’s expenses will be detained at each level. When it comes to end consumers, it often adds several levels of prices.
Internet giants want to build a large distribution warehouse, and then directly to the terminal or even directly to consumers. Such a secondary or tertiary model is bound to save a lot of costs for enterprises.
The company will listen to these suggestions in the traditional process, but we will avoid them in the actual process. Why? We have been in the FMCG industry for decades. In the past, the information was not smooth, so there were price increases by agents at all levels; Now that information can be accessed directly, why are enterprises unwilling to change – if you are an enterprise, you will know that every level in it is called people’s livelihood.  
Few of the dealers and bosses of the second batch of FMCG enterprises quit after a few years. In fact, their money accumulates to increasing brands, renting warehouses, inviting businesses and buying cars. In the peak season, they have to borrow from various private loans and banks. Basically, the money has been in this industry all their life – of course, some dealers will aim high and do other industries, But generally speaking, most of them are still in the FMCG circle, that is, the money has not been taken away, and the bigger and bigger each level is, the more they feed back to the enterprise, and everyone is in a continuous and blood supply.  
On the contrary, if enterprises find several Internet giants and get a bunch of riders for distribution, the giants find bank loans and distribution find riders. There will be a large number of dealers, second batch merchants, terminals and other customers who will be unemployed. The hematopoietic function of the whole industry is not as good as the traditional logic, that is, the weakness of offline consumption will inevitably lead to the weakness of the industry.
There are many levels of traditional industries. In addition to wasting costs, another problem is that the information response is not sensitive and the information instructions are often missed, resulting in the aging of enterprise products, lack of understanding of the new generation of consumers, and the disconnection between products and consumers. Therefore, it gives new consumer brands the opportunity to replace traditional enterprises. But in fact, these multiple levels are called stability in the eyes of enterprises.
In this era of information explosion, the information seen by the leadership is also huge. If your level is reduced, the leaders will see the truth of the so-called front-line consumers, but they will also find that the enterprise overreacts and falls into information anxiety every day. We do FMCG, which has no threshold. Imitation is the easiest thing to do. If the enterprise falls into multiple reactions, it is basically a policy for three days and a product for five days. In fact, it is not as good as making a product honestly. Let’s take a look at the products with more than 10 billion sales volume in the market. Which product has a sales history of less than 10 years, and no product has a full sales volume at the beginning. Instead, it is accumulated by a slow pace of work and meticulous work.
The disease of large enterprises is a disease, but it is the best way to maintain the size and dignity of large enterprises. Everyone can see this disease, but every enterprise that wants to simplify and save will not get better results. For example, in order to reduce the level, a food enterprise launched large warehouse distribution. There is no so-called big business. Everyone is a distributor. At first, it was really good, and the consumption was much heavier. Because there was no superior big business, everyone had higher profits, increased enthusiasm and positive distribution. However, it was found in less than half a year that disorderly prices, fleeing goods and the return and exchange of temporary products have become problems. Terminal store owners have more opinions, and the final result is that the market is eroded by competitive products.

rider and salesman

Some time ago, I chatted with an organization. They have a new project, which is to put unmanned shelves in various office buildings and take over the remaining market of some unmanned shelf customers. They said that it is difficult for salesmen in high-end office buildings to visit, but they can replenish the goods through Shunfeng’s express brother. All office buildings need to be mailed, and the express brother can help enterprises replenish the products on the shelves. It can not only make up an income for the express brother, but also help the enterprise reduce the salary expenditure of business personnel.  
It is said that they have mastered hundreds of such high-end office buildings. From the perspective of implementation, it seems that the little brother of express is no worse than the salesman, and the money spent on part-time work is also very small.
This is the common survivor deviation now, which can also be said to be a sketch after infinitely subdividing the market. Others also have markets, figures and practical results. But if you calculate carefully, it is a false proposition. The concept of this company is very good, but there are problems in the later operation. The current rider distribution business is because there are few items in hand. Once there are more items, their distribution must be a problem. You said you could streamline products and sell only well-known first-line brands, so as to reduce the amount of business distribution. Then, a follow-up problem is that in this way, the value of suppliers is a special channel for enterprises, and its market capacity is not as large as expected.
Traditional FMCG enterprises are mass consumption, and their channels are also mass channels. Such channels are an extremely subdivided market, that is, there will be such high-end office buildings in super first-class cities such as Beijing, Shanghai, Guangzhou and Shenzhen.
The reason for this story is that many of our enterprises and dealers are usually trapped in the thinking trap of others and take a subdivided market for granted. We often see enterprises with “lofty ideals”. When publicizing their technical means, they will talk about that the future market is shared by salesmen, or even the era of riders being salesmen. A rider has several enterprises and dozens of items. In this way, riders take more, and the average cost of each enterprise will be less.
The quantity of FMCG has a great relationship with the display, location and freshness of products. In order to sell the quantity of products, each store needs a lot of time to maintain. It is impossible for a rider to maintain several companies. Even for different types of the same company, one operator may not be able to maintain them. For example, in the three aspects of Master Kang noodles, Master Kang drinks and Pepsi Cola, you ask a salesman to maintain the three major items of the store. It is impossible to maintain each store without more than half an hour.
Therefore, FMCG enterprises should understand two logics. One is that your so-called process waste is actually for the development of the whole industry category; 2、 Never think about the idea of salesman sharing or the so-called rider replacing business. Any enterprise with future potential should master the salesman in its own hands.  
Let’s look at the brand whose sales volume increased greatly last year. The final fight is still the number of your business personnel. Only the increase of the number of business personnel can make your market sink better and your channel control ability stronger. In 2022, there is an obvious signal that the business demand of enterprises is growing at a rate of about 8%.
Of course, if you want to force the rider to transform into a salesman, you can’t rely solely on the policy support of the state, but more on the investment of real money and silver of the enterprise. At present, the salary of the FMCG industry is generally not high. The salary of the salesperson who can maintain the first-line 6000 and the second-line 5000 is not much, and most of them are around the “poverty line” 4000-5000.  
The salaries of business personnel of leading companies in the industry, such as Coca Cola and nongnongshanquan, are relatively high. For example, the salesman of nongnongshanquan can get more than 8000 commission from the dealer in February, plus 3000 yuan from the enterprise, and the salary of that month can exceed 10000. According to the feedback of dealers in Nanjing, the average monthly salary of their salesmen in nongnongshanquan is nearly 20000 yuan.
Therefore, good FMCG enterprises are the salesperson scolding the most ruthless boss and the most ruthless class. Of course, there are still a few enterprises like nongnongshanquan, so another advantage of attracting young people to change from rider to salesman is job hopping. As a rider, you just jumped from meituan to Sitong and Yida, Shunfeng Jingdong, etc., and the nature of your work and salary have not changed much.
However, if you are a salesman in the FMCG industry, the selected enterprises are diversified. Maybe you are just a business in Coca Cola, but it is not a problem to be a supervisor in other companies. With the increase of working years, the salary can increase in geometric multiples. These are the strategies for large enterprises to attract personnel when wages are not high.
In 2022, revitalizing offline consumption requires a large number of business personnel. It is the responsibility and obligation of every enterprise to make business personnel get high wages
Author: years; Source: FMCG (ID: fbc180), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); [(click the picture to view the detailed introduction).
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