Core Viewpoint - The fast-moving consumer goods (FMCG) industry is facing a significant crisis as distributors are increasingly unwilling to take on major brands, leading to a potential collapse of the distribution channel system [10][11][52]. Group 1: Distributor Dynamics - Historically, when manufacturers wanted to change distributors, there were many willing to take over, but now major brands are struggling to find new distributors as many are voluntarily exiting [3][5]. - Distributors are now actively reducing their operations, cutting ties with brands that do not provide immediate profitability, regardless of whether they are large or small [28][48]. - The shift from distributors merely complaining about profitability to outright refusing to engage in business marks a critical change in the industry [26][27]. Group 2: Channel Environment Stages - The deterioration of the channel environment can be categorized into three stages: 1. Deterioration of manufacturer-distributor relationships due to issues like stock pressure and unprofitability [15]. 2. A worsening channel environment characterized by increased control by manufacturers over distributor sales teams and the rise of direct supply models that limit distributor opportunities [20][22]. 3. Active contraction by distributors, who are now cutting brands that do not yield profits, indicating a severe crisis in the deep distribution model [25][29]. Group 3: Challenges in Brand Management - Major brands are losing their ability to innovate and push new products, which is essential for maintaining market relevance [36][40]. - The traditional dual-driven model of brand and channel distribution is failing, leading to an over-reliance on channel-driven strategies that disrupt the overall distribution system [41][40]. - Frequent changes in distributors are damaging brand reputation and market stability, making it increasingly difficult to find new distributors willing to take on the brands [43][45]. Group 4: Future Directions for Manufacturers and Distributors - Manufacturers need to rethink their channel strategies, focusing on direct supply to large retailers and fostering new types of operators who can drive innovation [58][59]. - Distributors have several options moving forward, including engaging with B2B platforms, transitioning to operational roles, or reducing their market presence [61][62][64]. - The emergence of new operational models that integrate online and offline strategies is crucial for revitalizing the industry and ensuring sustainability [66][70].