Core Viewpoint - The traditional distributors in China are facing a critical moment as their foundational business model is collapsing, not merely due to poor sales but because the retail environment is rapidly changing [4][6][7]. Group 1: Threefold Impact on Distributors - The first impact is the rise of snack discount stores, which are structurally replacing traditional stores, leading to a significant drop in sales for traditional retailers [9][12][13]. - The second impact is the competition from instant retail platforms like Meituan and Taobao, which are siphoning off orders directly from distributors through online ordering and fast delivery [16][19]. - The third impact involves a price system disruption caused by new retail formats, making it increasingly difficult for traditional retailers to sustain their operations [21][22][25]. Group 2: Survival Paths for Distributors - Path 1 involves optimizing existing business operations to stabilize cash flow, including reducing inventory and focusing on core profitable brands [28][30][32]. - Path 2 suggests transitioning from being a category distributor to a brand operator, leveraging professional capabilities to achieve higher margins [33][34]. - Path 3 advocates for a shift from B2B to an integrated supply and retail model, combining product offerings with retail capabilities to enhance bargaining power [35][36]. Group 3: Transformation Considerations - Transformation is not a guaranteed solution; missteps can lead to failure, emphasizing the need for careful planning and understanding of market dynamics before making changes [37][38]. - Companies are advised to take at least six months to explore different models and learn from both domestic and international cases before committing to a transformation strategy [39][40]. Group 4: Call to Action for Distributors - Distributors are urged to take immediate actions: optimize operations to preserve cash flow, identify suitable paths for transformation, and invest time in learning from real-world examples [46].

Core Viewpoint - The traditional operating logic of distributors in China's fast-moving consumer goods (FMCG) sector is collapsing as the market shifts from growth to saturation, requiring distributors to evolve from mere suppliers to efficient demand-supply system controllers [1][2][4][5]. Group 1: Market Transition - The market has entered a phase of stock competition, characterized by saturated channels, homogeneous products, and declining profits [3]. - Distributors are not becoming unimportant but must transform into a different entity, moving from being suppliers to becoming demand-supply system controllers [4][5]. Group 2: EDEKA as a Model - EDEKA, a German retail group, exemplifies the future evolution of distributors, having transitioned from a cooperative of small grocery stores to a leading retail group with over 11,000 stores and sales exceeding €75 billion, capturing nearly 25% of Germany's food retail market [7][11]. - EDEKA's success lies in its unique operational model that integrates retail perception with supply chain control, focusing on efficiency rather than scale [11]. Group 3: Lessons for Chinese Distributors - EDEKA provides three key insights for Chinese distributors: 1. Transition from channel distributors to "zero-supply integration" system operators, emphasizing the need to manage both supply and demand effectively [12][13]. 2. Shift from earning "price differences" to "efficiency differences," with EDEKA achieving over 30% higher inventory turnover efficiency through a digital supply chain system [15][16]. 3. Move from brand dependency to brand co-creation, with EDEKA selling both major brands and its private label products, which account for 30% of sales, enhancing profit margins and consumer loyalty [18][20]. Group 4: Future of Distribution - The concept of "zero-supply integration" is essential for future success, where efficiency will dictate market control, moving away from reliance on resources and relationships to a focus on systems and digital collaboration [22][23]. - In the evolving FMCG landscape, channels will become platforms, brands will act as co-creators, and distributors will transform into connectors, emphasizing the importance of supply chain efficiency in generating retail profits [24][25].