What are the advantages and disadvantages of traditional channels and modern channels of FMCG?

1. Traditional channels include: wholesale markets, farmers' markets, grocery stores, market stalls, street shops, tourism sales, etc.

Advantages of traditional channels: Due to the characteristics of large number, scattered distribution and relatively low single transaction volume of traditional channels, brands mainly rely on downstream to reach different retail outlets naturally. Production enterprises only need to do two things well to get good sales: first, study the needs of consumers. Second, invest in advertising to create a brand image. Therefore, in the traditional channels, producing products that consumers need and fully communicating with consumers through various advertising platforms such as the media are the secrets of the success of production enterprises. At that time, manufacturers got a complete and real consumer market through retailers, that is to say, if the products of retail terminals are not well sold, it can almost be concluded that the product development of the factory has failed or the brand has not been established in the minds of consumers, and manufacturers need to adjust their product development and advertising strategies accordingly.

Disadvantages of traditional channels: in traditional channels, retailers are only the sales channels of manufacturers, and the product mix, pricing and promotion policies are almost entirely decided by manufacturers, and retailers have no say. Traditional channels have a large number of terminals, and goods are easier to circulate in the channels. Therefore, most production enterprises develop agents and distributors according to administrative regions, generally taking provinces and cities as units, and customers at or above the first level manage customers at the next level.

Second, modern channels include: hypermarkets, general supermarkets, chain convenience stores, specialty stores, specialty stores, discount stores, warehouse stores and so on.

Analysis on the characteristics of modern channels: Retailers rely on standardized core business points to rapidly replicate and expand to form a chain scale, which is increasingly dominant in the supply chain. Whether it is the choice of goods, terminal price, promotion form and arrangement mode, it is decided by retailers. 4P marketing factors, such as product mix, price, promotion and channel, which manufacturers have tried and tested in traditional channels, have lost their original effects in modern channels. Instead, they study their development direction according to retailers' business wishes and then cater to them. It is precisely because of the above reasons that it is difficult for production enterprises to see the complete and true consumer market and lose the control of marketing factors. If the sales volume of a product is not ideal, we can't just judge that there is something wrong with the brand policy and product development of the manufacturer. At the same time, it may be that retailers have set up thresholds and obstacles, or other complicated reasons, such as poor shelf display and irregular promotion, which have brought unprecedented challenges to the production enterprises in formulating correct marketing strategies. The challenge faced by production enterprises is not only the competition of brands, but also the control and competition of marketing resources. Therefore, in modern channels, manufacturers must do two important things at the same time to achieve brand success: first, invest in consumers, make every effort to build brands, and let consumers like and accept their products. Second, invest in retailers, adapt to their business philosophy, get through the links of retailers and let consumers buy their own products. The brand strategy of manufacturers in traditional channels is no longer completely effective. If you don't invest in retailers and the channels are blocked, it will be difficult for consumers to buy your products even if there are advertisements. Therefore, manufacturers must adjust their marketing strategies and join professional terminal marketing to cope with this change and challenge.