From Deep Distribution to Full‑Domain Fan Sales: A Marketing Paradigm Shift for FMCG in the Shrinking‑Volume Era

In 2025 China’s FMCG market will grow at only 1.3%, marking the entry into a deep‑stock competition stage. While the surface appears stable, the industry is undergoing a disruptive restructuring: lower‑tier cities generate 80% of incremental sales, platforms like Douyin and Pinduoduo now hold over 40% market share, channel power shifts from distributors to platforms and users, and consumer demand moves from symbolic upgrades to quality awakening and emotional resonance. This forces FMCG executives to confront a new strategic dilemma.

The core problem is clear: traditional channel‑coverage and scale‑expansion logic no longer works. When growth shifts from “incremental capture” to “stock‑killing,” companies must find ways to break the growth impasse, navigate cyclical volatility, and build sustainable competitive advantage.

A common mistake is the blind replication of successful models such as Nongfu Spring’s deep‑distribution or Dongpeng’s “five‑code‑one” digital experience. These imitations often result in “shape‑like but spirit‑absent” outcomes, consuming core resources without delivering substantive breakthroughs, and ultimately missing transformation opportunities.

Deep distribution—defined as a manufacturer‑led, channel‑coordinated, terminal‑controlled system—thrived during the high‑growth era (1990s‑2015) by flattening channels, achieving full‑terminal coverage, and leveraging scale effects. Classic examples include Kangshifu’s “channel refinement,” Coca‑Cola’s “101 model,” and Snow Beer’s “regional deep‑cultivation.” However, in the current stock‑competition era, deep distribution shows structural drawbacks: high costs erode profit, user data becomes isolated “information islands,” long channel chains delay market response, homogeneous competition erodes channel advantage, and new retail scenarios (instant retail, live‑stream e‑commerce) are poorly served.

The inevitable transition is from “operating channels” to “operating users.” When the incremental era ends, the logic must shift from product‑centric distribution to user‑centric value delivery. This gives rise to the “full‑domain fan‑sales” (全域粉销) model, which integrates three pillars: full‑domain coverage, fan‑based operations, and digital infrastructure.

Full‑domain fan‑sales reconstructs marketing logic in three dimensions: (1) moving from product‑transaction to value‑delivery, (2) shifting from user‑demand‑product to scenario‑task‑solution, and (3) evolving from zero‑sum competition to ecological co‑existence. Direct‑to‑consumer (DTC) operations become the core, enabling brands to connect directly with users, convert one‑time buyers into loyal fans, and secure growth in a user‑driven market.

The model’s theoretical framework includes a 24‑character guideline—“stereoscopic connection, shared benefits, data commonality, full‑domain empowerment, panoramic resonance, full‑chain win‑win”—covering implementation foundation, core engine, key support, and ultimate goal. Seven core capabilities are identified: OMO reach, single‑inventory response, end‑to‑end fulfillment, bC integration, DTC operation, scenario‑driven demand creation, and one‑stop service. Each capability is illustrated with concrete cases (e.g., OMO campaigns by Pop‑Mart, inventory optimization by Dongpeng, fan‑based DTC by Nongfu Spring).

Implementation follows a three‑stage roadmap: (1) foundation building (digital infrastructure, organizational redesign, pilot projects), (2) capability development (optimizing OMO, inventory, fulfillment, building specialized teams, ecosystem partnerships), and (3) full‑scale rollout (expanding pilots, deepening user operations, continuous innovation). The article stresses a cautious, step‑by‑step approach to avoid over‑extension and resource waste.

Strategically, the article proposes three positioning paths for FMCG firms: (a) niche‑scenario focus for small‑to‑mid‑size firms, (b) advantage‑empowerment for resource‑rich enterprises, and (c) digital‑innovation for companies with strong tech capabilities. By aligning the chosen path with the seven capabilities, firms can secure a first‑mover advantage in the full‑domain fan‑sales era.

In conclusion, the shift from deep distribution to full‑domain fan‑sales is not a rejection of the former but an evolutionary upgrade driven by user‑centricity, digitalization, and ecosystem thinking. Executives must adopt this new paradigm to survive the stock‑competition landscape and achieve high‑quality, sustainable growth.