Research On The Distribution Channels Performance Evaluation Of The Fast Moving Consumer Goods Industry

Fast Moving Consumer Goods (FMCG) Industry in China shows two major characteristics. First, FMCG Industry developed vigorously in recent years. Especially in the financial crisis in 2009, it picked up ahead of other industries. Second, foreign investors are eyeing and merging China's FMCG companies. FMCG companies should stress the development of distribution channel for the following two reasons. One is the rapid development of business requirement. The other is the requirement of improving the core competitiveness of FMCG enterprises so as to compete with the foreign companies. However, there are relatively fewer researches on the performance evaluation of the fast moving consumer goods distribution channels. So there are still difficulties for the fast moving consumer goods companies to determine the effectiveness of their companies, and identifying their weaknesses. In a word, there is an urgent need of an evaluation system to determine the scientific effectiveness of the FMCG industry's distribution channels.After research, this paper founds the FMCG performance evaluation index system. All the indices accord with the characteristics of FMCG industry and its distribution channels. Based on the theory of the Balanced Score Card, the index system includes four first level indicators, sixteen secondary indicators, and forty-two third level indicators. The factor coefficients of the system are derived by the Expert Evaluation Method and AHP. Therefore, this paper not only includes a complete evaluation system, but also does the coefficient of each indicator and recommendations for the application of this system. So this paper offers a complete method for the evaluation of the FMCG companies. By selecting a case to apply the evaluation model, the evaluation results and weaknesses of the company are presented .With the results approved by A company, this study's practical value is confirmed.Overall, this paper studies distribution channels evaluation system for the FMCG companies which has been hardly researched until now and also prepares the way for further research. The results of this paper can offer FMCG industry general assessment of the distribution channels performance, so it is a study with certain practical value.