Summary of Key Points
This news article discusses the phenomenon in the fast-moving consumer goods (FMCG) industry, such as beverages and instant noodles, where AI technology is being used to monitor sales representatives at the point of sale. The monitoring methods have evolved from paper card records and GPS tracking to photo check-ins, and now include AI-powered image analysis of product displays on shelves. Sales representatives are required to take photos of the shelves, and within seconds, the AI can determine whether the products are properly arranged, whether competing products are being suppressed in display, and whether the stacks are of the correct height. These outcomes directly affect their performance evaluations. On the surface, this appears to be a form of “digital efficiency improvement,” but in reality, it allows companies to save on audit costs. However, sales representatives face increased scrutiny, more workloads, and no salary increases, while also dealing with various challenges related to their identity and age.
1. The AI-Induced “Photography Nightmare” for Sales Representatives: From 5 Seconds to 15 Minutes of Torture
Previously, sales representatives could simply take a random photo of the shelf and upload it, with most photos going unnoticed. Now, with AI conducting comprehensive checks, every photo is scrutinized meticulously. For example, reflections or backlit images are considered unacceptable, and even if the store owner has rearranged the products slightly, it may still be deemed non-compliant. If a representative wants to appeal, they must record a panoramic video of the entire store to prove their presence there. What used to take 5 seconds now takes 15 minutes. A sales representative in the beverage industry in East China said, “Previously, I was caught violating regulations once a month; now, it happens three times a day.” Running 30 stores a day and spending an extra 15 minutes per store means working 7.5 more hours, yet there’s no salary increase. This is far from being an efficiency improvement; it simply squeezes out the representatives’ rest and meal times.
2. The Money Saved by Companies Comes at the Expense of Sales Representatives’ Time
FMCG companies claim that AI has reduced audit costs by 70%, as reflected in a decrease of just a few percentage points in sales expenses in their annual reports. For a company with revenues of 20 billion, this saving could amount to tens of millions. However, this money comes from the extra time sales representatives spend taking more photos and filing appeals—15 minutes each time. AI performs tasks that used to be done by internal auditors, but it doesn’t show mercy or flexibility. Managers want “certainty” (i.e., proof that representatives aren’t being lazy), yet even those who are not being lazy receive no bonuses. In essence, companies have turned the sales representatives’ invisible labor into mandatory work, with the savings going into their own pockets while the representatives bear the extra burden.
3. The Rise of “Identity Anxiety” for Sales Representatives: From Employees to “Partners,” with All Risks Falling on Them
In addition to the increased workload, the status of sales representatives has become increasingly precarious. They used to be official employees of the manufacturers, but now the companies have shifted their employment relationships to distributors, claiming it’s closer to the front line. As a result, social security benefits and housing fund contributions have decreased, leading to financial losses upon retirement. The situation is even worse for those in the “urban partner” program: they are paid based on their sales performance, with no fixed base salary, meaning they must bear all the risks (such as unsold products) while the companies take all the profits. Despite being workers, they have no guaranteed income.
4. The Decline of Experience as a Valuable Asset
Formerly, sales representatives’ extensive knowledge (e.g., knowing which store owners’ last names they were, what cigarettes they preferred, and whether payments were delayed) was a valuable asset that gave them bargaining power when changing jobs. Now, all this information is stored in company systems. New recruits don’t need three months of training; the system tells them where to go, what to say, and which products to promote, and they can start working immediately. The experience of experienced representatives has become just another piece of data in the company’s database. This means that a 35-year-old representative may perform similarly to a 23-year-old one, yet their salaries differ significantly—whose job will be cut, is obvious.
5. An Intractable Problem in the FMCG Industry: AI Cannot Solve Fundamental Issues
FMCG companies have relied on a “sea of people” strategy to expand through franchise stores (about 6 million nationwide), but now direct-to-consumer snack retailers (such as a listed company) have cut out middlemen, offering the same products at lower prices than distributors. Online platforms also provide discounts, driving down offline prices and causing customers to shop around. As a result, franchise owners are reluctant to purchase goods, and sales representatives must meet their inventory targets by force. If products expire, they have to dispose of them themselves. AI is just a tool; it hasn’t helped representatives carry boxes of goods, argue with store owners, or cover for payment delays. Companies’ solutions to these issues still rely on making representatives visit more stores, but the underlying problems (channel competition and price pressures) remain unresolved, leaving representatives even more overworked.
In conclusion: While AI has saved companies money and improved efficiency, the costs are borne by the frontline sales representatives. They do the most physically demanding and mentally exhausting work for unchanged salaries, while facing additional challenges related to their identity and age. Despite three rounds of technological advancements, it’s always the same group of people who get exploited.