---
title: "10 Traits and 6 Fatal Flaws of Old-School Distributors"
description: "Once paragons of self-made success and among the first to drive sedans, many distributors now find themselves left behind as the economy enters a 'new normal' and buyer's markets prevail. Those with ample cash and scale are declining because they are like 'frogs in warm water,' complacent and resistant to change."
author: "王献永"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-11-21"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/10-traits-and-6-fatal-flaws-of-old-school-distributors-07e2afe9.md"
original_source: "https://mp.weixin.qq.com/s/aLk41c5tOgmhS1RZBayqZA"
translation: "https://xinjignxiao.com/zh/articles/%E8%80%81%E7%BB%8F%E9%94%80%E5%95%86%E7%9A%8410%E5%A4%A7%E7%89%B9%E5%BE%81-6%E5%A4%A7%E7%BC%BA%E9%99%B7-07e2afe9.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/10-traits-and-6-fatal-flaws-of-old-school-distributors-07e2afe9/"
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---

# 10 Traits and 6 Fatal Flaws of Old-School Distributors

> Once paragons of self-made success and among the first to drive sedans, many distributors now find themselves left behind as the economy enters a 'new normal' and buyer's markets prevail. Those with ample cash and scale are declining because they are like 'frogs in warm water,' complacent and resistant to change.

Once paragons of self-made success and among the first to drive sedans, many successful distributors remain oblivious to the new era of economic 'new normal' and buyer's markets across industries. Truly, five years marks a new era! In the blink of an eye, a batch of distributors have become 'frogs at the bottom of a well.' Indeed, the waves of the Yangtze push forward, and the front wave is beached on the sand. Keeping pace with the times is a message for the front wave.

**Distributors with scale and ample cash are on the decline. Why? Because they are 'frogs in warm water.'** Here are 10 traits of such frogs:
1. Operating for over 10 years on average, starting from wholesale and retail, with owners typically over 50 and no successors.
2. Business scale has grown, but they still manage the market with the same methods as their mom-and-pop store 10 years ago.
3. Early employees who followed the founder (often with nepotistic ties) have left to start their own businesses, some even becoming competitors.
4. They dismiss challenges from newcomers, acting as the self-proclaimed leader with poor crisis awareness.
5. They handle everything personally and distrust outsiders. As they age and can no longer keep up, they feel frustrated and lost.
6. They have brand awareness but lack brand operation experience, relying on intuition rather than being the brand owner's first-choice partner.
7. They have the intention to break through but lack the determination, hesitating and worrying about gains and losses. They stick to traditional 'sit-back' sales, relying on luck.
8. They focus only on immediate gains with no long-term planning.
9. They are accustomed to earning but not spending, lacking the concept of pre-investment.
10. They haven't learned for years, treating people and things in traditional ways, with a serious mindset of taking advantage. They fail to integrate well with the outside world.

**Fatal flaws of a group of large distributors:**
1. They don't learn themselves and don't create learning opportunities for employees. Spending money on learning is out of the question! Their 'sky' remains forever small.
2. They don't recognize their employees' abilities; capable employees don't receive due respect and compensation.
3. Control is inverted between employees and boss: a few old employees control the channels, and the boss dares not speak up for fear of losing them and suffering losses.
4. They always sell bulk goods without pursuing a brand strategy, believing low prices are the way to survive.
5. They don't advertise or promote, thinking business will improve over time.
6. They own their properties, so even if sales are poor, they won't lose money. They can continue or switch industries if things don't work out.

**About the Author: Wang Xianyong**
Founder of the Unity of Knowledge and Action Marketing Planning Studio
Pioneer and practitioner of the consulting-style operation and management model for furniture stores and specialty stores
Consulting doctor for the healthy growth of furniture stores and furniture distributors
Terminator of furniture store operation and management problems
Special forces on the front line of furniture factories
Practical training mentor for furniture store operations and planning personnel
Hands-on operator for furniture store opening planning and holiday promotional activities
-END-

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