34 Laws That Determine the Survival of Distributors

Growth Laws Law: The main obstacle to distributor growth is the 'founder's trap' In the early stages of entrepreneurship, the founder's courage and determination are the primal forces that support the enterprise's survival in its most vulnerable state. At this time, the company's growth hinges on the boss's whim; 'I' (the boss) is greater than 'we' (the enterprise and all its people), and 'we' is determined by 'I'. The boss's style, charisma, and consciousness decide everything. At this stage, the company's development relies on the boss seizing opportunities on the front line, and in a sense, it depends on the boss 'playing speculation' and 'playing tricks'. When the enterprise reaches a certain scale, it falls into the 'founder's trap,' where the spiritual strength that once supported the company's development may become an obstacle to its continued growth. Because as the company expands, the relationship between 'I' and 'we' undergoes subtle changes. Previously, the boss was the absolute pillar of the enterprise; without the boss, nothing could function. Now, the boss's role has greatly diminished, and many things are done without the boss's knowledge. Previously, decisions might be made solely by the boss, even if finding someone to consult was difficult. Now, a proper decision-making team may be needed, and the boss must promote democratic practices. Previously, the boss's core team consisted of a few loyal 'henchmen' who co-founded the business, and it was common for them to be scolded mercilessly yet still feel proud. In the 'gangster-style management' system, being scolded was a form of 'favor' from the boss. Now, professionals and professional managers become the backbone of the enterprise; they can accept criticism but not 'being scolded.' A boss of a large enterprise once said: 'I can scold those who started the business with me, but I never scold those who wear glasses.' He meant that intellectuals with glasses have thin skin and cannot be scolded. Previously, the boss managed everything directly, with all policies, systems, plans, profits, and losses stored in the boss's mind. Now, management levels increase from one to two or three, management requires systems, actions require plans, and profits and losses require accounting. Previously, the boss's word was the company's rule. Now, the boss must lead by example in following the systems he establishes; otherwise, the systems become ineffective. The process of enterprise development is also a process of the boss's diminishing importance. If the boss still indulges in the 'lordly' feeling from the small business era, the boss will become an obstacle to the company's continued growth. Some companies have asked us to conduct employee training, and after understanding the actual situation, we often bluntly tell the boss: 'Training should start with the boss.' For companies that have changed countless subordinates and still struggle, our final recommendation is usually 'change the boss.' To avoid the founder's trap, the boss must demonstrate a determination when the enterprise reaches a certain scale: the individual is willing to submit to the enterprise. Only when 'we' is greater than 'I' can the enterprise truly grow and thrive. In the early stages, the boss is almost the sole driving force for growth. After entrepreneurial success, the boss may become an obstacle to further growth. In the early stages, the main resource for growth is not capital but the boss's determination. At this time, the boss is the enterprise, and the enterprise is the boss. Law: Under a big tree, grass does not grow. 'Hero bosses' often fail to create 'hero enterprises' Zhang Yue, the boss of Changsha Broad, once said: 'When I first started, I found I could do the work of ten or a hundred. But eventually, I realized I couldn't do the work of a thousand or ten thousand.' A hero enterprise must find something that can do the work of ten thousand. Comparing 'small bosses' of small businesses with 'big bosses' of large distributors, we find numerous differences in abilities and attitudes towards talent. 'Small bosses' are often shrewd, capable, all-around, and indispensable; 'big bosses' seem 'dispensable' because they don't do specific tasks. 'Small bosses' often do not forgive subordinates' mistakes; 'big bosses' often turn a blind eye to subordinates' minor errors. As the saying goes: 'Water too clear has no fish; people too observant have no followers.' Writer Wu Jiaxiang said: 'As a superior, you cannot fail to see subordinates' shortcomings, but you also cannot constantly stare at them. If you don't see them, you may misemploy people; if you constantly stare, you may have no one to employ.' 'Small bosses' often like to show off their talents, using their abilities to intimidate others and boost their own confidence; 'big bosses' often keep their talents hidden, giving subordinates the chance to shine, and their abilities are proven by the enterprise itself. When 'small bosses' encounter subordinates with insufficient ability, they often say, 'It's better if I do it myself,' so subordinates' abilities may never improve. 'Big bosses' either train subordinates to be competent or replace them with competent people. When 'small bosses' find subordinates' work poorly done, they often criticize or even scold them; 'big bosses' only criticize if it's a responsibility issue, but if it's an ability issue, they guide and help. Under a big tree, grass does not grow. The excessive competence of 'small bosses' is often the reason subordinates are incompetent. Those bosses who can 'do the work of ten' or 'a hundred' will eventually find they cannot 'do the work of a thousand.' Therefore, cultivating subordinates and building a team is more important than leveraging the boss's personal talents. 'Hero bosses' can only achieve small enterprises; only 'hero teams' can achieve large enterprises. Law: Without hands-on involvement, distributors cannot do well. With micromanagement, distributors cannot grow big Distributors rely on intuition to do the market; without personally doing the market, they lose that intuition. However, if they are in the market every day, they may experience 'intuition fatigue' and lose sensitivity to the market, similar to 'aesthetic fatigue.' Distributors often make two extreme mistakes: either micromanaging everything, spending all day in the market, equating themselves with a salesperson, or staying away from the market for long periods, only going to the front line when problems arise. To grow big, distributors must rely on subordinates to do the market; the boss alone cannot do a large market. But relying on subordinates does not mean letting them cross the river by feeling the stones; subordinates need the boss's guidance. To command subordinates effectively, the boss must spend 2-3 days each month personally experiencing the market, not just skimming over it. Law: For small distributors, standardized management increases costs. For large distributors, non-standardized management increases risks People with formal training often cannot do small businesses because they apply large enterprise models to small ones: not large in scale but many departments, not many tasks but many rules. In contrast, those without professional training often have fewer rules and processes, handling things flexibly and effectively. However, once the scale grows, distributors find that their old tricks no longer work, and they realize the importance of rules and processes. Small distributors focus on opportunities because with little capital, they must seize opportunities to succeed. Large distributors must first avoid risks, then consider seizing opportunities. Opportunities are found in chaos, while risks are avoided through processes and systems. Law: The number of people a distributor can manage determines the size of the business they can do From the start, distributors typically go through several stages: Stage 1: Mom-and-pop shop. At this time, sales cannot be large; too many customers overwhelm them. Stage 2: Couple plus helpers. Helpers are mainly relatives, only doing odd jobs, with little impact on market development. Stage 3: Boss plus salespeople. Sales may expand, but they dare not hire very capable salespeople. Stage 4: Boss plus sales manager plus sales team plus service staff plus accountant. The market can expand indefinitely, with corporate management and specialized division of labor. The development of a distributor is also a process of increasing personnel, or rather, because personnel increase, business gradually expands. Many distributors fail to grow because they dare not hire people. Reasons include: First, sales are too small to support them. Second, they are unreliable and not trusted; they only dare to use relatives, fearing excellent salespeople become competitors. Third, their abilities are too poor to be useful. Fourth, they don't know how to manage or use people. In reality, it's often: First, it's not 'sales too small to support,' but 'dare not hire, so sales remain small.' Initially, sales may not support new hires, but if you never hire, sales will never increase. Second, many distributors' ideal 'capable person' is their own 'shadow,' leading to the phenomenon: 'Too poor ability, useless. Too strong ability, dare not use.' Law: Small distributors rely on insight, medium-sized on professionalism, large on management Small distributors rely on intuition, instinct, and insight, which come from front-line experience. We often see small distributors with many ideas and tricks. Medium distributors need professional judgment; without it, they cannot keep pace with industry changes. Large distributors have accumulated sufficient resources, relying on others rather than themselves, lacking long-term front-line experience, so their intuition and insight diminish. But with sufficient management ability, they can mobilize many employees and fully utilize their intuition and insight. Law: Entrepreneurial distributors must either become professional managers themselves or hire professional managers; otherwise, it's difficult to transition from a startup to a normal operating enterprise Liu Bei was an entrepreneurial boss, and Zhuge Liang was a professional manager. Liu Bei never transformed from an entrepreneurial boss to a professional manager, but because he hired Zhuge Liang as a professional manager, he achieved the tripartite division of the world. Some enterprises are always in the startup stage, managing a scaled enterprise with startup management methods, which certainly cannot grow big. Enterprises always in the startup stage are always seizing opportunities without accumulating resources to maximize them. They are always adjusting and experimenting, without maximizing what has been proven correct. They are always in the excitement of continuous entrepreneurship, while normal operating enterprises may be plain or even boring. If a boss addicted to entrepreneurship cannot successfully transform into a professional manager, then the boss should hand over daily management to a professional manager and focus on entrepreneurship. Because entrepreneurial success needs the boss, while normal operations need professional managers. Law: Only when products have appreciation potential do distributors have operational space Brand-name products sell well but are not profitable; non-brand products are profitable but hard to sell. Almost every distributor faces this dilemma. The solution is to 'distribute products with appreciation potential.' When the Hope Group split among four brothers, Chen Yuxin, the boss of HuaXi Hope, did not use the Hope brand but created a new feed brand 'Wanqian.' Distributors faced the choice of continuing with 'Hope' or switching to 'Wanqian.' Most chose 'Hope,' but a few with foresight chose 'Wanqian.' Since 'Hope' and 'Wanqian' came from the same origin, with similar quality but lower price for Wanqian, its appreciation potential was much greater. Some distributors sold the low-priced Wanqian feed at Hope's price, thus earning excess profits. Choosing a product is like choosing a stock: not high-priced or low-priced, but a potential stock—one with a low current price but expected to rise in the future. Only when products have appreciation potential do distributors have operational space and thus profit space.

Transformation Laws Law: Business-oriented distributors have a scale limit; entrepreneur-oriented distributors have no limit. If distributors do not transform at a certain scale, they will hit the 'ceiling' Business-oriented distributors can achieve 'from nothing to something,' but only entrepreneur-oriented distributors can achieve 'from small to large.' Business-oriented distributors can become millionaires or ten-millionaires, but only entrepreneur-oriented distributors can become billionaires. Business-oriented distributors may manage teams of dozens, but only entrepreneur-oriented distributors can manage teams of thousands or tens of thousands. Most distributors start as business-oriented, but those who survive in the end are usually entrepreneur-oriented. If distributors do not transform, they will inevitably encounter the 'ceiling' of growth. The difference between a businessman and an entrepreneur is not in shrewdness, scale, capital, or profit, but in marketing models, organizational systems, management systems, boss mentality, and management philosophy. Law: Distributors that never grow big have a 'standard face' If the main business is handled by the boss, the enterprise is hard to grow. If customers only recognize the boss, not employees, the enterprise is hard to grow. If a few sales champions account for the vast majority of sales, the enterprise is hard to grow. Because an enterprise with many marketing heroes is doomed. If the main employees are relatives, friends, or children, the enterprise is hard to grow. If the wife and sister-in-law personally manage finances, the enterprise is hard to grow. Distributors that don't grow often scold subordinates for being stupid but don't think about why they are stupid. Law: Business-oriented distributors focus on results; entrepreneur-oriented distributors focus on processes Businessmen often say: 'No matter how you do it, as long as the result is good.' Whether it's a white cat or a black cat, if it catches mice, it's a good cat. Entrepreneurs often say: 'The result is important, but more important is whether the good result can be repeated. Only results that can be repeated are good results. That is, a cat that catches mice is not necessarily a good cat; a cat that can summarize the rules of catching mice is a good cat.' Law: Business-oriented distributors want 'capable people' but fear them. Entrepreneur-oriented distributors can use both 'capable people' and ordinary people Many distributors have experienced 'raising a tiger from a cub, and the tiger hurts people when grown,' holding a contradictory attitude of desire and awe towards 'capable people.' 'Desire for capable people' because they feel their own abilities are insufficient; 'awe of capable people' because they fear they will start their own businesses or become uncontrollable. Why do business-oriented distributors fear capable people? Because they see capable people as their 'own shadow'—people as capable as themselves. Such capable people are strong in solo combat and easily start their own businesses. Why don't entrepreneur-oriented distributors fear capable people? Because they recruit professional capable people, each excelling in a specific field, and through their combination, these professional talents can function. Since entrepreneur-oriented distributors do not use solo-combat talents, even if they leave, it won't have a devastating impact. Law: Businessmen often 'reward according to merit'; entrepreneurs usually 'do not use positions as rewards for meritorious officials' How to reward meritorious officials? One way is material rewards, called 'compensation.' Another is positional rewards, promoting them to leadership, called 'empowerment.' Using positions as rewards for meritorious officials may result in 'losing a doer and gaining a non-manager.' We see that business-oriented distributors often have meritorious officials holding 'court.' In entrepreneur-oriented distributor teams, positions are given only to those with ability, not to meritorious officials. Even if someone was once an opponent, if they have sufficient management ability, they may be given an appropriate position. Law: Business-oriented distributors love to stir things up, finding a path through constant 'trial and error.' Entrepreneur-oriented distributors often adhere to the belief: 'Be cautious before choosing, persist after choosing' Business-oriented distributors love to stir things up, with many ideas, often resulting in 'not dying, but not growing big.' Because they love stirring, they always find a way to survive. Because they cannot persist, they cannot do one thing to the extreme. Entrepreneur-oriented distributors are very cautious before choosing a path, but once they choose, they will go all out and persist. Law: Business-oriented distributors trust loyal and reliable people; entrepreneur-oriented distributors trust the power of systems 'Use people without doubt; doubt people without using.' This is typical of business-oriented distributors. Because they achieve this, they can develop rapidly even with imperfect systems and processes. To achieve this, it also determines that entrepreneurial personnel mainly come from their past small circles. Because they know each other well, they can use people without doubt. When the scale expands, people from the past small circle cannot meet the needs of development, so they need to recruit from a wider range. When people come from all over, if they require 'no doubt, no use,' they may have 'no one to use.' To achieve 'use people with doubt,' they must establish systems and norms, using supervision, avoidance, and processes to 'make it impossible for bad people to find opportunities to do bad things,' thus making them de facto good people.

Manufacturer-Distributor Relationship Laws Law: The source of cooperation is common interests; the foundation of cooperation is common philosophy Distributors naturally want to make money by representing manufacturers' products, but the profits promised by manufacturers are just 'a pie in the sky' that cannot truly 'satisfy hunger.' Some manufacturers dare to promise anything, but in the end, distributors get nothing. What truly makes promises come true is the philosophy of cooperation. Only when manufacturers and distributors have similar business philosophies can they cooperate smoothly. With a common philosophy, although they may argue, there will be no principled differences. Law: Without manufacturer support, distributors find it hard to succeed. If they don't succeed, manufacturers support even less Excellent manufacturers can drive the rise of a group of excellent distributors, but excellent distributors cannot save a failing manufacturer. In local markets, distributors may play a decisive role, but in the overall market, manufacturers are decisive. Distributors often feel that when they haven't succeeded, manufacturers don't support them, and when they have succeeded, they don't need support. So what is the key to manufacturer support? It should be 'the momentum of market development.' Only when manufacturers see hope for success will they support. 'The momentum of market development' gives manufacturers hope, so they are not afraid of wasting money. Law: The distributors manufacturers are most interested in are not the big ones, but the most potential ones 'My territory (market scope) is large.' 'I have many customers.' 'My sales volume is high.' 'I distribute many varieties.' These 'boasts' may intimidate small manufacturers without ideas, but truly strong and thoughtful manufacturers will question: 'Is the territory large but the market not refined?' 'Are the customers many but of high quality?' 'Is the sales volume high due to channel crossing or intensive cultivation?' 'Are the varieties many but the structure reasonable?' Manufacturers often look not at the present but the future when seeking distributors. Because the present is the result of distributing other manufacturers' products, while the future may be the result of distributing their own products. That is, the existing volume belongs to others, and the increment is their own. Only if the distributor still has potential can they build up the manufacturer's products; otherwise, even a big distributor is useless. Therefore, when communicating with distributors, manufacturers should talk less about the present and more about the future. The future is the weight to attract excellent manufacturers. Law: Large enterprises seek small distributors; small enterprises seek large distributors Large enterprises have strong market operation and control capabilities, and they hope to find 'obedient' distributors. They don't require distributors to have special ideas, but they must implement the manufacturer's policies without compromise. Truly thoughtful distributors always have a bit of 'disobedience.' Their main requirement for distributors is capability, because this is work the manufacturer cannot do personally; other tasks like new product promotion, market control, and advertising can be done by the manufacturer. For example, P&G's main requirements for distributors are only three: provide downstream customers, manage downstream customers, and deliver to downstream customers. Small manufacturers, on the other hand, hope to find large distributors because their market operation ability is poor; they want to hand over products and policies to distributors and then do nothing else, with all other work done by distributors. Law: Whenever a manufacturer visits a distributor, the distributor should instinctively think: If you cannot become a comrade-in-arms with the manufacturer, you will inevitably become an opponent If you represent the manufacturer's products, you are comrades-in-arms. If other distributors represent the manufacturer's products, the manufacturer is your opponent. No distributor wants a strong manufacturer to become an opponent, because the success of a strong manufacturer means your operating space is compressed. Therefore, whenever a manufacturer's salesperson visits, the distributor should thoroughly understand the manufacturer's strength and operational thinking. If you think the manufacturer will definitely succeed, you must recruit it under your banner. If for various reasons you cannot combine with the manufacturer, you must not let it combine with excellent local distributors; otherwise, you will have no peace. Law: Dealing with excellent manufacturers is the hardest; dealing with poor enterprises is the easiest Distributors often face these confusions: despise small enterprises, can't stand large enterprises. They hope manufacturers will agree to their conditions readily, but if they agree too readily, they feel afraid. Ordinary manufacturers, because they lack bargaining power, easily compromise with distributors. Excellent manufacturers compare distributors against standards, so dealing with them is hard. Ordinary manufacturers dare to promise anything, just to get the money first, while excellent enterprises may not give many promises. Ordinary manufacturers dare to give any policy, not fearing market chaos, while excellent enterprises have many rules and require processes for policies. Ordinary manufacturers' gross margins look high, but can they last? Excellent enterprises focus on the long term, with low but stable margins. Ordinary enterprises sell on credit if they can't sell. Excellent enterprises rarely do credit sales. Excellent enterprises have their own moral bottom line, responsible not only to themselves but also to distributors. Excellent enterprises will not harm consumer interests for short-term gains (e.g., reducing quality or price), because cheating may earn a small sum but cannot make you big. Law: Excellent manufacturers are 'mentors' for distributors. Distributing excellent enterprises' products can make you an excellent distributor Manufacturers are the most important resource for distributors. Changsha Broad always chooses the best suppliers when purchasing raw materials, because the best way to learn from excellent enterprises is to 'become their customer.' Excellent manufacturers are not selling products but providing 'market solutions' and profit models. Excellent manufacturers not only use distributors' customer networks but also help expand them. Excellent manufacturers not only rely on distributors' abilities but also focus on improving them. Excellent manufacturers not only assist distributors in sales but also in management. Excellent manufacturers not only provide sales method support but also export marketing thoughts and concepts. Law: To truly gain long-term manufacturer support, you must establish a 'good citizen' image Using abnormal means may gain short-term support, but only 'good citizens' can gain long-term support. The most important support from manufacturers is not policies but sending people who can obtain policies from high levels. Therefore, distributors must persuade manufacturers to send their best employees to the regional market. Excellent salespeople are more likely to get high-level support than ordinary ones. Distributors who often 'go over the head' may gain some support under pressure from high levels, but given the principle that 'officials' are less effective than 'managers,' the truly decisive supporters may not be at the top. In fact, gaining manufacturer support is relatively easy if you meet two conditions: First, do not withhold policies; use them truly for market development, not turn them into your own profits. Second, when the manufacturer gives 'input,' give a certain 'output.' Because manufacturers are not afraid of spending money, but afraid of spending without results, falling into the distributor's 'policy trap.' Law: As long as distributors dare to invest 20% of the money to activate the market, manufacturers dare to invest 80% Policy investment is often not about the amount but about confidence. High-level managers always want to invest in markets with hope. If distributors invest actual money to develop the market, manufacturers will think distributors have confidence and are willing to invest accordingly. Therefore, as long as distributors dare to invest 20%, manufacturers dare to invest 80%.

Family Laws Law: Family enterprises are not scary; what's scary is family management The history of distributors' wealth is basically the history of their families. Family entrepreneurship has the following benefits: First, family members can work without regard for cost, even without salary, as long as they have food; outsiders cannot do this. Second, family members trust each other, so supervision and restraint are unnecessary, saving management costs. Third, in the early stages when funds are scarce, human resources replace capital to complete primitive accumulation. If the family tendency at the start is 'unavoidable,' then when the distributor reaches a certain scale, the family flavor may become a 'growth obstacle.' Family enterprise refers to equity issues; family management refers to internal management system issues. Equity issues may be difficult to solve, but management issues are relatively easy. If it's family management, family members often have 'exclusivity,' distrusting outsiders. Outsiders often lament that they can never break into the family circle, 'even baring their hearts won't gain trust.' Family members often operate outside the system, such as 'appealing over the head' when dissatisfied with external hires, which may happen during pillow talk, family dinners, or family time. Law: Relatives may be the most reliable people, but if they lack ability, they are the most terrible people Distributors prefer relatives mainly because they are reliable, but what annoys bosses is that these reliable relatives often do terrible things. If they lack ability, what use is reliability? To grow big, you must start by learning to use capable but unreliable people. Because they are 'unreliable,' you need to establish management systems, supervision, and restraint. Those who only dare to use reliable relatives will find it hard to establish a truly effective internal management system. Without internal management system support, they cannot truly grow big. Law: Distributors may find it hard to establish a true modern enterprise system, but it is entirely possible to establish a 'family enterprise with a modern flavor' It may be difficult for distributors to completely transform from a family enterprise to a modern enterprise. The transformation process is not only painful but may also cause internal turmoil. Therefore, establishing a family enterprise with a modern flavor may be a better transition. That is, family members can be attracted to participate in management, but their participation must be subject to 'systemic restrictions': First, family members should be evaluated and appointed on the same merit-based system; second, family members must operate within the system, prohibiting outside-system operations, especially paying attention to the family discipline of 'no business talk in private settings.' Law: The transformation of distributors usually starts with dismissing the wife and sister-in-law This is the personal experience of many large distributors. Although this is a metaphorical statement, many distributors have indeed done this. As long as the wife and sister-in-law are in the enterprise, the management system is easily undermined.

Destiny Laws Law: The growth process of a manufacturer is a process of continuously eliminating 'meritorious distributors' The elimination of 'meritorious distributors' is a heavy topic, but when a manufacturer does not eliminate them and may be eliminated by the market, the manufacturer may have to take drastic measures. A meritorious official in one period may be a criminal in another. Aren't those 'meritorious managers' and 'meritorious salespeople' who made significant contributions also continuously eliminated? This seems unkind but conforms to the laws of market development. A food enterprise I closely followed changed three batches of distributors in 10 years, almost eliminating a batch every 3-4 years. In fact, this is also the cycle for eliminating 'meritorious distributors' in other industries. Mengniu has a famous 'three-stage rocket' theory: the first stage rocket is discarded after boosting the satellite into orbit, and the second stage continues. After entering space, the second stage is discarded, and the third stage pushes. Although Mengniu's argument is not as blunt as 'eliminating meritorious officials,' the essence is the same. Before 1997, the FMCG industry was mainly dominated by provincial-level distributors. After 2000, 'provincial agents' nearly disappeared. Now, it's mainly 'county agents.' If manufacturers do not lower the market center of gravity, they will disappear. To avoid disappearing, manufacturers will definitely eliminate 'provincial agents' and 'city agents.' But after 'county agents' grow, 'provincial agents' and 'city agents' are hollowed out, and their previous sales of tens of millions or hundreds of millions suddenly vanish. Law: Twenty years of hard work, overnight back to 'before liberation' The elimination rate and mortality rate of distributors are very high. How many distributors from 20 years ago still exist? The accumulated wealth often 'comes from somewhere and goes somewhere.' Is this the fate of distributors? Every commercial revolution first revolutionizes distributors. Every time manufacturers lower the market center of gravity, it means a large number of distributors are eliminated or restricted in scope. Is this an unavoidable 'calamity' for distributors? The industrial concentration of every industry not only eliminates many manufacturers but also many distributors, which is also an unavoidable 'calamity' for distributors? Some distributors say they are in a 'five-year cycle.' Indeed, from the reform and opening up to now, there have been about five generations of distributors. At a manufacturer's distributor conference, a distributor said: 'We top distributors had not entered this industry five years ago, and the top distributors from five years ago are either nowhere to be found or not qualified to stand on the podium.' Law: The growth process of distributors is a process of continuously 'crossing thresholds' Every 3-4 years, distributors must cross a threshold. Those who succeed will have smooth sailing for the next 3-4 years; those who fail will disappear. Chinese marketing has a marketing change cycle of about 3-4 years. The market environment undergoes qualitative changes every 3-4 years, forcing manufacturers to comprehensively adjust their marketing systems. During the adjustment, marketing directors, regional managers, and salespeople are adjusted. Based on the principle of 'one dynasty, one court,' distributors also experience a 3-4 year adjustment cycle. Law: As individuals, distributors may control their own destiny. As a whole, the destiny of distributors is determined by the times Although distributor associations are being formed across the country, compared with strong manufacturers and strong terminals, distributors as a whole are still a 'vulnerable group.' Distributors lack their own spokespersons, their own research experts, and their own voice in the media. During the rise of strong manufacturers and strong terminals, distributors always survive in the cracks. Before national distributors emerge, no matter how large the scale of distributors in local markets, in the eyes of manufacturers, they are just a low-level problem to solve. Although the absolute scale of the distributor group is increasing, the decline in relative scale is an irreversible trend. Law: The core value of channel distributors lies in their distribution capability; as long as distributors lack distribution capability, they will eventually leave the business stage The 'uselessness of distributors' argument appeared in the United States in the 1920s, in Japan in the 1960s, and continues to appear in China. The 'terminal sales' and 'direct sales' trends in China are manifestations of this argument. Manufacturers need distributors because distributors have the following values: familiarity with local markets, downstream customers, financing (cash purchases), political-business relations, and product distribution. The most important and irreplaceable capability is low-cost distribution. In the information age, many things can be achieved through remote control, and anything that can be achieved through remote control can be replaced by manufacturers, but only distribution cannot transcend time and space and must be executed by distributors. This is why manufacturers' terminal sales were noisy for a while but ultimately had to rely on distributors. Therefore, to survive the continuous elimination of 'meritorious distributors' by manufacturers, the most important capability for distributors to strengthen is distribution capability. Law: Direction determines the future; model determines success or failure Marketing is not always a single path. Today's successful experience may be tomorrow's failure lesson. Therefore, distributors need to adjust their direction periodically. Only by turning direction into methods and methods into models can you find a shortcut to success. A marketing model is the popularization, standardization, and proceduralization of marketing methods; its role is to enable ordinary people to achieve extraordinary results, not to let salespeople cross the river by feeling the stones. Models always have prerequisites. When the marketing direction changes, previously effective models become ineffective. Therefore, once a new marketing direction is determined, the old model should be abolished and a new one sought. 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