---
title: "A Fresh Start for the New Year: How to Do Better Business This Year? Master These Six Points and Distributors Will Win Favor with Companies!"
description: "In today's fiercely competitive market, 'channel is king, winning the terminal is decisive' has become a mantra for many companies. Choosing the right distributor is crucial for new brands, as a poor choice can stifle growth. This article outlines six key qualities that companies look for in high-quality distributors: credibility, stability, commitment, strength, experience, and a desire for long-term cooperation."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2017-02-04"
language: "en"
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# A Fresh Start for the New Year: How to Do Better Business This Year? Master These Six Points and Distributors Will Win Favor with Companies!

> In today's fiercely competitive market, 'channel is king, winning the terminal is decisive' has become a mantra for many companies. Choosing the right distributor is crucial for new brands, as a poor choice can stifle growth. This article outlines six key qualities that companies look for in high-quality distributors: credibility, stability, commitment, strength, experience, and a desire for long-term cooperation.

**Click to read the original text for details**
In today's increasingly competitive market, "channel is king, winning the terminal is decisive" has become a mantra for many companies. "To win the market, one must first win the terminal; to win the terminal, one must have the channel (distributors)."
Choosing distributors, however, troubles many new brands. Either they fail to find suitable distributors and the brand dies in infancy, or they choose poorly, allowing the distributor to strangle the new brand's throat and hinder its smooth development. When a new brand has low market share and low visibility, finding the ideal distributor becomes the key to success or failure, so the selection of distributors should be cautious.
So, what kind of distributors do companies need? What makes a high-quality distributor?
**1**
**Credibility**
Credibility comes first; without trust, there is no foundation. The primary goal of both companies and distributors (and their most basic requirement) is to gain profits and seek opportunities for survival and development. Therefore, companies and distributors are always in a mutually game-playing interest relationship. At the same time, China's market economy is not well-developed, and the Chinese market is not mature. Lack of integrity has become the biggest obstacle to the healthy and rapid development of China's market economy. Like distributors, companies exist in society, seeking both profits and risk prevention. Thus, when selecting distributors, companies must put the distributor's credibility first. High-quality distributors must possess integrity; that is what companies need.
There is a brand liquor company that, during a market cleanup, had a distributor who had cooperated with the company for many years attempt to use a bad check to defraud payment when he learned of the upcoming cleanup. Fortunately, the brand's business manager discovered it early, and no loss was incurred. **Financial issues are always the company's top concern. Imagine a distributor without credibility using deceptive means to get a large amount of goods, then deliberately delaying payment, or even defaulting and fleeing. Wouldn't the consequences be worse than selling fewer goods? Therefore, credibility is very important.**
**2**
**Stability**
Stable distributors are "extra cautious" in the early investment in new brands, not blindly optimistic about market expectations, and do not set "blood-boiling" sales targets. Aggressive distributors, on the other hand, usually have high expectations for new brands and are willing to "bet the farm," but their goals are often aggressive, aiming for millions in returns within half a year. As a new brand, of course, you want distributors to be full of "drive" and help build the brand in one go. But one must consider the future; if you only think about the enthusiasm of their investment, how will you resolve the distributor's complaints when expected results are not achieved?
There is a distributor in northern Jiangsu who deals in washing and chemical products. He is known for being straightforward. When he took on a new brand of washing products, he was moved by the manufacturer's prospects and decided to fully support the brand's sales in northern Jiangsu. He paid out of his own pocket to print promotional materials, ran local TV ads (the manufacturer only provided the ad tape), and placed a half-page newspaper ad in a well-known local evening paper. He also recruited a sales team for the brand to attack second- and third-tier markets... He spared no effort.
The washing brand company highly praised this distributor as a model among national distributors, and the two sides were very pleased with each other. A year later, the distributor had spent several hundred thousand on the brand, but monthly returns were still hovering around 30,000. The distributor could no longer stay calm and went directly to the company to demand reimbursement for his marketing expenses. The company thought it was ridiculous for the distributor to ask for reimbursement since the company didn't ask him to spend the money. The distributor, however, believed the company had exaggerated the prospects and misled him, causing him to spend so much money, and since all the money was used for the brand's promotion, the company should pay. The two sides argued, and the stalemate paralyzed the brand's local sales.
**Therefore, building a brand cannot be achieved overnight; you can't become fat in one bite. It requires patient, steady distributors to support it long-term. Moderate goals and reasonable expectations are key for stable distributors to continue making efforts for the new brand.** Aggressive distributors, despite their "investment," will inevitably turn against the new brand if they don't see results in the short term, leading to total paralysis in the region they represent.
**3**
**Commitment**
In the era of "channel is king, winning the terminal is decisive," distributors decide everything. The most critical factor in whether a company's products can open the market is whether the distributor actively promotes them. Even if a company is fortunate to have a well-known distributor, if the distributor does not promote the company's products, it is useless. Especially for products with low visibility, if the distributor does not reserve the best shelf space and salespeople do not enthusiastically recommend the products, "few customers" is normal. Conversely, if the distributor is interested in the company's products, not only do they give the best shelf space, but they also instruct salespeople to recommend product features to customers and occasionally run promotional activities. Promoting the products naturally brings in a "crowd."
A daily chemical company in southern Jiangsu had two regional distributors, one in Wuhu and one in Huangshan. The distributor in Wuhu had a very high reputation locally, with many product lines and broad agency channels. Because the single-product profit of this daily chemical product was not high, and he didn't want other distributors to get it and form a regional competitive brand, he took the agency but stored a truckload of goods in the warehouse without using them. His half-year turnover was less than 20,000. The Huangshan distributor, believing the company had strength and development prospects with good profit returns, invested a lot of work in the market and achieved a turnover of over 1.3 million in the same time.
**This shows that whether the distributor actively promotes is also essential.**
**4**
**Strength**
Strength is paramount; the trend is to favor the strong over the weak. In manufacturer-distributor transactions, strength determines the right to speak. **The distributor a company needs must have a certain level of strength; without strength, there is no say, and it is impossible to gain the company's favor. Every company likes to find strong distributors and avoids weak ones. This is a typical era of survival of the fittest,** so the strong get stronger, and the weak get weaker. Distributors must have considerable strength; only when their strength is strong can they drive sales and achieve greater sales volume.
Strong distributors generally handle many products and may have some big brands, so they may find it hard to devote energy to new brands, and they have high requirements for all aspects of new brands. Ordinary products may not interest them. On the other hand, strong distributors usually have strong distribution capabilities, close relationships with various retail outlets, and rich channel and social resources. If you find such a distributor, you can quickly complete product distribution and minimize entry costs for the new brand.
There is a facial cleanser company that had difficulty in its initial recruitment. Strong distributors were not willing to negotiate. To speed up distribution, the company turned to distributors who were willing but not strong. Since this distributor was previously a second-tier distributor, they were not familiar with large retail outlets and had to negotiate with each one individually. The distribution process can be imagined. Half a year passed, and many terminal outlets in the distributor's area were still not negotiated, wasting half a year of market opportunity.
From this, we can see that a new brand must rely on strong distributors to successfully enter the market. With the distributor's channel network and various social resources, the product can be pushed to the terminal market quickly and at minimal cost. Large distributors already have accounts in various retail outlets, so they only need to pay new product entry fees and barcode fees, not the manufacturer entry fees one by one. Moreover, large distributors can help manufacturers get better display and promotional resources at more favorable prices. These are advantages that weaker distributors cannot match. The key issue is not whether a new brand should find a strong or weak distributor, but how the new brand can meet the requirements of strong distributors and successfully persuade these large distributors.
**5**
**Experience**
As everyone knows, it's easier to do what you're familiar with. New brands generally face the question of whether to find an experienced or inexperienced distributor. **Experienced distributors are very familiar with the industry, and it's hard for companies to "move" them with carefully prepared plans. It's still advisable for new brands to honestly find an experienced distributor; it's more reliable.**
Especially for distributors in the industry, the product flow and channels already include entry fees paid to various retail outlets. For example, if a distributor represents two brands, it's equivalent to half the entry fee for each brand individually. That is, the more brands, the lower the average entry fee. When this distributor operates the market, the new brand only needs to share the entry fee. If it's an inexperienced distributor, they must pay the full entry fee for the new brand to each retail outlet. Using an experienced distributor can reduce this cost. Using an inexperienced distributor, the entry fee becomes a "bad debt" that neither the company nor the distributor wants to bear, and naturally, both find it hard to make money.
**6**
**Desire for Long-term Cooperation**
**New brands very much hope to have a group of distributors who share the same boat through thick and thin. Sincere cooperation and seeking long-term win-win: companies and distributors must have a desire for long-term cooperation.** Because companies not only need to survive but also to develop, and they prefer long-term cooperation with distributors for mutual benefit. In a healthy cultural atmosphere, long-term cooperation will generate more tacit understanding between the two sides.
For the market, "doing" is always more important than "saying." So, it's not only necessary to sign long-term cooperation agreements with distributors, but more importantly, to require distributors to resolutely implement those cooperation documents and not be duplicitous. If distributors can provide some important support to the company in terms of advertising or booth positions, it is clearly a very positive sign. When the company sees such "consistency in words and deeds" from distributors, they will naturally be pleased and subsequently invest more funds, manpower, and materials to support the distributor's development, ultimately achieving a win-win for both manufacturer and distributor.
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