Warm Reminder Click ↑ "FMCG Distributor Professional Consulting" to learn more about marketing and distributor internal management.
Case: Lao Zhou is a distributor I have known for 8 years. We occasionally chat over the phone, meet up to deepen our friendship, discuss market issues, and provide guidance. Recently, Lao Zhou and I had another gathering. After exchanging pleasantries, he sighed deeply and said, "The market is really tough to operate now. I'm exhausted but not making money. I hope you can give me some advice or guidance."
I didn't give Lao Zhou specific solutions but shared my understanding of common problems distributors face in market operations. I didn't ask if it was useful to him. Later, I heard that Lao Zhou had changed his approach significantly and his business improved, which gave me some comfort.
Distribution Mistakes Emphasizing Distribution Over After-Sales Service Many distributors place great importance on distribution because the more products they distribute, the more money they make. Therefore, they invest heavily in manpower and resources for distribution, sometimes even personally participating, aiming to quickly push products out and earn money. However, when it comes to after-sales service, many distributors are indifferent, not valuing it or investing in it. In many distributors' eyes, after-sales service is a waste of money and may even require refunding or exchanging products, which is clearly a losing proposition. Thus, after distribution, they either ignore customer complaints and returns or try to evade them. This wrong mindset and improper handling lead to customer dissatisfaction and complaints, resulting in fewer terminal points and declining sales.
Countermeasures "Sales begin with after-sales service." Although good after-sales service may cause short-term financial losses, it brings long-term benefits. On one hand, it enhances trust and loyalty between distributors and customers, earning a good reputation. On the other hand, distributors can identify and correct market issues promptly through after-sales service, preventing problems from escalating. Additionally, after-sales service helps distributors discover more opportunities for better development. Therefore, distributors must not only focus on distribution but also strengthen their understanding of after-sales service to avoid the trap of "picking corn and dropping it," ensuring continuous growth.
Market Development Mistakes Emphasizing Market Development Over Market Planning Distributors are familiar with their own territories and have their own views on market development. However, due to this familiarity, many distributors rely on good customer relationships and channel connections, rushing into market development without considering actual market conditions. They use the same methods for all markets, launch products without considering market fit, use inappropriate promotions, and ignore whether the outlets are effective. They simply push all products into the market within a short time, believing that good relationships and channels guarantee success. However, the results are often unexpected: market development leads to numerous problems, and product distribution results in many returns. The reasons are many, but the key is the lack of market planning.
Countermeasures "Forewarned is forearmed." As a distributor facing a regional market, necessary planning is essential for smooth market development. Every market has its own characteristics and uniqueness; some products sell well in one area but not another, and some policies work in one region but fail in another. Therefore, distributors should not only focus on development but also plan first. By analyzing each market's characteristics, they can formulate reasonable plans, arrange appropriate development steps, select suitable products, and use effective methods. This ensures targeted and purposeful market development, increasing the chances of success.
Market Area Mistakes Emphasizing Area Size Over Intensive Cultivation A larger market area implies higher sales, and even casual efforts can yield good results, attracting manufacturer attention. This is why every distributor hopes for a larger area, especially when companies set sales targets. Therefore, distributors often attribute failure to insufficient area rather than examining their current market performance, identifying problems, and exploring potential through intensive cultivation. They assume that a larger area would guarantee success. This is wrong and one-sided: first, a large area without intensive cultivation, like a dragonfly skimming water, leads to unstable foundations, and the sales may not exceed those of a smaller area. Second, a larger area requires more manpower, resources, and capital. Without intensive cultivation, the input-output ratio becomes unreasonable, and distributors cannot earn more money.
Countermeasures A distributor's status in a company's eyes is often determined not by the size of the area but by their dominant position in the regional market. The finer the cultivation and the stronger the control over terminals, the greater the voice with the company. Therefore, distributors should not only focus on area size but also consider how to work deeper in the market, making more efforts to achieve intensive cultivation.
Terminal Mistakes Emphasizing Terminals or Stores Over Their Combination When choosing between terminals and stores, distributors often fall into two extremes. One extreme is focusing only on terminal sales while ignoring stores, believing that terminal sales, though tedious, offer quick payments, fewer credit issues, and fewer hassles, and can yield good returns if done well. The other extreme is focusing only on stores while ignoring terminals, believing that stores purchase large quantities, facilitate various activities, and generate sales, and although they may delay payments, they offer higher profits.
Countermeasures Terminals and stores are two different venues for product sales, each with distinct characteristics and impacts. Terminals, with outlets scattered across the market, have the advantage of being closest to consumers, meeting their convenience needs. Additionally, with many outlets close to consumers, they can repeatedly stimulate consumers visually, deepening product awareness and encouraging purchase. Stores, as modern retail venues, are often located in bustling areas, offering high standards, strong regulation, complete infrastructure, large spaces, and easy product display. They have a strong influence on consumers, building trust in the products sold there. Therefore, stores have an advantage in building brand and quickly establishing brand influence, which terminals cannot match. Often, product displays in stores indirectly influence consumer groups and drive terminal sales. In essence, stores and terminals are complementary and unified. If artificially separated, focusing on one while neglecting the other, the result will be a passive decline in market sales.
In today's increasingly competitive market, distributors must achieve rapid development and improve economic benefits. While working harder in the market is important, they also need to keep their thinking updated, pay attention to details before acting, avoid common mistakes, and reduce the likelihood of errors. Only then can they achieve better market development and greater benefits.
-------------------------------------- Like this article? Feel free to share it on your Moments by clicking the top right corner; About us: WeChat Name: FMCG Distributor Professional Consulting Management Account Introduction: 20 years of FMCG distributor operation and management experience, specializing in distributor internal management. Click "Read Original" below to enter our micro-community for interaction and Q&A. Learning and Exchange QQ Group: 344257092 -----------------------------------------