Why are they also keen on short-term operations? First, to make money:

  1. Utilize surplus resources to gain extra income. For many distributors, best-selling and long-selling products are certainly important as they help build relationships and expand networks; however, they also enjoy short-term or even slow-moving products because profits are usually higher. For example, during the off-season of their main products, if they have surplus funds, storage space, or sales staff, they can temporarily invest in some short-term products. Some distributors even prefer short-term products because they may offer higher profit margins.
  2. Increase profits by accelerating capital turnover. Faster capital turnover actually enhances the profitability of capital. Distributors should not just rely on earning price differences or rebates; they can use appropriate product mixes, combining long-term and short-term products.

Second, to respond to competition:

  1. Create a strategic product to attack main competitors: If a small competing brand appears in the market that competes with the distributor's main product and becomes hot, the distributor can protect their main product by representing another small brand at a lower price to impact the competitor. This is a strategic product.
  2. Enrich products in the channel to intercept competitors: Even exclusive distributors often carry some strong competing products to enrich their product mix and intercept competing products entering their downstream network. Wholesalers often carry a wide range of categories to maximize satisfaction of downstream network needs.

Third, to boost sales volume: To complete the manufacturer's sales tasks, distributors can represent other products from the manufacturer during peak seasons and achieve more sales through channel bundling. For example, in the liquor industry, Wuliangye and Jiannanchun use allocation methods to bundle short-term products with main products, using high-profit products to drive sales of low-profit products.

What short-term products to choose? Distributors often encounter products with considerable profit but low technical content. Once one distributor starts, others will quickly follow, and the product cycle ends instantly. Should you still do it? Is there a way to prevent others from entering within a certain time? Actually, there is only one method: push the product to wholesalers and terminals in the shortest time, and use part of the profit margin for terminal promotions to quickly attract consumers, giving competitors no time to react or operate.

  1. Good appearance to quickly attract consumers: Long-term products may have three-dimensional communication like high-altitude advertising, event marketing, store displays, or promotions, but short-term products do not have such budget for long-term investment. Therefore, short-term products must have good appearance, quality, and if it's snack food, good taste and attractive packaging.
  2. Low price for quick shipment: Long-term products are generally not hard to sell; the issue is just capital turnover speed and profitability. But short-term small brands are different; downstream channels worry about getting stuck with inventory, so low-priced products with low capital occupation are easier to distribute.
  3. Leverage famous brands and quit while ahead: Famous brand origins make things easier anywhere. When a brand sells well in the market, quickly represent its series products. Luzhou Tequ has been selling well in a certain market since 2005, and within two years, more than thirty products associated with Luzhou appeared. Influential distributors all represented a Luzhou series product, and some miscellaneous Luzhou liquor even outperformed the authentic Luzhou Tequ, becoming very popular. In fact, distributors of these hot miscellaneous brands know clearly that this is short-term operation and they don't plan to operate long-term, but doing it is better than not doing it, at least they earn profits. As the Luzhou craze is gradually replaced by local brands, these distributors will slowly reduce corresponding expenditures and quit while ahead. When leveraging a famous brand, follow up quickly and exit decisively; do not be indecisive. Otherwise, you'll end up with a warehouse full of dead stock, losing the money you made earlier and paying extra warehouse rent, truly "throwing good money after bad."
  4. Target mid-to-low-end markets: Short-term products are suitable for mid-to-low-end markets, using channels for mid-to-low-end products and choosing price-sensitive customers. Don't expect them to extract added value through "brand" like long-term products.
  5. Fit your own channel characteristics: For example, Qike's healthy fiber biscuits might be an opportunity for a distributor who sells wine in supermarkets, but it would be difficult for a distributor who sells wine in hotels. Also, if short-term products complement existing products, they can better leverage existing channels without additional manpower or material investment, controlling sales risk.
  6. Beware of being trapped: If the manufacturer's main product is strong, to win over distributors, the manufacturer usually supplies limited short-term products that sell well and have high profits, clearly intended to make money for distributors. If the short-term product is a strategic product of the manufacturer, distributors should be cautious to avoid being trapped. Such products are meant to snipe at competitors; once the competitor's momentum is suppressed, the product's life ends. When distributing such products, be prepared to make money from the start; if you can't make money, don't force it. Because their sales volume is usually small, if you expect to build sales first and then make money, it might take forever. Moreover, many strategic products have little manufacturer investment, even losing money, and the manufacturer may intentionally suppress their sales.

Quick techniques:

  1. Rapid distribution: When operating long-term products, many distributors swallow the manufacturer's promotional policies because the brand is strong enough, and not passing on promotions may not make much difference. But for short-term operations, you must pass them on because short-term products need rapid distribution. Channel promotional policies must be generous, and distributors should have the mindset to share the manufacturer's promotional policies with second-tier wholesalers. Otherwise, if you keep the policies to yourself, you'll miss the best time to move goods. On this basis, you also need to use strategies for rapid distribution, such as: 1.1. Hitchhiking: Use best-selling products to drive distribution of new products, like using "Oishi" to carry "Milaotou". 1.2. Moderate initial stocking: For brands with low awareness, cash-on-delivery distribution faces great resistance, so moderate initial stocking is necessary. 1.3. Quantity rewards: For new product launches, use quantity rewards (cash, product, or material rewards) to stimulate terminal stocking enthusiasm. 1.4. Emotional communication: Distributors use their years of friendship with wholesalers and retail store owners to persuade them to stock a bit.
  2. Rapid shelf placement: After products are distributed to wholesale markets or terminals, quickly place them on shelves to have sales opportunities. For example, conduct display reward activities in wholesale markets or terminals, strive for good display positions in supermarkets, or purchase end-cap displays.
  3. Rapid consumer pull: Have promotional activities with sufficient intensity to attract consumers and create a hot-selling atmosphere. With limited resources, distributors can choose key areas, key streets, key terminals, etc., to concentrate resources on consumer activities and pull demand. During rapid distribution, distributors must protect their downstream channels. Doing short-term products is just "monetizing" your network resources, not "selling out" them. Damaging downstream profits and relationships is a losing deal. Therefore, control shipment quantities based on the strength of second-tier wholesalers to avoid inventory buildup in individual hands, which could affect other products.

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