Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to jointly explore the Internet transformation path of the FMCG industry. No mentors, no textbooks, only competitors and risks. Facing change, lonely distributors have begun a difficult breakthrough. In the past two decades, Chinese distributors have experienced the following process: in the era of "manufacturing first," distributors were "holding money, begging for goods, watching faces, and bearing risks alone"; entering the period of "resource sharing," distributors found that the cost of growth brought bargaining chips, and they too could "slam the table," "pass the buck," "throw tantrums," and "quit." With the accumulation of huge funds, the aggregation of distribution capabilities, and changes in terminal consumption patterns, distributors welcomed their early spring, and the era of "channel is king" arrived.

Shift from "Channel Operations" to "Service Operations" The "channel" is like a "stage," with manufacturers and distributors as the performers, and the audience buying tickets are their common customers—consumers. Because they are self-directed and self-acted, both manufacturers and distributors want to be the protagonist and steal the show. So they keep an eye on each other, think about themselves, and forget the audience below. This is a typical picture of the current manufacturer-distributor relationship in the era of "channel checks and balances": you flatten your channel, I make mine zero-distance. It seems like we are jointly building the channel, but in reality, it is a false cooperation without division of labor. Channel checks and balances are not a money tree that never dies. As manufacturers' marginal profits decline, the profit space distributors can operate when competing in the same industry will be squeezed into a narrow range. The winter quilt can no longer be snatched from manufacturers. At this point, the best way out for distributors is to shift their business direction from "channel operations" to "service operations." Excellent distributors leverage their advantage of "close contact" with users, terminals, and local social resources to connect manufacturers and users as "service providers." By developing and promoting "service-oriented" products, they gain their core competitiveness. This is a business group with the most potential for value addition. A simple example: a few years ago, distributors considered after-sales installation of air conditioners time-consuming and laborious, so they pushed it to manufacturers; manufacturers, with vast territories and few people, could not cover everything, so they had to outsource to third parties. Now, the return on installing one air conditioner is, to some extent, greater than selling two or three. Merchants no longer push it out the door and know that by intervening in door-to-door service, they can generate additional sales and brand radiation. Digital China is recognized as the leader in the domestic IT distribution industry. From the day it was spun off from Lenovo, it has been thinking about transformation. Although its distribution business is still its main source of cash flow, Guo Wei believes that there is basically no possibility for greater development in the distribution field. Finding a service positioning and providing systematic, integrated, and personalized services for upstream manufacturers and downstream customers is the general trend. Not only Digital China, but "channel transformation" has almost become a common topic for many famous IT companies in the past two years. Service is not a chicken rib, not a burden. Consumers are willing to accept "services" that meet their potential needs and are willing to pay for high-quality "service" behavior. Distributors are also better than manufacturers at making a difference in "service." Shift from "Single Business Operations" to "Specialized Operations" The "humble" origins of Chinese distributors have resulted in most distribution enterprises being small in scale, lacking funds, single in business, and lagging in management. Many early distributors started with the "courage" of "gambling," and in the absence of external resource support, they fed themselves bite by bite. While large enterprises are keen on diversification, distributors with weak strength are either eager to try or sighing at the sea. A distributor in Nanjing, who had considerable advantages in his original paper products business, withdrew a large amount of funds to dabble in hotel and entertainment industries to chase hot trends. The result was losses in the new business and neglect of the main business. Is it true that distributors who have earned their "first pot of gold" can no longer find oil in their original fields unless they seek multi-industry investment? The mistake successful people often make is forgetting what made them successful. Under the influence of negative factors such as competitive pressure, external public opinion pressure, and internal inertia and doubt, distributors often fail to carefully test their existing business models and market opportunities, and often take the wrong path of "starting anew and abandoning the old." In fact, there is still a lot of business space in existing businesses worth digging and extending, and they neglect the establishment of "professional advantages." A senior manager from HP's Information Products Division introduced us to HP's transformation suggestions for its distributors. HP distributors can develop into three types of distributors based on their business scale, technical strength, resource status, and business characteristics:

  1. Industry distributors serving large industry customers;
  2. Specialty store distributors closer to end users and trusted by them;
  3. Value-added distributors that can provide "value-added services" and provide systematic solutions for small and medium-sized enterprises. Of course, the specific methods of IT industry distributor transformation are not applicable to all industries, but the transformation principles of combining one's own advantages, segmenting customer needs, seeking differentiated services, extending channel energy, and creating "second value" are universal for all distributors.

Distributor Transformation: Revolutionizing Yourself These days, there are not many manufacturers who can shout to the end when facing the channel. Especially with the rise of large distributors, the phenomenon of challenging and collapse is intensifying. Even senior managers of foreign companies cannot ignore the faces of distributors. While we accept the rapid development of the circulation industry, we must also reflect on the thinking limitations and management barriers of distributors themselves. Especially today, when many small and medium-sized distributors are facing "second entrepreneurship," the following issues are particularly realistic: Have you given new value to the products you distribute? Do you have your own brand? Why do consumers choose you? How do you guarantee "same product, compare price; same price, compare service"? Why has channel trust declined? Have operational inertia and speculative psychology affected your company's progress? What was the original intention of your downstream customers to maintain business relations with you? Do you understand their current expectations? How much are you willing to spend on cultivating high-quality personnel? Why do you often lose big for small in dealing with manufacturer-distributor relations? How do you judge the direction of your transformation? Is it the hot topic of society? How do you use processes and systems to ensure the financial health of your company? When you expand across regions and industries, how strong do you think your "success" replication ability is? ...... ...... Some distributors have changed their destiny by representing a brand. They even gradually learned what management is and why management is needed from a fax or a monthly magazine sent by the manufacturer. The growth they gained with the expansion of the market is far more than just money. -END- The best domestic learning platform for FMCG distributors Dedicated to providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operation management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brand | 016 Distributor B2B transformation | [Long press QR code to follow]