---
title: "Distributing Brands like Qiaqia, Xizhilang, and Dori, Achieving Annual Sales Over 100 Million in a Third-Tier City: What Innovations Did She Make?"
description: "In the face of a challenging market, distributor Kunshan Qianjing Commerce has maintained growth by focusing on internal management refinement and exploring new offline channels. Through strategic brand reduction, team performance reforms, and the development of a group-buying business, the company achieved annual sales exceeding 100 million yuan in a county-level city."
author: "周群"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-06-11"
language: "en"
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# Distributing Brands like Qiaqia, Xizhilang, and Dori, Achieving Annual Sales Over 100 Million in a Third-Tier City: What Innovations Did She Make?

> In the face of a challenging market, distributor Kunshan Qianjing Commerce has maintained growth by focusing on internal management refinement and exploring new offline channels. Through strategic brand reduction, team performance reforms, and the development of a group-buying business, the company achieved annual sales exceeding 100 million yuan in a county-level city.

"Business is tough, not easy to do," has been a common sentiment in the trading and distribution industry in recent years. At its core, the reasons lie more within oneself: the market is changing, channels are changing, and consumer groups are changing. Past management methods and models can only earn money from the past; they cannot reach new destinations. Of course, this does not mean that distributors must undertake drastic reforms, but rather that they should consider from the perspective of future business development whether current practices can support their continued growth. If not, "change" is the only way out.

In this process, many distributors have failed to find the direction of "change" and have gradually been eliminated by the times. However, some distributors have seized the opportunity for change and found new growth. Kunshan Qianjing Commerce is one such distributor that has found opportunities in "change," maintaining business growth despite the impact of various new channels. Representing over twenty brands including Qiaqia, Xizhilang, and Dori, with more than 700 SKUs, it achieves annual sales exceeding 100 million yuan in the county-level city of Kunshan.

Recently, New Distribution had an in-depth exchange with Ms. Qian Qinxian, General Manager of Kunshan Qianjing Commerce, to understand how the company maintains growth amidst fierce market competition. We hope that Qianjing Commerce's practices and experiences can offer inspiration and insights to other distributors.

**-01-**
**Behind the Growth: Deep Thinking about the Business**

Before starting her business, Qian Qinxian's first job was as a financial officer in a village in Kunshan. During this time, she frequently went out to learn financial knowledge, which broadened her horizons and laid the foundation for entrepreneurship. In 1994, Qian Qinxian left the village and entered the supply and marketing cooperative system, working as a clerk in the home appliance wholesale department for a year, then transferring to the food wholesale department where she worked in sales for two years.

During her two years in the food wholesale department, Qian Qinxian's understanding of the market improved continuously, and she rose to the position of sales team leader. It was also the accumulation of these two years that gradually sparked her entrepreneurial idea. Thus, in 1997, Qian Qinxian resigned from the supply and marketing cooperative and started her own business in a wholesale market.

Benefiting from her work experience in the supply and marketing cooperative, Qian Qinxian clearly understood her strengths and had a clear understanding of product positioning and channel positioning. **In the early stages of entrepreneurship, she adopted a differentiation strategy, choosing brands and products that differed from the large distributors already established in the wholesale market.** The real positioning came in 2003 when Qianjing Commerce took on the Qiaqia brand. Qian Qinxian discovered that the snack food category sold well in terminals and, without seasonal restrictions, was easier to operate. Therefore, Qianjing Commerce positioned itself as a comprehensive trading company focused on snack foods.

It was from this point that Qianjing Commerce's business began to grow exponentially. In 2010, the second turning point came when it became a distributor for Xizhilang. At that time, Xizhilang's manufacturer had high requirements for distributors, **including volume, personnel, and management requirements, which forced Qianjing Commerce to reform its internal management.** To this end, Qian Qinxian proactively sought learning from consulting management companies, **establishing a corporate culture of "delivering service to customers' hands and leaving the brand in customers' hearts," and improving the company's overall organizational processes.**

The third turning point was in 2017, **when the company reduced its brand portfolio to increase sales per SKU.** Looking back to 2015, Qian Qinxian felt that daily food products had more potential, so internally, in addition to the snack food department, she established a dairy and beverage department and a water beverage department. As a result, although sales increased, personnel costs and expenses also rose significantly, and the business was not profitable at all.

Therefore, Qianjing Commerce began to reduce its brand portfolio, focusing mainly on the snack food category and reducing products with relatively low gross margins and severe cross-channel dumping. Of course, while reducing brands, sales could not be allowed to decline; instead, deep distribution was implemented on the retained brands.

As Qian Qinxian said, **"Looking at the height of the mountain is a dangerous thing. Don't think that if others make money, you can too. In business, you still need to focus. Big and comprehensive is not necessarily good; sometimes small and beautiful is more suitable. Only when your capabilities and organizational structure can support it can you do other things."**

With steady development, Qianjing Commerce's business scale gradually accumulated, and it quickly completed the leap from millions to over 100 million. Of course, behind the business growth, in addition to steady progress, Qian Qinxian's reforms were also indispensable: **internally, organizational change and refined management; externally, creating a second growth curve.**

**-02-**
**Focusing on the Team and Refined Management**

In the early days, most trading companies were "sitting merchants," relying on fixed customer relationships and store traffic, waiting for customers to come to them. But Qian Qinxian did not think so from the beginning. **"The limitations of 'waiting, relying, and depending' are strong; there is no possibility of significant development."**

Therefore, from the early days of entrepreneurship, Qianjing Commerce adopted a proactive strategy, building its own sales team to go to terminals and seize the market. Moreover, unlike many distributors, Qianjing Commerce's sales team is entirely its own, not using the manufacturer's salespeople, saving on so-called wage costs.

As a result, Qianjing Commerce firmly holds terminal resources in its own hands, ensuring that its core competitiveness remains intact. Once the team was in place, how to manage it became the key issue.

The lack of management experience prompted Qian Qinxian to proactively go out and learn, participating in training related to ERP, organizational management, and performance appraisal. Through learning, Qian Qinxian gained knowledge of new concepts such as personnel efficiency, meter efficiency, floor efficiency, and salary performance formulation, which not only greatly helped in management but also provided methods for better serving customers.

It was also through continuous learning that Qian Qinxian gradually figured out the processes and standards for team management. In the past, Qianjing Commerce had deficiencies in the salary performance of salespeople; they were unwilling to promote new products, and there were significant problems with payment collection and returns, leading to low overall personnel efficiency.

To address this, Qian Qinxian reorganized the job processes and salary performance. Taking the sales department as an example, the salary composition of salespeople is divided into two parts: one is the basic salary, and the other is assessment rewards.

**The basic salary is the minimum wage standard stipulated by the local social security bureau. The assessment involves taking a fixed proportion of sales as rewards. The assessment consists of four major indicators: sales revenue, payment collection, returns, and store visits. Among them, sales revenue and payment collection each account for 40% of the reward amount, while returns and store visits each account for 10%.**

**For example, regarding returns, suppose a salesperson does 1 million yuan in business on one route per month. The company sets a return rate of 2%. If the return rate exceeds 2%, the salesperson cannot receive the reward for the returns part.** For instance, if a new product does not sell well, previously employees would just bring back the near-expiry products, but now they will find ways to transfer the goods to stores where they can sell, and think of solutions themselves.

In the past, Qianjing Commerce not only had a high return rate but also needed two people specifically responsible for warehouse returns, and they still could not finish processing them. Now, the return rate for some salespeople has dropped to 0.9%, and the warehouse no longer needs dedicated return personnel.

The establishment of salary performance has brought obvious effects. Salespeople are willing to think actively during visits, and those with stronger abilities receive more generous assessment rewards, while those who "fish in troubled waters" can only get the basic salary.

In addition to refined personnel management, Qianjing Commerce also invests in refined business management. Both the business and warehousing ends use digital tools, so what salespeople do and how much they earn can be calculated in the system.

Warehousing is even more so. In the past, monthly inventory management was chaotic, with monthly inventory counts differing by 20,000 to 50,000 yuan. Now, through digital management, the error rate of loss and inventory counts has basically dropped to 0.02%.

Refined management of the overall business is an important guarantee for Qianjing Commerce to maintain growth in the fiercely competitive environment. Through such a series of reforms, Qianjing Commerce has a highly capable team both in front-end business and back-end warehousing.

**-03-**
**The Second Growth Curve: Group Buying**

Facing the impact of new retail, many distributors, when encountering business bottlenecks, choose to seek online opportunities. But in Qian Qinxian's view, **the core capability of traditional distributors is the intensive cultivation of offline channels, the development and maintenance of outlets, which is different from online traffic play. Only professionals can do professional things.** Therefore, Qianjing Commerce did not choose to go online but instead rooted itself offline, stabilizing the basic market while exploring new offline channels.

In 2015, some gift box products from the brands Qian Qinxian represented did not sell well in supermarkets, but many group-buying companies came to her for goods, and there were no after-sales issues; it was basically just delivery.

Through observation, she found that these companies were mostly shell companies with only two or three people. Qian Qinxian believed that group buying was an opportunity because she had been doing business in Kunshan for many years, had enough connections, and could do it herself.

In 2016, Qianjing Commerce formally organized a group buying department. In the early days of group buying, Qianjing Commerce still encountered many problems. **First, it was difficult to find suitable products; different systems required different products, which demanded a vast selection of products.** After a period of exploration, they found that the most effective way to find products was to participate in gift exhibitions, using the exhibition format to obtain a large amount of product information and then filter it.

**Second, they did not understand the forms of group buying products. Taking the Dragon Boat Festival zongzi as an example, Qianjing Commerce had always been doing Wufangzhai's standard products, but the zongzi packaging that customers brought out was completely different from what they had.** This is the difference between the group buying channel and traditional channels. Most customers in the group buying channel require customized packaging, which requires distributors to negotiate with factories.

Of course, another important point in group buying is that the selected brands should preferably be products with their own traffic. Because group buying is often a corporate benefit for employees, products with brand power are more recognized.

After four years of development, group buying has gradually become the second growth curve for Qianjing Commerce. From building a team to forming scale, it achieved sales of over 20 million yuan in just a few years.

**Final Thoughts:**

Recently, I have visited many excellent distributors, and there are some commonalities worth thinking about. These distributors who are doing relatively well all agree with the viewpoint that business development will not be eliminated just because of the emergence of certain business formats. When encountering business bottlenecks, look back at your own business. **Is there room for adjustment in internal organizational management? Can it be more refined? Are there possibilities for deep cultivation in external channels? Can a second growth curve be found?** Any business requires continuous maintenance and operation. External changes are a force that pushes distributors back to their original intentions and to do the simplest actions well.

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