---
title: "Distributors Discuss: Four Remedies for Unreasonable Exclusive Dealing Policies"
description: "When manufacturers impose exclusive dealing policies that conflict with market realities and future development, distributors directly affected must actively respond to protect their rights and survival space while achieving sustainable growth. This article outlines four methods, humorously dubbed the 'Four Yellow Remedies': 'Leech', 'Spring', 'Ox Gall', and 'Double Act'."
author: "谭长春"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-01-13"
language: "en"
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# Distributors Discuss: Four Remedies for Unreasonable Exclusive Dealing Policies

> When manufacturers impose exclusive dealing policies that conflict with market realities and future development, distributors directly affected must actively respond to protect their rights and survival space while achieving sustainable growth. This article outlines four methods, humorously dubbed the 'Four Yellow Remedies': 'Leech', 'Spring', 'Ox Gall', and 'Double Act'.

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When manufacturers impose exclusive dealing policies that do not align with market realities or future development, how should we, as the directly affected distributor community, actively respond to protect our rights and survival space while achieving sustainable growth? In summary, there are four methods, humorously referred to as the 'Four Yellow Remedies':

**1. 'Leech'**
Why should distributors act like leeches? This stems from a theory: the 'leech effect'. It means that if you cut me in half, I grow back another segment; the more you cut me, the more ruthless you are, the stronger my vitality becomes, and the larger my community grows. It's a determination to fight to the end!

Many companies now strongly enforce exclusive sales, and this phenomenon occurs. This is actually a common tactic distributors use to counter exclusive dealing policies: registering another business or company under the name of a son, daughter, wife, or father, with an independent license, to convince the company of 'exclusive dealing'.

But this has significant impacts on distributors. First, operating costs may rise: distributing other companies' products must be more discreet, requiring more staff and more vehicles at greater expense. Meanwhile, it's like a married couple pretending not to know each other, always feeling guilty and awkward. So, leeches also have another move: eventually consolidating together.

If many distributors are already 'elephants' and splitting is difficult, what then? They can demand special conditions from the manufacturer, or adopt an alternative distribution approach: since they've invested in distributing the company's products, they ask the company to help build the market and achieve sales targets. They only require the company to guarantee a monthly profit and return on investment! Giant distributors can also play hardball with manufacturers! In this case, handing the market over to the company puts enormous pressure on them, while distributors enjoy ease and comfort!

**2. 'Spring'**
Manufacturers implement exclusive dealing typically because they hold an absolute market position or have an extremely strong brand, allowing them to demand exclusive distribution. In such a strong position, distributors must act like a 'spring': though forced to bow under pressure, they retain resilience and can always rise again.

This manifests as: when the manufacturer inspects or supervises, we withdraw; when they leave, we return. Flexible and elastic, with a neither humble nor arrogant attitude, without damaging feelings or cooperative relationships.

There's also a tricky situation: if a company wants full control over distributors, it may send sales and management teams to station with them, which complicates things. But the 'spring' theory still applies: distributors can use spring tactics on the manufacturer's resident personnel, keeping them coiled inside the spring tube, unable to speak, report, or stretch their limbs. In more extreme cases, they might even turn these personnel into strong supporters of the distributor! Whether this works depends on the distributor's skill in this area.

**3. 'Ox Gall'**
Ox gall is a remedy for detoxification. If a manufacturer's exclusive dealing policy is truly forward-looking, effective, and systematic, and can basically resolve distributors' concerns while enhancing market vitality and competitiveness, then treat the exclusive reform as taking ox gall: use it to 'detoxify and heal' yourself, as an agreed-upon opportunity for improvement, absorbing and digesting it well.

Once you've taken enough ox gall, your weaknesses and bad habits are gone, and you're stronger. On a smaller scale, you can increase your bargaining power in dialogues with the company, gradually enhancing your weight with the company and in the market. On a larger scale, you might easily switch brands! In the FMCG industry, product homogeneity is severe; nothing is irreplaceable!

**4. 'Double Act'**
This means distributors should realize that 'unity is strength'. Regularly communicate with other distributors and perform double acts to confuse the manufacturer about what's happening in the market and where problems originate, keeping them busy responding. This might lead the manufacturer to doubt the effectiveness of their reform and possibly cancel the exclusive policy. Of course, if you really want to deal with the manufacturer, you might even perform a 'double act' with competitors! In these aspects, distributors' operational skills are extremely high, beyond my reach, so I won't show off.

The above are four possible methods distributors might adopt when manufacturers demand exclusive dealing, especially when business conditions and profitability have significantly declined and the manufacturer hasn't effectively addressed the issues. In fact, in some special industries or for special products, exclusive dealing can make some distributors more profitable than before, better securing their survival and ensuring development space and potential. In such cases, the above methods might actually hinder distributor development!

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