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Many distributors, especially those handling second- and third-tier brands, when analyzing why their local market performance is poor or what hinders sales growth, most frequently complain that the manufacturer's brand is not strong enough, advertising is insufficient, brand awareness is low, and few customers know or specifically request the product. Undoubtedly, for a top-tier strong brand or a manufacturer aspiring to become one, it is the manufacturer's unshirkable responsibility to advertise more and enhance brand awareness through various means, so that distributors can feel they are "under the shade of a big tree." Ultimately, it is the manufacturer that determines a brand's fate and how far and high it can go. If the manufacturer manages the brand well, distributors benefit; if not, distributors suffer.

Logically, distributors of leading national brands should excel in their regions, while those of second- and third-tier brands should perform less well. However, we often see that in many local markets, the top performers are not necessarily distributors of national leading brands but often those of second- or third-tier brands. In other words, a strong national brand does not automatically produce the best regional distributor, and a weaker national brand does not necessarily lead to poor distributor performance.

The reason is that brand management is not solely the manufacturer's job; distributors also manage brands, albeit with different roles. Manufacturers operate the "mind-share brand," while distributors operate the "monetization brand." The manufacturer's role is to embed the brand in consumers' minds, making it a candidate on their shopping lists, ideally the first choice, so that customers have heard of and considered the brand before entering the distributor's store. For distributors, empty talk about brand is meaningless; they must focus on the brand's ability to convert products into cash. This monetization capability varies greatly among distributors. Even with identical products at the same price, a poor distributor may struggle to sell at the listed price, while a skilled distributor can sell at two or three times the price and reap substantial profits.

The manufacturer's "mind-share brand" and the distributor's "monetization brand" are two indispensable aspects of brand management, like two sides of a coin. The manufacturer's brand is relatively intangible, while the distributor's brand must be practical. A brand managed only by the manufacturer is at best half a brand, like a person walking on one leg, unable to go far.

How is the distributor's "monetization brand" capability demonstrated? How can it be evaluated?

Just as the manufacturer's "mind-share brand" is evaluated by awareness, reputation, and loyalty, the distributor's "monetization brand" can be assessed by three dimensions: trust, exposure, and activity.

1. How do distributors build brand trust?

Undoubtedly, customers buy a brand because they trust it and feel confident spending their money. Most customers are wary of distributors, even those handling leading brands, because they know distributors are often private individuals or small businesses. A distributor might switch brands at any time, and if the store disappears, customers have no recourse. This is a major concern. How to alleviate this? Consider why banks, even in poor or small towns, build the tallest and most luxurious buildings in prime commercial locations. It's to inspire trust—"the monk may run away, but the temple stays"—so customers feel safe depositing their money.

For distributors, the best way to build trust is to open large stores, open more stores, and open good stores, especially large ones. The bigger and better the store, the higher the customer's trust in the distributor's brand, and the higher the likelihood of a sale. As the Chinese saying goes, "Big stores bully customers," meaning a large store can overwhelm customers, making them less likely to haggle and more willing to pay a premium.

Opening large stores requires significant investment, which many distributors are reluctant to make. However, the decision to open a large store is similar to a manufacturer's decision to advertise on CCTV: the earlier you do it, the cheaper it is, as costs rise over time. Similarly, good store locations and commercial areas are becoming scarcer and more expensive, so opening early saves money.

2. Brand exposure refers to the intensity of advertising in the distributor's local market. Relying solely on the manufacturer's national advertising is like "distant water cannot quench immediate thirst." Distributors should increase brand exposure through local outdoor, TV, newspaper, radio, community, and in-store advertising. The more ads placed, the higher the exposure.

3. Brand activity for distributors mainly involves the frequency and intensity of promotional activities. Just as celebrities need regular appearances and hit shows to stay relevant, distributors need to continuously promote their brands. Many distributors avoid promotions because they often involve price cuts, fearing negative brand impact. However, if frequency and intensity are managed well, promotions can have a very positive effect on the brand.

Brand management cannot rely solely on the manufacturer's efforts. Only the manufacturer's effort or only the distributor's effort results in a "half-finished project." When manufacturers excel at the "mind-share brand" and distributors excel at the "monetization brand," the combined force is unstoppable and unmatched.

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