---
title: "Eight Reasons Why Building a Model Market Pays Off"
description: "We have all seen butterflies dancing in flight, beautiful at the moment they spread their wings, but let's not forget that behind that beauty lies the clumsy crawling of a caterpillar, the toil of spinning silk into a cocoon, the waiting in darkness, and the pain of breaking free. Similarly, without the long and arduous exploration in regional model markets such as Wenzhou, Jiangxi, and Beijing, Wanglaoji herbal tea would not have achieved its great success in the national market. Without the long-term piloting in regional model markets like Jiangyin, Wuxi, and Nanjing, the hot sales of Naobaijin would not have been possible. Without..."
author: "沈志勇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-10-30"
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---

# Eight Reasons Why Building a Model Market Pays Off

> We have all seen butterflies dancing in flight, beautiful at the moment they spread their wings, but let's not forget that behind that beauty lies the clumsy crawling of a caterpillar, the toil of spinning silk into a cocoon, the waiting in darkness, and the pain of breaking free. Similarly, without the long and arduous exploration in regional model markets such as Wenzhou, Jiangxi, and Beijing, Wanglaoji herbal tea would not have achieved its great success in the national market. Without the long-term piloting in regional model markets like Jiangyin, Wuxi, and Nanjing, the hot sales of Naobaijin would not have been possible. Without...

We have all seen butterflies dancing in flight, beautiful at the moment they spread their wings, but let's not forget that behind that beauty lies the clumsy crawling of a caterpillar, the toil of spinning silk into a cocoon, the waiting in darkness, and the pain of breaking free.

By the same token, without the long and arduous exploration in regional model markets such as Wenzhou, Jiangxi, and Beijing, Wanglaoji herbal tea would not have achieved its great success in the national market. Without the long-term piloting in regional model markets like Jiangyin, Wuxi, and Nanjing, the hot sales of Naobaijin would not have been possible. Without the groping in regional model markets such as Hengshui in Hebei, the success of Six Walnuts would not have been achieved.

Such cases are too numerous to mention one by one. In fact, the vast majority of products that sell well on a large scale do not achieve success overnight; they require a long and arduous process. They need to break through in local and regional markets, establish a model market, then summarize the successful experiences and lessons from the model market, and then promote it in a larger market at a reasonable pace, occupying a larger market share. Therefore, for enterprises aspiring to the national market, building regional model markets is very meaningful, laying the foundation for future success.

So, why build a model market?

First, it is determined by China's national conditions. China is vast in territory and rich in resources, covering more than 9.6 million square kilometers. Economic and political development is uneven across regions, and each regional market is relatively independent and highly differentiated. As the saying goes: one country, multiple markets. Therefore, for enterprises, it is neither possible nor realistic to spread out across the national market all at once.

In fact, behind a product that sells well in the national market, there is often the support of individual model markets. The rise of these model markets gathers into a powerful force, achieving success in the national market.

Second, successfully building a model market is of great significance for successful business recruitment. Model markets have also been called the cornerstone of attracting investment. In the process of recruiting distributors, relying solely on a recruitment brochure, a recruitment presentation, and the persuasion of sales staff is hardly enough to attract distributors. Especially in today's society, market competition is increasingly fierce, and business is getting harder. Relying on words alone cannot recruit distributors. It is necessary to let distributors or franchisees see tangible hope and feel tangible confidence. How can we make distributors or franchisees feel confidence and hope? If an enterprise can achieve success in a model market, it speaks volumes.

Therefore, for enterprises recruiting distributors, cultivating a mature model market is very necessary. At the very least, it can gain the trust of franchisees or distributors, enhancing their desire to join and confidence in cooperation. In a sense, a mature and successful model market is far more effective than recruitment advertisements and recruitment presentations.

Of course, enhancing the confidence of distributors or franchisees is only one aspect; they must also know exactly how to operate. Through building a model market, an effective and operable model can be accumulated, truly playing the demonstrative and practical role of the model market. This is the greatest significance and value of the model market to distributors and franchisees.

This requires enterprises to summarize and refine experiences during the process of building the model market, and form written documents, ultimately compiling them into an operation manual that can be passed down.

This operation manual, or the operating model of the model market, must possess characteristics such as rationality, universality, extensibility, and replicability.

Third, for the vast number of small and medium-sized enterprises, building a model market is an important way or method to achieve success. Because small and medium-sized enterprises have limited strength and resources, if resources are not well planned and reasonably utilized, they often lose badly. Conversely, if they can gather all resources and target a regional market, they have a chance to win. The significance of building a model market lies in maximizing the avoidance of the shortcoming of insufficient resources for small and medium-sized enterprises, enhancing competitiveness in the regional market.

Fourth, it can avoid many unnecessary risks. In the process of market development, facing unpredictable prospects, blindly adopting an offensive strategy often leads to failure. If an enterprise can focus on a model market, it can often avoid risks, advance or retreat flexibly, and attack or defend freely. If successful, promote; if failed, it can bear the loss.

Fifth, it can train the marketing team and prepare talent for the next step of market expansion. In the process of building a model market, marketing personnel are trained to the greatest extent. They become familiar with every work process and link, better understand and implement the company's intentions, and accumulate more practical experience in specific market operations, thus preparing a talent pool for the next step of market development.

Sixth, many problems can be discovered. By discovering and solving these problems in a timely manner, the entire organism becomes more vital before entering a larger market. All problems should be exposed as early as possible. All problems exposed in a small-scale model market are better than being exposed in a large-scale market. In the development of the model market, enterprises will definitely expose many problems. They should adjust their business strategies in a timely manner based on these problems, ensuring more stable development. This lays a solid foundation for entering a larger market and moving toward the national market.

For example, the market space of a product can be verified through the model market. In the current market environment, many good products may not necessarily sell well. Therefore, it is necessary to first conduct trial sales in the model market to verify the product's popularity in the market.

Seventh, a successful model market is conducive to enhancing brand image and market influence. A top regional brand is better than a general brand that is unknown in the national market. If a brand can dominate a local regional market and become the first choice for consumers in that regional market, then the brand's image will not be bad, and its market influence will at least be maximized in the regional market. "Better to be the head of a chicken than the tail of an ox" speaks to this principle.

Eighth, building a successful model market is very helpful for increasing sales and attacking competitors. Mao Zedong once said that in fighting the enemy, "injuring ten fingers is not as good as cutting off one." When competing with excellent enterprises or brands on the same stage, small and medium-sized enterprises or second- and third-tier brands have almost no chance of winning on a larger stage. However, large enterprises and excellent brands also have regions where their strength is weak. In these regions, large enterprises often do not pay much attention, have limited market investment, and have very weak market foundations. If small and medium-sized enterprises can concentrate all their resources and make a concerted effort, they often have a chance to win. Cases of the weak defeating the strong have appeared in history.

Therefore, for small and medium-sized enterprises, when facing competition from powerful competitors, if they use appropriate strategies, target the weak points of large enterprises, attack where they are unprepared, establish models in some regional markets, and surround the cities from the countryside, they can stage a good show of the weak defeating the strong.

In short, building a model market has important functions and value for enterprises. So, how exactly should a model market be built? What basic principles should be followed in building a model market? Please listen to the next installment.

**-END-**

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