---
title: "Frequently Changing Distributors and Sales Teams: Manufacturers Destroying Their Own Markets"
description: "There are many reasons for healthy market growth, each with its own characteristics, but the two most common reasons for hindered market growth are frequent changes of distributors and frequent changes of the manufacturer's sales team. The usual practice of incompetent managers is only one: warning, closing accounts, splitting markets when performance targets are not met, and simultaneously eliminating salespeople. The result is only one: the more frequently the two organizations change, the weaker the market becomes, until no distributors can be recruited and the market is blank. Today we discuss how to stabilize these two organizations and build the cornerstone of healthy market development. The manufacturer's sales team..."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2026-04-19"
categories: "Dealer Operations, Management & Methods"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/frequently-changing-distributors-and-sales-teams-manufacturers-destroyin-87003bda.md"
original_source: "https://mp.weixin.qq.com/s/Va-Pjgk1Xst473bAC15uaA"
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citation: "高级研究员 海游. “Frequently Changing Distributors and Sales Teams: Manufacturers Destroying Their Own Markets.” New Distribution, 2026-04-19. https://xinjignxiao.com/en/articles/frequently-changing-distributors-and-sales-teams-manufacturers-destroyin-87003bda/"
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---

# Frequently Changing Distributors and Sales Teams: Manufacturers Destroying Their Own Markets

> There are many reasons for healthy market growth, each with its own characteristics, but the two most common reasons for hindered market growth are frequent changes of distributors and frequent changes of the manufacturer's sales team. The usual practice of incompetent managers is only one: warning, closing accounts, splitting markets when performance targets are not met, and simultaneously eliminating salespeople. The result is only one: the more frequently the two organizations change, the weaker the market becomes, until no distributors can be recruited and the market is blank. Today we discuss how to stabilize these two organizations and build the cornerstone of healthy market development. The manufacturer's sales team...

There are many reasons for healthy market growth, each with its own characteristics, but the two most common reasons for hindered market growth are frequent changes of distributors and frequent changes of the manufacturer's sales team.
The usual practice of incompetent managers is only one: warning, closing accounts, splitting markets when performance targets are not met, and simultaneously eliminating salespeople. The result is only one: the more frequently the two organizations change, the weaker the market becomes, until no distributors can be recruited and the market is blank.
Today we discuss how to stabilize these two organizations and build the cornerstone of healthy market development.
How to stabilize the manufacturer's sales team?
This is a big topic; today we will analyze one point: **team instability caused by improper assessment!**
**Incompetent managers cannot distinguish between process and result. For example, they hold daily morning meetings to track yesterday's shipments, but the methods to complete shipments are often just talk, plus a bunch of correct but useless platitudes (big principles). They think they are tracking the process, but in essence they are still clamoring for results.**
So what are process indicators and what are result indicators?
Different levels of marketing management have different functions assigned by the enterprise, and thus different assessment content. Many enterprises, in order to form a so-called "joint force," use the same assessment content from bottom to top.
For example, uniformly assessing payment and shipment. This can be temporarily adopted for small and micro enterprises, but for large and medium-sized enterprises, it is absolutely not advisable.
For small and micro enterprises, the organizational structure is simple, with fewer personnel, and multi-level management cannot be realized. With dozens of people, the purpose of consistent assessment is to solve survival problems, which is a last resort. If large and medium-sized enterprises continue to use this management assessment model, all levels cannot maximize their effectiveness, causing huge losses to the enterprise.
1. What is process assessment?
For example, grassroots salespeople mainly work around outlets (development, maintenance), displays (point-of-sale beautification), visits (frequency and quality), and product sell-through (tasting experiences).
That is, if I do these tasks well, I should get my assessment salary. The assessment content focuses on subjective willingness; if you are willing to do it, you can do it well. As for whether the distributor ships or not, whether the distributor's inventory is sufficient, etc., these are not related to the salesperson's assessment.
Process assessment focuses on setting goals around better reaching consumers with the product.
The assessment of grassroots supervisors is also process assessment, but the focus is on whether the results of the process meet standards.
For example, whether the number of outlets visited by the subordinate team meets the standard, whether the displays made by the subordinate team meet the standard, etc. The assessment focuses on whether the subordinate team's overall performance in better reaching consumers with the product is qualified.
2. What is result assessment?
For example, a provincial director must be accountable for their business results. The main responsibility of this position is to deploy troops and arrange the market; these rights and responsibilities are granted by the position.
Then they cannot be assessed on process, because the process indicators are usually set by them; they cannot be both the referee and the athlete.
For this level, the final business results should be verified: whether sales are achieved, whether profits are achieved, whether team performance has improved, and whether distributor cooperation (profitability) is stable.
Summary: From salesperson to supervisor, to manager, and finally to regional director, the assessment logic gradually evolves from process indicators to result indicators.
From the perspective of a closed-loop assessment, senior executives are responsible for designing and decomposing actions to achieve company goals, while grassroots staff are responsible for completing the instructions of senior executives. The standard for checking whether the design and decomposition are reasonable is the results of senior executives; the standard for checking whether the design and decomposition actions can be completed is the process of grassroots staff.
3. Assessment logic from execution-oriented cadres to operation-oriented cadres
What are execution-oriented cadres?
For example, customer managers, sales directors, etc. Their core work is to standardize the implementation of the enterprise's tactics. The core here is that the enterprise has already designed the standardized tactical actions, preferably a "foolproof" standard manual that can be implemented.
Completing this work does not require much design thinking; it emphasizes execution. For example, the enterprise's eight-step visit process, visual merchandising manual, etc.
The assessment content for execution-oriented cadres includes:
1. Distribution achievement;
2. Customer activity achievement rate (customer activity achievement rate = actual active households in the month / target households, where target households equals the sum of the targets for the corresponding sales representative headcount and type. For example, traditional sales reps target 180 households, special channel sales reps 100 households, KA 100% active, etc.);
3. Active customer SKU target achievement. For example, 5 in provincial capitals, 4 in prefecture-level cities, 3 in county-level cities;
4. Paid display inspection coverage rate (regular display coverage rate = actual inspected households / target households);
5. Distributor purchase-sale-inventory management (inventory counting, freshness of stock, etc.);
6. Average SKU count per order within the route;
7. Number of effective active customers;
8. Other specific follow-up items.
What are operation-oriented cadres?
For example, regional directors, war zone directors, etc. Their core work is to complete the brand owner's business indicators through execution-oriented cadres and distributor teams.
In terms of operational thinking, they are not just "employees" but also responsible for the operations of the local market; they can also be understood as the "general contractors" of the market area under their jurisdiction. They must not only be meticulous at the operational level but also be responsible for finance, personnel, etc. Some enterprises set up branch companies for better management.
The assessment content for operation-oriented cadres includes:
1. Distributor payment and shipment, and distribution achievement;
2. Operating profit achievement progress;
3. Market expense investment and sales progress;
4. Regional market share achievement;
5. Analysis of distributor operations within the region;
6. Other specific items related to phased business results.
4. The best way to close the assessment loop is affiliation
Chinese-style management involves many human relations and favors. Many superiors, for subordinates who are not competent, as long as it does not affect their own fundamental interests, will carry out so-called "helping a hand."
The reason is simple: a superior has 4-6 subordinates. If one of them performs poorly, the increment from the others can make up for it. This is also the living space for some who are incompetent but pretend to be competent.
The purpose of affiliation is to make up for the shortcomings of team members through assessment bundling, to constrain each other with consistent interest demands, and to make superiors more concerned about subordinates' market operations and team management. This can well solve the problem that superiors and subordinates cannot "personally engage" in helping each other.
Summary: Assessment affects income, income affects stability. The primary task for stabilizing the manufacturer's sales team is to formulate a reasonable assessment mechanism.
How to stabilize the distributor team?
This topic is also big; let's chat about two key topics: opening and closing accounts, and helping distributors make money.
1. Distributor account opening and closing must be rigorous
We will find a commonality: for brand owners, in a healthy developing market, the cooperation period with distributors is not short, sometimes even 20-30 years. On the contrary, in weak areas, distributors change frequently. This is a typical feature of non-rigorous distributor account opening and closing.
**The purpose of distributor layout is to improve the quantity and quality of regional outlets, and it is an extension of the brand owner's service, not a "middleman" for short-term performance growth. Many manufacturer personnel open accounts with the purpose of "having one more warehouse," and the starting point is wrong.**
Market development has its inherent life cycle, and different development stages require different partners. Of course, many distributors will also develop with the brand owner. **There is no best distributor, only the one that best matches market development!**
The rigor of opening accounts mainly includes:
First, evaluation of operational capability: examine the distributor's warehousing capacity (such as warehouse area, inventory capacity), logistics and distribution capacity (such as number of vehicles, distribution range), sales team size and professionalism, to ensure they can meet product distribution needs;
Second, financial status review: understand the distributor's capital strength, working capital status, debt situation, etc., to assess their performance capability and risk resistance;
Finally, market experience and reputation: prioritize distributors with experience in the FMCG industry, good market reputation, and no major illegal or non-compliant records.
It should be emphasized here that capital requirements are rigid conditions. FMCG has long entered the era of micro-profits, and long-term reliance on loans for business will not last.
The rigor of closing accounts mainly includes:
First, the reason for closing the account. If it is simply because the warehouse is full and no shipments are made, then the distributor is not the one to be replaced.
Second, the handover procedures for closing the account. Before closing, complete inventory clearance, payment settlement, after-sales service handover, and provide relevant supporting materials. Properly handle financial, inventory, customer relationship, and other matters involved in the closing process to ensure a smooth and orderly closure.
Finally, follow-up visits after closing the account. At least at the provincial level, to understand the specific situation and avoid "wrong closures."
It should be emphasized here: the conditions for closing accounts must be written into the contract. Without rules, nothing can be accomplished. I have seen too many marketing leaders who open and close accounts wantonly for short-term personal interests, and after being promoted and transferred, they leave a mess behind.
2. Help distributors make more money
First, do not stab distributors in the back. Brand owners must regulate their own price system to ensure channel profit margins. For food and beverages, prices in snack stores and online should be reasonable, at least not forcing distributors' profits to be inverted; otherwise, no one can rest assured to do the market.
Second, in China's FMCG industry, brand owners have always led distributors in development. More than 90% of distributors are followers, and they should be cultivated for development.
For example, regular training and empowerment: provide training for distributors and their teams, including product knowledge, sales skills, inventory management, channel operations, etc.; improve distributors' business capabilities and management levels; provide management tools and system support, such as digital inventory management systems, sales data analysis tools, etc., to help distributors optimize operational efficiency.
Finally, establish long-term cooperative relationships: establish long-term, stable cooperative relationships with distributors, avoid frequent changes of distributors or excessive inventory pressure, and give distributors sufficient trust and support. Regularly communicate with distributors to understand their needs and difficulties, jointly formulate development strategies, and help distributors cope with market changes.
Final Thoughts
The most direct consequence of unstable distributor and manufacturer business teams is damage to brand reputation, leading to market chaos, such as price fluctuations, cross-regional selling, unfulfilled promotional promises, etc., damaging the brand's reputation among consumers and channel partners.
Long-term instability may make the brand appear to lack management capability and cooperative spirit, affecting the brand's competitiveness and attractiveness in the industry. This not only affects short-term performance but may also have a profound negative impact on the brand's long-term development. Therefore, the instability of the two organizations is the biggest obstacle to market growth!


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## Citation metadata

- Publisher: New Distribution
- Author: 高级研究员 海游
- Published: 2026-04-19
- Canonical: https://xinjignxiao.com/en/articles/frequently-changing-distributors-and-sales-teams-manufacturers-destroyin-87003bda/
- Original source: https://mp.weixin.qq.com/s/Va-Pjgk1Xst473bAC15uaA

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Contact: zhaobo258@gmail.com · +86 158 5481 7671