---
title: "From Frontline Salesman to Founder of a Trading Company: How Did He Achieve Over 100 Million in Sales in Just Seven Years?"
description: "“Business is tough, hard to do,” this is the current situation of some distributors seen during market research in Henan and Hebei provinces in the past two weeks. Indeed, the industry has changed significantly in recent years, with new business formats, models, and products emerging one after another. “Online intrusion, offline involution” has led to shrinking business year after year. Undeniably, the difficulty in doing business is partly due to market changes, but more so because the right direction has not been found in the face of change. We have seen some distributors actively trying to explore transformation in such an environment, and they have achieved good results..."
author: "周群"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-04-08"
language: "en"
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# From Frontline Salesman to Founder of a Trading Company: How Did He Achieve Over 100 Million in Sales in Just Seven Years?

> “Business is tough, hard to do,” this is the current situation of some distributors seen during market research in Henan and Hebei provinces in the past two weeks. Indeed, the industry has changed significantly in recent years, with new business formats, models, and products emerging one after another. “Online intrusion, offline involution” has led to shrinking business year after year. Undeniably, the difficulty in doing business is partly due to market changes, but more so because the right direction has not been found in the face of change. We have seen some distributors actively trying to explore transformation in such an environment, and they have achieved good results...

“Business is tough, hard to do,” this is the current situation of some distributors seen during market research in Henan and Hebei provinces in the past two weeks.
Indeed, the industry has changed significantly in recent years, with new business formats, models, and products emerging one after another. “Online intrusion, offline involution” has led to shrinking business year after year.
Undeniably, the difficulty in doing business is partly due to market changes, but more so because the right direction has not been found in the face of change.
We have seen some distributors actively trying to explore transformation in such an environment, and they have achieved good results.
A while ago, New Distribution interviewed an outstanding distributor, Mr. Yan Shun, General Manager of Zibo Haochunte in Shandong. In 2015, he founded Zibo Haochunte Trading Co., Ltd. in Shandong. In less than seven years, it became a benchmark among local trading companies, representing brands such as Tsingtao Beer, Genki Forest, and Jingtian, with a business scale exceeding 100 million yuan.
How did Zibo Haochunte develop in seven years? How does Yan Shun think about the trading business? We hope to share this article with you.
******Seven Years of Entrepreneurship: From 0 to 1**
Before starting his business, Yan Shun had two work experiences. First, after graduating from university, he worked as a salesman at Tsingtao Beer for two years, and then worked for a local beer company in Zibo for five years. Through these two work experiences, Yan Shun gained in-depth knowledge of the beer category, understanding both brands and products, which laid the foundation for his subsequent entrepreneurship. In 2015, when the original agent for Tsingtao Beer in Zibo withdrew, the company was looking for a new agent locally. Yan Shun saw this as an opportunity and participated in the competition for the Tsingtao Beer agency. Among many competitors, Yan Shun did not have advantages in capital, personnel, or background, but his previous work experience at Tsingtao Beer made him more familiar with Tsingtao's business philosophy. This allowed Yan Shun to stand out among competitors and successfully secure the agency, thus Haochunte was born. In the early days of its establishment, limited by team operational capabilities, the core business was distribution, and many products did not pass through Haochunte's warehouse but were delivered directly to distributors.
After more than a year of development, once the team was formed, Haochunte gradually gained coverage capabilities. At this time, Yan Shun adopted a strategy of regional expansion, attempting to cover all terminals in the jurisdiction. However, during the process, it gradually became apparent that when the number of direct-supply terminals exceeded 2,000, the management radius was too large, and the company's operational capabilities clearly could not keep up. Haochunte began to proactively retreat, sorting out terminals and classifying them, focusing on the top 30% of key stores, with 70% of small stores covered by distributors. Top stores have high output per store and standardized systems, requiring professional teams to provide quality services, and direct supply better meets their requirements. Small stores, on the other hand, need a full range of products and one-stop supply, making distributor coverage more suitable. Despite the direct supply + distribution model, Haochunte always maintains customer relationships and maintenance for all terminals, which is actually a dynamic direct supply. **For example, if a problem arises in a store covered by a distributor, Haochunte will take the store back, supply it directly for a period, and once the problem is resolved, hand it back to the distributor.** At the same time, in the operation of direct-supply terminals, to improve efficiency, Haochunte has spared no effort in digital construction. Cooperating with Zhoupu Data, it has connected the front-end of business and the back-end of warehousing, enabling real-time processing of terminal orders, better accuracy and connectivity in data processing, and significantly improved efficiency.
For example, when a salesman calculates expenses at a terminal store, but the data between the salesman and the store owner does not match, they need to check accounts, but if the finance staff is not on site, settlement can only be delayed, which effectively increases the company's accounts receivable period. With the data system, data issues can be resolved promptly and effectively. When settling, the salesman only needs to open the software, and the receivables and expenses are clear at a glance. With fewer intermediate steps, efficiency naturally improves. Yan Shun told New Distribution that after data integration, he only needs to spend a small amount of time each day to see the overall business situation through the system, allowing timely detection and resolution of operational issues. After seven years of market polishing, Haochunte completed the process from 0 to 1, with sales doubling, and in 2022, it is expected to exceed 100 million yuan in sales.
******Doing a Brand Well Takes Three Years**
In 2019, market construction had become relatively complete, and Haochunte's business reached a stable period. The overall business hit a bottleneck, so it was necessary to find a new growth point. Haochunte's advantage lies in its channels, having gained a certain voice in channels through past operations. Based on channel advantages, Haochunte placed its second growth point on expanding brands.
In brand selection, Haochunte has its own philosophy. The principle is the fit between business philosophy and brand culture, and whether the brand owner provides support at the business level beyond distribution rights and regional division. The core is to have personnel support; resource matching can be deducted from one's own profit margins. In Yan Shun's view, distributors excel in channels, while brand owners know their products better, and the two can complement each other. The manufacturer's business team knows the product well enough to guide their own salespeople. Moreover, during store visits, manufacturer salespeople with professional knowledge are more likely to gain terminal trust when conveying brand value and culture. After receiving a suitable brand, Yan Shun does not immediately make a promotion plan but first thinks about three questions: **1) Why did this brand change its original distributor? 2) What problems did the original distributor encounter when handling this brand? 3) Can I solve this problem? How?** The first three years of representing a brand are actually a process of identifying and filling gaps. First, find out the market problems left by the brand owner, then solve them, and the annual growth will be considerable. After three years, when the brand enters a normal transition period and the market stabilizes, then try new ideas, make plans, and find new growth points. In brand operation, Haochunte's approach is to enter large stores with all items simultaneously, while small stores operate with a single brand independently. Large stores have stable and large demands, with stable product needs and relatively standardized accounting. Entering with multiple brands simultaneously improves efficiency, reduces transaction costs, and better serves the stores. Small stores have scattered and small demands, requiring a full range of brands and popular SKUs. If multiple brands enter simultaneously, such as 30 SKUs for Genki Forest and nearly 20 SKUs for Tsingtao Beer, salespeople may not prioritize, which could lower order efficiency. Another advantage of single-brand operation in small stores is that customer relationships between salespeople can be mutually converted. In the same area, salespeople responsible for different brands do not compete with each other. Thus, their customer relationships can form resource exchange; for example, if salesperson A has a good relationship with store B, they can help salesperson C enter store B. **Large stores are covered by comprehensive business, with intensive store management, ensuring sustained and stable sales. Small stores are covered by independent business, stimulating salespeople's potential and driving brand growth.** Haochunte's model is also reflected in daily operational data, with represented brands maintaining over 20% growth annually.
******Change: Both Crisis and Opportunity**
In 2020, affected by the pandemic, Haochunte, which mainly focused on catering stores, saw its growth stagnate. At that time, community group buying was very popular during the pandemic. Yan Shun also proactively studied community group buying. After analysis, he found that the consumer group for community group buying mainly focused on women for household consumption, which did not match the target consumer group of the current products, so he did not engage in community group buying. However, after thinking it over, Yan Shun believed that the model of community group buying could be borrowed. Promoters could act as group leaders and develop private domain users. Especially many promoters in catering stores, apart from meal times, have little to do, so they have enough energy to do this well. After confirming this model, Yan Shun tried operating through a mini-program but found it ineffective because consumers did not like using it. **Ultimately, they adopted the approach of having promoters guide target customers to add WeChat, operating in the form of private domain. Promoters regularly post product information on their Moments or communicate one-on-one to attract consumers to purchase.** Yan Shun told New Distribution that the benefits of private domain operation are obvious, especially in handling near-expiry products, with over 70% being digested through this method. In addition, Yan Shun also referred to Tsingtao Beer's “1903 Community Living Room” and tried opening a restaurant, which has been effective so far, and plans to open another one this year. In Yan Shun's view, despite the significant changes in the industry over the past two years, as long as you think carefully, dare to think, and dare to act, you can still find growth points for your business. **In conclusion:** At the end of the exchange with Mr. Yan, one thing was particularly admirable: he kept emphasizing that if there are learning opportunities in the future, he must be invited. As a trading company established for seven years, Haochunte is undoubtedly excellent. But we should also see that behind its excellence is the continuous learning and thinking of its founder, Yan Shun, as well as his exploration and practice of innovative models. Finally, for the case of Haochunte, let me summarize my thoughts: **First, regarding channel models, what suits you is the best. Many distributors are pursuing direct control of terminals, which is essentially correct, but they need to combine their current operational capabilities and market conditions to judge whether they are suitable for directly controlling all outlets, whether they have the ability to operate well, and whether they need to proceed step by step. **Second, regarding brand operation, doing a brand well requires accumulation. The market will not tilt toward you just because you represent a big brand. When operating a brand, you need to see through the fog to the essence, find problems, and solve them. Only by firmly grasping your steps can you go far. **Third, regarding unknown things, do not fear them, dare to try. When new changes appear in the market, at least do not resist them, even if you do not embrace them immediately. The best method is to study them deeply, find commonalities with your own business, and try new ideas and methods.**
**Are you “watching” me?**


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