---
title: "How a Post-90s Second-Generation Distributor Achieved 200 Million in a 700,000-Population County in 6 Years"
description: "This article explores how a distributor in a county with a permanent population of 700,000 in Xuzhou achieved remarkable success, growing sales 100-fold in six years and opening six large supermarkets in just one year. It highlights the key strategies of team building, digitalization, and performance-based incentives, offering insights for traditional distributors seeking transformation."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2023-07-15"
language: "en"
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# How a Post-90s Second-Generation Distributor Achieved 200 Million in a 700,000-Population County in 6 Years

> This article explores how a distributor in a county with a permanent population of 700,000 in Xuzhou achieved remarkable success, growing sales 100-fold in six years and opening six large supermarkets in just one year. It highlights the key strategies of team building, digitalization, and performance-based incentives, offering insights for traditional distributors seeking transformation.

**Introduction**: How to break through the dilemma of "transformation is suicide, no transformation is waiting to die," and avoid pitfalls on the road to transformation.
**Proofreader**: Gou Gou **Layout**: He Wen
In a county in Xuzhou with a permanent population of only 700,000, a distributor has attracted attention for his outstanding performance. He has successfully represented nearly 20 well-known brands, including Haitian, Niulanshan, Yili, Mars, Nice, Unilever, P&G, Yunnan Baiyao, etc., and has insisted on developing offline channels. Incredibly, he increased sales by 100 times in just six years and opened six large supermarkets with an area of over 800 square meters in just one year. So, how did he do it? What tools did he use? What changes did he make?

**Team Building is the Foundation**
Jintong Commercial has gone through three stages of development: from initial single-product, single-operation to multi-brand, multi-category divisional operation, and then to related diversified industrial operation. With the overall business stable, the company scale has also been continuously expanding. In nine years, it achieved rapid growth in sales and profits. The expansion of the company scale brought an important issue: the need to build a strong team.

**Three Key Elements of Team Building: Partnership, Delegation of Authority, and Profit Sharing.**
Partnership and delegation of authority mean allowing team members to participate in decision-making and authorizing them with more responsibility and power. In terms of profit sharing, it is not only necessary to ensure the stable operation of the company but also to let employees receive due rewards. Especially in the development and entrepreneurial stages, it is not advisable to be reluctant to share profits. How to create a partnership? How to delegate authority? What authority to delegate? How to share profits? What is the most effective way to share profits?

For example: How to create a partnership? First, clarify the premise for advocating partnership: the enterprise must be profitable. Second, master the five key points of partnership:
1. Even with a thousand mouths in the family, one person must be in charge.
2. Eliminate nepotism and related connections.
3. Shares must be purchased with money.
4. Clearly define responsibilities and hierarchy.
5. Lead from the front in times of trouble, be willing to suffer losses and endure grievances.

Finally, understand that mechanism building is the core.

**Digital Application + Performance Incentives are the Core**
The core of Jintong Commercial's successful transformation and upgrading is mainly two aspects: digital application and performance implementation.

**1. Digital Application**
Distributor bosses are usually bogged down with trivial matters, and the company can hardly operate without them. To make the company operate independently and efficiently, a relatively mature management system needs to be established. Take Jintong Commercial as an example: the boss and management are relatively liberated, and digital application is the core secret: anything that system software can solve should never be done by people. Digital management can improve both internal and external efficiency. For internal management, digital tools can be used to measure the performance of employees, back-office staff, warehouse, logistics, and other daily work. For external management, it is to achieve digital spending, spending money better and more accurately. Since distributors need to make correct expense allocation decisions based on the stores with the highest input-output ratio, thereby ensuring profit maximization. Digital management can help distributors analyze key indicators such as sales volume and input-output ratio, and optimize store selection and expense allocation, thereby improving external efficiency.

How to use digital applications to solve problems such as route visits and displays? For example, the traditional route visit may have the following problems: First, zero-minute visits. Second, a three-hour gap in the middle of the visit. Third, in-store time of 1-5 minutes with no transaction records, making visits a formality. Through digital tools, a reasonable visit process can be established, with different route management for different stores. For customers with long single-store visit times, results must be achieved. The time for visiting stores should be reasonably arranged. After completing the day's route visits, if there is time to visit stores outside the route, it must be shown in the system. In this way, visit efficiency can be greatly improved. This achieves driving enterprise development with digitalization, realizing business datafication and data businessification, and making decisions with data.

**2. Performance Implementation**
The purpose of performance appraisal is: **reward more, punish less**. To better promote business development, sales personnel are subject to performance appraisal. The salary is 5,000 yuan, specifically divided into five major evaluation items: **sales volume 20%, gross profit 40%, attendance days 10%, product mix achievement 20%, and comprehensive bonus 10%.**

First, sales volume: Suppose the monthly sales target is 300,000 yuan, and the month-end statistics show he completed 320,000 yuan. According to the reward and punishment system, for every additional thousand yuan, he gets 30 yuan, and for every thousand yuan less, he is deducted 10 yuan. Then he will get 20 thousand-yuan rewards, which is 1,600 yuan.

Second, gross profit: Suppose the monthly gross profit assessment indicator is 18 points. According to the assessment rules, selling 300,000 yuan can earn 54,000 yuan. For every additional hundred yuan, he gets 30 yuan, and for every hundred yuan less, he is deducted 10 yuan. If he achieves 57,000 yuan in profit, he will have an extra 3,000 yuan, and the final amount is 4,900 yuan. The reason is that an additional reward mechanism is set up: if the gross profit reaches the balance point, an additional 2,000 yuan is rewarded; if it exceeds the balance point by 10%, an additional electric vehicle worth over 1,000 yuan is given.

Third, attendance days: With 4 rest days per month, the monthly attendance assessment is 26 days. For each extra day, 120 yuan is rewarded, and for each day less, 100 yuan is deducted. Assuming he works 28 days, the bonus will increase from 500 to 740 yuan.

Fourth, product mix achievement: The assessment focuses on slow-moving products in the warehouse, high-margin products, or new products.

Fifth, comprehensive bonus: It is directly evaluated based on performance. Finally, his monthly salary is the sum of the five items, which is 8,800 yuan. In addition, our company has some basic assessments that will be added.

This complete performance appraisal is not static; it can be used flexibly. The core is still to look at the employee's achievement. Suppose there are five salespeople, and each month they are always late or take leave; then the attendance weight can be changed from 10% to 40%. If an employee is diligent and always gets full attendance bonus, but has low gross profit, then the focus should be on gross profit.

Due to space limitations, it is impossible to elaborate on all the essential elements for traditional distributors' transformation and upgrading. Transformation and upgrading are a necessary path in the development of traditional distributors' business. How to break through the dilemma of "transformation is suicide, no transformation is waiting to die," and avoid pitfalls on the road to transformation. To this end, New Distribution Academy and Mr. Jia Yongshun have launched the course "Essential Elements for Traditional Distributors' Transformation and Upgrading," with four major sections and over 300 minutes of online video explanation. This course condenses the essence of Mr. Jia's six-year review of distributor transformation from 2 million to 200 million, and is released online for the first time without reservation!

**Extended Reading**


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