Click to read the original article for details. As distributors continue to strengthen their capabilities, they have accumulated sufficient capital, experience, and talent. In this process, their downstream customers (typically secondary wholesalers and retailers) have also increased in number, making proper management of these customers a necessity. However, the management process is not always smooth, and two phenomena deserve our attention: Phenomenon 1: Distributors feel overwhelmed in managing their downstream customers. Having once enjoyed fast and efficient service from manufacturers, they now find it difficult to resolve issues raised by their own downstream customers. Phenomenon 2: Due to outdated management concepts and methods, distributors face increased costs and difficulty in managing their secondary wholesalers and retail points. These two phenomena lead to common problems in distributor management and service of downstream customers: First, some distributors ignore their downstream customers, letting them develop on their own; second, they do not proactively manage but react passively when problems arise; third, the increased difficulty stems from a market that has become unpredictable due to intensifying competition, but in reality, it is the lack of systematic methods for managing downstream customers; fourth, regarding service to downstream customers, since service is intangible and often based on emotion, long-standing relationships may keep business running smoothly, but in the new environment, distributors are clearly unprepared for how to make service effective. As distributors, they play a pivotal role in the marketing system, serving as the distribution hub for manufacturers' products at the market frontier and a key link in bringing products to market. Through distributors, products are distributed to secondary wholesalers, tertiary wholesalers, and retailers. In the distribution process, how can distributors improve management and service to downstream customers? I believe the following aspects can be addressed:

  1. Strengthen Internal Capabilities Today's market is almost without secrets. With the proliferation of the internet, the world is flat, affecting all market participants (including manufacturers, distributors, retailers, and consumers). In such circumstances, it is essential for distributors to build a solid foundation for rapid development. I believe this should start from two aspects:
  2. To manage downstream customers well, first manage yourself; Distributors should start managing themselves from within. First, establish standardized systems; second, strengthen execution in marketing processes; third, establish a monitoring mechanism.
  3. To serve downstream customers well, serve "yourself" (i.e., treat your employees well). Establish a mutual trust mechanism within the distributor's enterprise. Regardless of how many departments exist, effective communication between departments is essential. Second, departments should foster an atmosphere of mutual understanding. For example, salespeople work hard, returning to the company late after daily deliveries. Can the administrative department prepare a cup of hot water and offer a smile? Can the company provide dinner? Employees should feel attached to the "home" (i.e., the company). Only then will they be motivated and treat the company's customers well. On this basis, they can manage and serve downstream customers effectively.
  4. Prioritize "Rationalizing" While Also "Controlling" From a management perspective, distributors have only advisory authority over downstream customers (including secondary wholesalers and terminal retailers), not jurisdictional authority. There is only an ordinary contractual relationship, sometimes even just a verbal agreement, based on a certain level of trust. In this context, I believe the focus for downstream customers should be on "rationalizing" rather than "controlling." Because the relationship between distributors and downstream customers is a simple contractual one, distributors cannot easily intervene in the internal management of downstream customers. Therefore, the approach should be to prioritize "rationalizing" while also "controlling." Specifically, "rationalizing" means straightening out relationships, building deep trust, and assisting downstream customers in improving their business. It is more about guidance and consultation than rigid "control." During the "rationalizing" process, responsibilities, rights, and interests should be clearly defined. Of course, the company's policies and guidelines must be implemented, and special situations should be handled flexibly, but with principles and bottom lines. Prioritizing "rationalizing" while also "controlling" encourages distributors to shift their business mindset. They should not view downstream distributors merely as a channel or tool for selling products but as an important part of their own business. Only by straightening out these relationships will product distribution become smooth. Why did Wahaha's products remain popular after its conflict with Danone this year? Apart from brand influence, the more important factor is Wahaha's channel strength. Wahaha's distributors have formed an alliance with the company, sharing weal and woe. This is the result of prioritizing "rationalizing" while also "controlling." For example, secondary wholesalers are an important force in helping distributors expand the market. Their participation can positively impact high market coverage. However, as secondary wholesalers grow stronger, they may form their own networks of retailers and even tertiary wholesalers. In such cases, secondary wholesalers may pose a threat to the distributor's market control. For instance, they may seek more policy support; if not satisfied, they might even betray the distributor, cooperate directly with manufacturers, or collaborate with competitors, directly threatening the current market. They may also engage in discounting or price reductions. In such situations, "rationalizing" first and then "controlling" is the foundation. If downstream distributors have already affected the distributor's development, then "controlling" becomes necessary; only through "control" can the problem be resolved. Furthermore, distributors' growth depends on the support of retailers, who form the "long tail" of the distributor's business landscape. "Rationalizing" them involves more on-site guidance and leading by example. This requires the distributor's sales personnel to have solid marketing fundamentals and genuinely help retailers, such as in more standardized displays and more professional sales techniques. Therefore, "control" is merely a means to encourage downstream customers to abide by the rules, while "rationalizing" is the fundamental approach for distributors to manage downstream customers.
  5. Service as the Foundation Distributors' downstream customers (secondary wholesalers, retailers, etc.) will inevitably encounter problems in their operations, such as product delivery, quality issues, and sales method challenges. Solving these problems requires distributors to improve their service. Service is the best way to resolve conflicts with downstream customers and is also a key factor in enhancing the quality of cooperation. Intensifying market competition has led to varying degrees of competition among distributors. In this context, service becomes the best method and the most value-added competitive weapon for downstream customers. Service is not just about delivering goods promptly when downstream customers order; it also involves establishing a service system, such as regularly helping key customers with inventory checks, providing the latest marketing information, offering marketing guidance, and assisting them in closing major deals (often downstream customers provide key information but have little room for price and negotiation leverage; in such cases, distributors should provide support, such as adjusting prices to appropriate levels and assisting in negotiations until the deal is closed). Source: Frozen Food Marketing -END-