Click to read the original article for details. Many distributors often don't know how to please manufacturers when dealing with them, giving the impression that they are a disadvantaged group. Even distributors with assets of tens of millions or over a hundred million sometimes have to swallow their pride and endure "oppression" from manufacturers. Moreover, many distributors work hard to develop the market in the early stages, only to have their distribution rights taken over by someone else once the market improves. Truly dominant distributors like Gome and Suning are still rare in China. What's frustrating is that many distributors don't understand the reasons behind this, and they continue to play the "victim" year after year, feeling hurt. So, how should distributors deal with manufacturers to gain their favor and avoid getting hurt?
Assist Manufacturers in Market Planning and Achieve Annual Targets
Only distributors who don't understand their own market or the manufacturer's products will be fooled by manufacturers, blindly taking on products, and then being inexplicably replaced, becoming pioneers for the manufacturer without enjoying the fruits of the harvest. When taking on a product, distributors must first understand the market, assess the product's future trend in their local market, and ideally visit trusted secondary wholesalers or business partners with the product to hear real feedback from the frontline. They can also seek advice from other manufacturers' local representatives or visit distributors in nearby regions who already handle the product. In short, the more you know, the better. Manufacturers that truly focus on the market appreciate such diligence, as being responsible for the market means being responsible for the manufacturer. No manufacturer wants their product to be a shooting star, rising and falling inexplicably. Once you understand the product, assist the manufacturer in creating a detailed market development plan, phased and as detailed as possible. Manufacturers typically have their own market plans, but these are generic, targeting national or key markets, and may not suit your local market. If you follow them blindly, the market may not take off quickly or at all. Moreover, if your plan conflicts with the manufacturer's, addressing these issues upfront avoids future disputes and earns the manufacturer's understanding, while also establishing you as a distributor who truly understands the market. A good plan must achieve its expected goals. Many distributors exaggerate when persuading manufacturers to invest, but once the manufacturer invests as promised, the market shows no results, contrary to their claims. Even if the manufacturer eventually forces the market to succeed, such distributors are likely to be replaced. If your plans and outcomes are consistently close, the manufacturer will recognize you as a distributor who truly understands the market and the product.
Maintain Regular Communication and Reporting with Manufacturer Executives
Many distributors deal mainly with local managers and rarely meet senior executives, neglecting this crucial relationship. If your market has many highlights, executives might visit and pay more attention, but how can you get their support for your early efforts? With such a vast national market, truly outstanding markets are few. Therefore, maintaining regular communication and reporting with senior executives is essential. How to communicate? 1. Use email. Send your views on the market and current conditions to executives; if there are problems, propose your own solutions for their reference, rather than asking them to solve it. 2. Send messages. Send holiday greetings and, more importantly, regular market updates. 3. Occasionally call. Avoid discussing problems on calls, as few are solved that way. Use calls to invite executives to visit your market; whether they come is up to them, but your invitation shows you need them, giving them a sense of fulfillment. If they do visit, your problems are more likely to be addressed. Some distributors think dealing with executives requires gifts or red envelopes, which is a misconception. Forming such a relationship puts you in a bind, which is unwise unless you're planning short-term gains and then leaving. Otherwise, you risk falling into a trap. Therefore, we advocate a healthy way of interaction.
Strive to Become the Manufacturer's Annual Key Market and Key Product Distributor
Becoming a key market gives you a chance to rank among the top three in your local category, solidify your market, earn more profits, and gain more manufacturer support. Manufacturer support is limited; expecting all markets to succeed is unrealistic. What are the conditions for becoming a key market? 1. Your market has sufficient capacity, ensuring a good return on the manufacturer's investment. 2. You have a professional team to execute the manufacturer's investment. Without execution, investment is wasted, and relying on a temporary team from the manufacturer slows market launch due to磨合 issues. 3. The local manager is considered by the manufacturer as the ideal person to lead the key market. 4. You have excellent network resources and a solid platform. For example, many directly controlled hotels, a strong downstream network, and core distributors willing to follow your lead and help with distribution. 5. You have a good reputation. No unpleasant incidents with other manufacturers, and positive evaluations from current partners. If you get the chance to be a key market, seize it and deliver ideal returns to the manufacturer, making it possible to be a key market again. If you're a key market every year, it's hard not to make money; if you don't, it means the manufacturer gets no return, which is undesirable for both parties.
Manage the Relationship with the Manufacturer's Local Manager
Many distributors understand this and act accordingly. But handling the relationship isn't just about buying meals or cigarettes. How to do it? 1. Helping the local manager achieve annual targets is most important. No manager will be pleasant if targets are missed. 2. Praise the local manager's diligence, competence, and market skills in front of manufacturer leaders. The higher the manager's standing, the more support and benefits you get. Help the manager gain credibility with the manufacturer. 3. Voluntarily cover some of the manager's minor expenses. Managers often have unspoken costs that can't be reimbursed; don't pressure them, and offer to help. They'll repay the favor when possible. 4. Establish regular communication mechanisms to help the manager solve market issues and coordinate with your company. When the manager focuses on helping you develop the market, you profit most; the manager gains career advancement like raises or promotions. Thus, better cooperation benefits both, and conflicts are unnecessary. However, if a manager is lazy or greedy, don't tolerate it; actively report to the manufacturer with evidence, unless you're ready to give up the product. Don't jeopardize your distribution rights and interests.
Assist Manufacturers with After-Sales Service and Coordinate with Local Authorities
If distributors think service is solely the manufacturer's job, that's a big problem. Providing service builds a good image among consumers and increases repeat business, bringing direct economic benefits. It also solves real problems for the manufacturer, boosting your standing and opportunities. Excellent distributors have their own after-sales departments, especially in home appliances. Distributors who shift blame to the manufacturer are the most foolish. I know a distributor who, during a random inspection, was told the product had a minor issue and faced a fine. He immediately blamed the manufacturer and didn't coordinate. When the manufacturer intervened, the authorities demanded an exorbitant fine. Despite negotiations, the manufacturer suffered losses. If the distributor had proactively coordinated, the manufacturer wouldn't have lost much, as penalties for distributors differ from those for manufacturers—a "hidden rule." Recently, the manufacturer replaced this distributor for another reason, and I suspect he still doesn't understand why.
Coordinate with the Manufacturer's Functional Departments
Manufacturers have many departments, such as advertising, planning, market supervision, finance, planning, and logistics. If distributors neglect coordination with these departments, it may seem minor, but it actually has significant implications.