Many distributors often don't know how to please manufacturers when dealing with them, giving the impression that they are a vulnerable group. Even distributors with assets in the tens of millions or hundreds of millions sometimes have to swallow their pride and endure "bullying" from manufacturers. Moreover, many distributors work hard to develop the market in the early stages, only to have their distribution rights taken away when the market improves. Truly powerful 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 continue to play the "victim" year after year, feeling hurt. So, how should distributors interact 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 market or the manufacturer's products will be fooled by manufacturers, blindly taking on products and then being inexplicably replaced, serving as pioneers without enjoying the harvest. When taking on a product, distributors must first understand the market – look at the product's future trends in their market, preferably visit secondary wholesalers or business partners to hear real feedback from the front lines. They can also ask manufacturer representatives in the area for advice or visit distributors in neighboring regions who already handle the product. The more you know, the better. Manufacturers who truly care about the market appreciate this approach. Being responsible for the market means being responsible for the manufacturer. No manufacturer wants their product to be a shooting star, rising and falling mysteriously. Once you understand the product, assist the manufacturer in creating a detailed market development plan, phased and as detailed as possible. Manufacturers usually have their own plans, but these are generic, designed for the national or key markets, and may not fit your local market. If you copy them, the market may not take off quickly or at all. Moreover, if your plan conflicts with the manufacturer's, addressing the conflict upfront is better than dealing with it later during cooperation. It also earns the manufacturer's understanding and builds your image as a savvy distributor. If you make a good plan, achieve the expected goals. Many distributors exaggerate when asking for manufacturer investment, but when the manufacturer invests, the market shows no results, not matching the promises. Such distributors, even if the manufacturer eventually forces the market to succeed, will still be replaced. If your plans and final results 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 Senior Management

Many distributors deal mainly with local managers and rarely meet senior management, neglecting this important aspect. If your market has many highlights, senior management might visit more often, but how do you get their attention for early support? With such a large national market, truly outstanding markets are few. So, regular communication and reporting with senior management is necessary. How to communicate?

  1. Use email. Write your views on the market and its current state to senior management. If there are problems, propose your own solutions for their reference, rather than asking them how to solve it.
  2. Send messages. Send holiday greetings and, more importantly, regular market updates.
  3. Make occasional phone calls. Don't use these calls to raise problems, as few are solved over the phone. Instead, invite senior management to visit your market. Whether they come is up to them, but your invitation is important – it shows you need them, giving them a sense of fulfillment. And if they do visit, your problems are likely to be solved. Some distributors think dealing with senior management requires gifts or red envelopes, which is a wrong idea. If you form such a relationship, you're putting a tight noose around your neck, which is not worth it unless you're planning short-term gains and then quitting. 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 Agent

Becoming a key market gives you the chance to be among the top three in local category sales, solidify your market, earn more profits, and gain more manufacturer support. Manufacturer support is limited, and expecting all markets to succeed is unrealistic. What are the conditions for becoming a key market?

  1. Your market capacity is large enough, and the manufacturer's investment yields sufficient returns.
  2. You have a professional team to execute the manufacturer's investment. If there's investment but no one to execute, it's wasted. Relying on a temporary team from the manufacturer is slow due to磨合 issues.
  3. The local manager is considered by the manufacturer as the ideal person to manage the key market.
  4. Your network resources are good, with a solid platform. For example, you have many directly controlled hotels, a strong downstream network, and many core distributors willing to follow you and take goods.
  5. Your reputation is good. No unpleasant incidents with other manufacturers, and positive evaluations from current partners. Once you have the chance to become a key market, seize it and give the manufacturer ideal returns. Then you can be a key market again. If you're a key market year after year, it's impossible not to make money. If you don't, it means the manufacturer gets no returns, which is undesirable for both parties.

Handle the Relationship with the Manufacturer's Local Manager Well

Many distributors know this and do it, but handling the relationship isn't just about buying meals or giving cigarettes. How to do it?

  1. Helping the local manager achieve annual targets is most important. No local manager will be friendly if targets aren't met.
  2. Praise the local manager's diligence, competence, and market skills in front of manufacturer leaders. The higher the local manager's status, the more support and benefits you get. Help the local manager have a voice with the manufacturer.
  3. Proactively cover some of the local manager's small expenses. Every local manager has unspoken difficulties. Some expenses may be claimed but not approved by leaders. In such cases, don't pressure him; proactively help cover them. When the opportunity arises, the local manager will return the favor.
  4. Establish a regular communication mechanism to help the local manager solve market problems and coordinate with your company. If the local manager wholeheartedly helps you develop the market, you're the one making money. The local manager's gain is career development, like salary increases or promotions. So, better cooperation benefits both, and conflicts are unnecessary. However, for local managers who don't work on the market and are greedy, distributors must not tolerate them. Actively report to the manufacturer with evidence, unless you don't want to continue with the product. Otherwise, don't jeopardize your distribution rights and direct interests.

Help Manufacturers with After-Sales Service and Coordinate with Local Functional Departments

If distributors think service is only the manufacturer's job, that's a big problem. Providing service builds a good image among consumers and increases repeat customers, bringing direct economic benefits. It also solves practical problems for the manufacturer, boosting your impression and opportunities. Excellent distributors have their own after-sales service departments, especially in the home appliance industry. Distributors who shift problems to the manufacturer are the most foolish. I know a distributor who, during a random product inspection by a functional department, was told of a minor issue and faced a fine. He immediately shifted the blame to the manufacturer and didn't coordinate. When the manufacturer came to handle it, the department demanded a huge fine. After negotiations, the manufacturer still suffered losses. If the distributor had been proactive and coordinated using his identity, the manufacturer wouldn't have suffered much, because penalties for distributors and manufacturers are vastly different – it's an "unspoken rule." Recently, the manufacturer replaced this distributor for some reason. I suspect he still doesn't understand why.

Coordinate with the Manufacturer's Functional Departments

Manufacturers have many functional departments, such as advertising, planning, market supervision, finance, planning, and logistics. If distributors don't coordinate with these departments, it may seem minor, but it's actually significant. At the request of many distributor friends, this platform's third B-end e-commerce study tour will visit Wanshang Yizhan, Yunbao Shangmeng, and Weicheng Distribution from July 9-12. Distributors interested in transformation can join us for on-site visits: Organization

  1. Company visits
  2. Real market case visits
  3. On-site explanations
  4. One-on-one exchanges Participating distributors only need to pay a registration fee of 200 yuan. Time: July 9-12, 2016. Location: Changsha, Xiamen. Interested distributors can register by scanning the QR code below. When adding friends, please reply "Third Registration". Previous study tour cases: Yishang Logistics Model Study (Second B-end E-commerce Study Tour) Caiba Model Study Jinhuobao Model Study Beiquan Model On-site Study Piduoduo Model On-site Study -END- The best domestic FMCG distributor learning platform Focusing on providing professional, practical, and actionable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's 18 Skills | 013 KA Operation Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brand | 016 Distributor B2B Transformation | [Long press QR code to follow]