Friendly reminder: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor management insights.

Currently, topics like deep marketing, terminal control, and channel flattening seem to be cooling down, as most finely-managed enterprises are puzzled by high market costs: How deep should deep marketing go? Does channel flattening equal profit minimization? Achieving a perfect combination of refinement and leanness is not easy; anyone can try, but not everyone succeeds. Hence, discussions about secondary distributors (二批商) are resurfacing. To better manage and develop channels, the role of secondary distributors is self-evident. To make them effective, how sales representatives manage them becomes a key marketing topic.

To manage secondary distributors well, sales reps must understand their functions and clarify their own positioning to avoid missteps.

A secondary distributor (二批商) is a wholesale customer who obtains products from manufacturers or distributors and sells and delivers them within a relatively fixed urban area. They directly face terminals, promoting multiple products without enjoying exclusive dealership from manufacturers. In some regions, they are called "postmen," reflecting the precision of market operations.

The purpose of focusing on and managing secondary distributors is to encourage them to invest more resources and energy in selling our products, increasing our share within their channels and squeezing out competitors, whether those competitors are handled by the secondary distributor themselves or other distributors.

The relationship between sales reps and secondary distributors is one of management and being managed, proactive service and receiving service. When managing secondary distributors, we should think with a management mindset but act with a service attitude, exercising moderate direction and advocating hands-on involvement. Blindly cooperating with secondary distributors might turn us into simple helpers or errand boys, failing the original intent of guiding and managing them. However, excessive direction can be counterproductive, as secondary distributors often have few staff, with individuals juggling multiple roles, and may have limited understanding or even strong resistance to many monitoring procedures and forms. Thus, we demand more from sales reps managing secondary distributors: they must have their own insights into the market, customers, and channels, while carrying out detailed work under company guidance; they must fully play the role of guidance, coordination, and management without being overbearing; they must actively participate in the secondary distributor's operations, even some limited physical work, but not become mere porters. For companies with standardized management and high professional market requirements, sales reps are equipped with assistant reps, making their work smoother. However, apart from well-known companies like Coca-Cola, Pepsi, and the two major noodle giants, few companies have such development ambition.

Having clarified the meaning and management purpose of secondary distributors, based on years of management experience, the macro aspect lies in strategic thinking, while the micro aspect lies in deep service. For sales reps, deep service is the foundation and core of managing secondary distributors.

  1. Vigorously assist wholesalers in fulfilling distribution functions. Generally, the more sales reps, the more prominent the secondary distributor's distribution role. Depending on the setup of secondary distributors and the staffing of sales reps, reps should allocate their tasks and responsibilities according to company guidelines. Typically, with dense staffing and closely distributed customers, sales reps directly operate terminals and bear a large part of customer development, maintenance, management, and service, while secondary distributors focus on distribution in coordination. Conversely, if sales reps cover a wide area without assistants, they must leverage product benefit levers, strengthen guidance to customers, instill business thinking and service concepts, and enhance the secondary distributor's own distribution capabilities, fully tapping their resources and manpower. After all, secondary distributors lack not porters but strategic support.

  2. Building the secondary distributor network is the foundation of service; establishing, developing, and managing terminal customer files is one of the most basic tasks for sales reps. First, establish complete and detailed customer files. When developing a new regional market, from the day the regional marketing network is established, gradually build a comprehensive customer file and data, typically including: A. Basic customer information: store location, area, owner's basic details and personality, financial status, brands carried, downstream network, etc. B. Our product entry: product types, display quantities, in-store placement, etc. C. Sales data: weekly sales, monthly sales, sales trend analysis, market share, etc. D. Sales assistant staffing, promotional activities, specific content and results of each activity, etc. E. Regular summary and analysis based on sales, proposing solutions to problems. F. Regular communication results with merchants, and feedback and business ideas from merchants themselves. A complete customer file data chain greatly benefits network management and maintenance, especially during transitions between old and new sales reps, allowing new reps to quickly understand the network's development, grasp its characteristics, and enter the role. It also ensures continuity in business thinking, enabling timely solutions to problems. Additionally, this file increases customer trust, viewing our seriousness as a guarantee of long-term cooperation. The process of building customer files is itself a process of product development and network building. Only with refined development can the file's value be realized; if development lags behind file building, the file can help formulate effective development plans and strategies, and developed customers can be incorporated into normal management and service.

  3. Manage and utilize every promotional opportunity, guide secondary distributors to adopt a long-term perspective, shifting from "promotion" to "channel activation," and design promotions considering the interests of both the channel and secondary distributor incentives, avoiding neglect of either. Apply for practical and efficient promotional policies based on market needs, or utilize secondary distributor resources to organize comprehensive promotional activities. In promotions, avoid pursuing short-term sales at the expense of long-term goals; do not simply transfer products to secondary distributor warehouses. Instead, invest resources in channel building for sustained market and sales. After launching a new marketing network, sales reps should use their promotional design skills to encourage and coordinate local secondary distributor resources to conduct a relatively complete promotional activity. Sometimes these customers are not unwilling to promote but don't know how to do it effectively; we can fill that gap. Of course, try to spend little or no money, which not only demonstrates your skill but also earns customer gratitude. Replace keychains, lighters, Swiss army knives, couple watches, and other terminal customers' disfavored promotional items with practical gifts like gloves and aprons; for pragmatic terminal owners, practical items are more attractive than flashy giveaways. In terminal promotions, sales reps have many detailed and important tasks, such as:

  1. Product display: use integrated marketing to display the full product line, with dedicated staff explaining, to expand brand influence locally and potentially stimulate customer interest and confidence.
  2. Flyer distribution and small gifts: cleverly design headlines, distribute flyers with company introduction, distributor introduction, and special offers during the event, to build customer awareness and anticipation.
  3. Offer special prices or lottery items: within company pricing policies, make moderate price impacts to directly drive on-the-spot sales and heighten the atmosphere.
  4. After-sales network participation: conduct on-site user problem solving and repairs, and provide demonstrations and usage guidance for buyers.
  5. Add on-site performances to liven the atmosphere, such as drawing lucky customers or auctions. Achieving a good start will greatly boost customer confidence and sales enthusiasm.
  6. Manage the whereabouts of promotional items carefully, even in flexible situations. The closer to the terminal, the more important promotional items become; don't let momentary face-saving lead to future mismanagement, turning them into the secondary distributor's personal favors.

  1. Help secondary distributors design a reasonable product structure. Since facing more rational consumers, the buyer attributes for the same product are relatively homogeneous. Developing and operating targeted products for the regional market is key to success in the secondary market. Consider both the regional market's price tolerance and the company's strategic issues like profit and sales volume. As long as the company doesn't sell at a loss for publicity, larger sales volumes lower average costs and relatively increase profits. Many companies have reasonable product structures, with high, medium, and low-end products complementing each other. Both prosperous areas and poorer neighborhoods have products matching their purchasing power, stabilizing market share. Generally, secondary distributors have relatively low operational quality and are limited by capital (often small store areas and limited display capacity), making them prone to subjective business strategies: to speed up capital turnover, they only push high-profit or best-selling products, often neglecting the synergy and complementarity among different products. Therefore, provide different product types to different customers, effectively avoiding price conflicts and enhancing overall channel push.

  2. Build customer brand loyalty. In terminal markets, a common phenomenon is that buyers often lack product knowledge and rely heavily on secondary distributor recommendations; they buy whichever brand the distributor recommends. Thus, for a secondary distributor handling many brands, brand loyalty is crucial. Once they are loyal to a brand, they will spare no effort to recommend it to customers and terminals. To foster brand loyalty among secondary distributors, we typically need to:

  1. Strengthen understanding and communication. First, let secondary distributors understand your company. Sales reps should thoroughly instill brand concepts, introduce the company's industry position, strong market advantages, and broad market prospects, then seriously introduce relevant policies, product plans, and marketing plans to build confidence in long-term cooperation. But never deceive them; the more simple-minded customers, once hurt, often find it hard to recover, planting seeds of instability for future cooperation.
  2. Help secondary distributors analyze the market scientifically. Secondary distributors often operate on "experience" like an old horse knowing the way, with poor scientific market analysis. Sales reps should compare the current market structure with the projected structure after they carry our products, then use detailed data and local consumption characteristics to establish effective business strategies. They can also cite examples from similar regions for reference, shifting their business thinking toward healthy cooperation with the company.
  3. Build trust through integrity, emphasize commitment, and honor promises. First, tolerate customer ignorance, maintain a serious and responsible attitude, fully consider their interests and difficulties, and avoid misleading or providing false information due to their lack of knowledge. Second, treat customers sincerely, give appropriate emotional respect, understand their fears and complaints, and provide positive guidance. Also, communicate with discretion; don't make unrealistic promises or hide facts for short-term gains. While some commercial tactics are acceptable, customers must ultimately know the truth. Many secondary distributors are mom-and-pop shops, often doubling as warehouse keepers and delivery workers, making them pragmatic and simple. If you deceive or "fool" them, making promises you can't keep, your personal image will collapse, and they will distrust everything you say, even issuing a moral eviction. Conversely, they will greatly respect sales reps who keep their word and follow through, leading to harmonious cooperation.
  4. Resolve customer difficulties and doubts. Wholesale customers share a common trait: most have low education, started small, and gradually "turned professional." As their business grows, they feel a lack of stamina and often have strong crisis awareness. Especially in recent years with intensified competition and changing external environments, coupled with limited cognitive and judgment abilities, they often feel overwhelmed, panicking at the slightest market fluctuation. Yet they also show strong self-esteem and resist direct criticism. Therefore, sales reps must continuously provide strategic guidance during their long-term operations, especially when the market environment is harsh and customer pressure is high. Stand with them as one, acting as their "business consultant" and strategist. This not only earns their gratitude but also gradually creates "dependency," making future customer work much easier.
  5. Customer relationships are crucial; don't overlook anyone around the secondary distributor—family, phone operators, delivery workers, accountants, etc. Sales reps need empathy, approaching secondary distributors without being aloof or indifferent. Secondary distributors in close contact with terminals often build intimate relationships with terminal customers. These relationship resources are vital for maintaining product shelf space and quickly entering new products into terminals. But balance is key; if you become too familiar without boundaries, the secondary distributor may treat you as their employee, like a driver or promotion requester, making it impossible to implement your ideas and plans, leaving you with the lament of "helplessly calling, but they come and go as they please." Finally, sales reps should maintain integrity and avoid accepting gifts or meals from secondary distributors.

  1. Strengthen customer training. Given the generally low quality of secondary distributors and their staff, sales reps should also enhance customer training during daily cooperation. This includes not only training secondary distributors and their employees but also, when appropriate, training retail store section heads, sales clerks, and owners. For store staff, train on company culture, sales etiquette, sales techniques, and positive mindset building. For store owners, train on industry trends, marketing management, store layout, and strategic planning. Therefore, for sales reps, conducting a detailed and targeted training for each newly developed secondary distributor not only narrows the psychological distance between the company and customers but also gains the entire secondary distributor team's recognition of the company, boosting sales of the full product line.

  2. Manage secondary distributor pricing and operational order, and strengthen communication and coordination with sales reps in adjacent areas. The harm of cross-regional sales by secondary distributors and external goods influx cannot be ignored. We must avoid price chaos that undermines healthy market development, as this is the fundamental guarantee for the sustainable and healthy operation of secondary distributors.

We have discussed various methods, techniques, and strategies for sales reps to manage and serve secondary distributors. Only by fully executing every step, refining seemingly minor tasks, providing deep service, and skillfully applying marketing techniques can market development be on track, sales be achieved, resources be effectively utilized, and the regional market structure elevate from refinement to leanness, ensuring the future of regional markets. Professionalism and dedication are the basic elements to earn the respect of secondary distributors. Let us become more professional and dedicated!