---
title: "New Brand: To Take It or Not? These 8 Points Are Key!"
description: "The author recently visited dozens of distributors and found the discussions enlightening. One topic was whether to take on new brands. Distributors take on new brands due to the needs of retail outlets, consumers, and their own development. The article outlines an 8-point framework for evaluating new brands, including the manufacturer's boss, product quality, category complementarity, brand positioning, manufacturer policies, sell-through plans, model markets, and the quality of the manufacturer's sales staff."
author: "晁伟"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-06-25"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/new-brand-to-take-it-or-not-these-8-points-are-key-4d8963c9.md"
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# New Brand: To Take It or Not? These 8 Points Are Key!

> The author recently visited dozens of distributors and found the discussions enlightening. One topic was whether to take on new brands. Distributors take on new brands due to the needs of retail outlets, consumers, and their own development. The article outlines an 8-point framework for evaluating new brands, including the manufacturer's boss, product quality, category complementarity, brand positioning, manufacturer policies, sell-through plans, model markets, and the quality of the manufacturer's sales staff.

The author recently visited dozens of distributors, and through communication and exchange with these distributors, regardless of whether business was concluded, felt greatly benefited.
One topic was: new brands, to take or not to take?
Why do distributors take on new brands?
**1. The needs of retail outlets**
Currently, the retail channel is also having a hard time. When the 2015 financial reports came out, it was basically "one happy, many worried." Except for RT-Mart, which had a relatively good year, the others all performed poorly, not to mention the small and medium-sized supermarkets.
Therefore, retail outlets are constantly in need of new brands to boost their business!
Take the distributors the author has met: retail outlets have asked them for men's brands, maternity brands, and imported brands, among others.
This shows that retail outlets are actively seeking change to adapt to the increasingly harsh competitive environment.
**2. Consumer needs**
At a deeper level, taking on new products is driven by consumer needs. Normally, people born in 1990 have already graduated from university three years ago. Their way of thinking, their requirements for products and brands, and the way they receive information have all undergone astonishing changes.
These newly grown consumers are forcing distributors to continuously seek new brands to meet market demand.
**3. Distributors' own development needs**
New brands can be a good opportunity for distributors to start a second business.
A distributor who only handles mature products is not enough. What truly reflects your ability is how well you do with a new product compared to other distributors, given a similar market starting point.
Conversely, a distributor skilled at promoting new products must have strengths in strategy, management, execution, and competition, and will have more growth opportunities.
Steps to take on a new brand
**1. Analyze your own situation**
No need to elaborate; act according to your capabilities, tailor to your circumstances, and eat according to the size of your bowl.
**2. Internal discussion**
One distributor boss holds a new product introduction meeting with employees every time he takes on a new product. At the meeting, the boss does not express opinions on the product, but lets employees speak freely, and raises opinions and questions in different aspects according to a pre-set order, often sparking internal debates.
The benefit of such debates is that most issues can be brought out and then analyzed one by one.
**3. Solicit customer opinions**
After forming an initial internal opinion, have employees take samples and materials of the new product to some representative wholesalers or terminal customers for customer evaluation. Most employees can also bring samples home for their families to evaluate from a consumer perspective.
**4. Summarize multiple opinions and weigh whether to introduce the new product.**
Here comes the key point
8 aspects distributors must consider when taking on a new brand
When taking on a new brand, distributors must first set aside unrealistic fantasies. Don't always expect a new brand to have at least the following: good quality, low price, good policies (preferably 10%-20% rebates), advertising in the air, ground team follow-up, shelf stock, full reimbursement of entry fees... Without these features, manufacturers would be embarrassed to greet people.
The author once visited a distributor who told me he mainly considers 3 points when taking on a new brand. The author, based on his own market visits, refined this and summarized it into 8 points. If distributors consider these 8 points when taking on a new brand, the likelihood of success is greater:
**1. The manufacturer's boss**
What kind of person is the boss of this brand?
Don't look at the operator. The reason is simple: the operator cannot change the boss's character. If the so-called operator does not match the boss's work style, being eliminated is only a matter of time.
Don't talk about corporate culture; just look at the boss's character and reputation in the industry. The boss's character determines the company's behavior in the market.
**2. Product quality**
Whether a brand can have long-term vitality depends on quality, especially in an era where "everyone can be self-media."
Good goods are not cheap, and cheap goods are not good.
But unfortunately, many distributors know this on one hand, but on the other hand, they make mistakes like "Your product price is too high; other brands are priced at such and such; my consumers may not be able to afford it."
**3. Category complementarity**
When deciding to take on a new brand, distributors should first consider which category the brand belongs to and whether it complements their existing portfolio.
If it's an old category, then what is the difference between this brand and the ones they already have?
If it's a completely new category, it may create entirely new value, but the key is whether the category is truly segmented or a pseudo-category.
**4. Brand positioning and brand strategy**
Distributors should communicate with the manufacturer's personnel to clarify the brand's positioning and whether it is competitive. What are the resource allocations around the brand positioning, i.e., what is the brand strategy?
Having brand positioning does not guarantee success, but without it, success is impossible.
Special attention should be paid here: brand positioning and brand strategy must be simple, clear, and easy to understand, making people have an epiphany: "This is exactly what we do!" rather than a dozens-page PPT explaining the brand strategy.
"True transmission is one sentence; false transmission is a thousand books," as our ancestors told us.
**5. Manufacturer policies**
What are the manufacturer's policies? Are they attractive?
Compared to the brands the distributor already has, how big is the difference?
If the profit margin is low, what about the turnover rate of this brand?
**6. Sell-through plan**
It doesn't matter whether you earn more or less, but how will this brand move in the market? This is the most frequently asked question when the author visits distributors.
**7. Model market**
Does this new brand have a market that performs well? If the model market is doing well, it has the foundation for outward expansion.
A distributor once said to me: "Your brand has only done one province for over 20 years, but the sales revenue from that one province is more than other brands' so-called national markets. You already have the ability to march into the national market."
**8. Business quality**
No matter how good the product is, it relies on people to make it happen. Observe the quality of the manufacturer's sales staff. I believe everyone agrees on this, so I won't elaborate here.
Finally, let me leave you with a saying: In the ups and downs of business, a dragon has nine sons, who knows which son will support you in old age? Which cloud will bring a little drizzle? As for whether to take on a new brand or not, I believe you now have your own judgment.
(The author is the deputy general manager of Guangzhou Lixin Cosmetics Co., Ltd.)
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