Click to read the original article for details Recently, I visited a number of distributors in the Jiangsu region. Jiangsu is located in East China, with an active economy and is a bellwether for new business and new retail. Observing changes among distributors here may offer a glimpse into the direction of distributor changes nationwide over the next 2-3 years. After visiting a round of distributors, one clear impression stood out: post-80s and post-90s distributors are rapidly rising, with a far better understanding of the distributor business and a quicker response to market changes than the previous generation. In today's era of new business, new retail, and new channels, if distributors still cling to old thinking and old methods, their business will not sustain. The rise of the new generation of distributors, leveraging new thinking and new methods, will rapidly scale up their business.

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The Business Logic of Post-80s and Post-90s Let me share two stories: 1. Let the young distributors take the stage to share in the future At the end of each year, brand owners organize distributor sharing sessions where distributors share their business experiences. Here, a clear difference emerges: ** Traditional older distributors, when on stage, basically talk about market problems, how hard business is, and then ask for policies and support, hoping brand owners see the market's difficulties; New-generation distributors (mainly second-generation) talk about how they view the market, and after analyzing the market, they discuss their marketing strategies, next year's plans, and how to increase sales. They don't talk about policy support or expense allocation on stage.** A second-generation distributor friend told me that brand owners also like young people like us to share on stage because we talk about market analysis and market tactics. In the end, when you fully present your market analysis and operations to the brand, are you afraid they won't invest? 2. Cooperating with Alibaba and JD.com: It's Not About How Much Money You Make I believe many distributors have, to some extent, rejected Alibaba's Retail Link and JD's New Channel over the past two years, viewing them as barbarians stealing business. When brand owners require local distributors to cooperate with these platforms, they often make excuses and refuse to cooperate. But post-80s and post-90s distributors are willing to actively embrace them. You might think, what's the use of embracing them? From the current perspective, hasn't it been fruitless? Indeed, both JD and Alibaba have had limited impact on FMCG channel transformation so far. The young distributors who cooperated with them indeed didn't make more money in this embrace. Although they didn't earn more from relying on the platforms, their own business has gradually grown during the cooperation. Why? Because in cooperating with JD and Alibaba, they learned more advanced business management methods and digital operation analysis. At the same time, they made more connections and resources. Compared to the past partners who were "eat, drink, take, and ask," these platform professionals are more principled, professional, and market-focused. With the awareness of data-driven management, more standardized market tactics, and the latest new retail and new business information and resources brought by platform professionals, coupled with the willingness of young distributors to fight and learn, business growth is an inevitable result.

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Differences Between New and Old Distributor Businesses Let's review the logic behind the rise of the post-60s and post-70s distributor groups, and compare them with the post-80s and post-90s groups to see where the differences lie. In the past, who did the distributor business? Broadly, three categories: First, those from the system's supply and marketing who started their own businesses; second, shop owners who gradually evolved; third, factory sales personnel who brought resources. At that time, with material scarcity and a seller's market, there was a market dividend; with diligent legs and hands, business could basically get off the ground. Later, grabbing a good brand and having the courage to invest could basically make you big, leading to the establishment of a trading company. Over a cross-time period, the rise of the older generation of distributors was driven by two external factors: First, demand exceeded supply; second, brand dividends.**** In contrast, the young distributor group has basically no such dividends. The current buyer's market is fiercely competitive. To do well, the only way is to do the distribution business in a completely different manner. Although the model of the distribution business hasn't changed—moving goods, getting goods into stores, recommending goods—these three core tasks, the methods have completely changed. I've summarized three typical characteristics of young distributors' operations: 1. "Internet-type" These distributors have a keen sense for new business and new retail. When new things appear, they follow up, learn, and embrace them immediately. In their understanding, whenever something new appears, regardless of whether it can succeed or be profitable, its emergence must indicate advanced aspects. This is why many young distributors cooperate with Alibaba and JD. Essentially, it's not because cooperation makes money, but because cooperation allows them to learn more advanced operational methods. 2. "Data-type" These distributors are mostly second-generation successors. Before taking over, if you asked their parents about monthly sales, gross profit, net profit, number of outlets covered, per capita output, etc., they would basically know nothing. The first thing after taking over is to implement digital tools and make operational data transparent. Daily work, besides early visits to the front-line market to understand conditions, later focuses on monitoring business reports, using data to identify problems, define them, and solve them. The next step is departmental division, management standardization, process formulation, and functional division of labor. This turns daily business into standardized, process-driven business. 3. "Partnership-type" Here, partnership doesn't mean doing business together, but "working together" with the team. They clearly understand the real needs of post-90s employees, engaging in betting competitions, late-night battles, and co-creating plans. Of course, they are also generous in sharing profits. Data is transparent and open, rewards and punishments are fair. Because of data-driven operations, they dare to share profits and partner. These are the business logics of young distributors. From their perspective, they are not afraid to lose in this business and can afford to play. Compared to older distributors who hold resources and funds, and many who, after achieving financial freedom, lose the fighting spirit and have no curiosity for new things. Many so-called "business is hard" is not because business is truly hard now, but because compared to the past when grabbing a brand could make you a fortune, such opportunities no longer exist.

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What Should the Older Generation of Distributors Do? Faced with such new players, what should the older generation do? I've made a ranking for distributors to reference and learn from. **1. Children take over (play business)****2. Empower key staff (do business)3. Follow the brand (learn business)4. Self-learning (preserve business) Frankly, in the new business era, it is quite difficult for post-60s and post-70s distributors to actively embrace, study hard, and make changes. Therefore, in the face of the new environment, to continue growing the business, I put children taking over as the first option. This is the most direct and best choice. With high education backgrounds, many having studied abroad, their understanding of business is no less than the older generation. Of course, the reality is that many second-generation members are unwilling to take over. In their understanding, being a product agent is not cool at all; it's early to bed and early to rise, simply moving goods and earning the price difference. Clearly, this is a wrong perception, and it's a negative impression caused by the daily management of their parents. There are many ways to change their perception; if all else fails, the last resort is to force them into it. But here I want to emphasize: once they take over, I suggest the older generation encourage them to go out more, see how excellent distributors operate, after they become familiar with the company's overall operations. At the same time, actively let them build relationships with local JD New Channel, Alibaba Retail Link, and practitioners of various new retail platforms, and listen to how they understand the supply chain distribution business. Finally, when it's confirmed that the business leadership is handed over to the children, use a form of guaranteed profit plus full authorization, allowing them to run the business according to their own wishes without excessive interference. Let them play with the business, or after handover, still have them operate with shackles. If the children still refuse to take over, or have better career or entrepreneurial directions, settle for the next best: hand the business to trusted core staff. Use the business you founded and the resources you've accumulated as a platform to empower them. How to empower? Through open financial data, salary and performance assessments, hand over operational authority to key staff. Control financial indicators, participate in directional decisions, and leave the rest to the core team. The core here is the issue of sharing profits and power. However, for distributors, the overall organizational management and institutional processes have loopholes, so from the current implementation, the effect is average. If you want to take this path, I suggest distributors focus on two things: First, transparent business data; second, standardized management systems. Without these two, distributors should not think about empowering key staff. Finally, following the brand and self-learning are the worst outcomes. Following the brand means continuing on the old path; if the brand grows, your business won't be bad. Self-learning means actively going out, seeing more, learning more, changing while doing, mainly to preserve the business, accumulate wealth, and eventually give up the business. These are some insights from my recent visits to distributors. Whether you believe it or not, the post-80s and post-90s distributor groups are rapidly rising. I also believe that in the hands of these young people, the distribution business will continue to strengthen and expand. Strengthening means not limited to the county or city, but larger regional markets. Cross-regional distribution and large-scale supply chain companies will be a certainty. Expanding: in the past, reaching 100 million or 300 million in sales might have been the ceiling for a trading company, but in the future, trading companies with 500 million or 1 billion in sales will be everywhere! **Editor | Asher**Proofreader | Chen Feng** Major Conference Announcement! January 19-20, Wuxi, Jiangsu New Distribution will join forces with 500+ FMCG distributors from five provinces in East China to gather in Wuxi, Jiangsu, providing brand owners and distributors with a conference aimed at product selection and cooperation exchange. Make arrangements before the new year, and start working after the new year! Don't wait until after the Spring Festival to plan! Interested brand owners or distributors are welcome to contact us. Please scan the WeChat QR code below to register for attendance or exhibition. Exhibition Contact: Tips adopted will be paid 400-2000 yuan