---
title: "Post-90s, Second-Generation Distributors Enter the 'Succession Wave'!"
description: "At the recently concluded China FMCG Channel Innovation Conference's 'Trade and Distribution Forum', an interesting phenomenon was observed: half of the distributors sharing on stage were young people, and nearly half of the audience were young faces. This suggests that a large wave of post-90s distributors are gradually stepping onto the stage of trade and distribution, becoming the main players in the business, with many being second-generation successors."
author: "周群"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-05-14"
language: "en"
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---

# Post-90s, Second-Generation Distributors Enter the 'Succession Wave'!

> At the recently concluded China FMCG Channel Innovation Conference's 'Trade and Distribution Forum', an interesting phenomenon was observed: half of the distributors sharing on stage were young people, and nearly half of the audience were young faces. This suggests that a large wave of post-90s distributors are gradually stepping onto the stage of trade and distribution, becoming the main players in the business, with many being second-generation successors.

At the recently concluded China FMCG Channel Innovation Conference's 'Trade and Distribution Forum', an interesting phenomenon was observed: half of the distributors sharing on stage were young people, and nearly half of the audience were young faces.
It is well known that in the field of trade and distribution, those who stand on stage or are interested in the topic are usually elders. It is rare to see half of the audience being young people listening to professional干货 sharing on trade and distribution.
Through this phenomenon, we have reason to believe that a large wave of post-90s distributors are gradually moving towards the stage of trade and distribution, becoming the main characters in the business. A large part of this group comes from second-generation succession.
These second-generation individuals, influenced by their fathers, have been exposed to the business since childhood. Although they haven't directly handled it, they more or less understand the logic behind it. Currently, second-generation distributors are gradually taking over the business. How does their business logic differ from their fathers'? As upstream manufacturers, how do they view these second-generation distributors?
****-01-******Regional Meetings: Encourage More Young People to Attend and Share**
Distributors are crucial for manufacturers to reach offline terminals, so manufacturers place great importance on them, holding various distributor meetings annually and quarterly. Besides announcing new policies, an important segment is inviting outstanding distributors to share market operation experiences to boost confidence in other markets.
But such meetings, if not held, are fine; once held, they often turn into sessions where distributors complain. They talk about policies, costs, support, etc.
The regional managers on stage smile and nod, but in their hearts, they feel helpless.
However, in recent years, the approach of regional offices seems to have changed, with more young people sharing on stage. In contrast, they share market operation tactics and thoughts and suggestions on market changes.
Besides sharing experiences and boosting confidence, manufacturers also gain real insights from distributors. Through the collision of ideas, manufacturers and distributors truly align their steps, and ultimately both are more willing to invest time, energy, and resources to grow the market.
A second-generation distributor friend said that manufacturers often invite him to share as a guest, and some even encourage older distributors to let their children share more.
Another second-generation distributor friend told me that in her region, she and her team often develop a complete marketing plan, and then the region promotes it among distributors.
****-02-******Distributors Are Not Executors, but Designers**
In the past, distributors relied on brand dividends. As long as they followed the manufacturer's requirements, did the displays well, launched promotions on time, and executed the manufacturer's policies, they could basically achieve good sales.
**At this stage, distributors were more positioned as executors. But in today's product homogenization, with dozens of brands in a category, you have numerous competitors. At this point, being just an executor is far from enough.**
The problem is that the older generation of distributors are mostly accustomed to past methods and paths, with manufacturers leading and them passively executing. Their thinking has become fixed, making change difficult.
Younger distributors, on the other hand, are unwilling to do simple repetitive tasks. They prefer to try new models and methods, trust data, and are willing to proactively engage with platforms.
These factors more or less explain why many manufacturers hold a positive attitude towards second-generation succession. For example, some leading companies even hold sharing sessions and seminars for second-generation distributors, and manufacturers even hope and encourage the handover to second-generation distributors.
****-03-******Differences in Business Thinking Between Two Generations**
The business of post-60s and post-70s distributors is gradually declining. Recently, I met a condiment distributor with annual sales of hundreds of millions. He has been in business for over 20 years, only doing modern channels. His business was doing well, but in the past two years, with the invasion of online platforms, KA store sales have dropped significantly, especially this year, with a year-on-year decline of over 30%.
Industry changes are too fast. It took over 20 years to develop from traditional small stores to supermarkets and then e-commerce, but now retail formats change rapidly. In just two or three years, B2B, O2O, community group buying, etc., have sprung up like mushrooms.
Facing these new things, many distributors' energy, ideas, and actions are gradually falling behind. In contrast, second-generation distributors have a higher acceptance of new things and are more willing to proactively engage with these new platforms. This is also what manufacturers want to see; when sales decline, manufacturers are affected too, and they hope distributors can find new growth.
A second-generation distributor friend from Jiangsu said something that struck me deeply: **Five years ago, many older distributors were already saying business was hard, and they'd do it day by day. Today, they still say the same. Why are they still doing business in the old way? Essentially, they are unwilling to change.**
For example, many 'stubborn' distributors only do 80% of the tasks assigned. But in the eyes of second-generation distributors, this approach has no benefit because when the market is done well, the most direct beneficiary is themselves.
So when facing manufacturer tasks, second-generation distributors must do things to the extreme. The influence of selling 80 million is completely different from selling 60 million. Once you have scale, you have more bargaining power when negotiating resources with brand owners, making money easier.
The new generation of distributors is willing to share risks with brand owners. When goods arrive, they are willing to find ways, new ideas, and new marketing methods to sell them, sharing risks and creating profits with the brand. In their view, after selling the brand well, they naturally enjoy the brand's dividends, which is actually similar to the early entrepreneurial ideas of many older distributors.
In internal management, second-generation distributors are also more willing to invest, even somewhat 'regardless of cost'. Take digitalization: older distributors know the problem of low efficiency and need digital tools to empower, but when it comes to actually implementing systems, they hesitate, fearing the system might be bad or expensive, until business drops sharply and they seek help in a panic.
In actual research visits, second-generation distributors are more willing to reinvest their earnings. For example, a second-generation distributor doing e-commerce, believing the company's operation efficiency was low, directly spent 300,000 yuan on an ERP flagship system, knowing that annual profit might only be one or two million.
In the eyes of older distributors, this might be seen as wasting money, but the result was that in the following two months, online sales doubled.
Looking back, why are manufacturers willing to support second-generation succession? Essentially, they see these shining points in second-generation distributors.
**First, they are willing to accept new things and dare to try new channels; second, they are 'doing' business, not 'preserving' business, willing to find ways to scale up; third, they are willing to spend money, investing in market growth, management efficiency, and personnel capability building, which is not wasting money.**
****-04-******'Anxious' Older Generation Distributors**
Facing their children's succession, older distributors actually have anxieties:
**1) No systematic exposure to business**
**2) Worry that subordinates won't be convinced**
**3) Fear of mishandling manufacturer relationships**
Facing these anxieties, many distributors are not at ease with their children. Many children about to take over complain: their fathers want them to take over but also tie their hands, unwilling to delegate authority, making it impossible to prove themselves.
The older generation's concerns are certainly valid, as they have been through decades of struggle. 'You eat a meal one bite at a time, and walk a road one step at a time.' But problems must be overcome. Succession is inevitable. How can we help children grow quickly and eventually take over smoothly?
Based on visits and communication research, we found that successful second-generation distributors share similar experiences, summarized in five aspects:
**1. Clear Cognition**
Second-generation successors must break their dreams. Don't simply think the distributor business is high-end or too hard. To truly do this business well, first humbly accept, then be down-to-earth, and observe and do more.
If you just want to approve documents in an office, looking decent and relaxed, this business cannot be done. It's important to get involved personally. Succession is not about drastic reform; observe and do more, and maintain reverence for the business.
**2. Learn Models and Methods**
Learning here is not internal but external. Many distributor children have high educational backgrounds and efficient learning abilities. Go out and see more; both vision and practice can grow quickly.
Especially in the internet era, fathers often can't understand or see clearly. At this time, let children learn at relevant platform giants or take offline courses, and encourage them to participate in exchanges.
Alternatively, after graduation, distributors can recommend their children to work for the manufacturer of the products they represent for a period. Brand owners are unmatched in channel construction and market trend grasp, and children can also learn standardized management systems, laying a solid foundation for taking over the business.
**3. Adapt to Company Processes**
While having a basic understanding of the business, they also need a complete understanding of their own company, including organizational structure, business processes, management models, etc.
The best way to understand is through practice. Start from the basics, familiarize yourself with the business processes of major departments, such as being a supervisor in the sales department, understanding how salespeople are managed, and how compensation and performance are designed. Generally, adaptation takes 1-2 years, and you should understand the company's business, finance, channels, logistics, and other major departments.
**4. Gradual Delegation**
After adequate preparation, distributors should start gradually delegating authority. Start with a single independent business unit, letting children take charge independently, such as trying new businesses like e-commerce or community group buying.
Through this independent business exercise, achieving certain results can prove their ability and gain respect within the company. Conversely, if they don't do well, it shows they need further learning and adaptation.
**5. Full Takeover**
At the final stage, children have basically developed the ability to take over the business. At this time, distributors should boldly delegate authority and hand over the company to their children. It's not that they completely stop participating; after all, 'the older ginger is spicier.' Distributors retreat behind the scenes, serving as advisors, and can guide on major issues.
**In Conclusion:**
Since the outbreak of the pandemic, a new round of retail market handover has begun. In this process, survival of the fittest has gradually emerged. Many first-generation distributors have handed the baton to 'daring to think, dare to do, dare to fight, dare to bear' second-generation entrepreneurs, completing the transition from old to new.
Of course, some 'first-generation' distributors have concerns about succession. But if distributors decide to hand over the business to their children, they should not put shackles on them. Instead, through correct guidance, let them participate in company management as soon as possible.
Tips adopted will be paid 400-2000 yuan.


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