---
title: "Pre-Holiday Musings: Dealers, No Need to Worry, Spring Will Still Bloom After the Holiday"
description: "The article addresses the anxiety of traditional distributors in China as they face declining profits and the threat of B2B platforms. It advises them to embrace change, leverage local advantages, and transform into regional platform operators to thrive in the new era."
author: "重庆老江"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-02-11"
language: "en"
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# Pre-Holiday Musings: Dealers, No Need to Worry, Spring Will Still Bloom After the Holiday

> The article addresses the anxiety of traditional distributors in China as they face declining profits and the threat of B2B platforms. It advises them to embrace change, leverage local advantages, and transform into regional platform operators to thrive in the new era.

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Pre-Holiday Musings: Dealers, No Need to Worry, Spring Will Still Bloom After the Holiday
-------Embrace Change, Leverage Local Advantages, and Become the King of Your Region
Recently, I visited more than 10 trading companies. As the Spring Festival approaches, most dealers are taking stock: 2017 sales volumes seem similar to last year, but profits have decreased significantly. "Business is tough" has become their catchphrase, and they generally feel anxious.
What are they anxious about? They worry about losing their vested interests, their territory being eroded. These trading company owners are mostly second- and third-tier dealers, many of whom started as husband-and-wife teams in the 1990s or 2000s, working their way up step by step. They are now in their 40s or 50s, embodying the Chinese spirit of hard work and endurance, and are highly respected. They have experienced ups and downs, which shaped their current businesses. However, around 2015, driven by capital, B2B platforms had a significant impact on them. Although Alibaba and JD.com made a lot of noise, they haven't had a substantial effect on them yet. Yet, they feel powerless to resist and unwilling to be at others' mercy. This sense of helplessness and unwillingness drives them to consider transformation, but they are deterred by the saying: "Don't transform, die; transform, die early." This has given most dealers anxiety, and they may spend this holiday in a state of inner conflict.
Old Jiang believes that this inner conflict is completely unnecessary. Why are they conflicted? Because they are still in the game, viewing problems from within the industry and its environment. Why not look at all this from the perspective of national and social development?
What is the current situation in China in 2018? In 2017, China's GDP surpassed 80 trillion yuan, and residents' incomes have increased significantly. China is rapidly approaching the level of moderately developed countries. The country is strong, people have money, so why would your goods not sell well? This only shows one thing: **it's your business that is not doing well.**
What about society in 2018? The post-00s generation is now 18 and has come of age. In the era of consumer internet, internet technology has completely transformed society, profoundly changing the way people communicate, think, and transact. For the real economy, in 2018, the state proposed that new technologies serve the real economy. Starting from 2018, new technologies such as internet technology, IoT, AI, big data, AR, VR, and 5G will be used to comprehensively and thoroughly transform the real economy. The goal is simple: technology is a productive force, and new technologies are meant to improve productivity. This means that our dealer friends must first change their mindset. The country, society, and individuals are developing rapidly under the push of new technologies like the internet, but we are still conducting our business transactions manually or semi-manually. We will only be eliminated by society. To borrow a popular saying: **When the times discard you, they don't even say goodbye.**
**Having said so much, what should traditional dealers do?**
**Build high walls: Improve your service capabilities.** Everyone says that retail survives by operations. I believe that trading companies also survive by operational capabilities. In the future, there may be no clear distinction between retailers and dealers; they will be one entity, with only one external party: the consumer. Only by adopting internet technology to reform our internal management and operational processes, such as an integrated information platform with interconnected data for transactions, inventory, accounting, costs, expenses, and marketing, can we improve. But most importantly, your information platform should also enable your downstream partners to improve efficiency, reduce costs, and do business more easily. If you have such capabilities, I think downstream partners will be more willing to cooperate with you, increasing their loyalty. This is building high walls.
**Stockpile grain widely: Expand your service content.** In a sense, goods are also a service, but this service is asset-heavy. Consumers have many other service needs in daily life. You can provide diversified services within a certain region, and it's better to have the capability to do so.
**Claim the throne quickly: Become the regional king.** Build a regional supply chain platform, integrate suppliers, empower terminals, and serve consumers. You must quickly leverage your current local advantages to become a platform operator. These local advantages are something even Alibaba and JD.com cannot shake. But they expire; if you don't build the platform as soon as possible and integrate regional partners to follow you, this advantage is time-sensitive.
You might say it's hard to integrate; distributors will definitely be unwilling. That's because the temptation is insufficient and sincerity is lacking. To take, you must first give. Don't just think about integrating others and taking their benefits. First, share your own interests. Your interests should be shared with others first. Your gains will be the greatest, but not immediately—they will come in the future. This requires a spirit of sacrifice and courage.
Platform-based operation is our only path. You might say we can't outdo Alibaba or JD.com in the end. But you're overthinking. Not to mention whether you do it well, "don't transform, die; transform, die early," but there's also a saying: "Only by being placed in a desperate situation can one be reborn." If you succeed, they will only come to cooperate with you. Then you'll be happy. If you don't operate as a platform, not to mention being recruited by them, you won't even be qualified to surrender.
"The road is long, but walking it will lead to the destination. Things are difficult, but doing them will lead to success." Dear dealer friends, let's encourage each other. **No need to worry; spring will still bloom after the holiday.** I wish you all a good mood and a happy New Year. Embrace change, and your business will go smoothly.


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