---
title: "Restructuring and Rebirth: How Distributors Break Through Development Bottlenecks"
description: "Authorized by Yang Yonghua, Chairman of Guanfeng Consulting Intelligence Group, exclusively published by Wine Industry Home. During market transformation, many distributors lack neither the concept nor awareness of change, but most are unclear on how to change. Starting with the development cycle of distributors, this article analyzes the bottlenecks at each stage—startup, growth, development, maturity, and decline—and proposes strategies for long-term success."
author: "杨永华"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-05-16"
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# Restructuring and Rebirth: How Distributors Break Through Development Bottlenecks

> Authorized by Yang Yonghua, Chairman of Guanfeng Consulting Intelligence Group, exclusively published by Wine Industry Home. During market transformation, many distributors lack neither the concept nor awareness of change, but most are unclear on how to change. Starting with the development cycle of distributors, this article analyzes the bottlenecks at each stage—startup, growth, development, maturity, and decline—and proposes strategies for long-term success.

**Authorized by Yang Yonghua, Chairman of Guanfeng Consulting Intelligence Group, exclusively published by Wine Industry Home**
The market transformation period has arrived. Perhaps many distributors no longer lack the concept and awareness of change, but most distributors have not figured out how to change.
Let us first start with the development cycle of distributors. Any distributor in the startup stage seeks profit, which is understandable. Because the entrepreneurial period is to fight for survival and a better future. After earning the first pot of gold, distributors entering the growth stage begin to cherish their business situation and seek stability during growth. Because only after making money do you realize how difficult it is to make money. After the growth stage comes the development stage, like a cicada shedding its shell. After the growth stage, distributors very much hope to seek scale, because at this time making money is no longer a problem; the key issue is how to make big money. After the development stage, distributors enter the maturity stage and hope to turn their business into a century-old shop, that is, seeking longevity.
However, the growth process of all distributors is not smooth sailing; it also goes through ups and downs. We have nearly 20 years of experience serving various types of distributors, and have gone through the development of thousands of distributors. After helping different types of distributors solve development bottlenecks, we have gained deep insights.
** _1_** Bottlenecks for Distributors in the Startup Stage
Distributors in the startup stage are often at the beginning of entrepreneurship, and the start is very difficult. Even most distributors start from scratch, with a few hundred yuan or a few thousand yuan, and cannot even pay for a full truckload of goods.
It is precisely because of this special background that many distributors easily fall into two misunderstandings during the entrepreneurial period. First, the concept bottleneck of choosing products according to one's ability and matching status. Because we serve different enterprises, when a good product or a brand product finds a distributor in the startup stage, the distributor in the startup stage often gives up because the initial payment is a bit more. This also leads to giving up many good products, causing oneself to lose many development opportunities. Second, the experience bottleneck of not having successfully operated a brand. Many distributors in the startup stage, due to not correctly choosing products with growth potential, have never successfully operated a product for many years, and the products they operate and the manufacturers they cooperate with are always changing. Our service experience tells us that distributors who have not successfully operated a brand find it difficult to survive. In other words, the development of distributors starts from successfully operating a brand.
** _2_** Bottlenecks for Distributors in the Growth Stage
The only sign of entering the growth stage is successfully operating a brand, especially distributors who have turned a regional brand into a famous brand in the local market. Because at this time the network is very complete, and customer relationships are very good. Most importantly, they have a certain reputation in the local market.
Distributors entering the growth stage will encounter bottlenecks in the growth stage. One is the team bottleneck. For distributors in the startup stage, it is often a mom-and-pop shop or a relative help. After entering the growth stage, if distributors still rely on relative help, it is difficult to develop. The reason is that in the startup stage, the main worker is the boss, and relatives are the ones providing labor. Therefore, the team bottleneck of having only relatives and no new people will appear after entering the growth stage. How to break through the talent bottleneck becomes the biggest problem for distributors in the growth stage. Another is self-endurance and the bottleneck of psychological frustration. Generally, it is quite difficult for a distributor in the startup stage to build a brand, but the difficulty of successfully building a second brand in the growth stage is greater than the first. The reason is that distributors need to adjust their concepts and learn to deal with the second manufacturer to succeed with the second brand. This difficulty is not in professional market capability, but in the磨合 between manufacturer and distributor, because it is very likely that the distributor, like first love, gave the first kiss to the first manufacturer, and later finds the second manufacturer not pleasing to the eye.
** _3_** Bottlenecks in the Development Stage of Distributors
Distributors entering the development stage generally have a certain scale, and their team capabilities have been greatly improved. However, in practice, the most common problems are two: one is that most distributors still operate only one brand and have not cultivated a second brand. The other is that they have a second successful brand, but lack core channel resources. This kind of distributor's channel resources are relatively scattered and control is weak. As long as market competition is a bit fierce, downstream partners always begin to defect.
** _4_** Bottlenecks in the Maturity Stage of Distributors
Distributors entering the maturity stage not only have a certain scale, but also have a very high market position and market influence. However, this is the period when distributors' thinking solidifies and also an inflator. The two most prominent problems are: first, the bottleneck of understanding the market and consumer demand. At this time, distributors are relatively subjective, always thinking that they have conquered the market and are the best in the world. They do not listen to opinions and suggestions, neglect research on consumers, and their understanding of the market remains on the surface of the past. Second, after making money, they begin to complain that business is hard. They always find that others make money in business and are not hardworking. As the saying goes: "Only see the thief eating meat, not see the thief being beaten." That is, they begin to enter a bottleneck period of distracted attention and lack of focus.
** _5_** Bottlenecks in the Decline Stage of Distributors
There are two typical signs of distributors entering the decline stage: first, loss of interest. Second, weakening of self-transformation ability. Generally, distributors enter the decline stage starting from changing careers or diversification. Of course, there are indeed a large number of distributors who do very well in changing careers or diversification, but more do poorly in changing careers and diversification.
**How can distributors become the ever-victorious generals in the market?**
To remain invincible in the business world and turn their business into a century-old shop, distributors must be able to do the following:
** _1_****Step out of the comfort zone, eliminate the idea of being content with small wealth, and turn business into a career**
Distributors must understand that the essence of future market competition is scale. Without scale, they will gradually be marginalized. Distributors themselves also understand very well that the simple essence of making a century-old shop is to control upstream manufacturers and downstream distributors. The core of achieving this is to form their own business scale. Because with scale, they can have negotiation ability with upstream manufacturers, and at the same time, with scale, they can let downstream distributors make more money by selling their products.
** _2_** Keep pace with the market
The market changes every year, and it is an indisputable fact that it has a cycle every three years. This requires distributors to understand the market according to this basic law and not always consider the market subjectively. We often say that distributors who cannot keep up with market changes are destined not to go far.
At the same time, keeping pace with the times requires distributors to adapt to market development and the requirements of manufacturers. We have already talked about the journey of distributors. Here are a few examples of changes in manufacturers' titles for distributors to illustrate the importance of keeping pace with the times. These words should be familiar to everyone: agent, distributor, operator, OEM brand, equity partner. Behind these words are both the manufacturer's wishes and market laws.
At the same time, recognizing changes in channels, stepping out of inherent channels, and seriously thinking about developing new channels are also main manifestations of keeping pace with the times.
** _3_** Dare to be first
Everyone knows the business stories of Jews and has heard many stories of Wenzhou merchants. Of course, whether it is Shanxi merchants or Zhejiang merchants, as long as they are merchants, they definitely have a characteristic: daring to be first.
Because successful merchants, or those with the traits of successful merchants, understand the simplest truth: "Businesses that many people are willing to do cannot be big, and businesses that many people are optimistic about cannot be done well." Successful merchants are good at capturing market opportunities and are also people with courage. Therefore, daring to be first should be the foundation for a merchant to remain invincible.
With changes in the social environment and market environment, distributors who dare to be first will certainly recognize the transfer of consumers as resources, that is, consumers have more and more choices. Modern merchants understand a simple truth: "The traditional concept is to make money from many people; the modern concept is to make a lot of money from one person."
As the story of the plum tree in "A New Account of the Tales of the World" says: In ancient times, at a scorching noon, a group of people were traveling and became thirsty in the wilderness. While walking, they saw a plum forest with many plums hanging on the trees. The thirsty travelers were overjoyed and ran to pick plums to quench their thirst. But one person stood by the roadside and did not go to pick plums, only watching from afar. When those who went to pick plums took a bite, they found the plums were bitter and astringent, hard to swallow. They asked the person standing by the roadside, "Why didn't you go pick plums to eat? Did you know they were inedible?" The person replied, "I knew they were inedible." Everyone asked, "Are you a god? How did you know they were inedible?" The person replied, "In the wilderness with so many plums and so many travelers, if they were edible, they would have been eaten long ago. Would it be our turn to eat?"
By the same token, if a business looks profitable at first glance, how could it be your turn to make money?
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