---
title: "Six Essential Principles for FMCG Small Business Owners to Turn Distribution into a Big Business"
description: "Having trained tens of thousands of distributors for over a hundred companies nationwide, I've met many elites. A few years ago, I trained distributors for Shuanghui in 16 southern provinces and met General Manager Chen from Guiyang, whose company already had 64 delivery vehicles. In March this year, I trained distributors for Shanxi Zilin Vinegar in Chongqing and chatted with General Manager Qin of Riyuexing Company, the Nanyang distributor. I had met him years ago when training Fuling Zhacai distributors; now his annual turnover is nearly 100 million yuan. He manages to get all 150 supermarkets in Nanyang to pay upfront for goods, even during peak seasons like Spring Festival, rather than using credit terms."
author: "王荣耀"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-08-17"
language: "en"
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# Six Essential Principles for FMCG Small Business Owners to Turn Distribution into a Big Business

> Having trained tens of thousands of distributors for over a hundred companies nationwide, I've met many elites. A few years ago, I trained distributors for Shuanghui in 16 southern provinces and met General Manager Chen from Guiyang, whose company already had 64 delivery vehicles. In March this year, I trained distributors for Shanxi Zilin Vinegar in Chongqing and chatted with General Manager Qin of Riyuexing Company, the Nanyang distributor. I had met him years ago when training Fuling Zhacai distributors; now his annual turnover is nearly 100 million yuan. He manages to get all 150 supermarkets in Nanyang to pay upfront for goods, even during peak seasons like Spring Festival, rather than using credit terms.

Having trained tens of thousands of distributors for over a hundred companies nationwide, I've met many elites. A few years ago, I trained distributors for Shuanghui in 16 southern provinces and met General Manager Chen from Guiyang, whose company already had 64 delivery vehicles.

In March this year, I trained distributors for Shanxi Zilin Vinegar in Chongqing and chatted with General Manager Qin of Riyuexing Company, the Nanyang distributor. I had met him years ago when training Fuling Zhacai distributors; now his annual turnover is nearly 100 million yuan.

There are 150 supermarkets in Nanyang, and he manages to get all of them to pay upfront for goods, rather than using credit terms. During peak sales seasons like Spring Festival, supermarkets pay deposits before goods are shipped.

When business reaches this level, what more could one ask for?

However, many distributors have been in business for years but still struggle to grow.

The biggest constraint on distributor development is not capital or other factors, but the concepts in their minds.

**How distributors view the market, their relationships with brands, manufacturers, and downstream customers, and how they view themselves will determine their development.**

Therefore, when training distributors, I first emphasize conceptual issues, focusing on the following points:

**1. The market is the distributor's most important asset.**

**Distributors' profits come from the market, not from manufacturers;**

**Distributors without market advantages will inevitably be eliminated by the market and manufacturers;**

**Distributors should strive to enhance their market value and gain bargaining power in negotiations with manufacturers.**

However, many distributors make the mistake of not cherishing their market, always thinking they are building the market for the manufacturer. Thus, they only work on the market when the manufacturer provides support, and stop when support is withdrawn. Over time, they lose their own value.

**2. Choose a brand that can promote your development.**

**The most important factor determining a distributor's development is the brand they distribute. The brand is the distributor's biggest backing.**

As one distributor aptly said: A good brand and a good manufacturer are the university for a distributor's growth.

An article in "Sugar, Tobacco, and Alcohol Weekly" surveyed the top 10 distributors in the national alcohol industry and found that a key secret to their success is choosing a good brand and then engaging in deep cooperation.

**3. Treat the manufacturer as your most important customer**

Some distributors always think the manufacturer needs them and never treat the manufacturer as a customer to serve well.

In fact, for distributors, **how to deal with manufacturers is the most important lesson.**

When training distributors for a famous Sichuan liquor manufacturer, one excellent distributor shared his success experience: Be loyal to the manufacturer and serve customers well.

Distributors should provide value-added services to manufacturers.

**4. Use value-added services to cultivate downstream customer loyalty**

What attracts downstream customers to order goods?

Relying solely on price cuts and promotions is far from enough.

Use value-added services.

What distributors deliver to downstream customers is not just the brand, but also concepts, talent, information, methods, etc.

**5. Make the agency brand the No.1 in the regional market**

This is even more important for distributors.

**Many distributors make the mistake of representing multiple products but failing to sell any of them well.**

**Distributors should be "focused" rather than "fickle"**

**6. Become a brand distributor**

**What distributors sell is not products, but trust.**

**Distributors should enhance their business reputation in their own market.**

**They should transform from brand agents to brand distributors.**

Manufacturers should enhance product brand value, while distributors should enhance service brand value.

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