--- title: "Six Honest Truths About Product Selection for Distributors" description: "This article is reprinted from FMCG Distributor Professional Consulting Management (kxpjxszyzxgl). Regardless of what you currently do or how successful you are, when selecting products, you should neither follow old thinking nor blindly follow trends. Instead, choose products or projects based on your channel network, financial strength, team, social connections, marketing experience, and relevance to existing projects. Otherwise, the only outcome awaiting you is failure. 1. Opportunities always belong to those who are prepared. Opportunities always belong to those who are prepared, whether in work, study, or life. The same applies to product selection and investment. Only with keen business awareness and economic acumen can you discover business opportunities before others and seize them. Even following trends requires strategy; timing is crucial, and most trend-followers end in failure. Take the solar industry: selling solar products now is clearly less profitable than five years ago, as sales have been declining." author: "童庆德" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2015-03-11" language: "en" canonical: "https://xinjignxiao.com/en/articles/six-honest-truths-about-product-selection-for-distributors-be0aabb0/" markdown: "https://xinjignxiao.com/en/articles/six-honest-truths-about-product-selection-for-distributors-be0aabb0.md" original_source: "https://mp.weixin.qq.com/s/sMYfclvrR2VGhG0MNvaz1g" translation: "https://xinjignxiao.com/zh/articles/%E5%AF%B9%E7%BB%8F%E9%94%80%E5%AE%A2%E6%88%B7%E9%80%89%E5%93%81%E7%9A%84%E5%85%AD%E5%8F%A5%E5%A4%A7%E5%AE%9E%E8%AF%9D-be0aabb0.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/six-honest-truths-about-product-selection-for-distributors-be0aabb0/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Six Honest Truths About Product Selection for Distributors > This article is reprinted from FMCG Distributor Professional Consulting Management (kxpjxszyzxgl). Regardless of what you currently do or how successful you are, when selecting products, you should neither follow old thinking nor blindly follow trends. Instead, choose products or projects based on your channel network, financial strength, team, social connections, marketing experience, and relevance to existing projects. Otherwise, the only outcome awaiting you is failure. 1. Opportunities always belong to those who are prepared. Opportunities always belong to those who are prepared, whether in work, study, or life. The same applies to product selection and investment. Only with keen business awareness and economic acumen can you discover business opportunities before others and seize them. Even following trends requires strategy; timing is crucial, and most trend-followers end in failure. Take the solar industry: selling solar products now is clearly less profitable than five years ago, as sales have been declining. This article is reprinted from FMCG Distributor Professional Consulting Management (kxpjxszyzxgl) Regardless of what you currently do or how successful you are, when selecting products, you should neither follow old thinking nor blindly follow trends. Instead, choose products or projects based on your channel network, financial strength, team, social connections, marketing experience, and relevance to existing projects. Otherwise, the only outcome awaiting you is failure! 1. Opportunities always belong to those who are prepared Opportunities always belong to those who are prepared, whether in work, study, or life. The same applies to product selection and investment. Only with keen business awareness and economic acumen can you discover business opportunities before others and seize them. Even following trends requires strategy; timing is crucial, and most trend-followers end in failure. Take the solar industry: selling solar products now is clearly less profitable than five years ago, as sales have been declining. Suppose one day you come across a project that seems good after discussion, has been on the market for many years, has low requirements, and no one locally is doing it. Then you must be cautious. If the product has attractive packaging, solid quality, low entry requirements, low supply prices, strong manufacturer support, and has been on the market for years, why haven't local businesspeople discovered it? Even if they haven't, the manufacturer's salespeople would have approached them. So why is no one distributing it locally? Did they fail, or is it simply not viable? There are many local businesspeople, many more capable than you. They haven't done it—what's the reason? You must identify the crux of the problem and solve it before considering whether you can or should do it. Wishful thinking or naivety is unacceptable! If you don't understand yourself or the market before selecting a product, not knowing your strengths, weaknesses, or resources, and you casually enter an industry that may have no future, that you're unfamiliar with or uninterested in, the result is predictable. To enter an industry, you must assess its stage and suitability. These are tasks to complete before selecting a product. Only with thorough preparation can you find the right product. Otherwise, even a good product may be missed due to hesitation. 2. "Finding a product also requires matching status" When dating, people talk about matching status. The same applies to product selection: do what you can with what you have. If you only have three to five thousand yuan, don't aspire to be an agent for P&G or Coca-Cola! Some distributors don't understand their own situation and hastily call manufacturers, making one demand after another. If it's a legitimate manufacturer with some strength, will they pay attention to you? It's like a fresh graduate with no car or house wanting to marry a top celebrity—is that possible? If you have strong financial resources, you can become an agent for so-called big brands, with lower margins but higher volume and easier operations. If you lack money, you'll need products with higher margins and put in much more effort. The old mindset of "the bolder, the better" won't work in business. Product selection should be based on your own conditions. For example, financially, is it your own funds or do you need family support or loans from friends? Are you investing hundreds of thousands or millions? The amount of investment determines the direction of product selection. Consider your strengths: strong marketing skills or abundant connections? If you have good connections, choose products suitable for promotion and group buying; if you have strong marketing skills, choose products with potential that require strong development capabilities. Also, consider the industry of your current products and whether the new product can leverage existing channel networks and human resources. In short, product selection should fully utilize existing resource advantages to achieve twice the result with half the effort! 3. Manufacturers always classify distributors into different tiers If you hear a manufacturer say they treat all distributors equally, be wary—you've encountered a scam company whose goal is to get you to pay quickly. As for your future, they don't care and can't manage it. Manufacturers always classify distributors into different tiers, regardless of the era. Before seeing your capabilities, they only use the initial order amount to judge your strength and ability. A customer with 100,000 yuan and one with 20,000 yuan will receive different support. If you were the distributor, facing two potential sub-distributors with initial orders of 50,000 and 10,000, would you give them the same support? You'd likely treat them differently. So when distributors call potential manufacturers, don't ask about policy support first, because the manufacturer doesn't know how much you'll invest or what networks and advantages you have, so they can't give a truthful answer. You should first understand the industry market conditions, prospects, product quality, company operation model, market reputation, and cost-effectiveness. Through vertical comparison within the industry and horizontal comparison across industries, assess profitability and space, then decide whether to visit and communicate in detail. After a satisfactory visit, decide your investment amount based on your situation. It's reasonable to seek maximum support and benefits based on your investment and the manufacturer's requirements. 4. To get support, first achieve results To gain special support, you must demonstrate strong capabilities, like a peacock displaying its feathers. Only then will the manufacturer believe you and give all possible support. Long-term cooperation between manufacturer and distributor is like a marriage: one's glory is the other's, and one's loss is the other's. Only when both profit can cooperation last. When the manufacturer has money, they give more support to distributors. Key distributors are crucial for creating model markets; even if you don't ask, the manufacturer will proactively offer more support because supporting you brings them more profit, and you also gain returns. "We want advertising, materials, vehicles, expenses, and personnel!" Distributors make a long list of demands. The manufacturer pulls out all stops: 100% shelf stocking, 100% expense reimbursement, free vans, cash bonuses—painting a rosy picture. Distributors get dizzy with excitement. But the manufacturer's boss is in business to make money, not run a charity. Do you think such windfalls come easily? The boss isn't foolish; if he wanted to do good, he'd stand on the street handing out cash or donate to charity. Why make it so complicated and waste words with you? If a manufacturer wants to build a brand, that's a matter after the survival stage. If the survival problem isn't solved, there's no brand. Remember: wool always comes from sheep; if it doesn't, it's not wool. Only when you pay more and order more will the manufacturer give you more support. When you first start cooperating, the manufacturer knows nothing about you. Can you guarantee monthly payments? Do you have proof? Unless you're a local agent for a big brand with first-rate strength, and the manufacturer hopes to leverage your resources to expand the local market, only then does "the customer bully the store" occur. Most investors have average financial strength and marketing experience, so usually "the store bullies the customer." Distributors are relatively weak. Only after the market is developed can you negotiate strongly and get more support. 5. Manufacturer strength ≠ project success Manufacturer strength is important! As the saying goes, "Under a big tree, you enjoy the shade." In reality, regardless of the manufacturer's size, the money belongs to the boss. They won't give more support just because they're big. The boss runs the factory to make money, not for charity! If the manufacturer doesn't profit, how can they pay employees, develop new products that meet market needs, or promote products? Only with profit can there be a virtuous cycle. Would you do otherwise? Moreover, the brand is theirs; you're there to make money. If they don't like you, they can replace you with a word. So the manufacturer's various returns actually come from your pocket. As long as the manufacturer can produce quality products with price advantages and market prospects, ensure normal supply, and provide some support, distributors can succeed with their own abilities. If distributors lack resources or connections and aren't suited for business, even the best project or product won't bring long-term success. With brand and manufacturer promotion advantages, you might achieve some short-term success and make a small fortune, but in the long run, you'll be eliminated! Because business is like war; the market shows no sympathy for the weak and doesn't believe in tears. Some distributors invest only ten thousand or so, are far from the manufacturer, and are unwilling to spend five hundred or a thousand on promotion, yet willing to spend thousands to visit the factory, only to see nothing. Worse, some have already formed an image of the manufacturer before visiting: luxurious, large-scale, with 500+ employees. They think such a manufacturer guarantees success. This is like saying if an egg tastes good, you must know which hen laid it. There's some correlation but no necessary causality. When buying shoes, only you know if they fit; others see only the appearance. Finding a wife is the same; finding a product is the same. Product competitiveness is key. If the manufacturer is strong and willing to spend on promotion, that's a pleasant surprise. If the manufacturer is average and promotion is limited, you can still make money with your own effort, so don't be disheartened! A beautiful mother doesn't guarantee a beautiful daughter. A strong manufacturer doesn't guarantee the most competitive product or market fit. Distributors should care about whether the product's packaging, price, and selling points suit local consumers. A big manufacturer only means the boss is rich; it doesn't mean the product will sell well in your area, nor that they'll be trustworthy or share profits with you. Who says big companies don't go bankrupt? 6. "Mindset and perseverance" affect the product's future Many distributors and even some manufacturer bosses expect to recoup costs and profit within three to five months of investing in a product. To achieve this, they resort to unscrupulous, short-sighted actions like killing the goose that lays the golden eggs. While they may achieve some short-term success, it ultimately backfires on the product and the company, affecting long-term operations. In today's world of abundant goods, the market has shifted from a seller's market to a buyer's market. Customers have more choices, and your words can influence their purchase decisions. Whether a product succeeds in the market depends not only on quality and performance but also on the operator's mindset and perseverance. Once you choose a product, be prepared for a long-term battle and maintain a calm attitude. A restless mindset and speculative psychology make it hard to make sound decisions or fully commit to market development, leading to short-sighted sales behavior. Use marketing to drive initial purchases, and use quality and service to generate word-of-mouth and repeat purchases. Only then can the project be sustained and achieve desired results. 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