---
title: "The 'Bitterness' of Second-Generation Distributors"
description: "Recently, I discussed business plans with a second-generation distributor, and the conversation turned to succession. This article aims to address the topic from the perspective of second-generation distributors themselves. Most current distributors started their businesses around 1990-2000, following the reform of department stores and supply and marketing cooperatives. If they started in 2000, they are now 52; if in 1990, 62. Thus, the industry is experiencing a wave of second-generation succession, and these successors face various forms of 'bitterness'—not physical hardship, but a lack of meaning and value."
author: "袁来"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-02-22"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/THx0SzCYDzphmlNEEsBkNg"
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---

# The 'Bitterness' of Second-Generation Distributors

> Recently, I discussed business plans with a second-generation distributor, and the conversation turned to succession. This article aims to address the topic from the perspective of second-generation distributors themselves. Most current distributors started their businesses around 1990-2000, following the reform of department stores and supply and marketing cooperatives. If they started in 2000, they are now 52; if in 1990, 62. Thus, the industry is experiencing a wave of second-generation succession, and these successors face various forms of 'bitterness'—not physical hardship, but a lack of meaning and value.

Recently, I discussed business plans with a second-generation distributor, and the conversation turned to succession, leading to this article.
**This article aims to address the topic from the perspective of second-generation distributors themselves.**
Most current distributors, looking at the timeline, started their businesses around 1990-2000, choosing to enter the trading agency business as local department stores and supply and marketing cooperatives underwent institutional reform. At that time, distributors were around 30 years old.
If they started in 2000, they are now 52; if in 1990, they are 62. From this perspective, operators in the commercial circulation industry are currently experiencing a 'second-generation transition wave.'
Some have already taken over for four or five years; others are likely on the path to succession. Whether or not they have taken over, second-generation successors face various forms of 'bitterness.'
**The 'Bitterness' of Second-Generation Successors**
When seeing the word 'bitterness,' I suspect many distributors or those around them would scoff: What's there to be bitter about? You inherit a business, everything is arranged, just step in. The hardest, most bitter, and most painful times were endured by your parents; what bitterness remains? A ready-made business, ready-made profits...
**This 'bitterness' is not about hardship, but a lack of meaning and value.**
What does that mean?
Looking closely at the upbringing of second-generation successors, because their parents started businesses early and enjoyed market and demographic dividends, leading to increased profits and wealth that benefited the family, the second generation not only had material comfort but also better educational resources than their peers.
They either studied abroad or in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen.
When they return after completing their studies, their understanding of the world, society, and their aspirations for life are completely different from the previous generation. The previous generation's goal was mostly to strive for a better material life, while the second generation's pursuit of material life is greatly reduced.
The trading agency business is not fun, not interesting, and dull. In terms of business form, moving goods from point A to point B, with negotiations and games at every step, is truly uninteresting and unattractive.
If there is anything truly appealing, it might be the position of the boss—commanding and directing—but that feeling often disappears once you sit in that position, leaving more responsibility and duty.
(Image source: Visual China)
After truly taking over, the second generation no longer has the exciting life they expected; it's a routine of two points, lacking meaning. The people they interact with are mainly their own sales staff, upstream manufacturer managers, and downstream store buyers. Their own sales staff, frankly, are the peers they interact with most frequently, but unfortunately, they cannot become confidants due to differences in social class, lifestyle, or social cognition. In the past, upstream manufacturer managers were often dispatched from other regions, bringing new insights and information to distributors.
Now, companies increasingly prefer local managers, so manufacturer managers' information and social cognition cannot offer much to the second generation; they can only discuss business plans and policy support. With downstream store buyers, there is even less to discuss; they are either store owners or buyers, and the relationship is one of direct negotiation and game-playing. This layer is also mostly handled by sales staff.
The bitterness is not physical; it's the bitterness of returning to a dull local life after experiencing the exciting world. This is especially evident in third-, fourth-, and fifth-tier cities and county towns. After seeing skyscrapers, ancient architecture, music and theater, and bustling nightlife, returning to a small city inevitably brings disappointment.
**Giving the Trading Business Higher Meaning and Value**
How can the trading business be given higher meaning and value? In reality, when the previous generation has built a solid foundation for the business, what they should pass on to the second generation is not just the financial wealth from the business, but the concept of secondary growth beyond the basic business.
In simple terms, the previous generation worked for one or two decades to build a foundation, achieving 0 to 1; the second generation needs to add zeros after the 1, turning the business into a career, making it 10, 100, 1000... This is the true meaning and value to be instilled after succession.
**Maintaining the status quo has no meaning; it's still just earning money. Starting anew reflects value, making the business a career.**
How to start anew?
Going from 20-30 million to 50-60 million or 100-200 million is not about adding a brand or a truck, or achieving 10-20% growth; it's about fundamentally changing the business model.
**Continuation of old methods only brings linear growth. Practice of new methods brings fundamental change.**
When a business grows from 1 to 10, 100, 1000, that is the true meaning and value for the second generation. From the moment a second-generation successor takes over the family business, they should set a goal: to become the NO.1 distributor.
Such a goal is the true 'spirit' the second generation should have. Profit, income, and wealth should not be the primary goals for those who have lived comfortably.
Making employees' incomes higher, making the trading company's name resound locally, earning respect from upstream brands, and having stores give thumbs up for service—these are the real goals and directions for the second generation to strive for.
Of course, this should also be the expectation set by the previous generation, not just replacement and management.
**Changes in business volume are not meaning. Changes in business quality are the starting point.**
**How to Find Joy in the Trading Business?**
Once such meaning and value are instilled, the second generation will have a sense of purpose. With direction, they can formulate strategies to achieve goals. How to become NO.1? **The only effective method is—learning, communication, and discussion.** Looking inward will never find answers; it only leads to involution. Looking outward, observing the thinking logic of excellent benchmark distributors and industry trends, is the way to find the answers you seek.
When you see changes clearly and understand the logic, you know what kind of distant future you can reach. When you don't know or understand, you can only walk on the road without knowing where you're going. In the past, the older generation could only struggle to survive; survival and profit were their meaning. Now, survival is not the key; living well, living wonderfully, and having social value are the true pursuits.
**Summary:** **As an industry platform focusing on the FMCG channel, New Distribution carries value and mission. Second-generation distributors, as key players in the channel, are also our focus.**
New Distribution will launch content and activities around second-generation distributors in 2022, aiming to broaden their horizons and make the trading business not just about moving goods from point A to point B, but about more 'sexy' and 'interesting' business value possibilities.
Of course, in terms of 'looking outward,' **the 2022 (7th) China FMCG Channel Innovation Conference, hosted by New Distribution in Chengdu from March 18-20**, is a great opportunity for learning and exchange.
At that time, you can hear from renowned global consulting firms, top brand executives, new retail platform operators, and outstanding distributors from across the country, sharing their understanding of industry channel trends and changes. **We welcome all second-generation distributors to scan the QR code below to register for the 'China FMCG Channel Innovation Conference.'**
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