Introduction: Information dissemination means that everyone—our competitors and our customers—gets information at the same speed as we do. If we continue to rely on information asymmetry to make a living, we will find it very difficult. Many distributors started their businesses ten, twenty, or even thirty years ago, or in the late 1980s, when the business environment was vastly different from today's. Now, the operating environment for distributors has undergone earth-shaking changes. To be honest, distributors are in a very difficult position, even more so than manufacturers. How are the distributors who were once impressive, especially wholesalers, doing today? First, intensified competition. Think about it: how are the so-called impressive local distributors doing today? Those who were once impressive, especially wholesalers, the big merchants and provincial agents of the past—what is their situation now? Wholesaler-type distributors will inevitably split into two paths: some will leverage platform power and do very well because they have teams; others, if they continue with simple delivery and credit sales, will quickly decline. These two different paths arise because wholesaler-type distributors have two distinct characteristics: some have their own business strategies, even deep cooperation with manufacturers, and have the advantage of a team. If they grasp this well and transform quickly, they can do very well; others are traditional delivery services, with a few vehicles and a few people, making rounds every ten days or half a month. These so-called 'salesmen' are essentially just deliverymen, lacking the ability to do business; the boss does all the business. If they continue this way, even with credit sales, and at year-end have to haul back several truckloads of goods when collecting debts, they will soon fail. This is the situation distributors face now. I tell you, you must learn until you are old to live until you are old. Second, the pressure we face in retail and terminal sales is information symmetry. Small retail terminals are decreasing, while medium and large terminals are growing, and we don't know how to deal with them. The stages of development for Chinese distributors: The first stage relied on courage and seizing opportunities. Others dared not enter the market, but I did; others dared not do something, but I did, and I succeeded. The second stage relied on information asymmetry. The advent of the internet has essentially eliminated information asymmetry. Those who used to make money from information asymmetry will find it increasingly difficult. You will notice that the internet spreads information at an extraordinary speed. I say that the internet has not spread much knowledge, but it has spread a lot of information. Information dissemination means that everyone—our competitors and our customers—gets information at the same speed as we do. If we continue to rely on information asymmetry to make a living, we will find it very difficult. But remember, although the internet can eliminate information asymmetry, it cannot eliminate knowledge asymmetry. In the past, we made a living from information; in the future, we must make a living from knowledge. Some say, 'Live and learn.' I tell you, you must learn until you are old to live until you are old. Knowledge renewal is the source of our life. Without knowledge renewal, even though we are alive, we are actually dead, unable to keep up with the times. Can we provide a level of service higher than that of terminal staff? Third, and very important, is channel sinking. I mentioned wholesalers earlier; some say, 'I am doing well.' I say congratulations, that proves that wholesaler is still good. But to be honest, most wholesalers will find it difficult because channels are shortening. Channel shortening is a trend that none of us can stop. Today's small shops may bypass distributors and cooperate directly with manufacturers. Fourth, service improvement. Service is becoming increasingly difficult and truly needs to be improved. The difficulty is that when facing terminal stores, can we provide a level of service higher than that of internet e-commerce platforms? Whether we can provide a higher level of service is the challenge we face. Profit competition has reached an extreme level, not because the product itself has no profit. Fifth, the current business environment is characterized by declining profits. In all industries, the more intense the competition and the more mature the industry, the lower the profits. This is beyond doubt. We can no longer, as thirty years ago, buy a product for three yuan and sell it for ten; now it is likely that we buy for ten and sell for eleven or twelve. And when profit competition reaches an extreme level, note that it is not that the product itself has no profit, but that the business model has undergone major changes. Sixth, the enrichment effect. Good employees flock to good companies, good distributors follow good enterprises, and bad distributors follow bad enterprises. This is the enrichment effect: the good get better. Seventh, demand differentiation. Note that the most important manifestation of demand differentiation is: some only need the cheapest products, and the manufacturer need not do anything else; I (the distributor) can handle everything, so you (the manufacturer) just give me the cheapest product. Others disdain the product itself; if you (the manufacturer) have good service, I (the distributor) will deal with you; if not, I won't. Demand differentiation has gradually begun, so we must adopt different measures for different customers in our operations. Ge Junzhen, MBA from Guanghua School of Management, Peking University; founder of the technical marketing model in the animal protection industry; practical expert in agricultural and livestock industry marketing management; chief consultant at Zhenmou Junlue Consulting; vice chairman of Hebei Animal Husbandry and Veterinary Society; chief advisor of China Poultry Health Network; editorial board member of Today's Animal Husbandry and Veterinary Medicine; chief trainer of Egg Chicken Bridge Club. -END-