---
title: "Three Cases Tell You How Distributors Can Become Regional Kings"
description: "Rather be a big fish in a small pond than a small fish in a big pond. Small fish are always easy to be eaten by big fish. Only kings and leaders have the right to speak and have more resources and opportunities. Distributors concentrate their strength (customers, channel networks, reputation, capital, government and public sector relations, etc., while internal management and external market management levels gradually reach or even exceed some production enterprises) in a certain region, or focus on becoming a 'distribution tycoon' in a certain type of channel, setting up an insurmountable moat for upstream manufacturers in the monopoly of local resources."
author: "New Distribution"
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published: "2017-12-01"
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# Three Cases Tell You How Distributors Can Become Regional Kings

> Rather be a big fish in a small pond than a small fish in a big pond. Small fish are always easy to be eaten by big fish. Only kings and leaders have the right to speak and have more resources and opportunities. Distributors concentrate their strength (customers, channel networks, reputation, capital, government and public sector relations, etc., while internal management and external market management levels gradually reach or even exceed some production enterprises) in a certain region, or focus on becoming a 'distribution tycoon' in a certain type of channel, setting up an insurmountable moat for upstream manufacturers in the monopoly of local resources.

**Rather be a big fish in a small pond, not a small fish in a big pond. Small fish are always easy to be eaten by big fish. Only kings and leaders have the right to speak and have more resources and opportunities.**
Distributors concentrate their strength (customers, channel networks, reputation, capital, government and public sector relations, etc., while internal management and external market management levels gradually reach or even exceed some production enterprises) in a certain region, or focus on becoming a 'distribution tycoon' in a certain type of channel, setting up an insurmountable moat for upstream manufacturers in the monopoly of local resources.
Therefore, for distributors, intensive cultivation, deep marketing, changing from hunter mode to farming mode, and carrying out refined operations in the regional market are the necessary path for many successful distributors to achieve the status of industry leaders.
**How exactly can distributors become regional kings?**
1. Generally, first rely on the rise of a certain brand in the local market, form a large-scale share, and build their influence in the local market;
2. Rely on personal charm, strength, and influence, through matching cooperation methods, incentive techniques, etc., to establish and maintain the continuity of the regional network;
3. Further strengthen the position and control in the regional market by adding brands, categories, varieties, etc.;
4. Create channel barriers through buying stores, partnership operations, scarce and competitive resource possession;
5. Establish a self-operated network to form core competitive advantages;
6. Implement refined, institutionalized, informatized, and platform-based management of channels;
7. Establish a commercial brand image and reflect value through service.
**Case Sharing 1: Even small distributors have the opportunity to grow**
Two years ago, when we were serving a winery in Anhui, we discovered that a brand called Xiaojiaolou in Sichuan was doing very well in many township markets in a certain county, almost in a monopoly position, which aroused great interest.
Investigation found that this distributor of Xiaojiaolou, due to lack of strength and limited manufacturer support, found it difficult to directly operate the market from the county seat, and it was also difficult to start with mid-to-high-end products, because directly operating from the county seat and directly operating mid-to-high-end products both require significant resources. Due to resource scarcity, the Xiaojiaolou distributor only chose a township where he had rich local connections and started operating with mid-to-low-end liquor.
Because the product had no brand awareness and lacked funds for promotion, the Xiaojiaolou distributor adopted a strategy of selling on credit with payment after sale, and during this process, frequently held free tasting activities. He targeted the three core hotels in the area, and based on the preferences of the hotel terminal owners, gave one exclusive distribution product plus two regular products (available in every hotel), greatly stimulating the customers' enthusiasm for main promotion. The same approach was taken for circulation outlets.
Moreover, every week he sent customers blessing messages, and every visit to customers required them to strictly follow the guidance price and display standards, and he could provide suggestions on how to sell products and attract customers. During festivals, he gave these core customers commemorative gifts. Within six months, Xiaojiaolou products were selling strongly in this township. Then, the distributor chose a larger town and began to operate the second township market.
Through breakthroughs one township at a time, the number of mature township markets increased, and life became very comfortable. With more available funds, he also took on a well-selling beverage brand as a township distributor. It is said that now this distributor not only has liquor, beverages, and leisure snacks, but also focuses on township and village markets, with annual sales of about 20 million yuan, becoming a prominent distributor in the local township market.
**Case Sharing 2: How is a county-level king made?**
In an era of intense changes in China's liquor channels, it is rare to see a distributor achieve sales of 40 million yuan in a county-level market. Yang Tailin, general manager of Huaxing Commercial and Trading Company in Xichong County, Sichuan, is one of the few. Due to his local influence and reputation, peers gave him the nickname 'County-level King'.
**So, how is a county-level king made?**
**1. Use well-known products to open up channels**
For a person without background, success depends not only on opportunities but more on wisdom and diligence. Ten years ago, in 2001, Yang Tailin worked at a non-staple food department of the county's cotton and hemp company. The wave of state-owned enterprise reform reached Xichong County, and the cotton and hemp company underwent restructuring. Yang Tailin left the company and fully utilized his connections in the non-staple food department to register his own liquor sales company.
Soon, Yang Tailin's registered Huaxing Liquor Store was established. But what liquor to sell? Yang Tailin found that under the circumstances at that time, to do business well, it was necessary to have famous products with large sales volume. However, in a small county town, doing famous white liquor, its relatively high price determined that volume could not be increased, and capital utilization was low, which was unfavorable for future development. To do famous products with volume, only beer was feasible.
So he found the salesperson of Chongqing Beer Group and started as a second-tier distributor for Shancheng Beer. At that time, many liquor distributors sat at home waiting for customers to come. Yang Tailin felt that 'sitting' was too passive; waiting for customers to choose you was not as good as actively serving customers. So he often went to hotels with good business, saw that their products were almost sold out, and proactively contacted the person in charge to ask if they needed immediate delivery...
In the environment lacking service at that time, Yang Tailin's service won everyone's goodwill and trust, and some hotels began to establish cooperative relationships with him. Soon, the sales of Shancheng Beer distributed by Yang Tailin rose steadily. The relevant personnel of Chongqing Beer Group also saw Yang Tailin's drive and potential and gave him the general agency for Xichong County.
With good products, Yang Tailin's enthusiasm increased. But he was not satisfied with just occupying the Xichong county seat market. By expanding the marketing team, broadening the sales network, and using the 'famous brand' of Shancheng Beer, he quickly spread his network channels to the districts and township markets under the county.
**2. Three measures to solve terminal confusion**
Objectively speaking, the reason Yang Tailin did so well locally, besides having newer concepts than competitors, was his ability to think and summarize, which was his secret weapon for achieving the 'county-level king' status.
After several years of operation, Huaxing Company's advantages in local catering terminals became increasingly prominent, but Yang Tailin felt his profits were 'shrinking'. 'At that time, hotels in Xichong County also began to charge entry fees, promotion fees, etc. We entered many hotels, so this expense was large. Sometimes with bad luck, we would encounter cases of bill evasion.' In the process of practicing terminal marketing, Yang Tailin also suffered from 'terminal confusion'.
But to become the top distributor in the local area, not doing terminals was impossible. What to do?
**Yang Tailin explored several solutions in practice:**
**First, reduce terminal costs through product mix.**
In Xichong, the Shancheng Beer that Yang Tailin distributed became the strongest beer brand locally, meaning that every restaurant and hotel had this brand of beer. Yang Tailin thought of a way to pair products into stores, introducing white liquor and red wine categories, enriching the content of direct supply products.
'Everyone knows that beer profits are low and rely on economies of scale. I used this channel to bring in white liquor and red wine products. These are profit products. Although sales may not be as large as beer, profits are higher than beer. We can only use the increased profit to offset the overdrawn terminal costs, thus reducing cost risks,' Yang Tailin summarized.
The white liquor products that Yang Tailin operated through the channels expanded by beer, such as Xiangmanlou and Luzhou Yujiu, had already become the company's best-performing products in 2007, which also proved that Yang Tailin's initial choice was undoubtedly correct.
**Second, diversify cooperation methods with terminals.**
Now, Yang Tailin's Huaxing Liquor Store directly controls 85% of the catering hotels in Xichong County. According to the reporter, the entry fee in Xichong is 40,000 to 80,000 yuan per year, which is a great pressure for a county-level distributor.
Yang Tailin also felt pressure at first. To use this money effectively, he conducted a detailed assessment of hotels in Xichong. 'If the store is opened by a local, and the property is owned by the boss, we pay more fees, because the possibility of 'bill evasion' in such stores is low, and establishing a stable cooperative relationship is beneficial to both parties;
If it is opened by an outsider, or the house is rented, we will propose another cooperation method. For example, pay less or no entry fee, but increase the sales rebate. The more wine sold in the store, the more commission the hotel owner gets. And we also reduce some risks,' Yang Tailin said. This method binds the interests of hotels and trading companies, making it easy to achieve win-win. For local strong brands, this is a good cooperation method.
**Finally, strengthen the grasp of terminal trends.**
Doing terminal hotels, if the work is not detailed and the staff are not diligent, is doomed to fail. Yang Tailin knew this well, so he put forward 'job responsibility' requirements for the marketing team. In addition to visiting hotels and checking inventory several times a week, salespeople also had to observe the hotel's sales situation and changes in the owner at any time. Once business was sluggish, or the owner did not come to the hotel for many days, Yang Tailin and relevant personnel would analyze the reasons and minimize the risk of bill evasion by controlling supply and urging payment.
**3. Do deep, thorough, and complete channels**
Generally speaking, distributors who become regional leaders almost always conduct business in all channels simultaneously, because only in this way can product coverage and share be increased. But how to do deep, thorough, and complete channels? Yang Tailin's answer was simple, only one word - 'detailed'!
Yang Tailin first refined the sales area. He divided the urban area of Xichong County into 4 departments: Department 1 and Department 2 were mainly responsible for the management and distribution of catering hotels; the nightclub and group purchase business was separately handled by Department 3; the wholesale channels in the urban area, such as grocery stores and supermarkets, were handled by Department 4.
After completing the business division in the urban area, he further subdivided the business in districts and townships: because beer has a large volume and involves many township outlets, Huaxing Liquor Store established a special department to manage it; to vigorously expand the rural market, Huaxing Liquor Store actively fought for the qualification to undertake the 'Ten Thousand Villages and Thousand Townships' project, which was beneficial for improving Huaxing's network and deeply expanding the rural market.
After several years of efforts, Huaxing Commercial and Trading has become the county's veritable million-dollar household, network tycoon, and terminal tycoon, the county-level distribution king.
**Case Sharing 3: Hubei Renren Da Commercial and Trading Company**
Looking at the distributor camp, those high-quality distributors that have grown strong and large are all local overlords and regional kings.
Under the leadership of Song Ning, Hubei Renren Da Commercial and Trading Company is the creator of 1/3 of the sales of Hubei famous liquor Baiyunbian (single product sales exceed hundreds of millions of yuan), an outstanding distributor of Budweiser Beer nationwide, an outstanding distributor of Wuliangye, and the general agent of 'Wuliangye Century Old Store' liquor in Hubei; in Wuhan, it has a sound KA supermarket chain and small supermarket sales network and a leading catering sales channel in the Wuhan area;
It has under its jurisdiction: Wuliangye Brand Business Department, Moutai Brand Business Department, Group Purchase Department, Famous Cigarette and Liquor Department, Wuliangye Flagship Store, Circulation Department, Supermarket Department, Catering Department, Nightclub Department, Red Wine Business Department, E-commerce Department, and other departments. It has strong financial strength and a complete modern management mechanism. It has a huge direct sales team and an excellent professional manager team. It has been continuously rated as one of the top ten most controlling liquor distributors in the country, 'Channel Construction Champion', and the manufacturer's ace distributor.
Such a distributor can be said to be the regional king of the Wuhan area, and even has strong influence throughout Hubei. To enter his channels and terminals, one must pay a toll.
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