---
title: "Three Dimensions for Agents to Uncover Value Points"
description: "Currently, the consumer market is undergoing profound changes. Besides industries that are indeed declining due to consumption upgrades, there are many fast-growing niche markets. However, in recent years, more and more traditional distributors and agents have felt the chill of the market, with their value space being compressed and business becoming increasingly difficult. This situation stems from common causes: consumption upgrades, changes in the basis of channel value, and information technology that has enabled not only F2B2C but also C2B or C2F models. Agents must proactively adapt by deepening their role in the industry, expanding product categories, and enhancing customer stickiness to thrive."
author: "田波"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-12-26"
language: "en"
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# Three Dimensions for Agents to Uncover Value Points

> Currently, the consumer market is undergoing profound changes. Besides industries that are indeed declining due to consumption upgrades, there are many fast-growing niche markets. However, in recent years, more and more traditional distributors and agents have felt the chill of the market, with their value space being compressed and business becoming increasingly difficult. This situation stems from common causes: consumption upgrades, changes in the basis of channel value, and information technology that has enabled not only F2B2C but also C2B or C2F models. Agents must proactively adapt by deepening their role in the industry, expanding product categories, and enhancing customer stickiness to thrive.

Currently, the consumer market is undergoing profound changes. Besides industries that are indeed declining due to consumption upgrades, there are many fast-growing niche markets. However, in recent years, more and more traditional distributors and agents have felt the chill of the market, with their value space being compressed and business becoming increasingly difficult. This situation stems from common causes: consumption upgrades, changes in the basis of channel value, and information technology that has enabled not only F2B2C but also C2B or C2F models.

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I. Depth: Undertake More Functions in the Industry You Represent
Currently, the industry is talking about declining profits because both upstream and downstream are squeezing agents' profit margins. Declining profits are an inevitable trend, and the test for agents is actually improving operational efficiency. **Agents' proactive actions are reflected in a deeper understanding of the regional market and in practical actions that combine regional strength to negotiate with manufacturers. At the same time, intensification can improve operational efficiency, achieving what a single retailer cannot.** If agents better understand their role as service providers in the channel, serve as a bridge between upstream and downstream, and strive to enhance their service capabilities, they will have room to exist and create value, as well as relatively better profits. The stronger their capabilities, the more space they have; the more services they provide, the greater their profits.
At this stage, merely being a traditional trader will still be squeezed, so it is essential to provide services. Whether agents move products from the manufacturer to the retailer or to the consumer, it is a handling process, which is also a service. In this sense, agents are service providers, and service capability determines their service value. Service capability must be continuously learned, accumulated, and improved through deep involvement in the industry, including professional knowledge.

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II. Width: Expand Product Categories to Increase Profit Space
In recent years, businesses in the air conditioning industry have discovered that their consumers overlap with those in the heating industry, leading to mutual integration between the two sectors. As the number of product categories represented increases, the average transaction value per customer may initially be around 20,000 to 30,000 yuan, but by offering HVAC, air conditioning, water purification, fresh air systems, and other products, the transaction value can reach about 100,000 yuan. Naturally, the revenue from a single customer increases. For the FMCG industry, overlapping consumers are even more common. **Changes in retailers have given rise to adjustments in agents' business models, gradually leading to more integrated suppliers, which I believe is a higher level of evolution for agents.**
The initial transformation may be a learning process, but as capabilities improve, agents' value will also increase. For agent companies, they often start as small micro-enterprises. After five or ten years, as their output value grows, their role changes. Society is also evolving; many people may be accustomed to doing things the same way year after year, but it is still necessary to have the courage to break through.

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III. Length: Strengthen Customer Stickiness
Length mainly refers to continuous service to users over time, enhancing stickiness with users. I previously worked in the HVAC industry and found that channel players in that industry have higher profits than those in home appliances because HVAC agents provide many supportive services beyond just handling goods, which gives them greater value.
Still looking at services: if you outsource to a third party and only do sales as an agent, it is indeed more worry-free, but you lose the opportunity to communicate with customers. If you do the service yourself, the first service is a cost, the second may also be a cost, but by the third or fourth time, the service may bring benefits. Improving service quality and maintaining better interaction with users can effectively enhance user stickiness.
**Under the new retail environment, agents must innovate their thinking, broaden their horizons, and make efforts in the upstream and downstream of the industry chain to open up new profit growth points, thereby ushering in development opportunities.**
Source: Modern Home Appliance Network
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