---
title: "Three Questions for Distributors: 'Where Is Your Future Path?'"
description: "As circumstances change, we must adapt or fall behind. Many distributors want to excel at both the 10,000-meter run and the 100-meter sprint, but one requires endurance and the other explosive power—can they be the same? Under the new situation, distributors' way forward is to change according to the trend. The trend guides our future development and direction. We should think strategically about each path, whereas previously we used tactical thinking for transformation."
author: "戈军珍"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-06-26"
language: "en"
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# Three Questions for Distributors: 'Where Is Your Future Path?'

> As circumstances change, we must adapt or fall behind. Many distributors want to excel at both the 10,000-meter run and the 100-meter sprint, but one requires endurance and the other explosive power—can they be the same? Under the new situation, distributors' way forward is to change according to the trend. The trend guides our future development and direction. We should think strategically about each path, whereas previously we used tactical thinking for transformation.

**Introduction:**
As circumstances change, we must adapt or fall behind. Many distributors want to excel at both the 10,000-meter run and the 100-meter sprint, but one requires endurance and the other explosive power—can they be the same?
Under the new situation, distributors' way forward is to change according to the trend. The trend guides our future development and direction. We should think strategically about each path. Previously, we used tactical thinking for transformation. Today, I will explain how to think about transformation with **strategic thinking.**
Strategy is using the future to think about the present; that is, to think about what to do today based on what we need to do tomorrow.
What is strategy?
It's complex, and many have said much. I hold this view: strategy is not complicated; it has specific plans. Strategy is not empty talk. Saying "sales of several hundred million" is not strategy; it's a strategic goal. Many confuse strategic goals with strategy. I often say: strategy is using the future to think about the present; that is, to think about what to do today based on what we need to do tomorrow.
**Strategy = Positioning + Model + Brand**
Strategy includes three levels: positioning, model, and brand.
Positioning is essentially trade-offs, the choice of track.
Model is essentially the business strategy (a different way of racing).
Brand is a symbol or recognition that occupies consumers' minds.
**Without positioning, a model and brand are hollow, so strategy must first find positioning.** Positioning, broadly speaking, is the choice of track—which track you compete on with others.
Our running tracks include 15,000 meters, 10,000 meters, and 1,000 meters. A marathon runner may not excel at 10,000 meters. Many distributors want to excel at both the 10,000-meter run and the 100-meter sprint, but one requires endurance and the other explosive power—can they be the same?
Note that track selection is crucial. We cannot think that because we sell water, all water sellers are our customers. Not necessarily. **At least we must position our mainstream customers.**
What is a model? It's a different way of racing. Look at the "Tortoise and the Hare" race: the tortoise won. Why? Because the competitor made a mistake. In business, we cannot always rely on competitors making mistakes.
The problem is, to ensure the tortoise wins, we must analyze and rebuild the track. On the same track, dig a ditch in the middle and fill it with water—can the hare still win? That's track design. **Note: in all business, you must be familiar with your track; your track is different from others.**
Also, redesign the race method. If we don't design the track but redesign the race method—80% water, 20% land—the hare still can't win. That's a change in competitive advantage, ensuring the tortoise always wins. You can't always hope the hare sleeps.
What is a brand? Many companies create a trademark and run TV ads—is that a brand? That's unreliable. **A brand is built on a foundation that allows you to become a brand, then through systematic development, you can become a brand.**
**Remember! Selling products well means selling differences, not selling superiority.**
There are three principles for distributor marketing strategy positioning:
Differentiation principle, Non-competition principle, and First principle.
**Differentiation principle.** First, differentiate your business model, and ultimately achieve brand differentiation. We often talk about selling products not as superiority but as difference. We often sell superiority: we see competitors' products and insist the manufacturer makes a similar product to surpass them. Can we really be stronger?
**Non-competition principle.** Make competitors unwilling or unable to compete. From unable, to afraid, to unwilling. For example, we suggest manufacturers help distributors develop regional marketing strategies. What is a base? Within a reasonable market scope, the products and solutions we promote must achieve first place.
Building a base typically requires three types of forces: scouts, field troops, and police. Scouts are responsible for market research—who does this? The distributor, investigating target customers one by one. Then the manufacturer sends sales or technical personnel to actively win them over—these are the field troops. After winning them, our distributors, manufacturers, or grassroots staff and regional managers must serve them—these are the local or police forces.
How to do it? You must change the sales path to terminals and make three changes: First, from one-on-one to one-to-many—from individual visits to inviting customers in and having experts work on them; second, from away games to home games; third, from individual efforts to systematic marketing—your team, the manufacturer's team, and the manufacturer's methods combined into a marketing system, ultimately creating a base.
**First principle.** First does not mean first in total sales, but first in the products or solutions you promote. "First in total sales" is indeed difficult for latecomers. But if you create a differentiated plan, achieving first in your promoted products and solutions is relatively easier. So, first differentiate your business model, ultimately achieve brand differentiation, and make competitors not compete, unwilling or unable to compete. You don't need to pursue scale, but you must pursue position. Compare value, not price, with competitors. I won't compare pressure with you, but I will compare intensity—I'm the best in a certain area. That's comparing intensity.
**Strategic positioning: small but strong.** So, our strategic positioning is not to pursue bigness but to be small and strong, not big and empty. Traditional distributors are big and empty; the future is not like that; it will be small and strong. **The strategic goal is to be a leader in a niche market (region).** The business scale is not large, but its position in the niche market is very strong, and its position in niche products is strong. This is the competitive strategy for future small and medium operators. For marketing strategy, adopt a rolling strategy. Of course, if you have money and a team, you can also adopt a blitz strategy.
**What is your value? Value equals model times platform times management.**
Additionally, the way of value competition under strategic thinking.
We have five paths for business models: **First, identify customer pain points; second, solutions; third, profit model; fourth, external cooperation; fifth, internal structure.**
What is your value? Value equals model times platform times management. The platform includes four elements: the scale of partner companies, the brand of the products you sell, the technology of your organization (service capability, R&D capability), and capital. The model's four elements: the marketing strategy we formulate; the tactics under the strategy; the tactics under the tactics; and how to implement the tactics—who the team is. On this basis, multiply by management. This is the value competition I'm telling you about.
**Good customers are selected, not helped.**
Tactical competition under strategic thinking—customer selection and elimination.
Some customers are not our targets; we shouldn't keep focusing on them. They have no volume, poor learning ability, and outdated concepts. What problems can we solve? Good customers are selected, not helped.
Extension and refinement of the industry chain. How do we cooperate upstream and downstream, with terminal shops, and with manufacturers?
Service model upgrade and improvement. Traditionally, we lead with products and follow with service. Remember, in the future, service leads and products follow.
Selection and optimization of partners. Choose those with high future development potential. Partners with ideas, methods, and the ability to help you are excellent cooperation targets.
Review the series "Difficulties and Solutions for Distributors":
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