Using Poison as Antidote When to Use: When a competitor maliciously dumps products Distributor's Account: I am a wine distributor, mainly selling through hotels and supermarkets, with good sales, and I am considered a model distributor for the manufacturer. Once, products from another province flooded into the supermarket, priced much lower. I quickly had my salespeople buy up that batch, but soon another large batch came in. I checked the source of the goods and contacted the manufacturer. After verification, the goods belonged to Boss Wang from another province. I contacted him, but he denied it and was extremely rude. I had to complain to the manufacturer, who said Boss Wang was a big player and difficult to deal with, often dumping products, and despite several talks, he wouldn't change. Since the manufacturer also wanted to rectify him, it was easy! So I conspired with the manufacturer: they sent a batch of products that Boss Wang distributed, but these had quality issues. Then I reported Boss Wang for selling fake goods, and the manufacturer seized all the dumped products. We staged a "double act." With dumping and fakes, Boss Wang couldn't complain, and his arrogance diminished afterward. Commentary: In the martial arts novel "The Heaven Sword and Dragon Saber," Xie Xun has a powerful Seven Injuries Fist that can seriously harm opponents without visible signs, but it also damages the user. The distributor fought evil with evil, like using the Seven Injuries Fist, effectively hitting the dumping, but using fakes indirectly harmed the brand's reputation, and also hurt himself. If the self is weak and powerless, what use is more freedom? by Eric Hoffer
Retreat to Advance When to Use: When manufacturer-distributor relations deteriorate, and the distributor seeks revenge. Distributor's Account: I was the first in the area to sell rice wine, when the environment wasn't as good as in recent years. I worked with the manufacturer to cultivate the market, but as the market improved, the manufacturer's ambitions grew, and conflicts arose. Eventually, the manufacturer found another distributor to take over the market. I was naturally unhappy, having worked hard to build the market only to hand it over. I quickly took on another rice wine brand, and using my existing inventory, I continued selling in hotels. While clearing inventory, I placed some damaged products and raised prices, causing the market share of that rice wine to plummet. Then I strengthened promotion of the new product, both creating obstacles for the competitor and developing the new brand. Commentary: When handling distributor relations, manufacturers have three strategies: the best is to communicate and part amicably; the middle is to use indirect methods to avoid hidden dangers; the worst is to cut off without discussion. In this case, it was largely due to improper handling by the manufacturer. The distributor vented his anger, but his business reputation suffered, as manufacturers might think: who knows, if this guy stops cooperating, he might stab me in the back.
Secretly Playing "Infernal Affairs" When to Use: When unfamiliar with industry characteristics Distributor's Account: I deal in baijiu, and seeing the rise of rice wine, I wanted a piece of the action, but rice wine is a potential product and cannot be introduced blindly. I knew nothing about rice wine, and neither did my staff. To reduce risk, I sent two capable salespeople, one to Zhejiang and one locally, to apply for jobs in the local offices of two rice wine manufacturers as salespeople. Working was a pretext; learning was the real goal. I still paid them the same salary, but required them to learn product knowledge, manufacturer strategies, operational methods, and collect successful and failed market cases, returning monthly to train other staff. After six months, these two had a basic understanding of rice wine theory and operations. I felt the time was ripe, recalled them as project managers, and introduced a small manufacturer's rice wine for a small-scale trial. Then, from the collected manufacturer information, I chose suitable ones to contact and negotiate product introduction. Because I was well-prepared, I was generous in purchasing, impressing the manufacturer and gaining strong support. As a result, rice wine added nearly 30% to my profits that year. Commentary: This "Infernal Affairs" learning method seems to increase costs, but it increases the survival rate of new products, especially for those not yet forming a market scale. However, personnel selection is crucial, as the manufacturer's environment and platform are better than the distributor's, and those sent as "moles" might waver and end up staying. Additionally, to understand the market and manufacturers, other methods can be used, such as extensive market research, visiting the manufacturer's model markets, and inquiring with industry media.
The "Ruse of Self-Injury" When to Use: When caught in a vicious price war Distributor's Account: I was troubled by supermarket promotions. When I entered the industry in 1999, the market was relatively simple, without such vicious competition. Now, buy-one-get-one-free promotions are common, like buy two get one, buy one get two, or even buy one get three. In reality, everyone raises the original price to create enough margin for the promotion. The cost is passed to consumers. But now many consumers see through this price game, so to make promotions effective, we need new methods. I did the opposite: in local chain supermarkets, I launched a "crazy bottom price" campaign to expose the buy-one-get-one-free lie, directly cutting prices to the bone, letting consumers buy transparently. This was very successful; many chain stores ran out of stock, and purchasing managers called my company to rush orders. Commentary: Bottom-price promotions are effective and can quickly boost sales if used properly, but they are a double-edged sword; if not handled well, they can damage your price system. You can't sell at bottom prices every day, right? After the promotion, you need to raise prices back, so you need a systematic plan that can both lower and raise prices.
Borrowing Force to Strike When to Use: When the product doesn't fit local consumption habits Distributor's Account: In Wenzhou, I distributed a health wine from Shanxi, but it didn't sell well because "Yedao" and "Jingjiu" had established a strong presence, and consumers were used to them, thinking health wine meant those brands. I had to find a different path. I noticed a gap in the wedding banquet market, as health wine wasn't associated with weddings. In Wenzhou, many weddings are held in the evening, and people often drink Wuliangye. My health wine was green, which could complement the red theme of wedding banquets. So I focused on the wedding market, using the slogan "Good things come in pairs, red men and green women," and broke into the market. Commentary: Innovation isn't creation but discovering new market demands and satisfying them. The biggest characteristic of the Chinese market is diverse consumption habits. To expand the market, either lead consumption by creating your own consumption patterns, or if you can't lead, adapt to consumption by tailoring sales strategies to local habits.
Throwing a Brick to Attract Jade When to Use: When order meetings are costly and ineffective Distributor's Account: Previously, I held order meetings at five-star hotels, and many county distributors came, some with families, because many hadn't experienced five-star service. With some song and dance, most signed contracts in a daze. Now, even with a month's notice, few come. Everyone has money and has been to five-star hotels. Also, hosting costs are high; a single event could bankrupt you. So now I plan order meetings to be both effective and economical. Before Mid-Autumn Festival, I had salespeople bring gifts to clients and negotiate, incorporating the meeting costs into the policy, making everyone happy. On the meeting day, I set up a showroom in my office building, displaying products on shelves for viewing. I scheduled the meeting for around 8 a.m., so many left after viewing, not staying for lunch, because they now care about products, not a meal. I only hosted important clients for lunch, and of course, no song and dance. Commentary: Order meetings with eating, drinking, and entertainment no longer attract distributors. First, they've seen and done it all; second, they've become rational—eating and playing don't substitute for policy. So the format of order meetings needs innovation. Discovering the inner needs of distributors is fundamental. Source: Baijiu Distributor Academy -END-