It is said that we live in an era of resource integration, but those who don't understand may think it's just a cliché. For example, many believe Xiaomi's success is due to low prices, but I'd remind you that Lei Jun had worked at Kingsoft for 16 years before founding Xiaomi and had invested in over 20 innovative internet companies like UC Video, Lakala, and Vancl. When he started his venture, he had many followers. Low prices without integration capability cannot last, and even with that capability, you must manage your own turf well. So, before copying low prices, weigh your own strengths. Distributors navigating the market need a few helpers and friends to survive. These helpers include peers and downstream partners, and these friends include manufacturer sales staff and leaders. These people are the main targets for distributor resource integration. Among distributors, some are adept at networking and seem to have endless resources and advantages. An experienced distributor can turn a straw into treasure, let alone make use of the people around them. Whether a distributor can integrate resources depends on knowing how. Many distributors lack even the ability to identify resources, let alone integrate or utilize them. For distributors, resources fall into two categories: tangible resources like funds, manpower, and materials; and intangible resources like brand, brainpower, and influence. Many distributors negotiate with companies, focusing on demanding more manpower, materials, and money. In short, everyone wants more, but why should they give you more? Without a phoenix tree, you won't attract the phoenix. If you don't have the capability, don't ask. So, when negotiating for tangible resources, distributors should adopt an attitude of offering a brick to attract jade, based on the principle of jointly developing the market, and not just think about the manufacturer's investment. These days, no one is foolish, unless it's a one-off deal. Regarding tangible resources, I want to remind everyone: generally, sales managers at manufacturers are professional managers; they invest in anyone, but they want sales and performance. As a distributor and boss, you invest your own money, so you should calculate better than anyone. Your investment and attitude will largely determine the company's support. Unless you're not in the company's key markets or key customers. Today, we focus on intangible resources in distributor resource integration. This is the difficulty and misconception in identifying and utilizing resources, and it's also the biggest waste area. I remember the once-prosperous Nande Group; its chairman, Mou Qizhong, said in prison a memorable line: "The more tangible things are, the more limited; the more intangible, the more unlimited. A tangible bowl, no matter how big, can't hold more than half a liter of water; a person's intangible reputation can sometimes be as rich as a country." This interplay between tangible and intangible is likely the confusion and bewilderment for many distributors. Due to space constraints, we'll only take brand and brainpower as examples to see how smart distributors integrate resources. Brand Some distributors say, "Of course I know brand is a resource; the bigger the brand, the greater the market influence." Actually, you're only half right, or even less. Do you know how small brands can be integrated into big brands? Do you know how to utilize the last value of a poorly reputed brand? If you can't answer, you're thinking too simply. I know a building materials distributor in Dongguan with annual turnover of over a billion yuan, but all from unknown small brands, about 200-300 of them. I asked him why he didn't take on big brands, given the high management costs of many brands and categories. He smiled and said, "Many people look down on small brands because they're hard to market, but big brands aren't available to everyone. I started with small brands; many distributors who started with me have become sub-dealers of big brands, but I stuck with small brands. They transferred their small brands to me, and I've smoothed out the channels. Now, in this industry, everyone knows I have the most complete range and the most flexible categories and specifications. Many distributors come to me first for special needs, and my company is a recognized brand in the channel. Moreover, with over a billion in annual turnover, many banks proactively offer acceptance bills. Now, many so-called big brands come to me to be their distributor, but my ways are unconventional and may not suit them. It's a two-way choice now; I don't have to beg them. I've realized that industries and companies with mixed categories and brands are more suitable for channel brands. They're all small fry; who integrates whom is still unknown!" Brainpower Many distributors constantly complain about the difficulty of recruiting employees, especially good ones, but never think that even if they hire good employees, they might not use them well. If distributors only ask manufacturers for manpower without utilizing what's above the shoulders of manufacturer staff, even if they get the manpower, it's a waste of human resources. Some distributors say, "Our regional staff are clueless; they don't know the market as well as I do. I'd rather think quietly than tap their brainpower." Let's not talk about the cliché of "three people walking together, one must be my teacher." If regional staff are clueless, are all headquarters staff clueless? Some distributors, when seeing headquarters staff, either drink and eat, or hide and avoid. Companies hire headquarters staff at high costs to serve the company with their brainpower. While most of that brainpower is used to deal with distributors like you, they also bear the responsibility of helping distributors grow. If you humbly ask for their advice, headquarters staff, as sources of more information in certain areas, can provide insights. Absorbing their knowledge is more refreshing than racking your brains at home. Successful distributors like to chat with people, whether frontline sales or headquarters visitors. Don't think they're just chatting; excellent distributors are constantly learning about the market, the company, and opportunities through people. This brainpower resource is inexhaustible. As distributors humbly say, cooperating with companies is also an opportunity to learn and progress. To be honest, only when distributors can fully utilize the manufacturer's brainpower should they consider hiring an MBA from the job market. Otherwise, you won't find truly useful people, nor know how to use them if you do. Better not to hire, to avoid trouble. Distributors who only focus on tangible resources should wake up! Editor's PS: From nearly 1,900 articles published on this official account, I've selected 1,067 featured articles, categorized into 14 major categories and 57 knowledge points, systematically organizing frontline marketing management content into a library for learning. From market to customers, covering practical combat and management, all are valuable. Follow the official account and reply with the number "1" to browse related content.
Dealer Operations
What Can Distributors Integrate with Manufacturer Resources?
It is said that we live in an era of resource integration, but those who don't understand may think it's just a cliché. For example, many believe Xiaomi's success is due to low prices, but I'd remind you that Lei Jun had worked at Kingsoft for 16 years before founding Xiaomi and had invested in over 20 innovative internet companies like UC Video, Lakala, and Vancl. Low prices without integration capability cannot last, and even with that capability, you must manage your own turf well. So, before copying low prices, weigh your own strengths.
