---
title: "Why Are Distributors Uninterested in Products That Manufacturers Consider Good?"
description: "A brand manufacturer recently posed a sharp question during its distributor recruitment drive: why are distributors not interested in products that manufacturers consider good? This question seems simple, and any regional manager or distributor could offer some answers, but a systematic exploration reveals many factors. This article delves into the underlying causes of this contradiction, offering insights for both manufacturers and distributors."
author: "冯瑶"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-10-30"
language: "en"
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# Why Are Distributors Uninterested in Products That Manufacturers Consider Good?

> A brand manufacturer recently posed a sharp question during its distributor recruitment drive: why are distributors not interested in products that manufacturers consider good? This question seems simple, and any regional manager or distributor could offer some answers, but a systematic exploration reveals many factors. This article delves into the underlying causes of this contradiction, offering insights for both manufacturers and distributors.

Recently, a brand manufacturer posed a sharp question during its distributor recruitment drive: why are distributors not interested in products that manufacturers consider good? This question seems simple, and any regional manager or distributor could offer some answers, but a systematic exploration reveals many factors. This article delves into the underlying causes of this contradiction, offering insights for both manufacturers and distributors.

**01 Different Perspectives Define Good Products Differently**

First, it's important to clarify that there are a thousand Hamlets in a thousand people's eyes. Everyone has their own perspective, and viewing products from different angles naturally yields different opinions. However, when placed in the rational business dimension of "product selection," there are roughly three perspectives: manufacturer, distributor, and user. The differing interests of manufacturers, distributors, and users lead to different stances. Brand expert Miao Qingxian once proposed an analysis based on these three perspectives:

**1. Manufacturer's perspective of a good product: excellent quality, leading technology, superior technical parameters, etc.**

**2. Distributor's perspective of a good product: a good project with low risk, high profit, fast capital turnover, and promising future.**

**3. User's perspective of a good product: better satisfaction, better experience, stronger resonance, and more positive associations.**

Image source: Panoramic Vision

From these different perspectives, it's clear that manufacturers focus more on product dimensions, while distributors consider a broader range of factors. Thus, it's common to see a city recruitment manager enthusiastically pitching a product to a distributor, who sits across with furrowed brows.

**02 Distributors' Concerns in Product Selection**

In the era of product scarcity, product selection could determine a distributor's survival. That's why trade fairs like the Sugar and Wine Fair, which emerged from this need, have been held for over 100 sessions, and many manufacturers and distributors still attend to try their luck. Previously, distributors relied on business acumen, experience, intuition, courage, and daring. Many distributors took off after selecting the right product. As times evolved, products are no longer scarce but abundant. With a glut of homogeneous, highly substitutable products, product selection has transformed from a test of personal capability to a matter requiring careful reconsideration and rational decision-making.

How can manufacturers and distributors overcome communication barriers arising from their differing stances? Next, from the distributor's perspective, I'll outline what distributors are really thinking about and the factors influencing their decisions.

Distributors' concerns in product selection can be analyzed from both external and internal perspectives.

**From an external perspective, there are mainly five concerns:**

**Concern 1: Is the manufacturer reliable? Is the category viable?**

A good product is the door opener. For big brands with quality products that align with consumer trends, these dimensions are easy to evaluate. The manufacturer's city manager can clearly explain the product's advantages and extend an olive branch—that's the first step.

**Concern 2: How does the manufacturer manage the market? What market support is provided?**

Beyond the product, the next considerations are the manufacturer's market management and support. Today's channels are highly diverse, including e-commerce, traditional channels, and new retail, each with sub-branches. Does the manufacturer have a comprehensive price system? Are there regional protection measures? Are there market activities and expense support for product sell-through? Is there after-sales support?

**Concern 3: What are the manufacturer's requirements?**

Top-tier brand manufacturers may impose requirements on distributors, such as substantial upfront capital, high distribution rate, frequent terminal visits, and strict display standards. In contrast, second- and third-tier brands may have lower requirements.

**Concern 4: Is the profit margin sufficient?**

Some big brands only require distributors to handle warehousing, logistics, and capital advances, leaving extremely thin margins. Distributors often need to weigh pros and cons and calculate meticulously. For distributors with full market operation capabilities, strong terminal relationships, and market control, they might adopt a 1+N model—using first-tier brands to open the market and third- or fourth-tier brands to ensure profits.

**Concern 5: Does the manufacturer have a successful model market?**

For distributors, even with a good product, adequate profit, and strong control, the core concern is whether the product will sell and sustain repeat purchases. Therefore, the existence of a successful model market is a key factor in judging product entry. However, it's important to note that due to regional consumption habits, success in one area may not be replicable elsewhere. Such products carry higher operational risk and difficulty, making distributors cautious.

These are the external factors distributors consider. However, to alleviate their concerns, discussing only these external aspects is insufficient. This is why many city managers fail in negotiations—they only talk about their own strength, product quality, market investment, product margins, expense support, and personnel support, **but fail to consider from the distributor's perspective: Does my product meet their needs?** Each distributor's situation differs, and their product needs vary. Only by recommending products based on the distributor's needs can you truly move them and gain their commitment.

Next, I'll dig into the distributor's internal perspective, which may help manufacturer city managers gain deeper insight into distributors' business needs.

**From an internal perspective, there are mainly three concerns:**

**Concern 1: Does this product complement existing products?**

Can this product form an effective combination with the distributor's current product line? What combinations? Seasonal combinations, price band combinations, consumer segment combinations, functional differentiation combinations, brand awareness combinations, etc. The purpose of complementarity is to increase revenue and reduce the cost of single-store service, allowing salespeople to close more deals per visit and lowering per-salesperson service costs.

**Concern 2: Can this product enhance shelf power in stores?**

Beyond product complementarity, can it increase bargaining power for shelf display resources? Apart from beverages, most FMCG offline business is conducted in KA and BC stores. In such channels, whoever secures more shelf space and resources wins higher sales. Traffic determines sales. Can this product help the distributor enhance store influence, grab more resources, and reduce per-brand store investment costs, including ground promotion, end-cap, and demonstrator cost sharing?

Image source: Panoramic Vision

**Concern 3: Does this product maintain "channel" consistency with existing products?**

Channel consistency refers to the match between the product and the distributor's regional customer base. For example, a distributor's salesperson doing van sales can load 200 SKUs, but each terminal only carries 10-20 SKUs. That seems normal, but it's actually a mistake in product selection. Poor product-terminal fit not only reduces sales efficiency but also increases warehousing and logistics costs.

In summary, often "can this product make money?" is just a phrase on distributors' lips. **The product that truly brings value to distributors may not always be the one with the highest profit.** Few distributors clearly understand "who am I," and few manufacturers clearly understand "who are you." This leads to many mismatches, recruitment difficulties, and new products failing to move. It seems product selection is indeed a critical step. Mastering product selection is mastering the most important link in supply chain optimization.

May all manufacturers and distributors find suitable products.

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