[Part 3] Distributor in China------Game of Power in Wholesale and Retail in China

Distributor in China Part 3
--------Game of Power in Wholesale and Retail in China
经销商在中国
批发零售行业权利的游戏
 
When talking about selling to China, the first big word come in the conversation is DISTRIBUTOR. The underlying logic is simple. I proudly have a good brand and good product, China has a huge market with great potential, all I need to do is to find a distributor to sell my products. I give him a good cut, say more than 50% of the gross margin, very generously, and he make the sell, deal with the sub-wholesalers, hire salesman in market, sell my product whichever way he sees fit, and take care of the loss.
 
当我们探讨把商品出口到中国市场的时候,对话中出现的第一个关键词就是“经销商”。这背后的逻辑很简单。我这里有优质的品牌和商品,中国有巨大的市场和消费潜力,我需要做的就是找到经销商来买我的商品然后卖到中国市场。我给他很好的分成,比如零售价50%的利润,然后他负责销售,对接下一级批发商和零售商,用他能用的方式销售并承担损失。
 
Perfect story, only question left is how to find such perfect distributor. This is really a game of power and political lobbying by core.
故事很完美,那么接下来需要做的就是找到完美的经销商。而核心问题是,这是一个关于权利和游说能力的游戏。

PART 3 To Be In Each Others Shoes
第三部分:换位思考
 
That is why WKI is here to help. Maybe your brand is a local leader, is a influential player in your country, maybe even in the continent, you feel proud. We share your pride, but you should understand the bias and prejudice among most Chinese citizens against brands and their origins. To be straightforward, there is a saying that the moon in a foreign country is rounder than in China, it still holds true often, but the richest part of China who actually consume imported products often, are getting more and more educated and more and more rational when making purchasing decisions. Meaning a simple foreign identity just won’t be enough to cut it.
这就是为何唯氪WKI能提供帮助。或许你的品牌是当地的龙头企业,是本国市场最具有影响力的弄潮儿,甚至在本国大陆上都是有影响力的品牌,你感到自豪。我们感同身受。但是需要知晓的一点在于,中国消费者对于海外品牌的偏见和成见很大程度上取决于品牌地区来源。 直白一些说,中国有一种说法,国外的月亮比较圆,很多时候确实是中国消费者的认知。但是随着日常消费进口商品的富裕阶层越来越了解产品和品牌的真相,已经开始越来越理性的做出购买的决定。也就是说,只靠“进口”这一身份,是绝不足以赢得市场的。
 
No offense to any countries or regions, but discrimination is deeply rooted even when we actively avoid the topic. When that kind of discrimination and asymmetric information is in the mind of consumers, it is definitively in the mind of distributors, because all their livelihood depend on their understanding of the market, the consumer behaviour.
我们不想冒犯任何地区或国家,但是歧视和偏见是深入人心的,即使我们有意回避这个话题。当这种歧视和信息不对称是占领消费者头脑的主要信息,这种信息必定也在经销商中根深蒂固,毕竟他们的整个生意都是建立在对市场的理解,和消费者心理的把握上。
 
So don’t be surprised that when you ask the question can you find me a distributor, WKI’s answer is maybe, and at a price. Because the effort is worth a cost, and the result might be fruitful. Everyday there are once big name brands disappearing even after they thought they do everything right. No one with a rational business mind should be that confident that a good sale can be made with no effort at all.
所以,当问询是否唯氪WKI能帮你找到经销商这个问题的时候,不要惊讶WKI的回答是也许,且收费。因为我们为此付出的努力值得报酬,且结果会极有帮助。每天都有曾经的知名品牌从市场上消失,尽管他们认为自己已经做了所以方向正确的努力。一个理性的经营者是必须不能盲目自信的认为好的销售数据可以不付出努力而自然发生。
 
In real life scenario, one distributor with that kind of power would normally represent several other not so famous brands, with whom he would have more bargaining power, meaning he would have account payable with those brands, as those brands would be competing to cooperate with such distributor, rather than the other way around. The logic is simple here, the more appealing a brand is to end consumers, the more power the brand holders would have against any channels of sales. Especially with nowadays social media connecting almost everyone, end consumer feedback can be easily collected and advertisement and promotion can be right to the target. The business is always chasing maximized profit with short turn over time and healthy cash flow.
在现实生活中,一个经销商有如此实力一般会代理好几个品牌,有大有小,有些品牌话语权较大,有些经销商较大。 这意味着有些品牌是先付款后拿货,会存在应收,而有些则是先拿货后付款,会存在应付。因为那些小品牌有限的话语权,只能通过赊销的方式打开市场,他们也是通过竞争才拿到与这类有实力的经销商合作的机会的。这背后的逻辑同样直观,一个品牌越是被消费者认可,品牌持有者就在经销商面前越有话语权。尤其是在社交媒体几乎串联起所有人,终端客户反馈能轻松获取,广告投放和营销精准对接的时候,生意的发展更加追求在短平快的库存周期和健康现金流的前提下追求利润最大化。
 
That is why WKI strongly suggest before marketing yourself to distributors, first marketing to end customers.
这就是为何唯氪WKI建议,在向经销商推广营销自己品牌之前,先向向终端消费者开展营销。

Shanghai Wukong Integration (WKI) Center

上海唯氪市场营销中心

+86 574 27721008
lily.yang@wkichina.cn