Annoyance in distributors’ management

Yearly Distributors Commending event just finished. Seemingly distributors lived through one year unromantically, except Michael leaving. Of course, some distributors disappeared, but replaced with new faces. I attended such event three times, fortunately stepped on the honor stage three times. I was muddleheaded for two previous honors; I felt no difference this time, but heavy-hearted more.

Distributors group consists of complicated and character-unique members so that only the professional media International Electron Business Information under Global Resource is capable of assembling this mingle- mangle-like group together to hold a meeting, even rating event. Of course, there are several rating levels, or otherwise it makes no sense. This group includes flattop-level companies such as Avnet/Arrow, up-and-coming young stars in Asia such as WPG/Excelpoint, old-brand Asian companies such as Conshing/Willas-Array, name-brand Chinese companies such as CEIEC/SECOM, old-brand independent distributors such as Converge/America II, and independent Chinese distributors such as INTERINE and ESM China. Big flattop company, for example Avnet, reached USD17.0billion annual sales in 2007. Nevertheless, small domestic distributor had only RMB 0.1billion annual sales, in contrast, a small sampan. Yes, our company, Chitron, which has expanded to possess 200 staffs since founded, is lucky to be included in small sampan list. However, our challenge target aiming at RMB several 100 millions in 2008 is just equivalent to Avnet's toe!

In each rating event, the media sequenced sampans, 10,000t freighters and flattops orderly and carefully. Unexceptionally, those flattops represent foreign companies, regional essences represent HK and Taiwan companies, and so-called national enterprises represent local companies' owners. For those big-boss companies' representatives, their attitudes and graces indubitably revealed their experiences, wisdoms and self-confidences. Contrarily, domestic bosses addressed no more than open-minded attitudes, thanksgiving words and the like, except for Mr. Xu, GM from Pioneer who delivered a peroration "Go Go Pioneer, Go GO Sichuan, Go Go China!". Talking about me, however, I just rushed out of my office for this meeting, like coming back from a battlefield, I felt like being embarrassed.

Let's imagine, among numerous of bosses in Segme Electronics Market in Hua Qiang Bei, Shenzhen and Zhong Fa Electronics Market in Zhong Guan Chun, there are many uncovered talents. Nevertheless, compared with awarded distributors, they should be listed in fish/shrimp category. According to data investigated by the media recently, 60% of parts and components throughout the country are marketed via distributors. I bet previous-year sales summing up those of top-100 distributors present in the event shouldn't be more than half of such 60% of sales. Absolutely, these fish/shrimp-rating companies built up half of the market in parts and components distribution.

Chitron has taken 13 years to upgrade from fish/shrimp rating to sampan rating. Of course, we could take breath. Nevertheless, we drove the sampan from the river to the sea at the volley. Remotely, we knew and heard big companies before; closely, we realized we were so tiny and too far behind to catch up with Avnet/Arrow. Don't know when we could grow up to reach their knees. Therefore, those fish/shrimp-rating bosses in Segem and Zhong Fa markets are really happy because whole family is full when one eats its fill. However, my opinion is "No competition for this honor next year, but more thinking".

Sampan-like companies are those which are systematized preliminarily and scaled certainly as well as have management architecture. Seemingly, It is better than lower-level ones, but we may describe our management in domestic trouble and foreign invasion: internally, management challenge which HR, executive, financial and information aspects need to be rectified and improved; externally, market challenge which policy stipulation, strategy plan and implementation effect should be completed. In the meanwhile, we are frontally intercepted and closely pursued. If you were us, should we have more thinking rather than reluctantly struggling with others?

At closing ceremony, while having dinner with Mr. Yan, president of Converge (former boss), and William, manager, I advised them seriously that professional managers never act as bosses, otherwise they have to suffer endlessly, like me.

Happy distributors have similar happiness, but sad distributors suffer differently. Let's, these sad distributors, blaze, Ok? I already offered a few commonplace remarks by way of introduction so that other may come up with valuable opinions. Where will Chinese distributor go? How will their management face future challenges? Expose troubles in distribution management?


Posted 2009-1-22 14:37 by Lilian
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