Choosing A Product Agent Before Becoming A Brand Agent Should First Avoid Risks.

In the era of changing market environment, the importance of channels is self-evident.

Some people call it the age of "channel is king". For most enterprises, they are directly facing distributors or distributors. They are a bridge linking businesses with consumers.

But some people did not seriously examine manufacturers and markets before deciding to become brand agents, and even did not seriously examine contracts.

Therefore, the final result is often not satisfactory.

Experts remind early entry travellers not to blindly enter the industry, choosing the agent products should first avoid risks.

In July, Hunan is in the hot summer season, which is a good season for beer sellers and a good time to make money.

For many dealers of Jinwei beer in Xiangtan, Hunan, the business is getting worse and worse this summer.

Recently, many distributors in Xiangtan have jointly reported to this newspaper that Shenzhen Jinwei brewery Limited has broken new rules and has chosen new distributors after new products are listed, resulting in serious conflicts between the interests of new and old distributors, resulting in confusion in the market.

They strongly appeal to Jinwei company to "straighten out the relationship between dealers as soon as possible, and not to harm the interests of other dealers for the benefit of a dealer". Otherwise, they will be forced to abandon Jinwei and stop taking delivery.

On the morning of August 21st, the reporter interviewed Tang Xiaoping and his wife in Huihu District, Xiangtan, in a shop in Changsha.

Tang Xiaoping and his wife were the biggest ones who complained about all the complaints. They told reporters that in order to Jinwei beer, they gave up their original business and went to Xiangtan to engage in Jinwei beer agency. As a result, they lost nearly two hundred thousand yuan in a few months.

In November 2006, Tang Xiaoping and his wife knew about Jinwei beer brand and corporate culture because they had been engaged in the catering business in Huizhou, Guangdong. So they are interested in selling Jinwei beer to Hunan.

Jinwei beer, the former distributor of Xiangtan - Jin Hongfa Trading Co., Ltd., because of family conflicts, apply for the automatic waiver of Jinwei beer regional distribution rights in Xiangtan.

So in December 7, 2006, in the Jinwei beer Hunan area Xing Zonghe Xiangtan area manager, Jun Jun's participation in coordination, Tang Xiaoping and Jin Hongfa signed a market pfer agreement, Tang Xiaoping and his wife set up Huijin liquor business, formally took over Jinwei beer Xiangtan Hexi regional market.

In fact, there was an unfairness in the agreement at that time, for example, in accepting all the inventory left by Jin Hongfa company, which was higher than the more than 5000 stock liquor of its own reserve price.

In addition, because Jin Hongfa is the Xiangtan distributor of Jinwei beer, now he signed a market pfer agreement with me, and accepted all the inventory and account left by Jin Hongfa company, so I should of course get the whole Xiangtan market that Jin Hongfa used to run.

And the reality is that the Xiangtan market has become a joint operation by me, the wholesale Department of Yue Tao and Yongfeng wholesale department.

Tang Xiaoping said.

Although Tang Xiaoping and his wife feel that the agreement is not fair, they agree very much with Jinwei's corporate culture and look at the market prospect of Jinwei beer, so they finally sign the agreement very readily.

In the fourth article signed by Tang Xiaoping and Jin Hongfa in December 17, 2006, the reporter saw that Jin Hongfa promised not to distribute Jinwei beer products in the Hexi area of Xiangtan and to do something against Tang Xiaoping and Jinwei beer.

However, Tang Xiaoping and his wife did not expect things to be as simple as they imagined.

Not having been a wholesale beer producer, with the hard work and honest and simple character, he quickly signed 50 thousand distribution contracts with several distributors, and invested a lot of money in buying some terminal projects.

It should be said that the early market operation is quite good, when the off-season sales volume has reached more than 3000 boxes per month.

But when the couple opened their markets with confidence, in March 2007, unexpected problems came.

Shortly after signing the bill, the distributors came running to ask for a refund, indicating that they could no longer manage Jinwei's super brew beer because the market appeared near Jinwei, which was close to each other, packaged more beautifully and the price was cheaper.

Tang Xiaoping wife Xie said.

Tang Xiaoping and his wife were very surprised and immediately investigated.

To their astonished eyes, the distributor of Kingway's "cool" Xiangtan distributor was just three months ago, who gave up the distribution rights, formally signed the market pfer agreement, and promised not to distribute Jin Hongfa's beer in Xiangtan Hexi area.

"From the beginning of the signing of the contract, we fell into someone else's elaborate trap," he said. "In fact, we spent only about 200000 months on the sale of Kingway beer for three months."

Tang Xiaoping said with great indignation.

According to industry sources, as long as the Jinwei ice was not listed, the old dealers in Xiangtan knew that the manufacturers would produce a product with strong market competitiveness.

They have also applied to many business managers in the Hunan area to make products, and they also have funds and strength to run the product, but the company has refused to disclose the news on the grounds that there is no definite reason.

So, until the Jinwei ice was on the cupboard, Tang Xiaoping and other new dealers suddenly realized.

Tang Xiaoping saw that he was in vain for many months, and for this reason, he found Kim Wei's responsible person. But the business managers of Jinwei company told Tang Xiaoping and other dealers that he would give you more market support later. Jin Hongfa only made low-grade products and had no support for "ice cold".

However, Tang Xiaoping and others are hopelessly disappointed. Recently, Kingway has introduced a mid-range product, jinweijinxi beer, which is still sold by Jin Hongfa. Although it is a mid-range product, it is very similar to the high-end products in the appearance and packaging of the products, but the price is much cheaper.

"When we signed a contract with Jin Hongfa, Jinwei company has been in the field of supervision, and the representative of Ke Wei on behalf of Jinwei company also signed the contract.

Why does Jinwei still violate the agreement to give Jin Hongfa the agency? "

Tang Xiaoping said.

Reporters in Tang Xiaoping and Jin Hongfa signed an agreement to see that the Xiangtan area manager Ke Jun on behalf of the Chinese side signed the word.

The reporter called Ke Jun and Ke Jun admitted that he signed the agreement between Tang Xiaoping and Jin Hongfa. He also admitted that Jin Hongfa was in charge of Kingway beer in Hexi area of Xiangtan, but it was different from Tang Xiaoping's products.

As for Tang Xiaoping, Jin Hongfa believes that the "cool ice" of Jin Hongfa has an absolute advantage over its own distribution of "super cool" in packaging design and price, for example, the price of "cool" is 16 yuan, and the market price is 21~23 yuan, while the "super cool" price is 21 yuan, and the market price is 22~24 yuan.

In this regard, Ke Jun said that the prices of these two products are almost the same.

Tang Xiaoping and others think that the more serious thing is that Jinwei develops new products to compete with other brands. The aim is to occupy other brand markets. However, after the listing of Jinwei new products, instead of going to do new markets, it is trying hard to squeeze the market of old products. It is a serious phenomenon that goods are distributed and goods are rushing. So the market of dealers like Tang Xiaoping will be seriously affected and the market will go down.

At present, Tang Xiaoping and others are now losing 2000 sales per month to their income, though they want to stick to it, but they are more and more powerless.

Tang Xiaoping said: "our greatest hope is that Jinwei can give dealers a fair opportunity to compete. This way of doing the market is really chilling."

This reporter interviewed Zhou Faming, Dean of School of management and marketing, Hunan Agricultural University.

Zhou Faming believes that with the continuation of wine culture and consumption habits in China, the fast moving consumer goods business has been booming in recent years, so many people who have not yet engaged in fast moving consumer goods are constantly joining in.

It can be seen from the marketing means of the current manufacturers that it is mainly the establishment of a sales network to achieve their own sales volume, and this kind of network construction is inseparable from the granting of agency rights.

The temptation of agency is very large. It is monopolization of a product's right to sell to a region, especially for a famous brand product.

However, for those who enter the industry, they should know how to avoid risks. First of all, we should examine the corporate culture and reputation of the granting agents. Secondly, we should know about products and markets. In addition, when signing contracts, we should pay attention to whether the contract is covered by the company's chapter, which represents whether the signatories of the company are provincial representatives.

From the point of signing the agreement between Tang Xiaoping and Kim Hongfa, if he is a representative of Kingway, Jinwei should abide by the contract. If not, then there is a problem with the management of Kingway.

Therefore, in every respect, Kingway should improve its own management system, preferably establishing an inspection system, which can restrict the management level and, on the other hand, understand the real situation of dealers.

Zhou Faming said.