Procter & Gamble Abandoned Three Major Distributors in the South

Yesterday, it was learned from people familiar with the matter that Procter & Gamble recently cut off three distributors with annual sales exceeding RMB 100 million in its southern market. One of the reasons for this change is because P & G hopes that the new distributors will have both money and power in the local market, and the other is that these three companies have some friction with P & G in their business cooperation.

P & G responded that the company will change distributors every year. There is no special reason.

However, according to insiders, at least one of the distributors that had been replaced had already cooperated with P&G for nearly 15 years. Moreover, these distributors have all been dedicated to the franchise. In addition, their annual sales have exceeded RMB 100 million. Is a large distributor.

P & G exchanged blood for the distributors in Shandong last year, so that we all learned that if you want to be a Procter & Gamble distributor, you must focus on the franchise. The replacement of distributors by P&G this time made everyone realize that it is not enough for their distributors to focus exclusively on franchise, but also to have large funds and power. The insider explained that since the money can make the business bigger, having the right is conducive to all kinds of dredging in the daily operation, which will do more with less.

However, according to the reporter, the vacancies of the distributors that have been replaced have not yet been filled. It is not easy to find distributors who have the money but have the right and want to make daily chemicals. Industry insiders analyzed that doing P&G's distributors did a good job and the gross margin was only 1%~2%, and such gross margin level is hard to attract large funds.

Insiders also revealed that in addition to the reasons for increasing the requirements of distributors, this change has a certain correlation with the style of work of executives in P&G Southern Market. The three major distributors that were replaced were located in different provinces such as Guangdong and Hunan, but they all had one thing in common. They had some friction with P&G in cooperation. What makes other distributors more reassuring is that the iron-clad executive has now left the sales department and the newly-acquired southern market chief is more modest. Therefore, it was analyzed that in the fiscal year, Procter & Gamble's southern market is not expected to change distributors.

At present, the distributors being replaced and P&G are still in the final negotiation stage to solve the settlement and compensation issues.