Distribution industry has developed rapidly in recent years, no mater in home appliance, medicine, food or electronic industry. Distribution and channel are the word is exposed most frequently by medias as well as one of the focus topics of the insiders. Distribution has long been developed, there were tens of thousand of numerous distribution companies before, including local, state-owned, privately-run distribution companies with different scale. Take IT industry for example, the yearly turnout of the gigantic distributor can be several billion and even tens of billion, and that of the small one only can be tens of million.
Generally speaking, there were rare distributors with special manage experience and high level of management before mid-1990. Limitations were posed on the foreign capital when they entered the distribution industry due to national policies. Furthermore, tens of years planned economy system and isolated commercial environment left us fall behind and there exist a huge gap between the international gigantic and us in various aspects. For example, the aspects of management, the level of information , the means of channel management, distribution skills, automatic management of logistic center, and the evaluation of credit system.
However, from 1997, international gigantic distributors began to land in China one after another, they purchase domestic or HK distribution corporations which are mature and with scale, introduce the advanced MS system. With channel management experience and abundant resources of products, they lead our domestic IT industry to intensive competition based on scale, strength and specialization. The turnover of the first five biggest distribution but or incoming 30 billion RMB. They not only compete in the aspect of hardware such as scale, capital and product resources, but also in the software including the means of channel management, ideology, and strategy and so on.
This paper take a large distribution corporation for example, through the summarize of its experience and lessons, taking "distribution flattening” and “strategy of multi-band in distribution" view to demonstrate the necessity of the two aspects in practice.
