The 2020 Mid-Year Economic Update_long

6 Distribution Trends to Keep in Mind When Planning for 2011

Distributors are looking to rebuild on a solid foundation in 2011.

The weak economic recovery defined the past year in independent distribution channels, as I outlined in the Dec. 25, 2010, issue of MDM Premium. (Read 6 Trends Driving Distribution in 2010.)

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These six trends should have an impact on distributor planning in 2011:

  1. Growing focus on profitability, not sales volume
  2. Shifting definitions of value by customers
  3. More attention paid to employee recruitment and retention
  4. An international approach to doing business
  5. Increasing interest in online tools
  6. The return of consolidation

Read 6 Trends Driving Distribution in 2010 for more detail on each of the above trends.

I have written a year-in-review article for each of the past five years. For each of the past three years, I described how distributors have been taking a much closer look at their operations and how they define and execute their value propositions. Why? Economic conditions served as a wake-up call to even the best of distributors. MDM Publisher Tom Gale defined 2009's economic environment as a "turning point for every company in wholesale distribution." Indeed it was.

As Warren Buffet is known for saying: "A rising tide lifts all boats. It's not until the tide goes out that you realize who's swimming naked." At the same time, the distributors who rebuilt on a stronger foundation in 2010 will continue to grow and take market share in 2011. We at MDM look forward to helping you do just that. Let us know how we can help you grow in 2011 by calling 1-888-742-5060.

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