2020 Distribution Business Operation Registration Guide

March 1, 2020

Guangzhou Paudi Model Tehnology., Ltd

  1. The purpose
  2. Clarify the definition of distribution products for each product line. To regulate the sale behavior of the general distributor, distribution gold medal, distribution silver medal distribution business model, performance accounting method, order commerce and payment method, channel channel system for distribution products, distribution inventory management, and distribution of products. Thereby establishing a stable distributor team that is willing to develop long-term with the overseas business department of the Paudi model, while regulating the market order and ensuring the healthy and stable development of the distribution market.

  3. Scope of application
  4. This document applies to Paudi’s overseas business market.

  5. Definition
  6. 3.1 Certification Channel Type

    • First-level channel: General distributors;
    • Secondary channels: Gold, Silver, Certified Distributors.

    3.2 General distributors positioning

    • As a support platform for logistics, capital and secondary channels for national product sales;
    • The company has strong strength, balanced development and a national marketing network;
    • Undertake the marketing tasks of authorized products in the national or part of the regional market;
    • Responsible for the development of secondary channel partners, expansion of the channel market, and management responsibility for the next level channel;
    • Responsible for providing after-sales support and brand promotion of Paudi products to users and secondary channels;
    • As the main body of the stockpile, the general distributor refers to the current guide price of the lower-level distributors, and establishes the stockpile of the stockpile;
    • Provide after-sales service support to users and subordinate channels.

    3.3 Positioning of distribution gold medal and distribution silver medal

    • The gold and silver medals distributor is positioned as the main body of sales of distribution group, mainly for the wholesale market;
    • In the regional wholesale market, it has good marketing and sales capabilities and good sub-channel resources;
    • Proactively carry out marketing work in authorized areas, or be able to actively cooperate with various marketing activities of Paudi’s overseas business department;
    • In accordance with the requirements of Paudi’s overseas business department, it is required to establish distribution product inventory. Orders for gold and silver distributor are placed directly with the general distributor, and the general distributor stores and supplies goods;
    • The distribution of gold and silver distributor can supply goods to authorized and non-certified dealers in authorized areas, but it is prohibited to supply to all levels of channels in unauthorized areas;
    • It can provide users in authorized regions with pre-sales and after-sales service support for overseas business department products.

    3.4 Certified Dealer Position

    • Paudi’s junior certified partner;
    • Achieve the performance contribution required by Paudi;
    • Responsible for pre-sales technical support and brand promotion for customized users.

    3.5 Dealer certification is divided into three types: renewal certification, new certification, and upgrade certification.

    • Renewed certification: Certified distribution channels in 2019, renewed certification in 2020 based on completion of 2019 performance;
    • New certification: no gold or silver status in the certified year and previous year;
    • Upgrade certification: You can apply for upgrade certification if your performance reaches a certain percentage of the first-level task threshold.

    3.6 Product Categories

    3.6.1 The classification of “Product Category” and ” Product Subcategory ” is as follows:

4. General requirements / principle / overall plan, etc.
5. Document content
    5.1 Distribution business channel structure in 2020:

5.2 In 2020, the thresholds for regional gold and silver certification (sales targets) will be different depending on the region, as follows:

    5.2.1Regional classification

Regional division (gold, silver distribution) Class A United States
Class B EU,United Kingdom,Japan, Korea, Singapore, Hongkong, Canada
Class C Australia, Indonesia, United Arab Emirates, Russia, Malaysia, Thailand, Taiwan, Dubai, Brazil, Saudi, Myanmar, Philippines, New Zealand
Class D India, Vietnam, Iraq, South Africa, Mexico, Ukraine, Greece, Pakistan, Afghanistan, Kazakhstan, Egypt, Peru, Chile, Argentina
  • Distributor qualification requirements:
Type Registered capital requirements Staff requirements
General distributors 5million >50 person
Gold and silver distributor A 3 million >30 person
Gold and silver distributor B 2 million >20 person
Gold and silver distributor C 2 million >10 person
Gold and silver distributor D 1 million >6 person
Certified distributor   >1 person
  • Dealer quarter certification threshold / sales target ratio:
Quarter Q1 Q2 Q3 Q4
Certification threshold / sales target ratio 20% 25% 25% 30%

Determine the quarterly sales target based on the annual sales target and the quarterly sales target ratio coefficient; The newly Certified gold and silver distributor will be tracked quarterly. Use the first day of the quarter in which the day of passing the certification of Paudi’s overseas business department to December 31 of the year as the cycle to calculate the results and calculate the rebate. Its annual sales target is also calculated based on the remaining quarters from the current quarter.

5.3 Establishment of distributor distribution inventory

    5.3.1 Distributor inventory classification

As the main body of the distribution business,the general distributor , gold and silver distributor should maintain normal inventory for the market demand for distributed products in a timely manner. Only distributors, platinum distributors, gold distributors, and silver distributors have the right to stockpile distribution products.

Dealer distribution inventory is divided into two categories: general distributor inventory, gold and silver distributor inventory.

General Distributor Inventory: The general distributor places a stocking order with Paudi’s overseas business department as a standing distribution product inventory. General distributor can supply goods to gold and silver distributors.

Gold and silver distributor inventory: Gold and silver distributor place order with general distributor as stock. They can supply goods to next level dealers, certificated dealers and non-certificated buyer.

According to Paudi export control policy, overseas distributors are not allowed to distribute stockpiled goods to embargoed countries.

5.4 New certification and upgrade procedures for general distributors, gold medal distributors, and silver medal distributors

  • The certification of gold medal distributors, silver medal distributors:
  • Submit candidate gold and silver distributor information from the region, and review the qualification of the distributor. After passing the evaluation, the dealer will become the gold and silver distributor of the sub-categories of the certified products in the authorized area.

  • Upgrade of gold and silver medal distributor:
  • When the sales performance of the silver distributor in the first half of the year has reached the 2020 mission standard for gold medal distributors, it can be applied to upgrade to the gold medal distributor. When the sales performance of the silver medal distributor in the second half of the year has reached the 2020 annual task standard of the gold medal distributor, it can be applied to upgrade to the gold medal distributor.

  • General distributor certification:
  • 5.4.1 The annual distribution task achievement rate reached 180% and above in 2020 will be qualified for the distribution of gold medals, be eligible to apply for certification of the general distributor in the first half of 2021.
    5.4.2 Gold distributors whose sales performance in the first half of the 2020 reached 80% of the total dealer’s task standard in the first half of 2020 can apply to upgrade the general distributor; Gold distributors whose sales performance in the second half of the 2020 reached 80% of the total dealer’s task standard in the second half of 2020 can apply to upgrade the general distributor.

    5.4.3 If the general distributor applies for cancellation or demotion, it will take effect in the next quarter (that is, in the next quarter, it will enjoy new corresponding channel policies and incentives )

    6. Approval and expiration date
    These regulations come into effect on the date of issuance, and the final interpretation right belongs to Paudi’s overseas business department.

    7. Contact person
    If you have any questions about this policy, please contact Paudi’s overseas business department.