1. Channel Distribution Relationship

Rack manufacturers focus on R&D, production and supply, while distributors act as frontline regional channels responsible for customer acquisition, order negotiation, project implementation and end-user maintenance. Manufacturers rarely serve scattered small clients directly; distributors serve as the core bridge connecting factories to local terminal customers including manufacturing plants, e-commerce warehouses, supermarkets and logistics parks.

2. Mutually Beneficial Symbiotic Relationship

Manufacturers rely on distributors to boost sales volume, fulfill annual production targets and cut unit production costs. Distributors earn gross profits from purchasing and reselling racks. Their interests are tightly bound:

· Manufacturers with stable quality, on-time delivery and standardized pricing help distributors secure orders and repeat customers;

· Distributors expanding local markets and maintaining steady orders allow manufacturers to operate at full capacity and reduce raw material costs. Risks are shared as well: defective products or delayed shipments from manufacturers lead to lost clients and losses for distributors; sluggish sales by distributors result in overstock and idle production capacity for manufacturers.

3. Supply & Service Interaction Relationship

· Manufacturers supply distributors with complete support: rack products, free layout design, inspection certificates, replacement services, marketing materials and installation guidance.

· Distributors feed back frontline market information to manufacturers, including popular models, custom requirements, competitor pricing, product flaws and market pain points, driving product upgrades and price optimization. Distributors function as the manufacturer’s market intelligence hub, while manufacturers serve as the distributor’s production and technical backup.

4. Restricted Cooperative Relationship

Rights and obligations are defined by distribution contracts with mutual restrictions:

· Manufacturers restrict distributors via annual sales quotas, minimum pricing rules and bans on cross-regional goods diversion.

· Distributors require manufacturers to abide by fixed supply prices, exclusive regional sales rights, guaranteed lead times, after-sales warranties and a ban on low-price direct online sales that poach local customers.

Core Summary

Rack manufacturers handle production, and distributors undertake regional sales. They are symbiotic partners linking production and sales. Manufacturers provide products, technical support and after-sales guarantees for distributors, while distributors expand regional markets and absorb factory output. Their success and losses are interrelated, and long-term cooperation relies on standardized pricing, regional protection and complete after-sales policies.