At present, although such a bad situation has not yet appeared in China's tricycle industry, the problems exposed in the terminal market still exist. In the early stage of development, the per capita consumption base of the industry is growing rapidly, so as to realize the rapid development of the industry and the rapid development of the domestic brand. However, with the changes of market environment such as market downturn, horizontal competition and increased operating logistics costs, the traditional distribution model is facing great challenges.

  The sales growth of an enterprise is mainly determined by market capacity, product penetration, brand market share and other aspects, while the traditional distribution chain is through dealers, secondary dealers and wholesalers, and finally deliver the goods to the terminal. In this process, regional monopoly leads to the maximization of channel benefits. Under the new situation, a new distribution system is being established.The internal multi-layer network in the sales link is being differentiated and reduced, which directly leads to the continuous decline of dealers' operating profit margin and the smaller and smaller price difference space provided for the intermediate link. Each link should obtain its own income. When the input and output are out of proportion, the link will withdraw from the market, which is the basic law of market economy.