China-based Skystar Bio-Pharmaceutical a leading bio-pharmaceutical company has increased its distributor base by over 300 during the first half of 2007. Skystar's new distributors primarily target small- to medium- sized end users at the town/county level. The addition of over 300 new distributors more than doubles the number the company had at the end of 2006. The majority of the new distributors are located the in major farming and ranching provinces such as Shaanxi, Shandong, Sichuan, Hubei and Hunan.
With the addition of these distributors, the company expects to gain a higher margin in veterinary medicines and will now account for a larger percentage of its total sales. The increase in the distributor base will help keep Skystar in line with its 2007 revenue targets of $12 million to 14 million.
According to Mr Weibing Lu, Chairman and Chief Executive Officer of Skystar, the company has targeted distributors and end users at the town and county levels in order to bypass the primary and secondary distributors at the provincial and city levels. This allows the company to penetrate into the markets and offer more cost concessions to its customers.