CHINT SWITCHES ON CHINA'S ELECTRICITY 159 distribution centers. The goal was to reinforce sales, marketing, and after-sales service and reduce delivery time. After 15 years of rapid expansion, CHINT began to realize the need to optimize the sales channels. Most of its agencies had been created and managed by Wenzhou salespeople who sold directly to customers after traveling to their location. Many of the salespeople settled in the areas where they worked. But as CHINT transformed itself from a family business to a more modern enterprise, the com- pany needed outlets to make more sales, provide better service, and use its resources more efficiently. CHINT solved the problem by setting up a tiered distribution system. Preferred agents (or distributors) with higher sales vol- umes, better technical competence, and reliable after-sales service received greater discounts. Core distributors were treated with more favorable conditions, and weak distributors were replaced if