Finding good distributors is tough in any market but export markets can be particularly challenging. Even after you identify a good distributor you still have to support, monitor and manage them. For export markets there is the added frustration of relying on your distributor for market and end-client feedback.
We have helped 100s of SMEs over the years to identify, engage and optimize their distributor network for export markets. We decided to put down some of the best practices and solutions that we have found over the years that really work.
The resulting whitepaper on Finding Distributors for Export Markets is meant to help exporting companies avoid the pitfalls and effectively grow their business internationally through a well managed distributor network. Some of the points covered include:
Defining a distributor
Choosing between an agent and a distributor for export market will have major implications for how your business grows. Agents represent your company in the local market in exchange for a commission and/or salary. Their resources are limited. Distributors require higher margins but should put greater resources behind your product.
Identifying distributors
You can spend a long time searching for the right one but the most proactive and motivated distributors are the ones that find you. If you are targeting distributors in a specific market, state it clearly on your website – make it easy to get in touch with you. We give you tips on how to optimize your search but also how to make sure the best distributors find you.
Engaging distributors
The right contract is obviously essential, not just to protect your downside, but also to ensure the upside. Our whitepaper includes a contract checklist to make sure you include everything in your contracts and in your due diligence.
Supporting your distributor
As a supplier, your role is to encourage and support your distributor. The time and engagement of management needed for this is typically underestimated. This whitepaper tells you how you can use the internet to do the work for you. Control product roll outs, pricing and marketing all from your website.
Managing multi-distributor networks
Exporters typically face two types of networks: horizontal and vertical. Horizontal networks have similar profiled distributors acting in defined geographic markets. Vertical networks have multiple distributors acting in separate industry sectors. Horizontal networks are typically easier to manage and less complex than vertical ones.
This whitepaper covers the above points in detail and other issues you may have. To find out more download our free whitepaper: Finding Distributors for Export Markets.