In the increasingly competitive market reality of today, selecting and managing the right distributors for your products and services, is critical.
Statistics show that more than 70% of exporting Principals are not satisfied with the performance of their distributors.
Still they stick to underperforming ones. We see this situation mainly in emerging markets.
Solution lies with both parties, Principals and their partners.
There is a need for an engaged process from the distributor selection to an active relationship management. This will result in a win-win trajectory for both parties.
Relationships tend to be well in the early stages of the cooperation, then this energy diminishes overtime and disappointments take place. An urgent action is needed here to avoid a no-return drift.
No doubt that experienced distributors are of valuable assets yet passionate ones are the best to your export business.
Chase partners who share same ambition and enthusiasm to succeed and to a certain extent your company’s culture.
Passion will stretch the excitement in the relationship as long as you are actively managing this relationship. This is not an easy trait to identify, particularly in emerging markets where many distributors are proactive to collect foreign brands rather than create value.
Here below are few table stakes when choosing your distributors:
Passion to achieve results.
Focus: you need a partner who sees your business valuable and an important source to the revenue.
Full transparency: Principals are blaming their distributors from not showing openness in disclosing what is going on in the markets.
Experience/Specialization in the same sector
Employee retention: This is an important element to consider. A high employee retention is a recipe for stability and better performance for your business.
Cooperative: a distributor who accepts to review his performance regularly and makes appropriate changes to succeed.
Ethics: This is crucial trait to consider. You do not want your distributor to be involved in non-ethical conduct performed in some under-developed or emerging countries. Make sure that your distributor complies to your business ethics.
TBMedex SAS is an energetic organisation that assists medical and healthcare Principals to enter and develop their brands in the MENA region. The company offers competent, sustainable and results-oriented professional services ranging from strategic consulting market through sales & marketing audits, to distributor search & selection, business development, market research, contract negotiation, company formation and regional distribution.