Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.
When the firm distributes its brand through just one or two major outlets in the market, who exclusively deal in it and not all competing brands, it is said that the firm is using an exclusive distribution strategy. This is a common form of distribution in products and brands that seek a high prestigious image.
Typical examples are of designer ware, major domestic appliances and even automobiles. By granting exclusive distribution rights, the manufacturer hopes to have control over the intermediaries price, promotion, credit inventory and service policies. The firm also hopes to get the benefit of aggressive selling by such outlets.
Most exclusive dealing contracts are beneficial because they encourage marketing support for the manufacturer’s brand. By becoming an expert in one manufacturer’s products, the dealer is encouraged to specialize in promoting that manufacturer’s brand. This may include offering special services or amenities that cost money, such as an attractive store, trained salespeople, long business hours, an inventory of products on hand, or fast warranty service.
Many companies have exhausted their market potential and are considering other markets to increase profits. But given the lack of awareness of the market structure, laws, lack of knowledge of the language, lacking sales channels and basic skills for development in foreign markets, these companies cooperate with us. In our turn, when we receive an exclusive representation in the region, we contact the largest distributors, networks and promote the goods for some %. Our company can act as an intermediary between the manufacturer and the distributor. It may itself buy and resell with a higher margin, or it may simply establish distribution channels. In any case, our company will make every effort to achieve the maximum result.
This business model is widespread in countries such as China, India and some European countries. Namely, the Company, as well as we, signs contracts with many manufacturers and begins to offer them to potential buyers. How this service is very popular, for example, in China (you probably also came across this). When you come to China, you don’t know the local language of laws and do not have a representative in this country. You will be 90% likely to find yourself in a company like us that will offer you a wide range of products, and if you still do not find the right product, you will be asked to find the one you need according to your criteria (price, quality, time, etc.) for percentage of the transaction.
As a rule, these companies have neither warehouses nor working capital — they simply bring the buyer to the seller and get their percentage (being a third party). And in order to be sure that the intermediary will not be deceived by agreeing on the direct agreement “On granting the right of exclusive” is signed in advance (as we do).
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Increasingly, manufacturers of various categories of goods are looking for opportunities to expand the ways to promote their products on the foreign market. But not all manufacturers are able to cope with this task alone, because this area also has its own nuances. It is for this purpose that our project was created — to help our partners in the implementation of their plans to enter international markets. We use a certain strategy in the process of our work, which has managed to successfully recommend itself for many years. To begin with, we create a base of manufacturers of a particular country, after which our specialists begin to make calls on it. We probably found you in the same way.
At the next stage of our activity, we ask the manufacturer for a list of available products that they produce and ask them to provide us with the most favorable prices for the goods. In case of a successful agreement between the parties, we offer the manufacturer our options for cooperation, from which he chooses the most advantageous model for himself, and we sign a contract for the provision of exclusive, that is, the manufacturer guarantees us exclusive rights to distribute his products in the agreed territories.
The next key point is the confirmation by the manufacturer of the quality of their goods and their compliance with quality standards in the market of the specified country. The manufacturer has the right to do this in any way convenient for him, after which our promotion managers begin to actively search for sales channels for your products. We use many methods to achieve the best result:
— placing your products on at least 30 information sources, the base of which we constantly update;
— search for sales channels by making cold calls;
— using a different approach to each promotion strategy.
Generally speaking, we create a base of potential buyers, make calls on it and offer our assortment of goods, that is, we act in the same way as we found you.
For our partners, we would like to note the fact that at no stage of cooperation do we require payment from them for the work done. We can make our profit only if we find a buyer for your products, that is, only when you will also have a profit. In the case of a successful conclusion of a contract for the sale of your products, our percentage of each transaction is from 3 to 7%, depending on the category of goods.
The minimum agreed amount of work, efforts, promotions that the company must perform, subject to the signing of an agreement, consists of posting information about the product line on at least 30 Internet resources and making calls (at least 300 potential buyers) during the term of the agreement.