Distributors And Agents In Foreign Trade

Speaking of foreign distributors, the impression in everyone's mind is that there are some well-known and experienced brand products in the distribution industry. For traditional Chinese manufacturers like us, it is difficult to have the opportunity to cooperate with these distributors if there is no handy brand. And they generally distribute the products of well-known local brands. Will they import other products from China? Will distributors import products? The operation of the distributor is not restricted, and it is not just for a brand to distribute products. Usually he can distribute advantageous products for many brands. Because mid to high end products have a relatively high market recognition for branded products, consumers may be more receptive to products and pricing. Distributors will be more inclined to get goods from brand owners. In contrast, the price of low-end and medium-end products is the dominant factor in sales. The prices of large brands often do not have an advantage over the prices of small brands. Instead, the sales of small brands are easier to sell. So distributors may be more inclined to do some small brands or do some imports. Another situation is that when a distributor has reached a certain stage, it may consider finding some suppliers to cooperate with it to make its own brand and earn more product premiums and profits. This type of cooperation is also our entrance to develop these potential customers. In the final analysis, our development customer thinking should be relaxed and not limited to the existing recognized customer groups. The shift of development thinking A single source of customer channels makes it easy for us to make wrong judgments about the market and the type of customers. For example, if someone is not a distributor of the same kind of products as you, he can't be our customer. It is not certain, and we are more to see his distribution channels, scale and strength. If the product he is making now has entered the large supermarket such as WalMart, your product also has the opportunity to enter and he can become our customer. Compared with the pure importer customers who have always pressed your price or competed with their peers, we can find some types of potential customers through other roles in the supply chain distribution channel, and use differentiated products and services to meet customer’s need and make it into cooperation.Therefore, whether you can develop customers or not is more due to your understanding of customers and their needs, your familiarity with the supply chain and the market, and whether your differentiated products and services can meet customers' needs. Speaking of agents, in international trade, many foreign trade friends will confuse distributors and agents, but these two are actually different. The difference between distributors and agents Distributors are the intermediate role of transferring commodities from producers to consumers, buying products from manufacturers, selling products to consumers through their own various distribution channels, and bearing the profit and bargaining risk. In addition, the operation of distributors is not restricted, and the products of some well-known senior brands in the general distribution industry are generally distributed. In the foreign supply chain system, the agent represents some independent person or entity. By accepting the commission of the manufacturer, the agent sells instead of the manufacturer, negotiates the order with the customer, sells the manufacturer's goods, and promotes order cooperation. The ownership of the goods they represent belongs to the manufacturer, not the agent. So what is the obvious difference between distributors and agents? 1. Distributors buy goods from manufacturers and store them directly, and then resell them; agents do not need to buy goods first. 2. The distributor's delivery of goods will participate in product distribution and after-sales service; while the agent does not participate in these, he signs the cooperation order and gives the order to the manufacturer, even if the task is completed. And Subsequent delivery and after-sales are performed by the manufacturer. 3. Distributors earn the product price difference through the sale of goods; and agents charge agency fees or commissions by selling for manufacturers.

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