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Advantages and disadvantage of Exclusive Distribution

Alice 2017-09-14 09:27:17
Exclusive distribution is an agreement between a distributor and a manufacturer that the manufacturer will sell it only to the exclusive distributor cover a large region. A distributor is responsible for selling the product to end customers through the retailers and wholesalers.


Advantages of Exclusive Distribution

Availability
A important feature of Exclusive distributors is that they are capable of stocking huge amount of inventory in the financial. As a consequence, material is easily reachable to retailers and wholesalers and thereby distribution is increased.

Financial advantages for company
Exclusive distribution is expected to have good cash to carry the inventory and provide payments. It is advisable for company to choose a ethical distribution.

Wining the market share becomes easier for the company
For a company, there is no need to spend manpower in finding, convincing and maintaining the distribution channel, the company can completely concentrate on building the brand and doing promotional activities so that its penetration in the market becomes much better.

Indigenization
The major advantages of exclusive distribution is localization. there are many things which the company won’t know If a company is ready to enter a foreign market. At this time, a trustworthy local distribution is excellent for the firm. Because the local distributor will have relations with existing retailers and wholesalers and  can strengthen the brand in his market.

Disadvantages of Exclusive distribution



Trust
Your business will be successful in distribution only if the exclusive distributor is trustworthy. Or he might take marketing and advertising budgets from use and use it to fill his own pockets rather than helping the brand rise.

Dependency
If your brand is new or is not popular, then you will find that you might rely on the exclusive distributor. Unknown brands becomes highly dependent on their exclusive distributors and will have to do as the distributor advices.

Choosing the right exclusive distributor
A good distributor who is well aligned with your brand and is aggressive with regards to the sale and marketing of your brand.

AS one of the best china hair straightener supplier and china hair curling iron supplier, FBT have exclusive experience with customers in Middle East, USA etc and is open for distribution, wholesale, retailer from the world.
FBT will concentrate on building the brand and doing marketing and advertising activities to increase the pull of the brand.