Finding the right distributor on a new market is the essential step that would make or break your project, provided you have diligently done your market research. Irrespective of the type of business partner you are looking for, be it an agent or a distributor or someone to develop a project with, there is never enough space to emphasize how important it is to research this person and their company thoroughly.
It was very early in my experience dealing with exporters when I heard the sad story of a Romanian producer of honey who thought he had found the right partner on the British market. He started exporting his honey to the UK and one year into his contract the British importer went out of business. One stream of revenue was lost for the Romanian exporter. Not good considering that it usually takes on average about three years to get established on a new market and start recovering the investment you put in dispatching your products on a new market.
I often hear exporters saying they are very happy with the distributors they meet during trade fairs. Their confidence makes me feel rather sad as I know a trade fair should be the beginning of finding the right partner and not the final point, the beginning of a new research to make sure you made the right choice and not the moment to put a signature on a contract.
There are many aspects that should be taken into account when deciding who will be your distributor on a new market. For example, you should be aware of their economic data in the last few years. Do their turnover, profit and loss and number of employees indicate a strong enough company that will not get out of business if the market happens to get through some turbulent times? Do they have the capability to sell your products through the most effective channels? Are they interested in a long term cooperation which to include a common marketing plan to help you gain shares in the market?
Another aspect I always pay attention to is the longevity of the buyers in their positions. The longer they have been there the more I expect them to be really committed to their businesses and to making the right decisions. At the end of the day, if you dig deep, a no coming from a very experienced distributor can tell you lots about the capacity of the market to absorb your products as well as about the strength of your competition on the new market. All too valuable information for you!
But in order to get to this point, you do need to research properly. You can easily find names of distributors and you might attempt to contact them. When you do this, ask those sensitive questions and trust that once you have all the relevant information to make the right decision for you and your products. It is all about building meaningful connections, time and patience.
If you are interested in the Romanian market or any other market in Central and Eastern Europe and you feel you would need a helping and experience hand in finding top quality business partners, we are here to help.
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