A distributor is an indirect trade partner located abroad and in charge of distribution and sale of goods.
PROS
CONS
PROS
- Distributors usually have a local market and existing client portfolio, as such knows and works with local languages, customs, cultures...
- Possesses the structure to hold and keep stock (warehouse...) and/or may also take care of importation (administration, taxes, customs...)
- May be exclusive to the company's goods
CONS
- Distribution to final clients may be quite opaque to the company as the importer represents a third party between supplier and end client
- May not be obliged to implement commercial, image policies
- Are there any obligations towards results/sales within the contract?