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New Advance Capabilities are required to win in Retail & E-commerce channels

Is it Time for Manufacturers to Rethink Distributor Partnership in the Region?

In today's regional market, manufacturers need distributors to sell their products effectively. Distributors connect manufacturers with retailers and other businesses, providing essential services like storage, logistics, and marketing.

Good relationships between manufacturers and distributors are crucial. Distributors understand local markets, helping manufacturers succeed in both developed and emerging markets. In developed markets, companies invest in distributor relationships due to complex supply chains. In emerging markets, they focus on building strong networks. These partnerships support a global market worth about USD 2000 billion (2023).

Looking at the Emerging Markets dynamics:

Distributors provide local knowledge and market insights, helping manufacturers grow. Building these relationships is key to navigating challenges and seizing opportunities in fast-growing markets.

Effective manufacturer-distributor partnerships lead to higher sales, better efficiency, faster product launches, and improved customer service. Neglecting these relationships can result in missed opportunities and lost revenue.

Fostering Large Retailer and E-commerce Relationships:

Building strong relationships with large retailers and e-commerce players has become vital as their contribution is now over 50% in most GGC markets. Manufacturers can help distributors transition by providing advanced training on logistics, digital marketing, and data analytics. Joint governance ensures clear communication and aligned objectives. These partnerships will improve customer strategic engagement & customisation on trade offers to reach the right shoppers.

Category Management planning for a better Execution & Availability

 

101 focus areas for Manufacturer-Distributor Partnerships

  1. Regular Communication: Discuss business goals, sales strategies, and new products regularly at all levels.
  2. Joint Business Planning: Develop sales and marketing plans that meet specific channel’s needs. Monitor and track business plan execution to avoid disruption in retail stores
  3. Training and Support: Provide training beyond the basics of supply chain, sales & negotiation to category development, on-line activation & joint marketing…
  4. Incentives and Rewards: Offer rewards for good performance not only based on sales but also on customer satisfaction & engagement.

Advantage helps clients create tailored research solutions for distributor or retail partnerships. We identify key performance indicators and set up systems to track progress.

Choosing the right participants is important. Early discussions ensure stakeholders are ready to participate. We recommended starting with measuring engagement to build trust and improve the partnership. Once the base is set, then we can execute several waves per year to track on-going progress and prevent any future challenges.

With over 35 years of experience in B2B engagement & a presence in 49 countries, Advantage Custom Solutions offers expert research solutions to help companies work better together

Looking for more information, feel free to contact Jean-Marc GILG at jmgilg(@)advantagegroup.com or +971 50 459 5113

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