An international distribution agreement is a legal contract between two parties that authorizes one party to sell or distribute the other's products. This type of arrangement usually benefits both businesses because it makes the process more efficient and can help each company increase its customer base.
An exclusive distribution agreement is an agreement between a distributor company and a supplier company that grants the distributor exclusive rights to sell the suppliers goods. This means that the supplier agrees to now allow another distributor to sell its goods for the duration of the agreement.
Examples of companies that use exclusive distribution include Apple for its high-priced and luxury products, as well as companies like Lamborghini, BMW, Rolex, and Mercedes. These companies appoint only a few distributors to cover a specific region, maintaining exclusivity in their distribution agreements.
By means of an exclusive distribution agreement a supplier agrees to sell its products to only one distributor, or a limited number of them as per the draft for a new Vertical Block Exemption Regulation (“VBER”), for resale in a particular territory or to a specific group of customers, or reserves such distribution ...
Like its name suggests, an exclusive contract is one that restricts a party from providing the same goods/services to others for a specified period of time. This can also be applied in the context where a company obtains exclusive rights and agrees to do business exclusively with another company.
Look at the strengths of your product, understand your target markets, develop strong marketing, offer support programs and give your distributors ample incentive to promote your brand. As you see your distribution steadily growing you will know that it was worth the extra effort.
Let's look at the pros and cons of an exclusive distributor. Pros: Quality Over Quantity. Cons: Limited Control. Make sure you know the terms up front. Working with an Exclusive Distributor is often a Strategic Decision. It's a 2 way street and there are not just advantages of being the exclusive distributor.
Exclusive distribution is when a manufacturer grants a single retailer or distributor the exclusive rights to sell their products within a specific region. The goal with this strategy is to create a sense of scarcity. If the product is only found in certain locations, demand can go up.