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Exclusive distribution agreement Sometimes, the distributor is the only distributor of the supplier's product within a specific geographical area. In other exclusive agreements, the distributor has the sole authority to sell the product to certain customers, meaning no other distributor can sell to those customers.

An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. As part of the agreement, the supplier promises not to allow the distribution of the products by any other party in the given market area.

Examples: Intensive distribution - Example of soft drinks, snacks, newspapers. Selective distribution - Example of Mid-ranged cars, Puma, Nike. Exclusive distribution - Example of Gucci, Lamborgini.

Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.

Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.

Minimum quarterly sales to maintain Exclusivity - Distributor must purchase US$50,000.00 per calendar quarter to maintain exclusivity. Failure by Distributor to meet this minimum shall subject Distributor to loss of exclusivity and possible termination of this Agreement.

Exclusive Distribution Strategy Example Only having a few distributors protects brand equity by keeping the right amount of supply and demand in a specific area. An example of exclusive distribution would be if a luxury brand like Apple chose only to offer its newest Apple Watch at Best Buy locations.