What Do Distributors Want?
Written by: Hugo Morrison-Corley, Will Gordon and Nada Young
Distributors we work with across the Asia Pacific region are constantly on the lookout for new and innovative food and beverage brands to introduce to their market. With an overwhelming number of distribution opportunities being pitched to them on a regular basis, it pays to understand what their top considerations are when onboarding new brands.
Unique Selling Points
The food and beverage sector is fiercely competitive. What sets your product apart from similar products in your category? Distributors seek innovative and unique features that provide a competitive edge.
Brand Recognition and Sales Record
Distributors understand that an established brand with a successful sales record in other markets is more likely to perform well in theirs. They will want to know about your brand recognition. Are consumers already familiar with your brand? Does it have a good reputation? Is your product widely available in its domestic market, and are sales performing well?
Competitive Pricing
Pricing is one of the most important factors for a distributor when looking at new opportunities. Have you done your homework to ensure that your products are going to be competitive against incumbents in the market? A cost model with the relevant supply chain margins mapped out is a vital first step.
Compliance with Regulations
Distributors will look at whether a product range is compliant with local regulations. For instance, primary products generally need to be Halal-certified in Malaysia. In South Korea, there are strict rules on claims that can be made on packaging. Often, it’s possible to make small adjustments to the offering in order to meet local regulations, so it pays to be solutions-focused in this regard.
Quality and Consistency
Distributors seek products that are consistently produced to the highest standards. This minimises the risk of wastage, returns, and reputational damage. Inconsistent quality can negatively impact a distributor's reputation, making it difficult for them to do business in the market. Therefore, an efficient manufacturing process with stringent quality control measures is essential.
Shelf Life
Food and beverage products are more desirable to distributors when the minimum shelf life is 12 months. For fresh products such as yogurt or meat, every day of additional shelf life that you can add will make your products more attractive to the market.
Marketing Support
For grocery retail brands, distributors will want to know about the marketing support you can provide and what you have done in other markets to support sales.
It’s not realistic to think that your products will fly off the shelves without an appropriate level of marketing support.