Export: business partners or direct selling?

To export or to internationalise is a long-term strategic decision, that modifies the culture and the operations of a company. After having decided where to sell, to identify the best approach to a foreign market is necessary and strategically relevant.

Many opportunities are offered:

  • direct selling
  • appointment of sale agents
  • selling by distributors and/or wholesalers
  • production OEM partnerships.

Which are the advantages and disadvantages of direct selling?

Direct selling is a strategy available for both b2c and b2b businesses export oriented.

On the one hand, the absence of intermediaries implicates a potential bigger margin or a better competitiveness, compared to competitors resorting to middle-persons.

On the other, to penetrate into a foreign market could be harder, usually requires substantial investments, and yields benefits in the medium/long term.

Sale agents, distributors and/or wholesalers

Usually, to appoint local sale agents or sign agreements with distributors and/or wholesalers let the company to gain a rapid access to active customers. That results in the opportunity to quickly bear fruit.

In general terms, to find the right business partners is an activity that must be carefully conducted. Business partners offer the opportunity to take advantage of their networks. It is also true, anyway, that the partnership itself reduces the quantity and the quality of the feedbacks received from the final customers and makes rather hard to have your ears to the ground.

OEM agreements: what are they?

An original equipment manufacturer (OEM) is a company whose products are used as components in the products of another company, referred to as the value-added reseller (VAR). The OEM generally works closely with the company that sells the finished product and customises designs based on that company’s needs.

Usually, OEM agreements make available relevant sales in the short term. Nevertheless, they hide the original brand to the foreign market, at least with reference to the final customers.

What’s the best choice for my export?

Unfortunately, there is no answer to this question: each company is different, as the markets are. A strategic analysis is needed, and an outer professional point of view could have a great value. Can we help you? Contact us, without obligation.