For exporters, exclusive distribution is one of the effective ways to stabilize the market and expand sales. This is mainly because, under the exclusive distribution method, exporters usually have to give certain concessions to underwriters in terms of price, payment terms, etc., which is conducive to mobilizing the enthusiasm of underwriters and using their distribution channels to promote export commodities. Since underwriters enjoy exclusive rights to designated commodities within their distribution areas, they can avoid or reduce losses caused by competition among themselves to a certain extent. Of course, this is just a successful experience. In actual business, we have also experienced failures. Based on past experience, when using exclusive distribution in order to expand exports, you should pay attention to the following issues:
(1) Choose the underwriter carefully
Experience has proved that if the underwriter is selected properly, He can take advantage of his familiarity with the consumption habits of the country or region in which he is located, as well as government orders, regulations, etc., to provide suppliers with necessary information in a timely manner, such as market supply and demand conditions, consumer feedback on products, etc., to help them improve Products should be marketable and reduce unnecessary legal disputes. However, if the underwriter is improperly selected, has weak operating capabilities, or has a bad reputation, the supplier will be in trouble. When the market conditions are unfavorable, some underwriters refuse to complete the purchase amount stipulated in the underwriting agreement, or “underwrite without selling”. As a result, not only cannot the supplier achieve the purpose of expanding export sales through underwriting, but it also reduces export sales. , and lost other customers. There are also some underwriters who, by virtue of their special status formed through years of exclusive business, in turn restrict suppliers, such as bargaining with them on prices and other conditions, seeking benefits for themselves but harming the interests of the other party. In order to prevent this kind of situation from happening, exporters must carefully conduct credit research when selecting underwriters to prevent future troubles.
(2) Enter into an exclusive distribution agreement
The exclusive distribution agreement is a legal document that determines the rights and obligations between the supplier and the underwriter. The quality of the agreement will directly determine the quality of the agreement. It is related to the success or failure of the business. The types of goods to be underwritten should be reasonably determined in the agreement, because not all goods are suitable for underwriting. Some best-selling products with great market potential and limited supply from exporters should not use underwriting to avoid tying up their hands. The quantity or amount of underwritten goods should also be reasonably specified based on the actual situation and should not be too high or too low. If it is too high, the quota will not be fulfilled and disputes will occur; if it is too low, the purpose of expanding exports will not be achieved. In addition, the area and period of underwriting should also be properly specified. At the beginning, the area should not be too large and the period should not be too long. In the future, adjustments will be made gradually as the cooperation between the two parties develops. Regarding other terms, reasonable and clear provisions can be made based on the mutual wishes of both parties.