Seminar's aim is to help exporters build solid relationships

Kylie van Heerden

Exporters need to focus more attention on qualifying their agency/distribution markets in international markets to avoid the huge opportunity cost if the relationships fail, says Dan Hansen, principal director of MSM Sales Management.

Mr Hansen and Sharp Tudhope Lawyers partner Kylie van Heerden will be presenting on how to effectively manage offshore distributors and agents at an ExportNZ Bay of Plenty seminar in Tauranga next month.

"One of the main issues is that a lot of businesses don't fully qualify their distributors or agents," said Mr Hansen, who noted that many companies still found their agencies through trade shows.

"Everyone starts with great intentions, and it normally takes about 12 months before both parties realise there's very little in it for them in terms of synergy and opportunity to grow, and the relationships fail."

In addition, the internet has fuelled increasing complexity, with exporters now having to take into account omni channel distribution.

"It's no longer just a relationship with an agent - it's an agent, maybe a retailer, and online selling, including platforms like Amazon and e-Bay.

"You've now got this really complex environment that has to be maintained and to work synergistically to generate real pull-through."

Mr Hansen said the seminar would also look at the need for manufacturers to take responsibility for the distribution channel.

"Value chains are shortening, and we have manufacturers going directly to retailers and to customers. There's now a dynamic relationship. The distributor provides a fundamental part of the value chain, but unless the manufacturers can help drive value and pull-through, then the whole circuit becomes constipated."

Ms van Heerden will examine the process of ensuring that the legal elements of distribution agreements are properly thought through.

"We'll focus on areas such as what the exporter can do to negotiate points such as territory, pricing and performance criteria," she said.