When entering markets in Asia, Africa and Oceania, you can consider a number of strategies, including investing in regional distribution consultants or product branding.

What is the best choice for your business? Do you really need a distributor to sell products abroad? Let us answer these questions together.

What is a distributor?

First, a distributor supplies goods to a specific company, market or region and sells them for profit. This means that they are selling the product for more than they paid for it. But what does this mean for the market? If your product sold automatically, would you use this method? Distributors help businesses by providing sales channels, which is great in the short term. However, they are not enough to help companies/brands grow and develop long-term strategies.

What is a product branding strategy?

Another option that many companies are considering and implementing is to abandon dealers and invest in product branding. Companies that use this option typically use e-commerce sites like Amazon to build sales channels.

Which choice is right for your business?

Before the rise of the Internet, technology and e-commerce, the main strategy for many companies entering international markets was:

1) Rely on regional distributors to enter the market
2) Register the company in the country where the target market is, including the following works:

  • Company registration and opening of bank accounts
  • Renting of offices
  • Recruitment, delegation of duties, training and management
  • Translation of all information, including the company’s brand and image
  • Cooperation with local marketing and advertising agencies.

However, with the continuous development of the Internet, regional e-commerce and digital marketing, it is not necessary for a company to have a distributor, but your company can effectively cooperate with a regional marketer, such as the Project Alpa-Ost EU, to help you create a long-term and urgent marketing strategy, exit to foreign markets and brand expansion.

Keep up with time

Relying exclusively on distributors is an outdated strategy for entering the Asian market. To enter the growing Asia Pacific market, a strong product brand is the best choice.

Studying a growing regional market is not only about creating marketing materials, but also about identifying and meeting the needs of your target market. Especially in developing Asian countries, foreign brand recognition is low, which means that you need to build your brand image in front of these potential customers.

While distributors can help you build a sales pipeline, they won’t necessarily provide you with the means to optimize your marketing efforts, enter a new market and culture, and gain recognition.

In addition, developing Asian markets have a large number of small stores, which makes distribution and image control difficult.

Advantages of product branding strategy

By creating and managing digital marketing campaigns, you no longer need to:

1) Have too much dependence on local distributors.

Regional distributors will not spend money on marketing activities due to a lack of marketing skills and will buy products in bulk without considering the long-term prospects of the brand.
2) Register a company (at least a full team) in the target country to work with a creative marketing company and save a lot of money.

Choosing to build a strong brand to enter the Indo-Pacific market will allow your business to complete market research and testing without high risk.

Choosing this approach makes it easier to close investments and focus on other markets or new products rather than going bankrupt. This allows you to test the waters before actually entering a new market. And this undoubtedly creates an opportunity for your business to protect its assets and stop investments at a harmless stage.

Also, if your long-term goal is to set up shop in an Asia-Pacific country, it will always be something to strive for once you’ve built a strong brand. When your product becomes well-known in the target region and distributed worldwide, some companies decide to hire an employee and distribute it themselves.

It’s not necessary, but it’s always an option.

We invite leading European brands and concerns in various fields to cooperate.
Let the discovery and implementation of joint regional opportunities give us the activation of global cooperation, the growth of well-being and firmly strengthen the positions of high-quality and worthy end-consumer brands, manufacturers, industrialists and service providers.
We accept applications and offers daily.

Contact us today for a marketing consulting quote for your brand.



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