How do you become an exclusive distributor in Malaysia for a product. What requirements do you need?

money, reputation, coverage

This post has been edited by sett: Oct 16 2010, 11:40 AM

hmm. thats all?

Lots and lots of money, and also you must guarantee the company a certain % of growth per year. Usually it is 20%-30%. That's why you need lots and lots of money.

not enough?

basically its money n ur strategic plannin.

Exclusive distributor means that the supplier can only supply the goods to you, as opposed to selling to other distributor.

So if you were to be given exclusive rights as distributor, you have to make a guarantee to the supplier that you can give them guarantee that you can sell their product well.

On top of what other forumers have mentioned, another thing to include is a premium payment, because the supplier has lost opportunity to supply the products to other distributors.

note- better make sure malaysia, singapore, brunei etc.

if solely malaysia, can bring in underwater goods from singapore still

IMO , exclusive distributor concept is killing our economy . also the reason why branded stuff are so expensive in M'sia .
It is also another way of saying , I am afraid of competition i want exclusive rights so that i can goyang kaki and money come in without me working .

Look around you , in Malaysia . So many things are monopolized . That is why we will never be ahead of the competition .

We should all support open market .

This post has been edited by gapnap: Oct 16 2010, 07:05 PM

related established business with money, reputation, coverage.

Well, I don't support open market. Since business is all about profit, I will do all it takes to make sure I get the profit.

But I disagree your part stating that "I can goyang kaki and money come in without me working".

In reality , of course it doesn't happen . You still need to setup your management team .
But be surprise , many business owners who strive for exclusive distributorship wants it with that thought . When they get it , only they find out the massive work involve .

I support open market because my business has potential and we are limited because of exclusive distributor contracts .
Not just for products , we do video shoots , events for government BUT we don't deal directly with them . We deal with the sound company that has exclusive rights and no assets .
See where i am coming from ?

If you are already up there , of course you will not support open market .
Its just a state of mind , depending on your position .

This post has been edited by gapnap: Oct 17 2010, 03:09 PM

It's still open market. Bear in mind, having exclusive license grant you that product from that particular company.
It has some conditions attached such as cannot sell competitors product.
That means you may have potential opportunity lost.
And you still have to compete with other competitors from the same industry.
What makes you sit back n relax then?

I agree .
The sit back and relax part is a thought , a mindset that many people have who don't know what they are getting into .
In reality , it is still not easy & it involves alot of work when becoming an exclusive distributor .

This post has been edited by gapnap: Oct 17 2010, 05:48 PM

Even with exclusive rights, it still has its own competition, particularly from other products of different brands.
You also have to contend with fake branded goods, and other cheaper branded goods.

Sales figure and rapport relationship with your principle supplier.

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Added on October 18, 2010, 11:40 amBranded stuff are expensive is due to taxes incur for the products. Whether you are a sole distributors of any products, there are always EQUIVALENT products that available in the market which to compete with. To become exclusive distributors involve high business agreement with the principle supplier which is never been goyang kaki.

This post has been edited by Gary1981: Oct 18 2010, 11:40 AM