Signing Distribution Agreements

An Expert's View about Business Administration in China

Last updated: 22 Feb 2011

5-4 Signing Distribution Agreement with Distributors/Agents


To enhance distributors' competitiveness and boost sales, distribution agreements may specify distributors' market positioning and business development directions as well as measures to be taken by manufacturers to help distributors in the process.
5-4-1 Positioning and Development of Distributors

1.Modernised distribution and warehousing centre. Distributors are the primary suppliers of goods and services to retailers and wholesalers. Distributors must have good infrastructural facilities, attractive rewards, standardised operation processes and efficient management so as to provide customers with new, stable and timely products. By offering value-added goods and services (such as storage and transportation of products and credit), distributors can gain reasonable profits from their customers.


2.Potential suppliers providing manufacturers with coverage services. Distributors can provide coverage services to manufacturers by recruiting, training and managing the sales teams, and are paid a "coverage service fee" by manufacturers based on their service quality.


3.Potential suppliers providing management services to small and medium-sized customers. Distributors can provide e-commerce management, store promotion, inventory management and sales management services to small- and medium-sized customers and collect a management service fee.

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Posted: 21 February 2011, last updated 22 February 2011

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