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Need direction for business in Malaysia interested in becoming the sole distributor of my products in Malaysia

Hi everyone!!
I am hoping for some suggestions.  I do plan on speaking with someone to seek some legal advice and wanted to know what I should look for.

Yesterday, while marketing in Tokyo, Japan, a woman approached my sales area after listening to my sales pitch.  She informed me that she ran several businesses in Malaysia and is interested in marketing my products in Malaysia.  However, she was interested in becoming the sole distributor.  She purchased a number of products from me to share with her team.  While wrapping up her purchases I attempted to place business cards in each bag.  That's when she told me it was not necessary to place my cards in the bags since she wants to handle all the business affairs with me.  

My question is:
What should I look for in dealing with someone from another country.  Obviously, I have to research the country (size, her business locations, weather (my products have the ability to melt), shipping, drug/cosmetic regulations in Malaysia and minimum order.

This will be my biggest account if I land this one.

Any suggestions as to what I should look for or be aware of?  She had a group of reputable people with her.  I was familiar with two of the ladies she was with.

Can anyone provide me with insight as to what I will be responsible for and what she will be responsible for (i.e. if licensing is needed for my products, who is responsible for that or if I should be concerned about a third party purchase and pricing of my products).

While it is exciting for me to begin this new chapter, I am concerned about the reputation of my company and products.

Any suggestions and advice will be much appreciated.


Tags: International, Legal, Marketing, Sales, Sole, distributor

Views: 107

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Replies to This Discussion

Hey Debbie - A fast answer....

Anyone that wishes to secure exclusive distribution rights to your products needs to order a significant quantity to start and then adhere to quarterly or semi-annual minimums in order to retain those rights. Allowing one company to control an entire country is a privilege and so they must order well and provide a reason for them to be exclusive.

Ask them what other brands they carry and then check with them to see how well they perform.

Typically you would provide them with inventory based on their purchase orders to you. They then sell to other retailers, distributors, etc and so the marketing and sales work is left to them. You need to help them by providing and assistance about product specs, collateral materials to help market and sell, and of course the actual products!

Thank you Jim, I wanted to know this too. I have a potential buyer from Malaysia too that I am starting to work with.


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