It works when
The distributor has its own sales people in the countries you care about. Your range is small and clear. They already sell to the retailers you want. You get sell-out data and a yearly plan.
FROM THE BUYING SIDE · DISTRIBUTION
Is one distributor enough for Europe?
Sometimes, yes. A good distributor with its own sales people in your main countries can carry a brand for years. But one partner for “all of Europe” is often strong in one or two countries and absent in the rest. It depends on where they really sell, and what you agreed.
As a buyer, I worked with distributors who were real partners for a brand, and with others who mainly forwarded orders. Both were decent companies. The difference was whether somebody on their side felt responsible for the brand.
A good distributor is often the best thing that can happen to a brand in Europe. This page helps you see if yours is growing your business, and what to do if not.
THE HONEST ANSWER
When one partner works, and when it does not.
It struggles when
One office is expected to cover Germany, France, the Nordics and Poland. Your brand is one of very many and nobody there is responsible for it. Or the contract gives them all of Europe with no targets.
From the buying side, I could usually tell within one meeting whether a distributor knew the brand or just had it in the price list.
WARNING SIGNS
Five signs your distributor is not growing your brand.
One sign alone can have a good reason. Three or more usually mean the partnership has gone quiet.
- No sell-out data. They tell you what they ordered from you, never what they sold and to whom.
- They only take orders. Orders come when retailers ask. Nobody goes out to win new customers or present new products.
- Online prices keep falling. Your product shows up cheaper online every few months, and nobody on their side reacts.
- No new listings in 12 months. Same customers, same SKUs, a year later.
- Exclusivity without targets. They hold all of Europe, but there is no number they must reach. You cannot add a partner, and they have no pressure.
THE AGREEMENT
What I would put in a distributor agreement.
Most problems come from agreements that are too vague. These five points help both sides. This is a practical view, not legal advice, so let a lawyer check the final text.
Territories
Name the countries one by one. Only give a country to a partner who really sells there.
Targets
Yearly targets per country, plus a few concrete goals like new customers or new listings. Agree what happens if they are missed.
Reporting
Sell-out by customer and SKU, at least every quarter, plus stock levels. Keep it simple, so they really deliver it.
Price and channels
One price policy per channel, and who may sell on which marketplace. This protects them as much as you.
Exit
Notice period, what happens to remaining stock, and exclusivity that ends automatically if targets are missed. Agree this while everyone is still friendly.
As a buyer, the distributors I valued most came with sell-out numbers and a plan for the next season. It is fair to ask your distributor for the same.
ALTERNATIVES
If one is not enough, what else?
You do not have to choose between one big partner and doing everything yourself. Three setups that work for consumer-tech brands:
Country partners
One partner per country or region, each strong where it sells. More partners to manage, but each one is easy to measure.
Agent plus importer
A local sales agent presents the brand to buyers. An importer holds stock, sends invoices and handles logistics.
Direct retail with a local partner
You deal directly with the most important retailers. A local partner handles stock, service and returns.
What rarely works
Adding a second distributor in the same country without clear territories or a price policy. That usually ends in a price fight.
A PERSONAL NOTE
Ask before you replace.
Before you change partners, sit down with the one you have. Ask for sell-out data, a plan for the next twelve months and their honest view of your range and prices. Sometimes the partnership starts again. Sometimes you see that you need a second partner. Then you decide on facts. If you want an outside view on your setup, I am happy to look at it with you.
Marco PenningFounder, LUMVEO · Hamburg
Take the 2-minute check ↓GERMANY MARKET ENTRY CHECK
Is your setup holding you back? Eight questions, two minutes.
Tell me how you sell in Europe today. I read every check myself and reply personally.
QUESTIONS I HEAR OFTEN
Short answers.
Should I give a distributor exclusivity for Europe?
Only with clear targets per country and an automatic end if they are missed. Exclusivity for one or two countries where they are strong is safer than a whole continent.
How do I bring in a second partner without damaging the first?
Talk to your current distributor first and be open. Often they are happy to focus on the countries where they are strong. Clear territories and one price policy keep both partners calm.
What if my distributor refuses to share sell-out data?
Ask why. Some fear you will go around them. Agree in writing that the data is for planning, not for taking their customers. If they still refuse, that tells you a lot.
Is it better to sell directly to retailers?
It is possible, but then you handle logistics, invoicing, service and local presence yourself. Many brands mix: direct contact with the most important retailers, and a local partner for stock and logistics.
This is my experience and view from the buying side, not legal advice. Distribution agreements should always be reviewed by a lawyer.