A local distributor or business partner is the fastest route into a new market, because they bring existing relationships and knowledge of the environment and language. The price is a lower margin and less control over how the brand is presented and to whom it is sold. Several points in the contract are therefore decisive: whether it is an exclusive representation and for what territory, what minimum volumes the partner must achieve to keep exclusivity, who owns the customer contacts obtained, how the brand may be used, and how the relationship is terminated. It is precisely the first point that tends to be a trap – exclusive representation granted for a long period without performance conditions can block the market for years. It proves effective to start with a shorter trial period with an option to extend.
See also: Choosing a target market, Brand guidelines for partners, Enterprise Europe Network.
