Find distributors, agents or retail buyers in Indonesia

Identifying the top retail chains in Indonesia where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.

It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.

In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.

The retail market in Indonesia

Indonesia now has around 250 million inhabitants and that number will continue to grow. Even more important is the segment of those that will enter the consuming class with over 300 dollars per month to spend: this number will grow from 70 million people now to 135 million people in 2030. This means a huge market growth for all kind of consumer goods.

How to find your agent or distributor?

Jakarta, and to a lesser extend Medan and Surabaya, are the most developed cities. In Jakarta the GDP per capita is over 12,000 USD, where this is much lower for the rest of Indonesia. It makes sense to start here with your distribution. But think already ahead and select and agent or distributor that does not only serve Java, but also the other islands!

Finding an agent or distributor requires good knowledge of the Bahasa Indonesia language and a good understanding of the culture. Without this it will be difficult to get access to the market.

Distributor, retailer or web shop?

Most consumer products need at least one party in between. A distributor imports, stores and physically distributes your product, but rarely promotes it to consumers. A large retailer is the fastest route to the mass market, but is risk averse and often asks a listing fee.

A specialised web shop takes smaller volumes, but gives you reviews, pricing feedback and brand awareness within weeks.

Most exporters combine them: start where the barrier is lowest and use the sales data you gather there to convince the bigger names later.

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Finding a distributor in Indonesia in three steps

Step 1

Map the channel

List 10 to 15 distributors and retailers that already carry comparable products. Check which regions and store types they serve, and which brands they represent.

Step 2

Build a partner pitch

Your consumer sales deck is not enough. Show margin, rotation, returns and the support they get from you, with concrete figures from your home market.

Step 3

Approach and agree

Contact five to eight of them, propose a trial order or a pilot region, and settle pricing, minimum volumes, exclusivity and marketing support.