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.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
Thailand has a population of about 70 million people. It’s a popular tourist destination, famous for its beaches, temples, and cuisine.
The Thai economy, with a GDP per capita of approximately $6,000 USD in 2023, is diverse, encompassing agriculture, manufacturing, and tourism. Agriculture is significant, with rice, rubber, and seafood being major exports. Manufacturing, especially in automotive and electronics, is also a key economic driver. Tourism is a major contributor to the economy, attracting millions of visitors each year.
Thailand’s main imports include electronic components, machinery, and crude oil, vital for its manufacturing sector and energy needs.
Major cities include Bangkok, the vibrant capital; Chiang Mai, known for its historical significance and temples; and Pattaya, a famous beach resort town.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.