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 Middle East’s population in 2024 is estimated to be approximately almost 500 million, with a growth rate between 1 and 2% per year. This region, extending from Western Asia into Egypt, comprises 17 countries and is known for its religious diversity, including the origins of Christianity, Judaism, and Islam.
The most important economies in the Middle East include Saudi Arabia, which relies heavily on oil exports, and the United Arab Emirates, known for its robust trade and finance sectors. Iran and Iraq also have significant oil reserves impacting their economic status. Turkey’s diverse economy spans textiles, agriculture, and industry, while Israel is known for its technology and innovation. Egypt’s economy is diverse, with agriculture, media, petroleum imports, and tourism playing key roles. These economies vary widely, from oil-dependent to more diversified economic structures.
Western companies have several business opportunities in the Middle East, including renewable energy projects, especially solar and wind power, due to the region’s climate. The technology sector, including fintech, e-commerce, and cybersecurity, offers growth potential driven by digital transformation. Infrastructure and construction, fueled by urbanization and mega projects, provide substantial investment avenues.
Additionally, healthcare and pharmaceuticals are expanding, with increasing demand for medical services and products. The tourism and hospitality industry also presents opportunities, leveraging the region’s rich cultural heritage and government initiatives to boost tourism.
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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.
