HOW TO SOURCE FOR DISTRIBUTORS IN KENYA
HOW TO SOURCE FOR DISTRIBUTORS IN KENYA – Kenya has a market-based economy and is generally considered the economic, commercial, financial and logistics hub of East and Central Africa. Kenya has the strongest industrial base in East Africa and Central Africa.
Kenya’s economy has been successful in attracting exporters and importers from across the world. Most multinational companies are investing in Kenya and setting up local and regional operations to take advantage of Kenya’s strategic location, diversified economy, entrepreneurial workforce and its strong financial market.
Most multinationals normally engage the services of distributors or importers to cut on costs related to staffing, logistics, and infrastructure and to leverage on the expertise of the local dealers it contracts due to their vast knowledge within the local markets or geographical segmentation.
Distributors help in cost reduction when it comes to market transactions and this usually happens when they take advantage of the market economies of scale.
Steps to follow When Looking to Source for Distributors in Kenya.
- Client Briefing and Understanding the product – The main purpose of this step is to understand the client’s needs, understand the product, suitable distribution channel and the kind of brand support the client wants to implement in order to create awareness and generate some demand for the product.
- Comprehensive Market Research – Here we study the market to identify how similar products are been distributed in the market, identify potential distributors; identify gaps in the market and to identify the most suitable region to focus on.
- Distributors shortlisting and prequalification – Here we help you identify the distributors that fit your requirements like distribution capacity, National / Regional presence, experience in the market, Financial Muscle etc. Once a comprehensive list is built, we then go ahead and invite them to participate in a distributorship expression of interest
- Product Sampling & distributor Meetings – We then go ahead and have meetings with the top performing distributors in order to get to know them better and give them an opportunity to sample the products. Here we also facilitate our clients to meet the potential distributors to ensure that there is a mutual understanding.
- Negotiations & Contract Signing – Here we facilitate the negotiation of the distributorship contract making sure that every party is happy with the terms and eventually sign the contract. The contract is with a sole distributor or with a couple of distributors depending on their regional presence and capacity
- Product importation – lastly we facilitate both parties to ensure that the first order is placed and offer advisory on any compliance task to be pursued before the consignment arrives in the country.
CONCLUSION
If well executed, the process to source for distributors in Kenya is a very critical step to help you access the Kenyan and East African Market. Feel free to Contact Us Today to speak to an expert for guidance on sourcing for distributors in Kenya
