How to become a distributor
A practical guide to how the process works: what a brand will require from you, what you should ask before making a commitment, and how territorial exclusivity usually works.
Pierrot is a Spanish oral care brand present in more than sixty countries. We have prepared this guide as general orientation for companies that wish to distribute a brand and are unsure of what to prepare. Most of what follows applies to any consumer goods category, not only to ours. If you are looking for an oral care brand to distribute, Pierrot is looking for distributors in new markets.
Eighty years on the market
Pierrot has been on the market since 1945 and is the brand of Fushima S.L., based in Guarnizo, Cantabria.
Local distributors in each market
Pierrot sells through local distributors and seeks distributors in new markets.
What a brand looks for in an application
This guide offers general orientation on what a brand usually values in an application.
How to become a distributor of a product in 7 steps
The following is a summary; each step is explained in greater detail further down this page.
- Decide your role. Distributor, wholesaler, reseller or agent: they carry different risks and a brand will treat each one differently.
- Choose a category your customers already buy. It is usually easier to add a brand to shelves you already serve than to open an entirely new channel.
- Check the market. Product registration requirements, the competitors already on the shelf and the prices your customers pay.
- Prepare your company file. Legal entity, the customers and channels you serve, your warehouse and logistics, and the brands you already carry.
- Apply to the brand. Indicate which market and which channels you cover, and how you would develop the range in your first year.
- Agree the territory and sign. Territory, exclusivity and targets are usually set out in the distribution agreement.
- Register the products and launch. Complete the local registrations, place the first order and plan the launch with the brand.
Would you like to distribute Pierrot? Request the catalogue.
Distributor vs wholesaler: how they differ from resellers and agents
These roles are not equivalent, and the difference determines everything else: who owns the stock, who bears the risk and how you are remunerated. An applicant may write “I want to be a distributor” when the role they have in mind is that of an agent.
| Role | What you do | Who owns the stock | How you earn |
|---|---|---|---|
| Distributor | Buy from the brand and build the brand in a defined territory: you sell on, you hold stock and you take responsibility for how the brand performs | You | Resale |
| Wholesaler | Buy in volume and sell on to retailers, usually across many brands, without a commitment to build any one of them | You | Resale in volume |
| Reseller or retailer | Sell to the end customer, in store or online | You | Sales to the end customer |
| Agent or commercial rep | Introduce the brand and bring in orders without buying the goods yourself | The brand | Commission |
We recommend specifying the role you have in mind in your first message, as this saves both parties valuable time.
What a brand will ask you for
A brand will usually ask for five items. It is advisable to prepare them before writing.
- Which market and which channel Not only the country, but also the channel: pharmacy, supermarket, cash and carry, e-commerce or wholesale. A brand that performs well in pharmacy may not be suited to hard discount, and the answer shapes the conversation considerably.
- The customers you already have The accounts you currently supply. An established customer base is usually an important factor for a brand.
- Warehouse and logistics Where the stock is received, whether you can store it, what volumes you handle and how you deliver the product to the point of sale.
- Regulatory registration Oral care is a regulated category in many markets, and the requirements vary from one country to another. It is advisable to indicate whether you have experience of the regulatory procedures in your country.
- What you already distribute Adjacent categories are usually an advantage rather than a conflict. Hygiene, personal care, pharmacy and health products may give you access to the appropriate buyer.
What you should ask the brand
This step is frequently overlooked, yet it is the part of the conversation that protects you. We recommend raising these questions before signing any agreement and requesting the answers in writing.
1. Is my territory free right now, and what counts as the territory: the country, a region, a channel?
2. Is exclusivity available, from what date, and what targets must I meet to retain it?
3. Who owns the product registration if the agreement ends?
4. What happens if the brand sells into my country through a marketplace?
5. Who pays for point-of-sale material, local marketing and translated packaging?
6. What happens to my remaining stock if the agreement ends?
7. Can I speak to a distributor of yours in a comparable market?
If a brand is unwilling to answer these questions in writing, that in itself is relevant information.
How territorial exclusivity works in practice
Exclusivity is a frequent request in a first message, and it is not usually granted at that stage.
- It is earned over time In many cases exclusivity is not raised at the start of the relationship, but once there is a track record in that market.
- It has a shape Exclusivity can be per country, per region, per channel or per product family. “Exclusive for pharmacy in one country” is a plausible arrangement; “exclusive for everything, forever” is not.
- It usually comes with an obligation In practice it usually comes with an agreed target. It is worth checking with an adviser what happens if it is not met.
- Request the figure before you agree We recommend asking whether a target applies and what the consequences are if it is not met. It is advisable to have it confirmed in writing and reviewed by an adviser.
The differences between an exclusive, a sole and an authorised distributor are explained in our article on exclusive, sole and authorised distributors.
How to approach a brand to become its distributor
A first message that a brand can evaluate quickly is clear, specific and short. These are the points it should include.
- Who you are. Company name, country, years of activity and the type of business: importer, distributor or wholesaler.
- Your market and channels. The territory you cover and the channels you serve, such as pharmacy, supermarkets or wholesale.
- Your customers. The type and number of points of sale you already supply.
- The brands you carry. Which brands you distribute today and whether any of them compete with the one you are approaching.
- Your plan. Which part of the range you would start with and how you would introduce it in your market.
Example of a first message
We are [company], an importer and distributor based in [country] since [year]. We supply [number and type of points of sale] through the [pharmacy / retail / wholesale] channel, and we currently distribute [brands]. We are interested in adding [product category] to our portfolio and would like to receive your catalogue and learn whether the [country] market is available.
If you would like to apply to distribute Pierrot, you can send this information directly through our distributor form.
Five frequent mistakes in an application
None of these reflects on the quality of the distributor. They concern a first message that does not give the brand sufficient information to respond.
- “Send me your price list” A request with no company, market or channel is difficult to answer, as a brand needs that context.
- No market and no channel “I am interested in your products” cannot be directed to the appropriate person. We recommend stating the country and the channel in the first line.
- Requesting exclusivity in the first message A request made before either party knows anything about the other is unlikely to be addressed at that stage.
- A free email address and no company behind it Distribution is a commercial relationship that involves credit and stock. A company domain and a registration number lend the message considerably more credibility.
- Silence on the regulatory side Omitting whether you have experience of the regulatory procedures in your market. A brand will usually wish to know about it at an early stage.
How it works with Pierrot
The process starts with the distributor form. The steps below describe it in general terms.
- Let us know your market and your channel Please use the distributor form. The more information you provide about your market and your channel, the easier it will be for our team to study your application.
- We study your application Pierrot works through local distributors and seeks distributors in new markets. Our team will study your application.
- Next steps The range and the formats suited to your channel are defined during the application process.
- First order and launch The initial selection depends on the market and the channel of each distributor.
Should you wish to review the range before contacting us, the oral care wholesale page presents the full breakdown by category.
Frequently asked questions
What is the difference between a distributor and a wholesaler?
A distributor takes on a brand in a territory and is responsible for how it performs there: pricing position, channel, presence at the point of sale. A wholesaler handles volume across many brands without that commitment. Both purchase the stock, but only the distributor undertakes to develop the brand.
Do I need a warehouse to become a distributor?
In most cases, yes, whether your own or a contracted one. A distributor usually holds stock, unlike a commercial agent. If you are unable to hold stock, we recommend saying so at an early stage: agent arrangements exist, and it is preferable to establish the appropriate framework from the outset.
Can I get exclusivity for my country?
It depends on each brand and each agreement. In general terms, exclusivity is not usually part of a first agreement: it tends to be linked to a track record and to purchase targets. We recommend asking what those targets are before entering into any commitment.
Who registers the products with the health authority?
It varies by market and by brand. It is advisable to agree in writing who handles any local registration and who holds it if the agreement ends, and to review the point with an adviser.
Do I have to distribute the whole range?
Not necessarily. The selection depends on the market and the channel of each distributor. Toothbrushes, toothpastes, mouthwashes, floss, interdental and children’s lines form part of the range, and you can see the categories on the oral care products page.
Is being a distributor profitable?
It can be, but it depends on the category, the volumes you move and your logistics costs. Before committing, it is advisable to estimate rotation and costs for your own market.
How much does it cost to become a distributor?
There is no fixed amount. The main investment is usually the first order of stock, plus warehouse, logistics, sales team and, where applicable, product registration in your market.
How do I approach a company to become its distributor?
Send a short message with your company, your market and channels, your customers, the brands you already carry and your plan for the range. The section above includes an example.
How do I apply to distribute Pierrot?
Through the form on the distributors page, where the catalogue can also be requested. Please let us know your country, the channel through which you sell and the brands you currently distribute, and our team will study your application.
Keep reading
- If your goal is a brand’s formal approval, our guide to the authorized distributor explains what it is and the requirements brands ask for.
- Once the conversation reaches the contractual stage, our guide to the distribution agreement examines it clause by clause: territory, exclusivity, duration and termination.
- If you are sourcing a single category rather than the whole brand, see toothpaste wholesale.
Ready to apply?
Please let us know the market in which you operate and the channel you serve through the distributor form, and our team will study your application.