Maier and Vidorno

Dealer vs Distributor vs Agent vs Own set-up

Client Speak
LI Ping HR Director / BHS Corrugated Machinery(Shanghai) Co.Ltd

Strong support in recruitment
M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

Falk Tzchichholz Sales Manager Export / Kjellberg Vertrieb GmbH

Incubation solution
With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

Andreas Dauerbock Quality Assurance / Voestalpine Grobblech GmbH

BIS registration project
The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India – with the expert’s advice you will need.

Rajesh Nath Managing Director / VDMA India Services Pvt Ltd German Engineering Association

Competent Partner
India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows – Maier+Vidorno is a competent partner to efficiently set up and run business.

Bjoern Becker Export Sales / Jumo GmbH & Co KG

Market Presence and Profitability
The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India – and provides hands-on solutions.

Rene Pluss CFO, Member of the Board / Regent Beleuchtungskorper AG

Business Diagnostic and Implement Improvement
Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.

    What’s the best way to sell to Indian customers?

    There are a lot of terms in India for people to help you get your products to your Indian customers.  This table summarises them as simply as we could who does what.

    TYPE of Distribution Channel – India

    Parent’s Interest

    Purchase Order Management (POM)

    Sales Order Management (SOM)

     

     

    Pricing Control with Foreign Parent Firm

    Brand Loyalty

    Transparent Reporting

    International Transport

    Import

    Customs Compliances

    Warehousing

    Sales Invoicing

    Transport in India

    Money Collection

    Pan India Distribution

     

     

    Dealer

     

     

     

     

     

     

    ü

    ü

    ü

    ü

     

     

     

    C&F* Agent

     

     

    ü

     

     

    ü

    ü

    ü

    ü

     

     

     

     
      

    Distributor

     

     

     

    ü

    ü

     

    ü

    ü

    ü

    ü

    Mostly Regional

      
      

    Own set-up

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

      

    M+V

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    ü

    You

    ü

      

     

    Definitions

    Who is a Dealer?

    A dealer is someone who buys a product for their business, stocks it up and then sells them off the rack. They act as a middleman between the distributor and the customer and act as authorised sellers of those commodities in a particular area. A dealer attracts customers from other dealers and competition is formed in the market. They can sell goods from different brands at an increased price than what had paid, making a huge profit margin. In simple words, a dealer is someone who is engaged in dealing with a particular product, buys it and then sells it off.

    Who is a C&F Agent?

    An agent who is involved in the clearing and forwarding activity on behalf of the company (mostly such companies are already registered in India). C&F Agents install everything in the warehouse or its office and charges back to the company. The only expertise of C&F Agent is that they know the product of the client, as they (C&F Agent) already operate with the competition. The fee of a C&F Agent is its management fee and all other expenses related to the operations are directly charged by the agent to the company. C&F Agent only looks after logistics, where storage and invoicing are its main functions. Functions like import management, insurance claim settlement, international logistics, transfer pricing, registrations, compliances, etc need to be completed (looked after) by the client.

    Who is a Distributor?

    A person or a firm engaged in sales and distribution of products, for which product prices and margins are decided by them (distributor).
    A distributor is the only person who distributes your goods in a specific area. All product prices and margins are decided by them. The distributor is the only source for the retailers and dealers to purchase that product in the area. Usually, a distributor is appointed by a company to sell their product on their behalf. They are the mediator between the manufacturers or producers and retailers, promote and sells the product on behalf of the manufacturers to the concerned entities.
    A distributor buys commodities from the company in bulk and sells in small units to other business and outlets. They also offer few services like replacement service, after-sale service, technical support, etc. to the customers.

    What does your own set-up mean?

    Your own set-up means forming a company and managing the whole process yourself. To make this work you normally need your own sales team in India, plus all the back-office support to ensure your products get from your factory to your end customer in India.
    Depending on your industry there are different company formation options.

    What does M+V offer?

    M+V offers a complete set of plug and play modules to allow you to control how you sell in India without having to employ a complete set-up.

    All very well, but what’s the best option for me?

    This rest of this article summarises the differences between engaging a distributor, setting up your own company and employing M+V.

    Summary

    Distributor

    Your Own set-up

    M+V

    What it means?

    Distribute goods and services to other dealers and business

    Own team to sell and manage orders

    Support your sales and marketing team and handle everything else

    Pros

    1. Can be very good for entering a new market
    2. Good Knowledge of similar products
    3. The distributor knows Indian logistics
    4. Operates on margins and these can be decided by the client (this is not always the case)

    1. End-to-end management and control
    2. Team dedicated to selling your products.

    1. Client’s shadow in India
    2. A professional setup Transparency at each stage of the transaction is provided
    3. Single integrated system for entire processing – SOM & Finance
    4. All expertise related with Supply Chain, Finance, Legal compliances and secretarial available – Tricky tasks like SVB, product based compliances, registrations, etc are carried out easily by M+V team
    5. Devise and communicate the supply chain and logistics in advance, pre-empt the hindrances and overcome the same in order to have seamless flow of goods
    6. Always work as an advisor – Routing goods through various channels – FTWZ, SEZ, M+V (so easy to de-couple from)

    Cons

    1. It is not always clear how they manage affairs with the statutory authorities
    2. Product Pricing – Work on margins that are not known to the client
    3. Always in a negotiation mode – Keep negotiating on the price of the product
    4. Trade is limited to a particular geography – (in most cases)
    5. Provide little transparency or visibility to the client
    6. Difficult for the client to take over
    7. Unstructured system and processes

    Complex, and expensive and requires as much micro-managing as any team or distributor.

    😊

     

    Contact Maier+Vidorno to help you decide which option is best for you!ff