DISTRIBUTOR SEARCH

PBM assists U.S. medical manufacturers in exporting and distributing products to the Asian markets and will:

• Find, qualify, and select several distributor candidates for each Asian country;
• Explain your products via fax, phone, and visits to each distributor candidate;
• Ask each distributor candidate to study the opportunities for your products in their country and write a short proposal including their marketing strategy, sales projections, etc.;
• Help negotiate and sign a contract with the chosen distributor group; and
• Meet with the chosen distributor for each country at least once per year to discuss their performance, opportunities, pitfalls, etc.

For any given client opportunity, PBM identifies and qualifies appropriate distributors from its more than 200 medical distributor/agent contacts throughout Asia. These relationships, developed since 1988, are critical to conducting business successfully in Asia.

For companies interested in penetrating the Japanese medical marketplace, PBM can help your company establish a Doctor Direct Distribution System. A Direct Distribution system allows medical companies to import their products to Japan without going through the registration process. This system is especially useful for cases where the cost of registration is high.

Relationships are key. It is important to remember that business in Asia is done almost exclusively through relationships. In the U.S., most businesses operate at "arm’s length," and are highly contractual, using agents, lawyers, and accountants to do their "dirty work." In contrast, Asian businesses seldom rely on lawyers. Trust between the parties involved -- not complicated documents and contracts -- are integral to success. Since Asians generally put their trust in personal relationships, an Asian distributor who does not have some type of personal connection and trust with the manufacturer may misrepresent itself, copy the manufacturer’s technology, mislead the manufacturer, etc. Conversely, when a distributor’s reputation is on the line because of a personal connection, the distributor is likely to "go the extra mile" and do everything within its power to achieve good results for itself and the manufacturer. Face, obligation, and respect are key components of good relationships.

"Asia" is not a single market. Also, keep in mind that Asia is not one uniform market. Distribution strategies should be tailored to the individual market your company is attempting to penetrate. In some cases, even a single country should not be considered one "market." For example, in China, up until the mid 1990s, virtually all distribution was conducted through state-owned enterprises that were not very market-oriented. In the late 1990s, many private medical importing companies were founded. These private groups are more attuned to market issues, however, they can be undercapitalized and lack the manpower and influence to cover all of China. Because of this, companies may want to sign separate distribution agreements with several reputable private companies to penetrate China’s various regional markets.

To read more about distribution in China, Japan, and elsewhere in Asia, see our recent article "On the Asian Front" or contact us for more information.

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