How to find distributors in the Czech Republic

Post date: Aug 22, 2013 2:29:47 PM

A guide to finding distributors in the Czech Republic

Manufacturers who want to extend their marketing system reach the point where they understand that significant expansion will be posssible mainly when they begin to export the product; in fact a manufacturer who exports his goods increases the potential of selling his products by hundreds of per cent and the profits grow accordingly.

The Czech Republic as an international marketing target

Many manufacturers who consider entering the European market and/or expanding within the European market find the Czech Republic an interesting target because of the cheap operating costs relative to the EU and the Czech Republic’s central location in the European continent which enbles strategic expansion to neighbouring countries such as Slovakia, Poland, Hungary, Germany, and Austria. Introducing a product to the Czech market is not at all simple; however companies which have managed to do so report a very loyal market and consumers who do not exchange their product for another one readily.

Making the decision to extend the company’s marketing environment to the Czech Republic has to come from a strategic analysis of the target sub-markets you aim at: examining the relative advantage of the specific product in the Czech market, whether from the point of view of technological innovation, or price, etc. If the product does not exist at all in the local market it is a good idea to examine the degree of feasibility of success in the Czech Republic. For this process, consulting experts who are familiar with the target country – the Czech Republic –is recommended.

Entering the Czech market

After analyzing the initial data and reaching conclusions on whether to go ahead, a decision has to be made as to how to do so. There are a number of possibilities:‎ ‎

There are a large number of possibilities in international trade, and there is really no comprehensive answer suited to all products. Every product has its marketing mix and in every country the accepted procedures are different; it may be that a method that works very well in the Israeli market will not work in the European market and vice versa.

In this article we will expand on the points worth focusing on in order to make an informed decision in the field of marketing in the Czech Republic.‎ ‎

Local distributors in the Czech Republic

There are a number of types of distributors in the Czech Republic; in this article we will focus on the two main ones.

Do you want to grant exclusivity or not?

Supposedly, every manufacturer will aspire to join forces with a non-exclusive distributor, in order to increase his sales possibilities and enable other distributors to sell his products. However there are additional points which it is important to take into account when deciding whether to give exclusivity or not.

On the other hand, in the distribution agreement the manufacturer will aspire to reduce the period of exclusivity in order to enable other distributors to market his products.‎ ‎

The stages in looking for and finding a distributor for your products

The process of finding a distributor:‎ ‎

The differences between an agent and a distributor

In this table we have gathered for you the ten main differences between an agent who works for the Czech company and a local Czech distributor. In this way you can choose your preferred method of marketing.

The details in the table are not conclusive; conditions can change according to specific agreements signed with the relevant distributors.