‘Research’ and ‘Due Diligence’ are your allies

Successful entry of your product into a new market depends a lot on the nature of the distributor you choose as a partner. Once you decide which market best suits your business goals, selecting an ideal distribution partner that best complements your business strategies is crucial.

Typically, 4-Step Process is Followed:

  1. Market Scan: A detailed scan of the market is done to identify all the potential distributors. Certain criteria or Key Performance Indicators (KPIs) are considered while doing this research. The KPIs include but not limited to; potential partner’s market goodwill, financial goodwill, size in business volume, and reach in terms of geography.
  2. In-Depth Interviews: Detailed interviews are conducted with potential distributors. During this, criteria set by the manufacturer or the trader who wants to enter the UAE market is presented to the potential partners. Distributors’ demands are also noted during this stage.
  3. Filtering: Expert researchers and industry veterans would sift through the list of potentials and prepare a report to be submitted to the manufacturer/trader. This stage involves a match-making exercise that compares the capacity of the potential distributors and the KPIs set initially.
  4. Due Diligence: Once the new entrant (manufacturer/trader) narrows down to one or two potentials, a detailed background check is conducted. The scope of this phase broader than other states as the effectiveness of this step goes a long way into the success or failure of the product in the market.

Distribution search FunnelAdam Global Dubai can help you identify, conduct due diligence, and suggest the ideal distribution partner for your business in the UAE. It is our recommendation that any company entering the UAE market to thoroughly vet the prospective partners by carrying out a detailed background check.

Download an e-guide for Distributor Identification to explore more details about Distributor Identification in the United Arab Emirates and how Adam Global Dubai can support you in this.

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Disclaimer: Please note that this information should not be considered the ultimate guidelines, and one should consult with our experts for advice or assistance.