02

When the board has already decided to fire the distributor

PARTNER DIAGNOSIS · ASIA

400%

Sales growth · 3 years

Top 10

Globally, from flat

25 yrs

Relationship retained

The situation.

A long-standing Asian distributor for a European manufacturer. Sales had been flat for the better part of a decade. The distributor had responded by picking up additional agencies, which head office read as divided attention. The founding family was midway through handing over to the next generation. The instruction from the board was simple: find a replacement.

Why I didn’t start there.

Replacing a distributor of that standing costs you eighteen months of momentum and hands their customer relationships to whoever picks them up next. Worth doing when the partner is the problem. I wanted to know whether they were.

So I sized the market that was actually available rather than the one the history implied, then went in-country — customer interviews, retail visits, and a proper look through the distributor’s own operation.

What it found.

They were performing well in the channel they knew. Their customer base was almost entirely traditional retail, built with real skill over twenty-five years. What they had no capability in was the online market that had grown up alongside them. The flat sales weren’t disengagement. They were a blindspot — and the extra agencies were a symptom of it, an attempt to find growth through the only channel they understood.

What I did instead.

Built a joint business plan with them. Sized the digital opportunity, put a financial case behind it, and made clear what it would take in specialist people. Shown the number, they invested. The manufacturer kept a twenty-five-year relationship and got a partner committed to a plan they’d chosen rather than been handed.

The outcome.

Online grew fast. The scale it created funded inventory that lifted traditional retail as well. Total sales grew 400% in three years, taking the distributor into the manufacturer’s global top ten.

WHAT TRANSFERS

Flat sales from a long-standing partner get read as a motivation problem far more often than they are one. Usually it's capability, and capability costs a fraction of replacement. The question to answer before starting a search is not is this partner performing — it's is this partner performing in the channels where the market has moved to.

Route-to-market, rebuilt.

Route-to-market, rebuilt.

dan@dancarmanadvisory.com · +61 418 238 773

dan@dancarmanadvisory.com · +61 418 238 773