Distributor capabilities. One of the many issues we highlighted in our Global outlook for 2023 is the pressure the current environment is likely to put on a lot of local partners. Rising credit costs, FX pressures, inflation, and price sensitivity can seriously undermine not only the investment plans but even the day-to-day business operations of partners across multiple markets.
This may lead to consolidation, but also raises questions among multinationals about the value that distributors can bring vis-a-vis their internal sales teams plus some logistics outsourcing. The skills of partners will become even more important – from demand generation, to working with stakeholders and supporting a premium market position.
How to build these skills and how to ensure the strong, strategic partners survive and thrive should be a focus area for 2023 planning. Many local partners, particularly small dealers and distributors, will come under pressure as their cost of credit rises and they see both price sensitivity and demand drops. Some may also face payment issues, particularly from indebted government customers. You’ll will need to know exactly where the weak points are and have a plan in place to monitor performance and step in ahead of any potential problems where possible.
At FrontierView, we have a wealth of tools, resources, case studies, and bespoke support available to guide you in this process. You can start by taking a look at our gold-standard best practices for building distributor capabilities.
Over the next five years, how do you expect your distribution model to evolve?
% of total respondents; FrontierView survey, 2021
Download an Executive Summary of the Global Outlook for 2023
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