Cases

Local distribution as strategy

The Turkish office-supplies market is large, but its stationery producers are relatively small and best served by a local distributor. Alliance experts identified several interested companies that could communicate in English and knew the relevant producers.

Market conditions

Late payments of ten to twelve months and rapidly changing exchange rates meant that producers and importers also acted as financiers. Turkey was nevertheless an important stationery market, with a young population, strong logistics and a sector estimated at USD 3.5–4 billion. Around 70% of the market was supplied by imports.

Result

Most candidates saw cooperation with a Dutch company as a strong opportunity. Alliance experts introduced multiple suitable distributors and agents, after which Draka continued the discussions directly.

Matchmaking process

Each Indian company profile was studied and matched with comparable Iranian companies. Alliance experts contacted 32 associations and unions, built a matchmaking database, shared relevant profiles and filtered out parties without concrete interest. All selected companies received an individual meeting schedule and follow-up support.

Lessons learned

Preparation should begin at least two months before an event. The venue must be easy to find, broad promotion improves the pool of candidates, and detailed participant profiles are essential for accurate matching.

Market opportunity

Turkey’s location between Europe and the Middle East, its large domestic market and limited local raw-material production made it attractive for foreign suppliers. Innovative, price-competitive engineering products had the best prospects.

Glassware and plastics

Kitchen glassware represented a substantial part of the plastic-products market, supported by wholesalers, retailers and online sales. Imported and locally produced products competed throughout the country, while the plastics sector comprised about 6,500 active companies and employed approximately 250,000 people.

Conclusion

The analysis gave RR Engineers a grounded view of demand, competition and distribution before deciding how to approach the Turkish market.

A confidential replacement search

Each country already had a distributor with limited sales. In the most sensitive searches, Alliance experts disclosed the Wella name only after assessing a candidate and confirming genuine interest in a new supplier.

Adapting the longlist

South Korea had few distributors selling professional cosmetics directly to hairdressers. The search was therefore widened to include webshops and distributors in adjacent cosmetic categories.

Result

Five candidates were introduced in Indonesia, three in South Korea and three in Israel. Alliance experts also collected the information needed for Wella’s structured distributor questionnaire so its team could enter meetings well prepared.

A strong starting position

Würth had operated in China since 1994, with a high-quality image, clear positioning, local offices and Chinese staff. Most revenue nevertheless came from direct sales to major manufacturers.

Testing a multi-channel strategy

Alliance experts researched distributors serving smaller customers that could carry part of the portfolio. China’s vertically integrated market, however, offered few distributors large enough to match Würth. Several candidates also feared channel conflict with the company’s direct sales force.

Conclusion

The research explained why partner sales remained limited and indicated that selective acquisitions could fit the Chinese market better than a broad distributor strategy.