Taking on a new brand as a distributor: what to ask first
Short answer: Ask for answers in numbers or documents, not promises. The six questions: what is the shelf price and each party's margin; who pays to build demand after listing; are registration and Thai labels ready; can the brand supply consistently; is there evidence that Thai shoppers buy again; and how do we exit if it doesn't sell. The brands that answer all six are rarely the most famous ones. They are the ones ready to work with you.
This page is written from the distributor's side. Brands looking for a distributor can use it as a preparation list.
The six questions
1. What is the shelf price, and who gets what?
Ask the brand to work backward from what the shopper pays: the store's share, the distributor's share, the brand's share. If the distributor's share can't cover delivery and sales costs, pass, however well-known the brand is.
2. After listing, who makes people aware of it?
Brands that treat the listing as the finish line tend to leave the distributor holding unsold stock. Ask for the first three months after listing: who pays, what gets done, how it is measured.
3. Are registration and labelling ready?
Imported products need a licence and a Thai label for their category. If they aren't ready, ask who files, who pays and how long it takes.
4. Can they supply consistently?
Ask about production and shipping lead times, safety stock in Thailand, and how much shelf life is left when goods reach the warehouse. An out-of-stock right after a video takes off hurts the distributor most.
5. Is there evidence of repeat buying in Thailand?
Repeat orders on TikTok Shop or from trial outlets are stronger evidence than views or sales in the home market.
6. If it doesn't sell, how do we exit?
Agree up front who takes back unsold stock, the notice period, and what happens to the product registration.
A simple score
| Each question | Clear answer with documents | Partial answer | No answer |
|---|---|---|---|
| Questions 1 to 6 | 2 points | 1 point | 0 points |
This scoring is a Flowup team working method, not an industry standard. It lets you compare several brands on the same basis. It doesn't say what score is good enough; your sales and finance teams should set that line.
Limits
- These questions are a general frame. Each distributor's channels and coverage differ.
- Registration and labelling must be checked with the Thai FDA for the product category.
FAQ
Should a famous overseas brand get special terms? Fame abroad doesn't mean Thai shoppers know it. Look for evidence in Thailand first.
Should we take a brand with no marketing budget? Possibly, if your margin is enough to fund marketing yourself and you agree how the results will be counted.
How does Flowup help distributors? Flowup plans and runs TikTok work so the products in your portfolio sell through 7-Eleven stores faster, measured by sales per store.
Sources
- A distributor's sell-through plan: https://www.flowupth.com/en/insights/distributor-sell-through-plan
- Registration and barcodes before modern trade: https://www.flowupth.com/en/insights/barcode-before-modern-trade
- Sell-in versus sell-out: https://www.flowupth.com/en/insights/sell-in-vs-sell-out
Related guide: Getting Into 7-Eleven Thailand: How to Find an FMCG Distributor and Negotiate a Master Distributor Deal
Next step: Not sure where your product should start? Send the Flowup team your product and where it sells today, on LINE or by email.
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