Eversheds International
Global home
Commercial Contracts
Agency and distribution
Challenges/Hot Topics
For manufacturers, suppliers and brand owners the right distribution strategy is key to maximising margins and commercial success. Whilst selling direct can enable the supplier to retain control of the supply chain, an agency or distribution model can provide quicker access to distant markets together with the benefit of local knowledge. But which is the right model to choose? To what extent can a supplier control a distributor? How can it control grey importing? How can it control or influence resale pricing? Can it control internet based selling by the distributor or agent? What influences the choice of an exclusive or selective system? How much protection does an agent receive and how expensive is it to bring an agency to an end?
How Eversheds can help
Our team understand that for a supplier, the choice of distribution model is critical to the success of the product and the brand. We understand that the agreement is a long term commercial arrangement just as much as a legal one. We are able to advise on the advantages and disadvantages of each agency or distribution model and to advise on the most appropriate structure based upon the nature of the product and the supplier's capability and aspirations. Our team includes competition specialists who are experts in the complex national, European and international anti trust rules that constrain the permitted terms of any arrangement and ensure that the agreements adopted comply with all relevant legislation. With agents increasingly protected through employment style regulation, our team is able to ensure agency arrangements are compliant but are also able to advise on claims for compensation or indemnity as and when they arise.
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