Find distributors and retail buyers in South Africa

Identifying the top retail chains in South Africa where you can sell your products is relatively easy. Approaching and convincing them is a bigger challenge.

It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.

In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.

Find the right retail channels in South Africa

South Africa is one of the most developed African countries, and per 2023, it had a population of about 60 million people.

South Africa’s economy, with a GDP per capita of about $5,100 USD in 2023, is the second-largest in Africa. It is characterized by its mineral resources, with significant production of gold, diamonds, and platinum. Other important sectors include manufacturing, particularly automotive, and services, especially finance and tourism.

South Africa’s main imports include crude oil, machinery and equipment, chemicals, and scientific instruments, supporting its diverse industrial base.

Major cities include Johannesburg, the largest city and economic powerhouse; Cape Town, known for its stunning natural beauty and tourism; Durban, a major port city; and Pretoria, the administrative capital.

Travel to South Africa for a better impression

The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.

Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.

How to start in South Africa? Distributors, retailers or online?

If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.

Distributors

Distributors are used to import, store and physically distribute a product.
They normally don’t invest in promoting your product to consumers.
They are the best chance to get your product in the market so that you can gather sales data.

Large retailers

Retailers are very risk averse, may ask for a listing fee before they put your product on the shelves.
They can help you promote your product in their stores and in their magazines, but will also ask a fee for this.
They are the quickest route to the mass market, if you can convince them.

Online

Specialised web shops may have a greater interest in your product than general web shops.
They can experiment more easily with pricing and ways of promoting.
Volumes may be lower, but working with web shops is still a good way to collect reviews and get brand awareness.

Key question of any distribution partner: how much will I earn?

Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:

A retailer has to take another product from the shelf to make space.
A web shop only can push about 20 products on the home screen, the rest is in the ‘long tail’.
A wholesaler with representatives will only offer his retail clients a limited choice to increase the chances on a sales transaction. If they push your product, they need to stop pushing another one.

Customs clearance for South Africa

Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.

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How to draft your distributor pitch?

I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.

When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.

Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.

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Frequently asked questions

How to find a distributor in South Africa for your product?

The best way to find a distributor in South Africa is to first decide who are the most likely end-users for your product, whether it are consumers or businesses. Then determine where they now buy your product of an alternative. Before starting to push your product, approach a number of them to ask what they find important and for what reasons they would switch supplier. This way you can position and document your product better before you reach out to a broader group.

How to find an agent for your product or service in South Africa?

First check whether your product normally is sold through an agent in South Africa or that other distribution structures are more common. Then determine the characteristics of your ideal agent, and find a number of these, or outsource this search. When you approach the first few, you will learn what they find imporant and who your competitors are, and you can get a feeling of the commissions they want.

Can you directly approach supermarkets in South Africa to become your distributor?

For the major supermarket and drugstore chains in South Africa this may be the case, but it always is difficult. You need a very well documented story and preferably a product that is proven to sell in other countries. Working with a distributor who already has relationships may be easier. Smaller chains and independent stores always buy through a distributor.

How to convince a distributor in South Africa to work with you?

As in any country, convincing a distributor or retailer to put your product in his assortment is difficult. Also in South Africa distributors look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.

How to find a reseller or dealer for your product in South Africa?

Resellers and dealers mostly not only look at how much margin they can make on your product, but also what additional services they can provide, like installation or maintenance. If you are already active outside South Africa and you have data from other dealers or resellers you work with, this will make it easier to convince them. Preferably use a local party like Alliance experts to find and approach any potential resellers or dealers.

How to get a top retailer as your distributor in South Africa?

Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.