Client Problem
A leading European Crimping Machine Manufacturer with a history of more than five decades tasked us with finding a distribution partner in Indonesia. The client is catering to high end/premium market customers with a need for advance technologies in their manufacturing operations.
The client has a presence in 100 countries and distributes its products through Singapore and Malaysia- based companies in Southeast Asia. The client wished to improve their sales in Indonesia and maximise its potential through directly appointed distributors in the Indonesian market through multiple distributorship agreements.
To begin with, the client thought that the current ASEAN distributor didn’t engage deep enough into the Indonesian market. Indonesia is a very competitive market with several layers of distribution channels making the products for the end customers expensive.
Our Solution
Asian Insiders began by researching the client’s industry through interviews with industry experts and gathering publicly available data. This research included key information such as market size, competitive analysis, and current trends. The findings provided the client with an overview of the industry in Indonesia, competitor data, and future market projections.
Next, we conducted due diligence on five shortlisted companies after initially identifying 28 potential distributors across Indonesia. The due diligence focused on key factors such as geographic presence, financial stability, number of employees (including sales and support staff), current clients, reputation, and knowledge of the Indonesian market.
Successful Result
The client ultimately chose one of the shortlisted candidates as their primary partner in Indonesia, while maintaining relationships with their Singapore-Malaysia-based distributors. Several detailed online and in-person meetings were held before the final decision was made. The client and Asian Insiders concluded that the chosen partner met most of the key criteria needed to grow the client’s product in Indonesia. After several years of partnership, the client is currently developing a strong relationship with their partner in Indonesia and is looking forward to continued growth in sales.
