Question

Topic: Branding

Distribution In Canada From A Us Biz

Posted by BlueSage on 7/17/2007 at 3:18 PM ET 150 Points
I have a large distributor in Canada that may want to distribute my skin care products. As the manufacturer I am to supply literature. What types of literature?

catalogs, brochures? What else?
They want exclusivity for Canada. I have been pondering this for 2 months. What do I need to think about?

They want labels in French. To this end, because at some point I expect to have products elsewhere, I am having labels done in English, French and Spanish.

What questions do I need to ask them? what do I need to be aware of as the manufacturer?

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RESPONSES

  • Posted by ilan on 7/17/2007 at 3:28 PM Member
    It seems like a classic case of a manufacturer and a distributer who don't have a marketer...
    I'm curious how do you sell your products in the U.S.?
    Do you have an ad agency? do you sell on line?are you a direct marketer? have you designed packaging before? does the packaging talk only about contents, or has some selling points?
    All you have to focus on is what will the consumer want from you, and translate it into a marketable language, where you tempt her to buy the stuff.Of course you have to know what the distribution channeles are going to be. If not it means that your distributor is just getting boxes from you, and he takes care of the distribution channel in Canada...
    Did you have a conversation with him on how the product will be sold there?
    If your distributor will sell your stuff in stores, you need good packaging.
    If he will sell it via catalog, you need to either develop one, or help him do it
    If he will sell your stuff in a stand alone environment, you may want to think of literature to gain awareness to your products.
  • Posted by BlueSage on 7/17/2007 at 3:53 PM Author
    I currently sell online almost exclusively. I have products in an organic store in Singapore. The distributor has several hundred stores they distribute other products too in Canada.

    He said they will begin an advertising campaign, 'costing between $2500 to $4500 each publication' and wants all Canadian retailers and consumers to buy from them. He said they will represent me to fullest capacity once an agreement for exclusivity is in place.

    He wants to see my merchandising materials so they can provide proper translations.

    He's talking about him doing the labels and me proofing them. I have told him the labels need to be my own. He has asked in the past about private labeling. I do not private label.
    No I have no marketer. This business is 1.5 people.
    Which also means I will need to find a contract manufacturer if this happens.

    I asked what he means by 'registration charges'.

    There is something I haven't thought about, in the exclusivity arena, but I don't know what it is. It's niggling at my mind though.
  • Posted by Candureactor on 7/18/2007 at 12:59 PM Accepted
    I've attached some links that you might find helpful.

    Your distributor is correct in saying that your products must have _bilingual_ labels for Canada (French and English are the official languages).

    As a small operation I would be hesitant to agreeing to pay Market Development Funds without considering other options that might create awareness at the retail level. For example, localized Website/blog, product tour, local sponsorships, partnerships.

    -- Links --

    Import Source
    https://www.importsource.ca/gol/importsource/site.nsf/en/is00107.html

    Health Canada impact initiative
    https://hc-sc.gc.ca/ewh-semt/contaminants/person/impact/index_e.html

    Canadian Boarder Services
    https://www.cbsa-asfc.gc.ca/import/menu-e.html
    https://www.cbsa-asfc.gc.ca/sme/import-sme-pme-eng.html
  • Posted by cllbm18 on 7/18/2007 at 1:42 PM Accepted
    Having distributed American beauty products in Canada, I can tell you that it can be very confusing, even province by province. It is a good idea to include English and French but be careful by adding Spanish because the typeface ends up so small that people (especially baby boomers!) can't read it. Shipping represents a whole different set of challenges, whether it's paper materials or product so follow the advice of Candureactor and do your homework first, especially with their version of FDA approvals. The materials you will need will depend on the demographics of the target market. Upscale, department store customers want high quality materials and are used to free samples and good quality materials. Younger audiences and mass market buyers neither want not expect such things. And, of course, sample sizes are imperative, but since the bottles are so Small, they require paper labeling on tear off pads. Canada is a great market and they love their beauty products. But do your research on all their tax, duty and legal requirements first so you don't end up eating product that customs won't let through. Wishing you the best of success in your venture. Cllbm
  • Posted by BlueSage on 7/18/2007 at 3:09 PM Author
    thank you all for your responses.

    I have found what literature I need by researching elsewhere.

    The distributor is undertaking everything. All I have to do is make the products. He knows what he's doing.

    I was told some years ago to not allow exclusivity for anything. I think for this though, it's not the same deal. I have not had other stores in Canada ask to retail my products and this would take care of it in one fell swoop.

    However I think I need to get something in writing from him regarding how much he will purchase per quarter [whatever time frame], to make sure the product is being sold well.

    The dist, will be bringing the products in, he knows the shipping and importation rules. The Spanish on the labels/boxes is there as there is a large contingent of Spanish speaking people in the USA.
    I want to cover my bases now, not have to reproduce the same thing later at more expense.

    I agree with the small font for boomers, however, like myself, they can get their glasses on. :)

    The distributor will have my marketing materials translated into French.

    It is a health product distributor.

    For the literature, I just need brochures, flyers, materials I use elsewhere to promote sale of the products. Educational stuff for those that are not buying off the website.
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