16. How to build the global distribution network?

Building the Network

Your distribution journey can start almost by chance. By example, a Japanese businessman sees your products in a tourist store, contacts you, and by the end of the day, you have met them and started the distribution partnership. That was how it can often happen in those early years: connections, conversations, and as a result of a lot of travel.

By your second year, sales are growing, due to distributors expanding their networks and adding more retail points.

Growing Pains and Fulfilment Centres

As the network grows, so do the challenges. Many distributors want to keep stock levels low to minimize risk, but long shipping times from New Zealand make that difficult. To solve this, one approach is to establish fulfilment centres offshore. These hubs allow you to supply products quickly, especially smaller orders, which gives distributors confidence to promote your brand aggressively. Without that, there is a risk the distributor will hesitate to commit their sales staff to your products.

Distribution is not just expanding your reach—it is creating the infrastructure that makes growth sustainable. Developing global distribution is a key challenge when building the business from New Zealand.

Managing Conflicts and Channels

With multiple distributors in large markets, pricing conflicts are inevitable. For instance, if one distributor sold to an Amazon reseller chasing volume with thin margins, it could undercut everyone else. Managing this requires constant vigilance and firm agreements. An option is to choose to focus on sales channels where personal selling  takes place—where distributors and retailers can tell your story. That is not possible on platforms like Amazon, so you should keep your products away from them .

Lessons from the Field

The biggest lesson in managing a global distribution network is that it’s never finished. There are always “many balls in the air”—markets evolving, partners changing, and conflicts arising. The work is constant, but it’s also where the real leverage lies. With the right partners and infrastructure, distribution doesn’t just move products—it builds brands.

Takeaway: Don’t underestimate distribution. Your ability to deliver reliably, manage partners well, and adapt your model to each market will determine whether your brand survives global expansion—or thrives on it.

Your next read in the series 17. Why innovation is critical for long term business success?

Building Global Businesses

A fuller explanation on this subject is outlined in my book “Going Global” www.goglobal.co.nz