An exclusive distribution contract may cover a small or large region. However, no one else may market the brand or product whose exclusive distributor is responsible for marketing within a given region. The manufacturer or seller must also determine whether the distribution agreement is exclusive or not. In an exclusive agreement, the designated distributor is the only distributor with the right to sell the product within a given geographic region or in more than one region. If the agreement is not exclusive, the manufacturer or seller may supply other distributors who sometimes compete in the same market. A distribution contract can be international. The largest electronics and IT distributors, including Arrow Electronics, Avnet, Ingram Micro and Tech Data, operate subsidiaries in a number of countries for wide geographic coverage. (a) expiry period. Upon termination or expiration of this Agreement, distributor has the right to sell its remaining inventory of products and spare parts on a non-exclusive basis as long as such inventory exists; provided, however, that the distributor complies with all the conditions of this Agreement, including those that limit the distributor`s activities. The distributor`s rights referred to in this Article 10 (a) shall be expressly subject to the possibility for the Supplier to repurchase the distributor`s inventory of products and spare parts in accordance with Article 10(b) of this Agreement.
Definition: Exclusive distribution is a situation in which a company decides to make its products available to customers through a very limited number of retailers or distributors. The term refers to a kind of agreement between a manufacturer and a number of intermediaries with the aim of making products available to consumers in a given geographical area. Once the company`s focus is away from the concern for distribution, it can effectively explore other ways to increase brand awareness and sales, for example through advertising and other marketing strategies. In a non-exclusive distribution agreement, the supplier may use other resellers to mitigate the above concerns….