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Methods of Distribution in Germany
Methods of Distribution in Germany
If your company is currently exporting products to Germany, or will be in the near future, you should be aware of several options for distribution.
Cologne,
Hamburg,
Germany
(prbd.net)
18/04/2012
If your company is currently exporting products to Germany, or will be in the near future, you should be aware of several options for distribution. Traditionally, non-German companies have utilized a distributor or sales rep company, however, an alternative to this distribution relationship is forming a strategic alliance with a well-established German-based company. Doing so allows you to take advantage of marketing, development and financing options that you otherwise may not have access to www.grprainer.com/en/Commercial-Law.html
Traditional Distribution
Typically, foreign companies seeking to sell their goods in Germany will enlist the assistance of agents and distributors. Agents act on behalf of the seller, or principal, and initiate contracts for the distribution of goods in Germany. Contracts govern the terms of the relationship and the duties of both the agent and principal.
The following two sources of law govern the agent/principal relationship in Germany:
¦Commercial Code
¦German Civil Code
Both codes allow for the parties to an agreement to incorporate choice of law provisions in the contract, with the exception of termination notices.
Distributors in Germany may be retained directly by a foreign company seeking to sell their goods in Germany. Distributors may also be contacted by the German agent working on behalf of a foreign company. German distributors buy and sell goods on behalf of the manufacturer, or foreign distributor.
Co-marketing
Co-marketing with a German company entails forming a partnership wherein both companies jointly market each other's products. This marketing strategy clearly benefits companies distributing abroad as it allows for greater brand recognition and capitalizes on each company's familiarity with the local marketplace.
Co-development
Co-development is used by several industries to gain a competitive edge and to reduce the high costs typically associated with development. In a co-development strategic alliance, two firms will join to collaborate on product design, product development and problem solving. The relationship allows for greater identification of new applications, lowers development costs and reduces development cycle times.
Joint Venture Agreements
A joint venture agreement is a contractual agreement between two or more business partners to assume a common business strategy on a project. Partners typically share the profits and losses incurred during the joint venture.
About GRP Rainer LLP
GRP Rainer LLP www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart Germany. Our lawyers can assist your foreign company in identifying reliable German agents, distributors, and other potential business partners. If your company has a business law matter, or you are interested in learning more about distribution in Germany, contact us today.
Contact
Michael Rainer
Lawyer, Managing Partner
GRP Rainer LLP
Hohenzollernring 21-23
50672 Cologne
Germany
Phone: +49 221-27 22 75-0
info@grprainer.com
www.grprainer.com
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About
GRP Rainer LLP www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart Germany.
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