The pattern most borrowed by French companies wishing to establish themselves in Turkey is the partnership agreement with a local company in the form of a distribution contract. The company is, therefore, working with a Turkish company of the same sector as a business partner in Turkey which has the capacity to distribute the products in question. This affiliation with an already existing market player is beneficial for several reasons:
- EASY AND SMALL COST OF ESTABLISHMENT: It allows the French company to quickly settle in the Turkish market, without having to go through many formalities or unblock large costs.
- MINIMIZING RISK: Commitment to the market is shared with a local company, reducing risks in the event of failure
- BENEFIT FROM LOCAL KNOW-HOW: It allows to have commercial and technical support on the spot, thanks to the partner who knows the market and already knows its needs
- QUICK SALES: It allows the company to benefit from the customer portfolio of its partner and to realize sales quickly
The objective of this partnership is a matter of both parties fully satisfied with the mutual commitment. Foreign companies benefit from it as mentioned above but for a Turkish company, this type of commitment remains a challenge as well as a big commercial, marketing, and sometimes technical investment. Why? Indeed, it takes a huge amount of effort to implement a brand new brand and to put in place a large number of procedures, or even to hire additional staff before making any sale.
It is therefore essential to have sharp and relevant criteria in your search for the ideal business partner in Turkey and then to make compromises for a good bilateral understanding.
WHAT YOUR CRITERIA SHOULD BE?
Prefer a partner who speaks a common language with you. CEOs or business managers often speak good English, but there are exceptions.
ASK YOURSELF THE RIGHT QUESTIONS:
- Check the credentials of the team in place
- What work methods does the company use internally? Will you be able to adapt to the methods?
- Does the team have experience on the ground?
- What are their existing customers’ portfolios?
- In which market does this company evolve?
BE VIGILANT ON THE FINANCIAL WEALTH OF THE PARTNER:
It is best for you to control your partner’s financial solvency before making any decisions. ERAI Turkey can perform a financial analysis for you. Do not hesitate to contact us.
BE REACTIVE AND MONITOR:
Turkish companies criticize a lack of responsiveness of international companies in their decision-making process. Therefore international companies have big competitors with a better reputation in Turkey which concluded distribution contracts much more easily. Keep your promises and respect deadlines, and everything should be fine between you and your business partner in Turkey.
MEET SEVERAL TIMES:
See this engagement as a marriage. Before signing anything, meet your business partner in Turkey several times in order to know him better and to avoid any bad surprises once the agreement is signed. It will also allow you to forge stronger bonds that can only be positive when this “common life” is put in place.
Do not hesitate to contact ERAI Turkey for support in finding your ideal business partner in Turkey. Send us an email at firstname.lastname@example.org or via this form.
The French version of the article: http://eraiturquie.com/2016/11/02/trouver-le-partenaire-professionnel-ideal-en-turquie/