Is International Distribution Right for Your Brand?
Part 1 of 4: The Founder's Guide to Going Global with Distributors
Hi, I'm Catherine, the founder of Constellar. I actually started my career as a distributor in the Middle East, I then spent many years consulting on the brand-side, which has given me a unique vantage point into what it truly takes to go global and when it makes sense. I've been inside of both worlds and deeply understand the distributor's perspective, and know what it takes for a brand to succeed (and why some don’t). I’ve also worked alongside numerous founders and brands who are making these global decisions. This dual perspective has taught me so much and helped me help others with the many questions they have around, ‘when is expansion the best next step?’
Over this four-part series, I will walk you through everything I wish myself and every other founder had access to before they signed their first international distribution agreement. Today, we're starting with the fundamental question: is this even right for you and your brand?
Understanding What You're Actually Signing Up For
Let's start by demystifying what a distributor actually does, because there's significant variation in the market.
In its truest sense, a distributor operates as a full-service partner in a market, usually a country. They pay upfront for inventory, handle regulatory compliance where applicable, manage shipping and logistics, and take responsibility for all sales, training, and retail relationship management. Many also provide guidance on influencers and PR, though this varies by partner and market.
But here's where it gets more nuanced: not all "distributors" operate this way. Some require lower margins in exchange for brands covering certain costs like shipping. And in other markets, you'll encounter agents who work on commission with smaller teams, don't hold stock, and don't pay in advance. They can be effective for certain brands and markets, but they require more hands-on involvement from you.
Understanding these distinctions matters because the model you choose should consider what your brand needs are right now and what your long term goals are.
Distribution vs. Other International Models
Before we go deeper into the distributor model, let's acknowledge that it's not your only option for international growth.
Direct-to-Consumer International
You could simply ship internationally from your existing operations. This works particularly well if you have strong digital marketing capabilities and existing international demand. The margins are better because you're cutting out the middleman. But you're also taking on regulatory compliance, international shipping complexity, customer service in different time zones, and potentially unfavorable return rates due to shipping costs.
Best for: Brands with strong digital presence, products that don't require regulatory approval, and founders comfortable with the operational complexity.
Direct-to-Retail
Some brands bypass distributors entirely and sell directly to international retailers. This preserves more margin than working with a distributor and gives you direct relationships with retail partners.
However, you're now responsible for managing those relationships, ensuring compliance, handling logistics, and often providing in-store support across time zones and languages. You need someone on the ground or you need to travel frequently. It's resource-intensive.
Best for: Larger brands with dedicated international teams or founders with existing relationships in target markets.
The Distributor Model
This is the focus of this series because for many beauty and wellness brands at the growth stage, it offers the most viable path to meaningful international expansion.
A distributor becomes an extension of your team. They handle the complexity while you maintain focus on your core business. They bring established relationships, local market knowledge, and operational infrastructure that would take you years to build independently.
The trade-off? Margin compression and less direct control. But for many brands, this trade-off makes international expansion possible rather than theoretical.
The Critical Question: Are You Ready?
This is where most founders get it wrong. They see competitors expanding internationally and feel the need to do the same. Or they get inbound inquiries from a distributor and decide to, "Just give it a go!" But readiness is truly about internal foundations.
You're likely ready when:
- Your home market is established with solid brand recognition and consistent revenue.
- You have real bandwidth and infrastructure to support international partners without compromising your core business.
- There's demonstrable overseas demand for your brand and your customers are already asking for it, or you're seeing international traffic and abandoned carts.
- You have sufficient stock and cash flow to fulfill international orders without jeopardizing domestic supply.
- Your supply chain is robust enough to handle increased complexity and lead times.
The Revenue Question
Founders always ask: "What revenue should we be at before expanding?" In the US market, we typically see brands generating $2 million or more before beginning their international journey. But I've watched brands wait much longer and others move sooner, because revenue is just one data point.
A successful direct-to-consumer brand with international consumer demand be ready at $1 million if they are smart about which channels to activate and have the operational bandwidth. A brand doing $5 million but struggling with team bandwidth, supply chain issues and cash flow? Not ready.
What matters more than the number is this: Are you responding to demand or are you going to have to create it from scratch?
The easiest international expansions happen when you're responding to existing demand. If you already have customers in other markets desperately trying to order from you, entering that market is fundamentally different from trying to build awareness in a market where no one knows you exist. Both can work, but they require very different resources, timelines, levels of yours or your team's involvement and will yield very different results from the get go.
What Makes Distribution Work (Or Fail)
From my years on both sides of these partnerships, I can tell you that successful distributor relationships share common elements:
Mutual passion: The distributor genuinely believes in your brand and sees long-term potential. This isn't just another brand in their portfolio, they're excited about what you're building.
Strategic alignment: Your brand values, target customer, and growth ambitions align with their capabilities and market position.
Realistic expectations: Both parties understand the investment required, the likely timeline to profitability, and what success actually looks like in year one versus year three or five.
Strong communication and compatibility: You believe that it's going to be a good match, being able to establish clear protocols for sharing information, making decisions, and addressing issues before they become crises is key.
When these elements aren't present, things can fall apart quickly. I've seen many brands struggle in markets where they chose the wrong partner, unable to exit the relationship cleanly or recover their brand positioning.
The Path Forward: What to Consider Now
Whether you're ready to move forward immediately or you're in the planning stages for expansion in the next 12-18 months, there are strategic steps you can take now:
Define your dream markets: Where do you actually want to be? Don't always follow where other brands go, where do you already have the most demand, what markets are easiest to enter. Also think about where your brand values, product positioning, and customer base align with market opportunities.
Start the regulatory conversation: Even if expansion is a year or two away, understand what regulatory requirements exist in your target markets. Some compliance processes take 6-12 months. If you're developing new products now, you can ensure they're compliant from launch rather than reformulating later.
Build your support infrastructure: Start creating the training materials, sales collateral, and brand assets you'll need. When the right distributor opportunity presents itself, you want to be ready to move quickly.
Get clear on your numbers: Calculate exactly what margins you can offer while maintaining profitability. Research what local competitors charge. Understand your true cost of goods and where you have room to maneuver.
Talk to your existing international customers: If you have them, they're your best source of intelligence. What do they love about your brand? What barriers do they face ordering from you? Would they buy from local retail if it were available?
Consider your investors: If you are partnered with strategic investors, the chances are they will want you to hold off on intl expansion as long as possible, as they will want you to leave some markets on the table for when you're acquired, and also don't want to deter any acquiring parties that might have to come in and clean up a fragmented, messy overseas sales situation.
What's Coming Next
In Part 2 of this series, we'll dive deep into the economics of distributor relationships, the real numbers you need to know, how coefficients actually work, and strategies for making the math work in your favor. Because understanding the financial model is essential before you have your first distributor conversation.
Then in Part 3, we'll cover how to find and vet distribution partners, including the essential questions to ask and the red flags that should make you walk away. Not every distributor who wants to work with you should work with you.
Finally, in Part 4, we'll discuss the practical preparation required to set yourself up for international success. from market strategy to building the infrastructure that supports scalable growth.
International expansion is one of the most exciting phases of building a beauty or wellness brand. The brands that often do best overseas are those that understand their bottom line, move deliberately, choose partners carefully, and want to build something long term, rather than just make money quickly.
So are you ready? By the end of this series, you'll know exactly how to answer that question.
At Constellar Consultancy, we help beauty and wellness brands navigate the complexities of international expansion. Our collective of fractional consultants brings deep expertise in sales, distribution, NPD, brand strategy and communications to support your growth journey. Whether you're just starting to consider international markets or you're ready to vet potential partners, we're here to guide you through every stage.
Next in the series: Part 2 - The Real Economics of Working with Distributors
Is International Distribution Right for Your Brand?
Part 1 of 4: The Founder's Guide to Going Global with Distributors
Hi, I'm Catherine, the founder of Constellar. I actually started my career as a distributor in the Middle East, I then spent many years consulting on the brand-side, which has given me a unique vantage point into what it truly takes to go global and when it makes sense. I've been inside of both worlds and deeply understand the distributor's perspective, and know what it takes for a brand to succeed (and why some don’t). I’ve also worked alongside numerous founders and brands who are making these global decisions. This dual perspective has taught me so much and helped me help others with the many questions they have around, ‘when is expansion the best next step?’
Over this four-part series, I will walk you through everything I wish myself and every other founder had access to before they signed their first international distribution agreement. Today, we're starting with the fundamental question: is this even right for you and your brand?
Understanding What You're Actually Signing Up For
Let's start by demystifying what a distributor actually does, because there's significant variation in the market.
In its truest sense, a distributor operates as a full-service partner in a market, usually a country. They pay upfront for inventory, handle regulatory compliance where applicable, manage shipping and logistics, and take responsibility for all sales, training, and retail relationship management. Many also provide guidance on influencers and PR, though this varies by partner and market.
But here's where it gets more nuanced: not all "distributors" operate this way. Some require lower margins in exchange for brands covering certain costs like shipping. And in other markets, you'll encounter agents who work on commission with smaller teams, don't hold stock, and don't pay in advance. They can be effective for certain brands and markets, but they require more hands-on involvement from you.
Understanding these distinctions matters because the model you choose should consider what your brand needs are right now and what your long term goals are.
Distribution vs. Other International Models
Before we go deeper into the distributor model, let's acknowledge that it's not your only option for international growth.
Direct-to-Consumer International
You could simply ship internationally from your existing operations. This works particularly well if you have strong digital marketing capabilities and existing international demand. The margins are better because you're cutting out the middleman. But you're also taking on regulatory compliance, international shipping complexity, customer service in different time zones, and potentially unfavorable return rates due to shipping costs.
Best for: Brands with strong digital presence, products that don't require regulatory approval, and founders comfortable with the operational complexity.
Direct-to-Retail
Some brands bypass distributors entirely and sell directly to international retailers. This preserves more margin than working with a distributor and gives you direct relationships with retail partners.
However, you're now responsible for managing those relationships, ensuring compliance, handling logistics, and often providing in-store support across time zones and languages. You need someone on the ground or you need to travel frequently. It's resource-intensive.
Best for: Larger brands with dedicated international teams or founders with existing relationships in target markets.
The Distributor Model
This is the focus of this series because for many beauty and wellness brands at the growth stage, it offers the most viable path to meaningful international expansion.
A distributor becomes an extension of your team. They handle the complexity while you maintain focus on your core business. They bring established relationships, local market knowledge, and operational infrastructure that would take you years to build independently.
The trade-off? Margin compression and less direct control. But for many brands, this trade-off makes international expansion possible rather than theoretical.
The Critical Question: Are You Ready?
This is where most founders get it wrong. They see competitors expanding internationally and feel the need to do the same. Or they get inbound inquiries from a distributor and decide to, "Just give it a go!" But readiness is truly about internal foundations.
You're likely ready when:
- Your home market is established with solid brand recognition and consistent revenue.
- You have real bandwidth and infrastructure to support international partners without compromising your core business.
- There's demonstrable overseas demand for your brand and your customers are already asking for it, or you're seeing international traffic and abandoned carts.
- You have sufficient stock and cash flow to fulfill international orders without jeopardizing domestic supply.
- Your supply chain is robust enough to handle increased complexity and lead times.
The Revenue Question
Founders always ask: "What revenue should we be at before expanding?" In the US market, we typically see brands generating $2 million or more before beginning their international journey. But I've watched brands wait much longer and others move sooner, because revenue is just one data point.
A successful direct-to-consumer brand with international consumer demand be ready at $1 million if they are smart about which channels to activate and have the operational bandwidth. A brand doing $5 million but struggling with team bandwidth, supply chain issues and cash flow? Not ready.
What matters more than the number is this: Are you responding to demand or are you going to have to create it from scratch?
The easiest international expansions happen when you're responding to existing demand. If you already have customers in other markets desperately trying to order from you, entering that market is fundamentally different from trying to build awareness in a market where no one knows you exist. Both can work, but they require very different resources, timelines, levels of yours or your team's involvement and will yield very different results from the get go.
What Makes Distribution Work (Or Fail)
From my years on both sides of these partnerships, I can tell you that successful distributor relationships share common elements:
Mutual passion: The distributor genuinely believes in your brand and sees long-term potential. This isn't just another brand in their portfolio, they're excited about what you're building.
Strategic alignment: Your brand values, target customer, and growth ambitions align with their capabilities and market position.
Realistic expectations: Both parties understand the investment required, the likely timeline to profitability, and what success actually looks like in year one versus year three or five.
Strong communication and compatibility: You believe that it's going to be a good match, being able to establish clear protocols for sharing information, making decisions, and addressing issues before they become crises is key.
When these elements aren't present, things can fall apart quickly. I've seen many brands struggle in markets where they chose the wrong partner, unable to exit the relationship cleanly or recover their brand positioning.
The Path Forward: What to Consider Now
Whether you're ready to move forward immediately or you're in the planning stages for expansion in the next 12-18 months, there are strategic steps you can take now:
Define your dream markets: Where do you actually want to be? Don't always follow where other brands go, where do you already have the most demand, what markets are easiest to enter. Also think about where your brand values, product positioning, and customer base align with market opportunities.
Start the regulatory conversation: Even if expansion is a year or two away, understand what regulatory requirements exist in your target markets. Some compliance processes take 6-12 months. If you're developing new products now, you can ensure they're compliant from launch rather than reformulating later.
Build your support infrastructure: Start creating the training materials, sales collateral, and brand assets you'll need. When the right distributor opportunity presents itself, you want to be ready to move quickly.
Get clear on your numbers: Calculate exactly what margins you can offer while maintaining profitability. Research what local competitors charge. Understand your true cost of goods and where you have room to maneuver.
Talk to your existing international customers: If you have them, they're your best source of intelligence. What do they love about your brand? What barriers do they face ordering from you? Would they buy from local retail if it were available?
Consider your investors: If you are partnered with strategic investors, the chances are they will want you to hold off on intl expansion as long as possible, as they will want you to leave some markets on the table for when you're acquired, and also don't want to deter any acquiring parties that might have to come in and clean up a fragmented, messy overseas sales situation.
What's Coming Next
In Part 2 of this series, we'll dive deep into the economics of distributor relationships, the real numbers you need to know, how coefficients actually work, and strategies for making the math work in your favor. Because understanding the financial model is essential before you have your first distributor conversation.
Then in Part 3, we'll cover how to find and vet distribution partners, including the essential questions to ask and the red flags that should make you walk away. Not every distributor who wants to work with you should work with you.
Finally, in Part 4, we'll discuss the practical preparation required to set yourself up for international success. from market strategy to building the infrastructure that supports scalable growth.
International expansion is one of the most exciting phases of building a beauty or wellness brand. The brands that often do best overseas are those that understand their bottom line, move deliberately, choose partners carefully, and want to build something long term, rather than just make money quickly.
So are you ready? By the end of this series, you'll know exactly how to answer that question.
At Constellar Consultancy, we help beauty and wellness brands navigate the complexities of international expansion. Our collective of fractional consultants brings deep expertise in sales, distribution, NPD, brand strategy and communications to support your growth journey. Whether you're just starting to consider international markets or you're ready to vet potential partners, we're here to guide you through every stage.
Next in the series: Part 2 - The Real Economics of Working with Distributors
