What Is a Distributor in Business? In the complex world of supply chains, a distributor is a vital link between manufacturers and the marketplace. But what exactly does a distributor do, and what types of distributors exist?
With over 160 years of experience, Weitnauer Group has operated across the full value chain—from wholesale and distribution to retail. In 1998, we were among the world’s top five airport, off-airport, and airline duty-free businesses. Even though we’ve since moved away from direct retail operations to distribution and wholesale, our legacy remains strong.
This depth of experience gives us a unique perspective on the nuances of each distribution model. In this article, we explore the key types of distribution and how to choose the one that fits your brand’s strategy and stage of growth.
How distributors were evolving: 4 historical milestones
It’s essential to look at distribution origins—what functions it initially fulfilled, and how it has evolved alongside industry, technology, and global commerce. Ballou R.H. in his research The evolution and future of logistics and supply chain management summarised the findings about the history of distribution.
- Initially: A Purely Logistical Role
Distribution itself has military roots with primarily logistical function. Moving goods from producers to local merchants or consumers, focusing on transport, storage, and delivery within limited areas.
Importantly, distribution was initially not recognized as a physical function within business. It was viewed more abstractly as a set of coordination activities.
- The Rise of the Total Cost Concept
Only in the 1960s, the “total cost concept” emerged, recognizing that transportation, warehousing, and inventory control were interconnected and needed to be managed collectively to optimize overall costs.
- Connection to Consumer needs
As distribution evolved, its connection to marketing and consumers became more pronounced. During the industrial era, the rise of mass production and the need to reach widely dispersed consumers led to the dominance of wholesalers and middlemen in distribution channels, separating producers from end users and fostering a transactional, rather than relational, approach to marketing.
- Now: A Strategic Business Function
Today, distribution is a strategic function that shapes brand visibility, consumer access, and commercial success. Distributors help brands navigate complex markets, adapt to local conditions, and ensure consistent performance across channels—whether domestic, travel retail, or online.
The future of the supply chain and distribution is already here – you can read about recent trends that we summarised in the previous article.
Distributors vs Wholesalers vs Retailers vs Agents – what is the differences?
According to Indeed’s article on Types of Distributors, not all intermediaries play the same role in the distribution chain. Each serves a distinct function depending on your business model, product category, and market goals.
- Distributor
What they do:
Distributors are full-service partners that purchase products from manufacturers, manage inventory, and oversee sales, logistics, marketing and sales. They act as a central hub between brands and the market — connecting with retailers, wholesalers, or agents, and coordinating execution across channels.
When do brands need them?
- Entering new, complex, or regulated markets,
- Tight control over positioning, pricing, and visibility – core brand assets
- No local infrastructure.
Best for premium, multi-category, or high-touch brands seeking a long-term, strategic partner across multiple regions.
- Wholesaler
What they do:
Wholesalers buy in bulk from manufacturers or distributors and focus primarily on storage and distribution. They typically do not engage in marketing or direct consumer interaction. Their role is to supply retailers or smaller resellers efficiently and at scale.
When do brands need them?
- Product is already established
- Need to reach a broad network of retail outlets.
- Logistics, price, and speed are priorities.
Best for high-volume, cost-sensitive products with frequent turnover and minimal need for brand support.
- Retailer
What they do:
Retailers sell directly to end consumers, either through physical stores or digital platforms. They are responsible for product presentation, pricing, and customer experience. Retailers are the final point of sale in the distribution chain.
When do brands need them?
- Product is market-ready, and demand has been created
- Visibility is the priority
- Need for consumer access, awareness, and conversion.
Best for brands looking to establish direct consumer presence in key locations or channels.
- Agent (or Broker)
What they do:
Agents represent manufacturers or brands in negotiating sales, securing retail placement, and handling contracts or special accounts. They typically do not hold inventory and are compensated through commissions or fees.
When do brands need them?
- Testing a new market
- Need local business development
- Prefer to keep inventory and operations centralized.
They help navigate complex markets or regulatory environments without building internal infrastructure.
Best for brands entering niche or emerging markets looking for flexibility and local expertise without a full-scale distribution setup.
Key takeaway: difference between distribution intermediates
Overall, each intermediary serves a different function, but distributors offer the most complete solution. They combine the roles of buyer, logistics coordinator, sales team, and brand partner—making them the ideal choice when you need scale, control, and regional expertise in one partner.
At Weitnauer, our hybrid distribution model gives brands the structure and flexibility needed to grow across multiple categories and markets.
Why Are Distributors Important?
While the tools and channels of distribution have evolved, the core role of distributors remains – connecting brands with markets to drive access, relevance, and growth.
Distributors today:
- Bridge the gap between manufacturers, retailers, and consumers
- Manage storage, transport, and order fulfilment
- Support market expansion across regions
- Provide after-sales care and relationship management
- Deliver marketing support, training, and technical expertise
- Add strategic value through insights, brand-building, and localisation
Weitnauer Group, as an exclusive distributor, we go beyond logistics—offering full route-to-market support, from market entry to retail excellence—so our partners can focus on innovation and product excellence.
Do You Need a Distributor? 5 Questions to Answer
That depends on the distribution model your business follows.
Not every brand requires every intermediary. Before identifying the right distributor, businesses must first define the distribution model that aligns with their product type, market positioning, and growth goals.
Distribution models are typically classified by:
- Distribution Intensity
Intensive, Selective, Exclusive
- Number of Intermediaries Involved
Direct, Indirect, Hybrid
In our previous article, we explored them in more details.
If you’re using an indirect or hybrid distribution model, answering the following will help you decide whether a distributor is the right partner — or if you can manage with other intermediaries like wholesalers, agents, or retailers.
- Are you entering a new, complex, or regulated market?
If yes, a distributor can provide local expertise, manage compliance, and coordinate execution across channels.
- Do you need tight control over brand positioning, pricing, and visibility
Distributors are best suited for premium and high-touch brands that require consistency across regions.
- Do you lack local infrastructure (e.g., warehousing, sales team, logistics)?
If your internal resources are limited, a distributor can serve as your operational arm in-market.
- Is your product multi-category, premium, or service-intensive?
Distributors offer full-service support — from logistics to marketing — which is ideal for complex portfolios.
- Can you manage relationships with multiple partners (retailers, wholesalers, agents) on your own?
If not, a distributor can act as a single point of coordination — saving time and ensuring aligned execution.
What sets distributors apart is their established regional networks. A strong distributor already has trusted relationships with retailers, wholesalers, and agents, making market entry faster, more reliable, and more controlled.
Weitnauer Group – A Distributor with 160 Years of Experience
At Weitnauer, we combine 160 years of heritage with agile, modern execution. Our hybrid distribution model provides brands with both structure and flexibility—supported by a broad multi-regional network and deep category expertise.
What sets us apart:
- Global reach: established network across four regions: Europe, North & South America, the Middle East & Africa, and the CIS.
- 8 services across the full value chain: from Route-to-Market strategy, distribution and logistics, to retail excellence, marketing and post-purchase support.
- 6 Product Categories: Perfumes & Cosmetics, Watches & Jewellery, Tobacco & Reduced-Risk Products (RRPs), Beverages & Spirits, Fashion & Accessories, Food & Confectionery
- Local teams: We don’t relocate employees—we invest in local expertise.
- Omnichannel Approach: We operate seamlessly across travel retail and domestic channels, adapting brand strategies for each environment—airport duty-free, concept stores, boutiques, and e-commerce.
Weitnauer remains a trusted, strategic partner for brands seeking long-term growth across regions and categories.
