Four ways to enter South America. One decision that must make commercial sense.
The right question is not simply how to avoid overhead. It is which model provides the selling capability, control and unit economics your brand needs at its current stage.
Do you need another intermediary, or a stronger commercial operating capability?
Manufacturers can often ship goods internationally. Sustained business is harder: account access, retail pricing, compliance, credit, service, sell-out and replenishment must work together.
Every model brings a different trade-off.
Manage from abroad
Lean local footprint and direct oversight, with limited physical proximity and pressure on international management bandwidth.
Best suited to: selective or already supported accountsPartner-led resale
A capable local distributor can supply importation, inventory, credit and channels, but the resale margin may constrain price competitiveness.
Best suited to: economically justified partner capabilitiesBuild a local entity
Direct operating control and dedicated resources, with hiring, compliance, working capital, management and fixed commitments.
Best suited to: scale that warrants the structureActivate local sales capacity
Manufacturer-side retail selling and approved local coordination, without automatically adding an inventory-owning resale layer.
Best suited to: disciplined expansion with HQ leadershipCompare what the manufacturer must actually fund and manage.
This comparison describes typical operating characteristics, not guaranteed outcomes. Actual economics depend on the category, country and contracts.
| Decision criterion | Remote HQ | Distributor | Own subsidiary | MCC / RBO |
|---|---|---|---|---|
| Local retail selling | HQ-led, periodic visitsLimited continuous account presence | Partner-ledCoverage follows distributor priorities | Internal local teamRequires recruitment and management | MCC leads approved local account developmentHQ remains executive sponsor |
| Inventory and title | Manufacturer or contractual buyer | Often distributorVaries by agreement | May be held by subsidiary or import partner | Not automatically held by MCCDepends on agreed route |
| Price architecture | Direct HQ policy; local insight may be thin | Resale margin must fit shelf price | Full local cost structure must be recovered | Manufacturer-led pricing with MCC analysis and governance |
| Fixed operating commitment | Lower local overhead; HQ time cost | Lower manufacturer setup, paid through trading economics | Typically substantial local fixed costs | Contracted services and agreed operating expensesNot a zero-cost alternative |
| Credit and collections | Seller's exposure under contract | May be borne partly by distributor | Local entity or contractual seller bears exposure | Allocated to contractual seller or partnerMCC does not guarantee payment |
| Sell-out and replenishment | Dependent on HQ and retailer visibility | Dependent on distributor incentives and reporting | Managed by owned team | Tracked as part of agreed manufacturer-side execution |
| Control and flexibility | Direct decisions; constrained bandwidth | Shared with partner and its commercial priorities | Strong direct control; slower structural adjustments | HQ approval authority; scope and mandate can be adjusted |
Indicative comparison only. Compliance, taxes, local employment, import responsibilities, service obligations and financial risks require country-specific assessment. MCC's operating model does not eliminate them.
Who sells, who ships and who gets paid are different questions.
HQ + MCC + Retail
HQ sets strategic and financial guardrails. MCC develops and manages approved major-account sales.
Supplier to contractual buyer
Physical flow follows the selected direct, importing or distributor model. MCC does not automatically acquire title.
Buyer to contractual seller
Product invoices and payment exposure follow the commercial agreement. MCC's mandate compensation is separate.
The recommended operating route comes after the economics.
Direct major retail purchase may protect shelf-price competitiveness when retailers can import and the supplier can support the terms. Where additional financial or logistical capabilities are genuinely needed, a qualified partner may earn its place.
See How Our Model WorksStart where the manufacturer actually is.
Commercial execution
When product, price, supply and operating fundamentals are ready, prioritize account selling and execution.
Close key gaps
Coordinate readiness improvements and sales development through an agreed scope and milestones.
Build foundations
Validate market intelligence, portfolio, pricing and regulatory or service requirements before commitments.
Choose the capability the business needs, then choose the structure.
An International Sales Manager can propose MCC as an extension of the existing team. The manager remains the sponsor, HQ retains approvals, and the local operator is accountable for agreed commercial execution.
Five questions for a sound decision
Can the products win at shelf price?
Who is accountable for major retail selling?
Who owns inventory, credit and collections?
What capabilities are missing locally?
How will HQ evaluate sell-out and future expansion?
Build a commercially defensible expansion decision.
MCC can help assess the viable operating route and provide manufacturer-side selling capacity when it fits your business.