When Distribution Has to Deliver Growth
In a stagnant European market, principals increasingly expect distributors to drive growth. Chemical distribution is evolving from an efficiency lever into a strategic growth partner.
Interview with Jan Haemer and Jim van der Meijden, Simon-Kucher & Partners
Distribution is thus increasingly evolving from a driver of efficiency to a partner for growth, as explained by Simon-Kucher experts Jan Haemer and Jim van der Meijden.
CHEManager: Why is the role of distribution changing right now?
Jan Haemer: For decades, chemical companies have supplemented their direct sales with distributors—originally to reduce costs and complexity. Today, the market logic has changed. In Europe, growth is increasingly driven by market share and new applications. Manufacturers no longer ask only, “Who serves my markets efficiently?” but rather, “Who can help me grow faster?”
What does this mean for distributors?
Jim van der Meijden: The core function remains the same—but the value creation is changing. Logistics, warehousing, and financing remain important, but they are no longer sufficient. Today, distributors develop markets, tap into new applications, support international expansion, or take on regulatory and technical tasks. They complement manufacturers’ sales efforts where additional market success is generated.
“In the past, distribution was primarily a driver of efficiency. Today, distribution must drive growth.”
Is size enough for that?
J. Haemer: No. Size creates options. But only a critical mass makes it possible to economically establish different distribution models for various products, applications, or regions. The real competitive advantage doesn’t come from scale, but from the ability to decide where standardization makes sense—and where specialization creates added value.
"Successful distributors recognize when product sales are sufficient —
and when solution-based sales create real added value."
Does this apply equally to commodities and specialty chemicals?
J. van der Meijden: These two businesses follow different market logics. In the commodities business, added value is generated primarily through availability, price discipline, and an efficient supply chain. In sectors such as personal care, food, or pharmaceuticals, on the other hand, the focus is on application technology, formulation support, and customer proximity. Successful distributors recognize where product sales are sufficient—and where solution-based sales create real added value.
What does this mean for the collaboration between manufacturers and distributors?
J. Haemer: It’s becoming more strategic. Manufacturers are increasingly focusing their sales efforts on global customers, innovations, and strategic accounts. Distributors complement this with broader market penetration, regional presence, and the development of new applications. In the future, it will no longer be just the size of the network that matters, but rather the contribution to organic growth.
J. van der Meijden: That is why distributors today are making targeted investments in compounding, application labs, digital services, and complex supply chain solutions. Not because these services are an end in themselves, but because they help their principals tap into additional market potential.
What is the most important implication?
J. Haemer: The role of distribution isn’t changing because distribution is reinventing itself. It’s changing because manufacturers’ expectations are changing.
J. van der Meijden: In the past, distribution was primarily measured by how efficiently it handled complexity. Today, it is measured by the contribution it makes to the growth of its principals.
J. Haemer: To put it another way: In the past, distribution was primarily a driver of efficiency. Today, distribution must deliver growth.
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