Celestial Tech Limited

If you engage a local distributor as a principal, you expect the local distributor to take the new business seriously, invest in a long-lasting bright future that benefits both parties. You expect the new distributor to actively market your products and services, try to find new customers to increase the product fleet in the market and to grow the aftersales business.

The understanding in Celestial Tech Limited is different. The majority of the products that Celestial Tech Limited has in its portfolio, and Celestial Tech Limited represents dozens of brands is being used in ships. Instead of marketing the products, the main business of Celestial Tech Limited (and its affiliated companies in the US and Hong Kong) is building ships, or at least sell the ship design with the entire material package. So the target is to use as many as possible of the represented products for their own ship-building projects, benefitting from the distributor discount. For all the companies to which the principals expect Celestial Tech Limited to distribute the products, Celestial Tech Limited is now the competitor, and none of these potential customers can have an interest in purchasing these products at inflated prices from their own competitor. This practice is a way to the market, but in my view not the correct one.

I have highlighted to the management of Celestial Tech Limited, that this practice in fact constitutes a distortion of the market, it cannot be in the long-term interest of the principals and can as such not be sustainable.

What I your opinion about this way to the market, using the discounts as authorized distributor to be a more competitive ship builder.

What is your opinion in this matter? Any comments, any further considerations and contributions?