Piggyback Distribution

Piggyback Distribution in International Trade

Meaning of Piggyback Distribution, according to the Dictionary of International Trade (Global Negotiator): Piggyback is a form of distribution in foreign markets in which a SME company (the “rider”), deals with a larger company (the “carrier”) which already operates in certain foreign markets and is willing to act on behalf of the rider that whishes to export to those markets. This enables the carrier to utilize fully its established export facilities (sales subsidiaries) and foreign distribution. The carrier is either paid by commission and so acts as an agent or, alternatively, as an independent distributor buying the products. Piggyback marketing strategies are typically used for products from unrelated companies that are non-competitive (but related) and complementary (allied).