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OEM vs. Dealer Network – What’s Better for Fastener Manufacturers?

  • Writer: Maninder Singh Sond
    Maninder Singh Sond
  • Aug 6
  • 2 min read
OEM vs. Dealer Network – What’s Better for Fastener Manufacturers? Arslok
📌 Strategic Sales Channel Decisions That Can Define Your Brand's Growth Trajectory

In today’s competitive industrial landscape, fastener manufacturers in India face a critical decision—Should you focus on OEM clients or build a strong dealer/distributor network?


Both channels promise growth. But the right choice can determine whether your business becomes a scalable brand—or stays a busy factory.


Let’s unpack this from a strategic lens.


> What OEM Clients Offer Fastener Manufacturers


OEMs (Original Equipment Manufacturers) are direct industrial buyers who consume fasteners in their assembly lines—automotive, appliances, railways, etc.


Advantages:

  • 🔹 High volume and recurring orders

  • 🔹 Strong brand association (e.g., supplying to Tata, L&T, Mahindra)

  • 🔹 Predictable demand planning

  • 🔹 Potential for long-term contracts


Challenges:

  • ❌ Long approval cycles & technical audits

  • ❌ Extremely price-sensitive

  • ❌ Rigid payment terms

  • ❌ High documentation & compliance overhead

  • ❌ Once you’re in, you’re locked into tight margins


Verdict: OEMs are great for stability but scale is limited unless you have high capacity, process excellence, and can sustain lean margins.


> What a Dealer/Distributor Network Brings to the Table


This model focuses on building a distribution chain across regions or industries, selling to retailers, contractors, small OEMs, or resellers.


Advantages:

  • 🔹 Higher margins per unit

  • 🔹 Broader brand reach & visibility

  • 🔹 Recurring orders from multiple buyers

  • 🔹 Flexibility in pricing & packaging

  • 🔹 Easier to introduce new SKUs or product lines


Challenges:

  • ❌ Requires structured support & relationship management

  • ❌ Inventory control & forecasting can be inconsistent

  • ❌ Brand positioning becomes critical

  • ❌ Must offer marketing support, catalog, visual identity, etc.


Verdict: If built right, a dealer network can help manufacturers grow rapidly and build a pan-India or even international brand, without being overly dependent on 2-3 OEMs.


> What the Numbers Tell Us

82% of fastener manufacturers who built a dealer/distribution model reported faster revenue growth within 18 months.
67% of manufacturers with only OEM dependency struggle with margin pressures and delayed payments.

(Source: Arslok Industry Survey 2025 – 180+ Fastener Manufacturers)


> So, What’s Better?


The answer lies in your vision.


  • Want to stay a contract manufacturer? Go OEM.

  • Want to build a brand, command pricing, and grow across regions? Choose the Dealer Network Model—strategically.


But remember—dealer network growth requires more than production. It demands:


  • Brand consistency

  • Collaterals and catalogs

  • Product training

  • Lead generation systems

  • Trust-building digital presence


That’s where most manufacturers struggle—and where Arslok steps in.


> How Arslok Helps You Build a Powerful Dealer/Distributor Network


At Arslok, we specialize in helping fastener manufacturers:


  • Design regional distribution strategies

  • Launch dealer acquisition campaigns

  • Build premium catalogs, websites & visual identity

  • Create WhatsApp and LinkedIn-driven B2B lead systems

  • Offer tools that help dealers trust, sell & reorder fast


We’re not just a marketing company—we are a growth partner for the fastener industry.


> Final Word

You can build a factory that’s always full—or build a brand that’s always in demand.


If you’re ready to scale beyond orders and build a sustainable fastener distribution ecosystem—let’s talk.


Because OEMs bring volume,

But Dealers build value.


📩 Let’s Build Your Fastener Brand—From Factory to Fame

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