FMCG distributors

8 Tips for Distributors in FMCG Sector to Excel Sales

FMCG (Fast Moving Consumer Goods) is the growing industry that has the potential to make a profit and distributors have a major role in contributing to the company’s profit.

FMCG includes soft drinks, package foods, beverages, soap, household cleaners, cosmetic products, and other personal care products. These products are readily available in near-by stores.

The focal point of FMCG distributors is to maximize the sales of products in the market. However, there are various important factors that FMCG distributors should never neglect to make an optimum profit from sales. FMCG distributor is the key person responsible for circulating the products in the market in a pattern that allows customers to buy products easily.

Who are FMCG distributors?

FMCG distributors have a right to distribute a set of products in the defined geographical area. The distributor will be responsible for redistributing the products, retail penetration, and market coverage in a particular geographical territory.

FMCG distributors
FMCG distributors

FMCG companies allow distributors to market their products for faster reorganization and easy delivery. Local FMCG distributors keep the bulk stock so that product won’t go shortage in the market. Additionally, the local distributors’ marketing method works best because they can communicate efficiently in an effective manner.

Local distributors will know the marketplace better than the manufacturer, which will help to determine the accurate market demand. Moreover, data on market demand gives the manufacturer a better overview of consumers’ perceptions of the product. Therefore, knowing the consumers’ viewpoint helps the manufacturer to determine the value of the product in the market.

Distributors can also influence customers’ decisions by providing information about the products. And most importantly, distributors know the local market very well, and they can correctly anticipate the product demand. Therefore, FMCG Company needs local distributors to get the product to the final customers.


8 Tips for FMCG Distributors To Excel Sales

1. Find the market potential of the product

Don’t sell the product that doesn’t have market potential. FMCG distributors can focus on selling a specific product or varieties of products depending on how well the product can perform in the market. You can decide which product to sell by analyzing whether the product can fulfill the needs of customers or not. Therefore, you need to choose that product, which is easily acceptable by the market, and people can easily use it in their day-to-day life.

Partnership with that manufacturer whose product is already doing better in other geographical locations. However, you need to analyze your market area to determine whether those products interest people or not.

2.  Determine the right way to sell the product

Focus on selling the product to the right customers. You need to determine which marketing method works best in selling the product. The marketing mechanism depends on what product you are selling and who your customers are. Figuring out the right marketing ways also depends on whether you are selling the product to businesses like wholesalers and retailers or directly to customers. You can identify the right marketing mechanism by conducting proper research in the market.

Century Foods
Century Foods

3. Market the product to the potential customers

Knowing potential customers is important for FMCG distributors. Whether you are distributing products to wholesalers and retailers or selling to customers, you need to know who and where the potential customers are. Send a catalog to the wholesaler or retailer in your area with all the required information. If you are selling directly to the customer, you can use various digital marketing strategies to reach as many customers as possible.

4. Choose the right location

Location plays an important role in distributing the product in a defined geographical area. Establish the business in a location where you can distribute the product quickly. You also need to look for space that can hold the inventory. Judge the location for your business based on the space required to operate smoothly and a good transportation network.  Large space ensures that you can keep enough inventories for the next distribution of the product. And also a good transportation network allows you to distribute the product in a specified geographical location efficiently.

5. Create a business website

The business needs to have a digital presence. For FMCG distributors, the website is important because the website provides information about products to wholesalers, retailers, and customers. Having a website is even more important if you are selling directly to the consumers. And to increase the website visibility, you will need search engine optimization (SEO), which will help to promote the product in search engines like Google. Giving product digital visibility helps in enhancing sales.

FMCG distributor
FMCG distributor

6.  Know the steps of competitors

Knowing your competitor is the best way to formulate a marketing strategy. You can choose to sell the product in a particular location where your competitors aren’t found, and consumers can easily buy the product. While analyzing the competitors, you will need to do deep research in order to know how much your competitors are selling and at what price they are selling. It would be better if you can determine what volume and margins they are generating.

Once you have proper information about your competitors, you can map out the best area to sell products, and formulate a promotional and pricing strategy to outshine them.

7. Build a strong relationship

Developing a strong relationship with the store owner or manager is important for FMCG distributors. Building a trustworthy relationship is important to encourage them to continue the partnership with you. So take enough time to build a relationship with the store owner and manager rather than directly pitching your product. It would be better to start the conversation by trying to understand them. Therefore, take time to listen to what they have to say and show interest in the conversation. The way you show interest in the people and their business can help you to build a relationship.

8. Always avoid consignment selling

When you are trying to sell new products in the market, store owners are reluctant to buy the FMCG that they cannot sell. In such a case, they may agree to display the product on their shelves but they won’t buy your product. If the product sells, they will agree for the partnership, and if it doesn’t sell, you have to take the loss. However, they will not make any effort to sell consignment products because other products on the shelves cost them money. So, unless you have high confidence in your product, don’t agree with consignment selling.

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
Scroll to Top