Monday, 18 March 2019

Three Tips for FMCG Distributors to Enhance Sales



FMCG (Fast Moving Consumer Goods) is the fastest growing industries which run into billions. However, the FMCG distribution tends to have lower prices and slimmer margin compared to consumer durable goods.

 Under FMCG, there are many products like food, soft drinks, soap, etc. Which are found in a wide range in different outlets? 

Many top e-commerce brands have a wider FMCG distribution center and sales channels in both urban and rural areas. The best FMCG distribution example is of the food industry. Kiwi Foods, one of the reputed snack manufacturing brands has a wider distribution center through its franchise. Distributors are having a great time in working as a franchise for Kiwi Foods.

There is great competition for space in shelves of distributors. For FMCG distributors, it is important for products to get maximum sales and good shelf space. If you are a FMCG distributor and wanting to increase your sales for longer terms, then here are 3 tips how FMCG distributors can increase sales-

1.       Know your Competition-
As a distributor, you need to stay updated what competitors are doing. For example, if you are a distributor for snack products and trying to get into stores. When you find a store which is already offering five other competing snack items, then you may need to skip it in favor of another store. Here you also need to do more in-depth research about how many your competitors are selling and earning. Once you get the complete picture, you can know what kind of product volumes and margins you need to distribute for the snack brand.

2.       Avoid Consignment Selling-
Usually, store owners and management are reluctant to buy FMCGs that are not certain they can sell. Many new distributors usually find under this situation, the decision maker, you offer compromise they won't buy product up-front. If the product gets sold, then store owners may agree to pay certain cut out of the total sales. However, if the product isn't getting sold, then this can bring loss. This is called as the Consignment Selling. Distributors who face this situation should avoid getting under this situation.

3.       Build Strong Relationships-
Stronger the relationship you build with store owners and managers that will help in making a good distribution center. Relationship building is very important, especially in small and family-owned corner stores where there is no corporate management that store needs to answer. If the store owners know you well, then it can make easier for building relationship with the distribution center.
Other ways on how you distributors can increase the FMCG sales-
·         Improve productivity of your distribution network

·         Market Development
·         Provide with complete insight to build and reach the larger market
If you are keen on becoming the distributor for Kiwi Foods, then connect with them and get the distribution authority for success.

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