How To Begin Distributorship For FMCG Products In India?

Want to know what can be done to take distributorship for FMCG products? Are you willing to become FMCG distributors but have no idea where to start with? Well, if you want to get answers to these questions then you have to go through this blog. I am saying so because I have mentioned here about distributorship for FMCG products, from its overview to its role and types of FMCG products.

What Are FMCG Products?

FMCG or Fast Moving Consumer Goods holds a great position in the global economy. FMCG are products that have a short shelf life and it will sell quickly. When it’s done correctly, FMCG products hold a great business opportunity. FMCG caters to a really wide range of products which ranges from soft drinks, beauty, food, etc.

FMCG is known to be the 4th largest sector in the Indian economy where the urban segment contributes almost 55% to the complete revenue that is generated by the sector. Though with the growing awareness, internet penetration, increasing income and changing lifestyles, the FMCG market has been faster growth in some rural areas of India as compared to the urban areas. FMCG products are reported to account for around 50% of the total rural spending which is evidence of the rapid growth in the semi-urban as well as rural consumers in the industry.

Types of Fast-Moving Consumer Goods or FMCG

FMCG products are generally nondurable goods or have a very short lifespan. These are consumed at a fast or rapid pace. FMCG products can be generally divided into some proper categories which include:

• Prepared Meals: Ready-to-eat meals
• Processed Food: Cereals, Cheese products and boxed pasta
• Baked Goods: Croissants, cookies and bagels
• Medicines: Pain relievers, aspirin and other medications that are purchased without any prescription
• Frozen foods, fresh foods, dry goods like vegetables, fruits, frozen peas, raisins, carrots and nuts
• Cosmetics and toiletries: Concealers, hair care products, soap and toothpaste
• Beverages: Energy drinks, bottled water and juices
• Office Supplies: Pencils, pen and markers

Role of Distributor in FMCG Channel

In FMCG channel, distributor is the key to FMCG business sector. FMCG distributor has exclusive rights to distribute some products in a defined location. Distributor will be completely responsible for the redistribution of the retail penetration, products and market coverage. Distributor is generally appointed to serve a particular clientele base like hotels, canteens, restaurants, etc.

How to Start FMCG Distributorship In India?

If you want to take distributorship of FMCG products then there are some points or you can say steps with the help of which you will be able to start FMCG distributorship business. They are as follows:

• Decide The Product: This is the first thing you should have to do if you want to start FMCG distributorship. To take distributorship for FMCG products, you have to first decide for which product don you want to start distributorship business.
• Business Plan: Before you start any business and want to grow your business at higher lever then it is important to first make a plan. Yes. Here planning is very important for any person who wants to get into the distributorship for FMCG products.
• Location: Selecting a location for your distributorship business is also very important. You should decide for which location you want to start your business so that it becomes easy to find manufacturers for your business.
• Licensing & Registration: In order to start distributorship for FMCG products, you have to register your business as per your state’s rules and regulations and then should have a license agreement for this. Only then your business will believe to be a legal business of FMCG distributorship.
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