How to Start FMCG Distribution Business
Talking about FMCG, many will no longer have curiosity about it because it is one of the most popular products that are often offered in the market. These goods are the best selling products in the market for many years due to the affordable rate. Because of this, most businessmen are having the interest to know how to start FMCG distribution business.
If you are one of these businessmen, you will no longer have difficulties in searching for it because the steps on how to do it are already listed below. You must read and understand it very well to know what to do in every step of the way.
FMCG is composed of various products. These are usually eaten and used by a lot of people in meeting their everyday needs. The creation of these products is truly a great idea for those people who are living with a very simple lifestyle. Many people today are purchasing and patronizing these products to keep their money budgeted.
What is FMCG?
FMCG mean fast moving consumer foods which are often offered rapidly at very low prices. The other term for it is CPG or consumer packed goods. The products that it includes are non-durable goods like toiletries, toys, soft drinks, over the counter drugs, processed foods and other things that people always use. The profit margin that is generated in FMCG products is usually small. They are typically sold by bulk. The accumulative profit of it is substantial and it is the classic case of high volume and low margin business.
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Main Characteristic of FMCG
- From the consumers
- Low price
- Rapid purchasing process
- Low involvement
- From the marketers
- High stock turnover
- High volumes
- Extensive network distribution
- Low margin contribution
10 Points to Consider for this Business
- Plan for the FMCG products you want to distribute.
- Perform market researching.
- Use a business plan which illustrates the overall vision of your latest FMCG distribution business.
- Create your official business through registering it and gaining your license.
- Look for the finest location for your FMCG distribution business set up.
- Analyze how you will gain fund for this business.
- Build a certain marketing budget for your FMCG distribution business.
- Design a catalog that shows your entire FMCG products.
- Distribute your catalog and leaflets to the retailers and corporate canteens.
- Follow-up with them for new business.
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