Fast Moving Consumer Goods or FMCG goods is one of India's most active and rapidly growing industries. FMCG is the fourth largest sector of the Indian economy, where urban areas generate almost 55% of the total revenue. However, due to rising incomes, awareness, and the growing penetration of the internet, the contribution of rural areas towards the growth of the FMCG industry has increased manifold.
The FMCG industry consists of various products. Mostly, FMCG distributors sell products that are perishable and in high demand. These products include chocolates, cold drinks, biscuits, dairy products, pulses, and grains. For those who want to venture into FMCG distribution, it is recommended that they specialise in distributing a particular product or a group of products.
How Does FMCG Distribution Work?
The FMCG distribution network is headed by large organisations involved in the manufacture of FMCG products. These firms aim to sell their goods to both rural and urban consumers. Hence, they are transported to super stockists in large quantities to get their products distributed. Super stockists hold goods in bulk to transfer them to various distributors. These distributors then sell these goods to various retailers, who then sell them to end consumers.
Things to Keep in Mind Before Becoming an FMCG Distributor
You need to know certain things before deciding to become an FMCG distributor. Let us take a look at some of them.
1. Determine Your Product
Before you decide to become an FMCG distributor, the first and foremost step is to decide which product you want to specialise in. Since FMCG consists of many goods, it is best to determine beforehand which product you want to distribute. It could either be a single product or a group of products. However, before starting your business, it is suggested that you conduct in-depth market research about the demand for your product, its shelf life, and future scope. Try to specialise in goods always in demand, such as pulses and grains, dairy products, poultry, chocolates, and bakery items.
2. Create a Business Plan
After you have decided which product to market, it is time to create a business plan. Since a business plan is a foundation for any business, ensure that your plan consists of the entire vision of your business. It should include the type of distributor you want to be, your target customer, the management strategy of your business, logistics and supply chain model, and future growth plans.
The most important aspect of starting a business is choosing its location. The size of the space or warehouse you want depends upon the size and demand for your product and the delivery modes of your goods. It is suggested that when you start your business, begin by renting or buying a small space to save any rental or overhead costs. Later, as your business grows, you can move into a larger space.
4. Registering Your Business
After you have laid out your business plan and have decided which product you want to sell, it is time to start working. However, before that, make sure that you get your business registered. Check with your state regulations regarding the type of licence you need and the necessary paperwork involved. Also, make sure to gather information whether you require a founding document or an operating agreement for your business.
Best FMCG Distributors in Bangalore
1. Craftstone Solution India Private Limited
Craftstone Solution India Private Limited is an FMCG distributor that specialises in grocery, furniture, and electrical appliances. Starting in the year 2021, this company distributes products such as salon chairs, electrical equipment, and grocery items. It also provides plumbing, repair, carpentry, and painting services. At present, the company has ten employees and is also an e-commerce business.
2. MYS Online Services
MYS Online Services is an FMCG distributor based out of JP Nagar in Bangalore. It is known for efficiently delivering organic and handmade products. MYS Online Services' products include organically produced food items and snacks, organic dairy products, and chemical-free beauty products.
3. MD Retail India Private Limited
MD Retail India Private Limited is considered among the best FMCG distributors in Bangalore. It has an annual turnover ranging between Rs. 50-100 crore. The company specialises in distributing salwar suits, ladies’ kurtas, and other types of garments. MD Retail sells clothes ranging from casual wear to party wear and wedding wear.
4. Ecof Industries Private Limited
Ecof Industries Private Limited is an FMCG distributor located in the Uttarahalli area of Bangalore. They are mostly involved in producing and distributing goods manufactured by the Bakers brands. These products include gelatin, Kitchen King masala, chat masala, and Pav Bhaji masala. In addition, they also sell beverages, baking powder, and ammonia liquor.
5. Atlas Distributors Private Limited
Atlas Distributors Private Limited was started in the year 1998 and, at present, has more than 100 employees. Their well-known clients include Amazon, Flipkart, Dunzo, Wipro, Zomato, Cinepolis, Chai Point, Barbeque Nation, ISKCON, Spicejet, and Swiggy. The company specialises in distributing brands such as Himalaya, ITC, Amul, Red Bull, Godrej, Unibic, Nestle, and 3M India.
6. Chetana Distributors
Chetana Distributors is a wholesale FMCG distributor in Bangalore. Previously, they were super stockists for INOX FMCG, but now, they specialise in the distribution of Haldiram and Patanjali products.
FMCG distributors are involved in selling and distributing FMCG goods from manufacturers to retailers. They either specialise in a single good or a group of products. The most popular FMCG products include grains, pulses, dairy, bakery, and chocolates.
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Q. Who are FMCG distributors?
Ans. FMCG distributors buy goods from manufacturers in bulk and sell them to retailers.
Q. What are some of the most popular FMCG products?
Ans. Some of the most popular FMCG products include dairy, bakery items, chocolates, pulses, and grains.
Q. How does an FMCG distribution network work?
Ans. The FMCG distribution network is headed by large companies that manufacture FMCG goods. They then sell these goods in large quantities to super stockists, who then transfer them to distributors.
Q. What are the factors to keep in mind before starting an FMCG distribution business?
Ans. Some of the factors that you need to keep in mind before starting an FMCG distribution business include location, business layout, licensing and registration, and choosing your product.
Q. Can you start an FMCG distribution business with less capital?
Ans. Yes, you can start an FMCG distribution business with less capital.