Do you know something about the distributor and distributorship? A distributor is one who buys products from a supplier, warehouses them, then sells them to retailers or to end-use customers.
A distributorship agreement is a contract made between a distributor and the supplier, setting out the terms under which the distributor may sell the products.
WHAT’S IN IT FOR ME?
- WHAT TYPES OF QUALIFICATION REQUIRED TO BECOME FMCG DISTRIBUTOR?
- HOW MANY TYPES OF DISTRIBUTORSHIP.
- FREQUENTLY ASKED QUESTION ABOUT IT.
WHAT TYPES OF QUALIFICATION REQUIRED TO BECOME FMCG DISTRIBUTOR ?
Let us discuss what are the qualities that a company needs in a distributor to make it a long term partner to make a part of their growth or what contributions they need in the market with the distributor.
See there are basic expectations of the company from distributors such as strong finance, better infrastructures, vehicular facilities, proper manpower, better knowledge of software and technologies, a good reputation in the market which are already known.
But there are 4 most important qualities which will make you the best distributor of the company. Through this you can maintain a long term relationship with the company.
1. BUSINESS UNDERSTANDING :
The first thing needed is business understanding.
In my experience, I saw many of the distributors who are fully dependent on the companies, when the company’s sales manager arrives then work will be done, or when a company orders their stock will be delivered.
These distributors are just their logistic partners. But if you have that business understanding that you understand the FMCG business very well that you can think like the company’s sales office so no one can stop you growing.
You know your market, retailers, and where the gaps in the market that you want to reach. If you want to grow these are also not enough for you.
Then I’ m telling you that the company won’t let you get stuck on this level because the company wants to grow and if you want to make a better long term bond then you have to grow more and more.
In today’s world no one wants to be static, no one remains static and constant. Whether they grow or they won’t. If you want to be consistent with even a 30% market share then also you have to grow. You have to match your level with everyone around you growing.
2. ABILITY TO GROW:
Let’s know the second one; that is the ability to grow.
Do you have the ability to grow? If yes. Then do you have those tools, techniques? Do you have that bandwidth in terms of infrastructures? That today if your sale increases to 25%, doubles in 2 or 3 years, can you accommodate it?
Do you have that energy to match this growth? Did your credit quality interest increase in banks so that when the company is growing you can use that credit quality interest to take out a loan and then purchase stock?
Do you have that power to expand in the market? If yes. Then Do you have those vehicular facilities? Do you have enough manpower?
So all these things indicate whether you have the ability to grow or not.
So the company finds such distributors only which have the ability to grow on high peaks.
3. LEADERSHIP QUALITY :
Third one is leadership quality which is the most important point.
Because if you are a businessman but not a leader then your own staff won’t respect you either.
This will be harmful to your distributorship. So you should have the leadership ability that yes you took the responsibility of distributorship and I will make this company no.1 in the market.
And for this, you have to demonstrate that strength and think about what are the things you need to be a leader. You need to manage your sales stream, whether they see you as their guide or role model. Whether your staff is satisfied with you, respects you.
All this shows whether you are a good leader or not. This is self-motivated for your company.
4. RELATIONSHIP WITH TRADERS :
The fourth is relationships with traders.
What kind of relationship do you have in the market? Suppose if your company replaces you with another distributor So the market will have some impact?.
I have also seen such distributors Who don’t even know about shopkeepers because they don’t visit the market and sit in the AC room.
If the company replaces such kind of distributors there will be no impact with the shopkeepers in the market Because they didn’t have any relationship with their last distributor.
That’s why this will also not impact the company. So if you want a better bond with the company, you must have a better relationship with the market.
The market relationship is proportionate to a relationship with the company. Have control over retailers and give them the best and dedicated services so that they always trust you and become loyal to you.
Okay, these all are qualities that you should have to become successful in any field but you should also avoid some common mistakes. Want to know? (CLICK HERE TO READ THIS FULL ARTICLE)
HOW MANY TYPES OF DISTRIBUTORSHIP IN FMCG SECTOR ?
If u want to take a distributorship of FMCG company, today I will tell you about the various options open for it. You don’t have only one distribution line open in this.
Because there are 5 types of distributors. And out of these 5 types of distributors you can choose any distributorship you want.
To know all about these distributors please read the full article.
1. TRADITIONAL TRADE DISTRIBUTORSHIP :
The first type of distributorship is a traditional trade distributor.
All Grocery, kiranas, general stores come under this category. These distributors give service to these stores.
So, ensure that you know the whole area very well and your reputation in the market is well plus you need to be hardworking, give the regular visit to the market.
These are the most important things needed apart from financial conditions, godowns, infrastructure life, vehicular facilities are the most basic needs.
2. WHOLESALE DISTRIBUTORSHIP :
The second type of distributor we have is a wholesale distributor.
Usually the companies in the commodity business were the most needed ones to buy the wholesale distributors. Because commodities like pulses, wheat flour, all these types of commodities are mostly sold by these wholesale types and due to this selling through wholesalers, the wholesales need to be strong enough.
So that is the basic reason why they lead the separate distributors only for wholesales outlets. They don’t distribute to grocery, kirana, or general stores directly. These distributors give service to only wholesalers
3. MODERN TRADE DISTRIBUTORSHIP :
The third type of distributor is a modern trade distributor.
The big markets, retail outlets such as big bazaar, reliance fresh comes under modern trade outlets. If you want to join the distributorship of modern trade so you should go to a company which is very strong in modern trades.
If we see the FMCG company their contribution to modern trade is approximately 8-10% maximum. But the companies which deal with premium products for example premium food, cosmetic premium items their contribution to modern trades business is too high.
So they have a strong modern trade. That is the reason why they need good modern trade distributors.
So if you want to go to modern trade distributors basically you can switch to any FMCG company because all the products are available but those companies who deal mostly with premium products for them the modern trade is most important so you will get the most opportunities there.
4. INSTITUTIONAL DISTRIBUTORSHIP :
The fourth type of distributor is institutional distributors.
Corporates, hotels, government sectors, railways all these come under the institutional category. And the various FMCG companies supply the products directly through the distributors and not through retailers or wholesalers.
So if you have better largening in this double line sector so you can apply for this type of distribution. The advantage of institutional distributors is that it is done in Personal monitoring, the same is in modern trade distributors also.
We know that the stock will be delivered in specific time duration and the payment will be done. If you have better funding with governments and better contacts incorporates so you can easily apply for this distributorship.
5. SUPER STOCKIST DISTRIBUTORSHIP :
And the last type of distributor is super stockist.
Super stockist is for the rural area coverage by FMCG companies. They provide the services to those small distributors in small towns which in turn delivers the stocks in villages.
So super stockists act like the main medium for the sub stockists. For super stockists, the basic need is that you have an exact location.
If you are in district headquarters then you can keep it as an option because from district headquarters the coverage is better and large in towns and further in villages.
LIST OF WEBSITES WHERE YOU CAN FIND MANY TYPES OF DISTRIBUTORSHIPS-
It all doesn’t matter whether you are experienced or new in this field. What matters is your mindset.
If you have good business skills, your mind can understand the business strategies, then you can happily join this distributorship field.
If you know how to grow business, then this field will prove beneficial for you.
The most important thing in business that matters is your behavior towards your customers, colleagues, and up liners.
You have many options as per your interest in the distributorship. This will help in your business
FREQUENTLY ASKED QUESTION ABOUT IT
All FMCG Companies Want To Establish Their Products In Every Region, State, City, Or Country. So They Required Many Types Of Distributor Partners To Promote Company Products In Their Specific Region/area Then Company Gives Different Types Of Distributorship To Their Distributor Partners.
If You Want To Become A Powerful Distributor In Your Field Then You Must Have The Understanding Of Business, Growing Ability, And The Most Important Leadership Quality.
7-Eleven, Big Bazar, Walmart, D-Mart, Hypercity, Metro Cash & Carry, Reliance Fresh, More, Namdhari’s Fresh, Spar, Triveni Supermarkets.
A Distributor Is One Who Buys Products From A Supplier, Warehouses Them, Then Sells Them To Retailers Or To End-use Customers.
A Good Distributor Should Have Strong Finance, Better Infrastructures, Vehicular Facilities, Proper Manpower, Better Knowledge Of Software And Technologies, And Good Reputation In The Market.
HEALTH & FITNESS CONSCIOUS
FROM- GWALIOR, M.P