Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
FMCG distribution 2019-08-09

How To Start an FMCG Distribution Business

Starting an FMCG distribution business can be an exciting and lucrative business venture

By Content Writer
How To Start an FMCG Distribution Business

Fast Moving consumer goods or FMCGs leverage a strong position in the global economy. As the name suggests, FMCGs are those products who have a short shelf life and will sell quickly. If done correctly, FMCG holds a great business opportunity. FMCG caters a wide array of products, ranging from beauty, soft drinks, food etc.

FMCG is the 4th largest sector in the Indian economy where the urban segment contributes about 55% to the overall revenue generated by the sector. However, with internet penetration, growing awareness, increasing income and changing lifestyles, the FMCG market has seen faster growth in rural India as compared to the urban counterparts. FMCG products are reported to account for 50% of the total rural spending which is proof of the rapid growth in the semi-urban and rural consumers in the industry.

Therefore, starting an FMCG distribution business can be an exciting and lucrative business venture. You can consider becoming a wholesale supplier to retail stores, other wholesalers and exporters, and can even sell the goods directly to consumers.

Below are some things you should consider before starting an FMCG distributorship business.

Decide your Product

FMCG is composed of various products. Before venturing into this business, plan for the FMCG products you want to distribute. You could focus on a specific product or offer a variety of items. Your decision could be based on a passion or on a product that is hard to find in your own personal experience. Make sure conduct thorough research about the product demand and future.

Try to target products which are always high on demand or are essential in daily lives for e.g. Biscuits, wafers, detergent, soap, cold drinks, chocolates, etc.

Business Plan

Business plan is the foundation of any successful business. Design a business plan that lays out the full vision of your FMCG distribution business. It allows following a direction and helps in managing your business. Make sure your business plan includes the type of distributor you will be, the target customer, management strategy, marketing plans, logistics & supply chain etc.

Licensing & Registration

It is of utmost importance to get your business registered first. Make your business official through registering it and gaining your license.  Check with your state regulations for the documents to get your business registered. Also check, if you need to create an operating agreement or another type of founding document.

Location

Location is another important factor which will decide the success of you distribution business. The size of the space you need to hold your inventory will be determined by the size of your product and your delivery method (you don't need inventory space for drop-shipping). You should consider starting off small as your business builds a reputation. As your business grows, you can move into larger facilities that can accommodate your inventory needs, such as a distribution warehouse.

Comment
image
image
image
image
Pintu Adhikary : 11, Aug 2019 at 04:01 AM
Plz call me
Devasirvatham I : 11, Aug 2019 at 06:29 PM
Want to be a dealer/ franchise in FMCG products in Coimbatore city.
Naresh : 11, Aug 2019 at 06:34 PM
Need more details
Santosh Kumar Sahoo : 12, Aug 2019 at 12:11 PM
I want to set up a fmcg Mart in nayagarh,odisha. Need support
Sachin Puranik : 12, Aug 2019 at 12:58 PM
Intrested in fmgc pfoduct
Kalyanaraman : 12, Aug 2019 at 09:06 PM
Interest to resale FMCG.
Anand kumar : 13, Aug 2019 at 07:31 PM
I suppose to do the business
ASHUTOSH SINGH : 15, Aug 2019 at 10:54 AM
Tell me more FMCG Products.
Ashish Yadav : 20, Aug 2019 at 09:16 PM
Intrested
Related opportunities
  • Quick Service Restaurants
    About Us: Chaat Adda is a unique concept where we serve..
    Locations looking for expansion Madhya pradesh
    Establishment year 2014
    Franchising Launch Date 2014
    Investment size Rs. 5lac - 10lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya pradesh
  • Quick Service Restaurants
    About Us: Greetings from USPFC!! U.S. Pizza and Fried Chicken has come..
    Locations looking for expansion Rajasthan
    Establishment year 2013
    Franchising Launch Date 2014
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
  • Digital Media & Internet Marketing
    About Us: Mark Flame is a fastest growing Digital Media platform..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Amabjogai Maharashtra
  • Quick Service Restaurants
    About Us: Started in Pune, The Egglicious Café is an emerging..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 180
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Pune Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts