Role of Distributor in FMCG Channel

Distributor is the keystone to FMCG business sector. FMCG distributor generally has exclusive rights of distributing a set of products in a defined geographical location. He will be responsible for the redistribution of the products, market coverage and retail penetration. Few a times, distributor is appointed to serve a particular clientele base such as canteens, hotels, restaurants etc.

Below given are some of the functions which a distributor plays in FMCG channel:

• He purchases/stocks products in bulk quantity from the manufacturer and distribute/sell them to retailers in small quantity.
• He takes orders from the institutions & retailers and ensures quality and on-time delivery of products.
• He maintains products stock and the requirement of outlets are managed through their own stock.
• He provides needed finance for allowing credit to the retail market.
• He expands the retail market (by opening new outlets) as well as the retail penetration of various products.
• He does field level marketing activities like inshop and H2H (Human to Human promotion) etc.
• He helps in minimizing consumer complaints and resolving them.

So basically it was the broad role of the distributor in FMCG Industry. Becoming distributor of FMCG products is a profitable option. Start your search now for the potential brands!

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