Fast-Moving Consumer Goods or FMCG is a popular business sector because it has high consumer demand for a wide variety of products. The FMCG industry is unique mainly because at the very heart of this industry is the average consumer–just like you and me. Everyone uses fast Moving Consumer Goods (FMCG) products every day, products that are sold quickly at a relatively low cost, such as packaged foods, beverages, toiletries, dry goods, OTC drugs, etc.
Fast-Moving Consumer Goods is the 4th largest industry in India with a significant impact on the economic structure of the country. Estimated at $110 billion in 2010, the FMCG industry has been scaling up rapidly with rising awareness, more accessibility, and changing lifestyles driving its growth. The industry is estimated to ascend to $220 billion by 2025.
FMCG distributors are indispensable for the FMCG industry, considering the size of the industry, the scale of production and the rising demand. They are the keystone to the entire FMCG industry, forming a very important link between the manufacturer and the consumer.
Role of an FMCG distributor
- One of the key responsibilities of a distributor is buying goods in bulk and selling them directly to the consumers or other retailers.
- Maintain stock of products and manage the demand and supply of the products in a given geographical region
- Expand the retail market coverage as well as the retail penetration of various products by redistribution.
- Execute field-level marketing activities like in-shop and H2H promotion, etc.
- Most importantly, minimizing consumer complaints and addressing and resolving them.
Significance of the FMCG distributors
The role of distributors is significant in a country like India where not every region can be directly serviced by the manufacturer. With digitization, easily available technology and increasing awareness, there is high demand for FMCG products in urban, suburban and rural sectors alike.
Distributors help to cater to the demand for the products. FMCG products have short shelf lives and the distribution network helps to deliver the product to the consumers on time.
Challenges faced by FMCG Distributors:
Stocking Up – being able to get the required quantity of products to meet the demand of a given region is the first hurdle, especially after the COVID-19 pandemic, as most manufacturers have stopped giving a credit line to distributors.
Manpower is one of the biggest challenges for FMCG distributors. It is extremely challenging for FMCG distributors to empower thousands of individuals who work with different retailers and partners, collecting orders, setting commitments, informing warehouse or distribution associates, arranging logistics, and enabling seamless transition of supply to demand.
Storage and warehousing can be another challenge when it comes to FMCG products, as a major share of products have limited shelf life and specific storage requirements.
Digitization and technology have increased the demand for FMCG products rapidly and in most cases, the distributors are unable to maintain supply to manage the demand.
Logistics and tracking are other challenges. With the increasing demand and a very competitive market, FMCG distributors are unable to meet the ever-increasing customer expectations for 24/7 and accurate delivery and omnichannel fulfilment.
The ever-rising competition in a dynamic market and the evolution of e-commerce.
JP Finance is one of the most trusted private finance companies based in Chennai.JP Finance provides private finance solutions for all your business needs. JP Finance is all about helping businesses grow to their full potential and achieve great success.
JP Finance specializes exclusively in providing easy and hassle-free unsecured business loans for FMCG Distributors to evolve, expand and explore opportunities for success.
What can JP do for an FMCG Distributor?
JP Finance’s unsecured business loans are the best solution to the challenges of the FMCG Distributors. The business loans come with the JP advantage which makes JP Finance the best choice for your business’s financial needs.
- Unsecured business loans: no collateral needed
- Hassle-free experience: easy to apply and minimum documentation
- Competitive edge: lower interest rates @1.25%/ month
- Fast Finance: quick disbursal of loans within 48 hrs.
- Straightforward costs: no hidden fees
- Flexible repayment options: short-term business loans which can be repaid before the tenure ends.
How can JP Finance Distributor loans help you?
Our business loans are flexible and can be used for the business in any way you see fit. The quick business loans are disbursed within 48 hrs giving the businesses the fastest access to financial support which can be used to
- Improve inventory
- Find better storage and warehousing solutions
- Empower manpower
- Update technology
- Enhance logistic support
With all the competition and the ever-increasing demand for FMCGs, our Distributor loans are the most appropriate and easily available solution with a 100% guarantee of growth and success for your distribution business.