How are FMCG products distributed in India?
Most Indian manufacturers use a three-tier selling and distribution structure that has evolved over the years. This structure involves redistribution stockists, wholesalers, and retailers. As an example, an FMCG company operating on an all-India basis could have between 40 and 80 redistribution stockists (RS).
What are the types of FMCG distribution?
The distribution channel segment comprises of supermarkets and hypermarkets, grocery stores, specialty stores, specialty stores, e commerce and others.
What are the four major distribution strategies?
There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels.
Which is the biggest FMCG company in India?
Hindustan Unilever Limited
Hindustan Unilever Limited is the oldest and the largest FMCG company in India and it requires no introduction From Dove, Vaseline, Bru Coffee, Lux and Hamam soap to Pureit, all these come under the label of this company.
How many FMCG distributors are there in India?
As per Reuters, there are 450,000 traditional distributors whose salespeople are spread across the country, including 600,000 villages.
What is your distribution strategy?
What is distribution strategy? Distribution strategy involves coming up with an efficient method of disseminating your company’s products or services. The goal of this type of strategy is to maximize revenue while maintaining loyal customers.
How do you choose a Distribution strategy?
How to Choose a Channel of Distribution
- Consider your competitors. What methods are your competitors using?
- Examine costs and benefits. After deciding on a method of distribution, creating the support systems that go with it is time-consuming and expensive.
- Rank your options.
- Have a plan for growth.
What is the profit margin in FMCG?
The FMCG business sector, where margins range from 4% to 25%, is cited as having low margins by many.
Who is a super stockist?
A super stockist would have several sub stockists under them. Super stockist would buy stocks from company and sell these stocks to sub stockist. Sub stockist would further sell these stocks to retailers.
Why FMCG in rural India?
Rural markets driving consumption and growth recovery Rural India accounts for about 65 percent8 of the total population and contributes significantly to the overall FMCG spend. Reverse migration, decreasing digital divide, and increased government focus and expenditure, are expected to expand markets and increase demand in rural areas.
How are FMCG companies fulfilling their fulfillment goals?
FMCG companies partnered with online marketplaces to showcase their products on online marketplaces. They also partnered directly with third-party delivery services to enable doorstep delivery. Fulfilment of these orders were routed via a company’s existing channel partners to support the entire value chain.
What is the selling and distribution structure of Indian manufacturers?
Most Indian manufacturers use a three-tier selling and distribution structure that has evolved over the years. This structure involves redistribution stockists, wholesalers, and retailers. As an example, an FMCG company operating on an all-India basis could have between 40 and 80 redistribution stockists (RS).
What is the future of distribution channels in India?
There has been a significant expansion in distribution channels in India in recent years. According to the India Brand Equity Foundation (IBEF), Indian retail market, which stood at $672 billion in 2017, is projected to grow to $1.1 trillion by 2021.