Fast Moving Consumer Goods or FMCG are goods which are relatively low priced and sell out quickly, making them one of the most produced goods in the market. The low price coupled with short shelf life and high demands, make them a profitable venture as the producers like Kiwi foods the best chips manufacturer in India don’t have to worry about preserving the products for a long time and hence can increase their profit margins and simple keep on producing the Consumer goods to keep meeting the demand in the market.
A FMCG channel is the pathway along which the FMCG move through to reach the consumers. The pathway can be long or short both of which affect the final price of the FMCG. A longer channel will lead to an increase in price because of the transportation costs and the margins of all those fall in between before the consumer buys the goods. A shorter channel significantly cuts down the interim costs and the goods reach the consumer at the lowest possible prices.
Kiwi foods FMCG distributors are a vital part of distribution channel for Kiwi Foods. The consumer goods manufactured by the companies go through the Distributors and making them an important pit stop for the distribution channels. It is the distributors that decide what circle gets what amount of goods and how are they going to go about opening up newer markets for the goods they are distributing.
Role of the FMCG distributors
The Kiwi foodsFMCG distributors play an important role for the consumer goods companies and are the primary source of market data the companies get in the form of feedback. The Kiwi foods distributors buy in bulk from the companies and then decide how and where to distribute and redistribute the packaged goods.
The Kiwi foods FMCG distributors are tasked with maintaining enough inventories to cope with any fluctuations in demand and if need be redistribute the already distributed goods. They take orders from retailers and other agencies and pass on the data about market penetration and the orders received to the manufacturer.
It is the Kiwi Foods distributors who increase the scale of distribution by penetrating into different markets and do on field research to understand the market conditions. It is up to the distributor to come up with strategies to expand the business and market share of the product.
They also provide credit to the smaller retailer which in turn helps them further increase the scope of the market share of the product.