How Can FMCG Distributors Drive Sales

Posted by rima chauhan on October 21st, 2019

FMCG, short for fast moving consumer goods, usually come with lower prices, narrower margins and higher volumes as compared to durable consumer goods. Come to think of it, soft drinks, food and beverages, soap, household cleaners, personal care items, etc., which fall under the category of FMCG goods, have to encounter fierce competition for space in outlets. It is vital for FMCG distribution companies in UAE to devise a distribution strategy that is sufficiently well-defined, so as to ensure that their products can successfully compete for shelf space and sales. The following tips should help you get started:

1. Know your competition: this is one of the most effective ways to avoid getting lost in the mix. Keep in mind that in order to identify your competition, you need to conduct in-depth research to have a close-to-correct estimate. Once you have a more or less clear picture of the competitive landscape, the next step is to map out the best areas and stores as your target, and then complement it with strongest-selling promotional and pricing strategies to gain an edge over your competitors.

2. Avoid consignment selling: store owners and management are generally unwilling to purchase FMCGs since selling them can be quite uncertain. As a new distributor, you are quite likely to find yourself in a similar situation. In such cases, the decision maker will not buy your product upfront, but they will put it up on their shelves, and determine a cut that they will give you if it sells. However if it doesn’t sell, you will have to suffer the loss, and not them. Termed as consignment selling, this can prove to be highly disadvantageous for the distributor. Thus, unless you’re absolutely confident that all or most of your product will sell at a particular store or within a specific time-frame, it is advisable to stay away from consignment selling. This is, after all, a high-risk option that is conducive only for the stores.

3. Build relationships: establishing strong relationships with store owners and managers will make them want to work with you. Often amidst the pursuit of sales, such obvious little details are overlooked. Instead of directly jumping into a sales pitch, try to start with a simple conversation. Taking a keen interest in their stories will pay you back in the form of their trust. They will whole=heartedly welcome you as a new business partner if you listen to their stories and respect the role that they play in the community through their business.

Al Maya Distribution, one of the leading food distribution companies in the UAE, brings together some of the finest food brands from all over the world. Al Maya FMCG is associated with world-class brands such as Kraft Heinz, Cadbury Biscuits, Oronamin C, etc.