Tips for FMCG Distributors To Drive Sales

Posted by Shrikant Sharma on February 27th, 2020

Fast-moving consumers goods (FMCG) usually have lower prices, slimmer margins and higher volumes as compared to durable consumer goods. FMCGs such as soft drinks, food and beverages, soap, household cleaners, and personal care items, etc. are also found in a wider variety of outlets, including convenient stores and corner stores, where they generally “fly off the shelves” before you know it. However, there is fierce competition for space on those shelves. Check out these tips to successfully compete for shelf-space and sales as FMCG companies in Dubai:

Know your competition: this is often one of the best ways to avoid getting lost in the mix. This mainly needs in-depth research in order to learn, or at least estimate, just how much your competitors are selling; whether they are ramping up or phasing out competition products, the price points and promotions they are using, the kind of volumes and margins they are generating and so on. It is crucial to have a reasonably complete picture of the competitive landscape, after which you can map out the best areas and stores to aim for, along which the strongest-selling, promotional and pricing strategies to use which will outshine your competition.

Avoid consignment selling: as FMCG distribution companies in Dubai, you may find yourself in a situation wherein a store owner/management is reluctant to buy FMCGs, since they are not certain of selling it. In that case, the decision-maker may not buy your product upfront, but they will put it on their shelves. If it sells, you will get an agreed-upon cut, but if it doesn’t, it’s your loss and not theirs. This is called consignment selling, and it puts the distributor, including food distributors in UAE, at an understandably disadvantageous positon; hence, if you are not confident that most or all of your products are going to sell at a particular store within a specific time-frame, then consignment selling can prove to be a high-risk proposition that favours the store and might leave you high and dry.

Build relationships: it always helps to establish strong relationships with store owners and managers, as it will strengthen their trust in you. This might sound like a no-brainer, but amidst the excitement of sales, distributors often overlook this simple truth. FMCG manufacturing companies in Dubai should devote time to build up a rapport with store owners and managers, instead of leaping directly into a number-crunching sales pitch. Start with a simple conversation, show interest in the store owner as a person, and respect the role of their business in the community. In all likelihood, they will reciprocate by showing interest in you and welcome you as a new business partner.

These tips will help you get started, in terms of developing a well-defined distribution strategy.