Best Distributorship Ideas For Aspiring Entrepreneurs
India has the largest manufacturing sector in the global market, and due to the former prime minister “Self Reliance” policy, the manufacturing sector has been promptly growing in India and making a giant connection with the distributorship chain for the proper supply of products. India is the second-largest populated country in the world with 1,380,004,385 people which is nearly 17.7% of the entire world population. We are likely to beat China and might become the first largest populated country in the world, so don’t you think the demand for consumer goods would reach the top too? and due to the growing population, India may face a huge scarcity of supply chain in near future. So what’s the solution to tackle the scarcity issue? start your distributorship business now, at present where many start-ups in India are emerging and becoming part of a unicorn club, they all are eyeing for expansion in the market. Do you too want to become a successful entrepreneur? then become a distributor of necessary consumer goods in India which will likely have a growing demand in near future. But what is the distributorship business?
What is Distributorship Business?
Various companies manufacture their products in their factory to sell in the market, but their manufacturing and supply scales vary as per the demand in the market. The demand in the market reaches the manufacturing company through the distributor who partners with the company to supply its product in the market. Each distributor has its channel of distribution where consumers assemble to buy the products, so the distributor in the fashion industry may have multiple channels of distribution where he/she sells various manufactured apparel, cosmetics, footwear, etc. The distributor signs an agreement with various manufacturing companies and sells its products in his/her channel of distribution.
For example, when you visit an electronics store you do not find only a Television or only a washing machine belonging to the same brand, you examine various electronics belonging to various brands. As per your convenience, you buy the brand which fulfills your needs, when many consumers buy the product belonging to the same electronic brand, the distributor supplies more of that product to the electronic stores and the brand starts mass manufacturing of the product. Without the distributor, no brand will be able to identify the present demand of the consumer in the market, and that is why distributors play a crucial role to accurately connect a consumer with the manufacturing brand.
What is the role of a Distributor?
The role of the distributor is to scatter the supply of products in various geographical areas, if a product is manufactured in Bangalore then the role of the distributor would be to supply it in various states through his/her channel of distribution to make the product available in the national market. The distributor has a wide network of relationships with various wholesalers, retailers, and consumers through which he/she analyzes the demand of the product and accordingly executes the supply. But what are the basic things required for an entrepreneur to become a distributor?
Requirements to become a Distributor in India:
Each distributor is required to obtain a license to conduct business operational legally in the market. To acquire the license you need to fill an application form with your detailed information, then pay the application fee specified, you can find the application form in your state municipalities where a business license is obtained. After acquiring the license you can start your legal distributorship business.
As you know a distributor has a channel of distribution i.e a client/consumer base network in the market, the distributor needs to fill out the application form provided by the manufacturing company. The distributor’s details regarding the business, knowledge, and client network need to be mentioned in the application.
To commence the distribution of products, the distributor needs to sign a contract with a manufacturing company which states the terms and conditions of the contract, the distributor can make changes in the contract along with the company’s consent.
Once all the above procedures are completed, the distributor business is now in the process where he/she needs to have a suitable location for storing the products. He/she can have a warehouse or a garage for storing the commodities, the size, and the location might vary as per the product.
Once the goods are safely stored, the supply channel requires proper distribution. And for that accurate transport facility, many distributors prefer a supply of goods through trucks or vans. Many of them hire a truck or van driver so goods can be supplied on time. for this, a distributor needs to have good contact with people having transport facilities.
Last but not least clients/customers. Without any clients the distributor’s business is at a loss, that is why a distributor needs to have long-lasting relationships with clients. to create strong relationships a good negotiating skills along with client fulfilling offer needed to be put forward by the distributor to open the door to profit.
Being a distributor would only serve you profit when you partner with the right and growing ideas of the product in the market. Want to know a few lucrative distributorship ideas?
Best distributorship ideas for aspiring entrepreneurs:
FMCG Products Distribution:
Fast-Moving Consumer Goods has the fastest growing demand in India, and in 2020 the FMCG is forecast to reach 103 billion revenue. As commodities in the FMCG sector face ever-increasing demand, starting its distributorship in a growingly populated country like India is one of the golden business opportunities one can keep a hold on.
Medical/Healthcare Product Distribution:
India's healthcare sector may have reached more than 2 billion in revenue in India. As you know due to the pandemic people have become more health-conscious in India where the medical/healthcare sector is leading in the market, starting its distributorship business will build a strong consumer-based network.
As you know that automobile in India is rapidly recovering with a dynamic innovation such as Electronic Vehicle(EV), having its distributorship business will surely grow fruitful and exuberant in the near future. Since people are more inclined to own a private vehicle rather than traveling in public transport due to the social distancing norms, the automobile industry is making versatile growth to deliver the best product.
India alone has more than 600 million internet users which are rapidly growing, as of now due to the pandemic many people are working from home and using mobile as an only source to stay connected with their jobs and loved ones, and since technology has become a backbone for many industries to survive without smartphone and laptops it would be difficult to function. That is why electronics in India have an ever-growing demand.
Apparel and Textile Distributorship:
The clothing industry is highly versatile in India and since the Dewali festival is almost near, it will have a high demand with fruitful results. Since India is widely known for its cultural differences and many popular festivals, the clothing industry is always green in the market. that is why starting a clothing distributorship will be an excellent choice.
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Written By: Yukta Palekar
Written By: Resham Daswani
Written By: Yukta Palekar
Written By: Divisha Pandey