How to find distributor in India? : Are you a new businessman planning to expand your business across the country? It is a tough task to open multiple stores at various locations however it can be easily achieved through a good distribution network. To ensure smooth operations and good ROI, it is important to choose distributors for your business wisely. Some professional tips are mentioned below:
Sales representative
Sales representatives are experts of the door-to-door marketing and deal in direct customer interaction. They can certainly help you in reaching out to the right distributors.
Industry Association
Various industry associations are dealing with the trade-related activities of specific industries. You can join them to find the right distributor for your business.
Channel sales executive
They are adept in developing channel sales and building channel partners for the marketing of your products. To create an effective distribution channel, it is recommended to have channel sales executives across every city.
Existing distributors
They can be the best source to find the distributors for your business expansion in India. Additionally, these distributors have a good business network so they can refer you to other business- oriented people looking to start a business in the same industry.
Trade shows
Industry trade shows are the perfect place and occasion to search for distributors. In a trade show, all the important partners of business operations such as vendors, manufacturers, wholesalers, importers, buyers, sellers, exporters, and suppliers are under one roof. Besides searching for the best distributors, you can also get bulk orders or big contracts for your business.
Follow your competitors
Besides building a robust distribution network it is equally important to keep an eye on your competitor’s movements to understand their product updates and marketing strategy.
Social Media To Generate Good Reads
In today’s fast-paced digital age, we recommend leveraging the power of social media to generate good leads for your business. Build your website and social media channels on key platforms. Keep them updated with new launches and company information. Also, update the complete information related to Distributor opportunities available with your company.
Wholesalers & Distributors website
Online platforms such as India Mart, Trade India, etc. have become one of the best sources for findingwholesalers and distributors. You can build your distribution chain on these platforms at a low cost.
Consult subject matter expert
A string distribution policy can be made only when you know the ground reality of the market. Visit the markets to understand which products have high demand among the distributors and retailers. Alternatively, you can also check with the existing distributors about which products have the highest demand in the market.
Outdoor Advertisement
Use outdoor advertisement strategies such as billboards, pamphlets, posters, hoardings at key locations for creating awareness of your brand. This strategy will help you in developing a robust distribution network of your brand in the market.
Follow the above tips to expand your business and finding the right distributor for your business. In case you still cannot find a distributor, we will suggest consulting the various alliances/agents available in the market.
Let’s understand its various advantages and disadvantages which can help you in taking the right decision.
Advantages of The Right Distributors
- Lowsales and marketing cost
Selling through distributors will help in huge cost savings and increased profitability. For example, if you have planned to set up offices across 20 cities in India, you need to hire the workforce, pay rent, salaries, and manage multiple other expenses required for running the operations smoothly. But if you have hired a distributor, all the expenses will be borne by him.
- Marketpenetration
This is one of the biggest advantages of owning a distribution network for your business. It helps you penetrate and reach to potential customers even in the remotest areas of the country where it is difficult to reach and set up an office. This helps is increasing your market reach, sales, and profits.
- Trustworthy partners
It is very important to have stringent filters and criteria before selecting a distributor. The trustworthy partners will support your brand personally and help in selling it with greater speed. Take multiple initiatives such as partner reward schemes, performance bonuses, awards, etc. to build a strong and trustworthy partnership with your distributor.
- Rapid Testing
Hiring a strong distribution network can also help in the rapid testing of your products at a greater level and make the required changes to meet the customer demands.
- Efficiency
An efficient distribution network expedites the delivery of products in the market and helps you in staying abreast of the competition. All the major FMCG giants such as Dabur, Pepsi, Coca Cola, Patanjali, HUL including many others have expanded their business across the country only through a powerful distribution network.
Disadvantages of working without a distributing service
- Risk of distributor brand
Your distributor musthave a clean image in his territory. If he has a notorious reputation, it is likely to affect the sales of your product and create a negative image for your brand.
- Delay in payment
Longer credit periods delay payments causing an adverse effect on the business. This will always create funds contingency and increase the cost of capital.
- Lesser control
If you are selling products through distributors, there will be certainly lesser control over the sales and process as you are not having direct control over the customers. Hence, it is important to have stringent terms and conditions in the contract to maintain excellent product distribution and customer service.
- Reduce feedback cycle
Distributors are your business partners and hence you cannot compel them to share customer feedback on regular basis. Sometimes, it gets difficult to get actual customer feedback and modify the product as per the feedback to suit customer requirements.
- Increased cost
Having a distribution network to manage your business expansion is undoubtedly a great idea. However, it often leads to reduced profit margins as you need to manage multiple costs such as the retailer, wholesaler, distributor, as well as customer.