Distribution Models Followed In Singapore FMCG Industry

Distribution Models Followed In Singapore FMCG Industry

The expression FMCG stands for the FAST MOVING CONSUMER GOODS industry. The characteristics of FMCG products include:

  1. Items of almost daily use or regular usage
  1. Easy availability of goods
  1. Comparatively lower unit costs
  1. Frequent purchases by customers
  1. A geographically wide-spread Use of the products
  1. Mass Use of the products

Concerning easy accessibility, FMCG goods are Available at nearly every nook and corner.

Soft drinks

It is pertinent to mention that in fmcg companies in singapore, the Availability of a new at a specific retail location may be a significant element in influencing the actual sale of their brand. Consequently, if a customer asks for a new X, if the newest X is not available with the merchant at that moment, it is possible that the customer may settle for new Y that is available. Thus, for a brand to sell on the current market, widespread availabiol9ity is a vital parameter.

In the FMCG sector, you will find federal level companies, Region-level companies, state-level businesses and businesses which operate across just in particular districts.

The distribution version of an FMCG product must be planned based on the following objectives:

  1. The item has to be easily accessible at all locations, where The target clients make their purchases
  1. The Price of distribution must be at lowest possible
  1. The partners in the worried distribution station should get A fair return on their investment
  1. Proper methods of stock control has to be used, to stop Excess inventory and to stop stock-outs

whilst actually zeroing-in on a particular distribution model, the business would have to remember the following factors:

  1. In which geographical areas is there a requirement for your Provider’s products
  1. What scope of pull/ demand for the Organization’s products
  1. What Type of geographical spread can the business afford, in terms of distribution
  1. What Type of margins can it provide to spouses of the distribution channel
  1. How rewarding is it to the partners in the supply Channel to stock and also to distribute the business’s products
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