Greetings everyone and i hope this writeup meets expectation.

Information they say gives light; light for direction. This thread seeks insights and advices of whoever may have it; to enlighten me and of course fellow nairalanders on how to become a distributor/dealer of major brands in Nigeria.
I am particular about FMCGs brands like: Dangote (Indomie), Nestle (what my grandmother would call 'Tea'), Beloxxi (biscuit) and others i don´t know.

Having been a Nairalander for some time now, i believe this might be one of those topics we would find okay.

Please!!!

~What does it take to be a dealer/distributor of these brands in Nigeria?
~What are the pros and cons apart from expiry dates and accidents?

Your honest inputs will be highly appreciated.
Thanks in advance.

Hi SooCute and others,

Becoming a Distributor for an FMCG company is a great, stable way to invest and get steady income especially in Nigeria. Unlike other volatile industries/sectors, you are assured of steady cash-flow and stability that is increasingly becoming absent in other industries/sectors.

I work for an FMCG company that own well established brands and various products in Nigeria and West Africa, so I talk based on what's obtainable in the industry.

I'll be using our perspective and the Nigerian (West African) context to answer your question, and I'm sure it is most likely the same for other FMCG organizations too. Now to your question. To become a distributor for an FMCG, four major criteria will be considered:

1. Financial Capacity: Do you have the required fiscal resources to stock your warehouse with enough product to serve the market without experiencing major and consistent stock-outs? And as your business grows, you should have the prospect of expanding it and investing an agreed amount of money within an agreed period of time.

2. Logistics: Pertaining to logistics, you need to or be willing to procure a warehouse with an agreed capacity, you need to or be willing to get an office space for the company's manager & Staff.

In addition, you'll need to have a 4-6 staff strength (usually a Van Sales Rep, Market Sales Rep, Account Officer, Operational Manager and Store Keeper) to run the business smoothly. Note: The company will assign a Key Account Executive who will be seeing to the management and day-to-day administration of all your assets (human & material. The 4-6 staff will be managed by the KAE, BUT recruited by you.

Lastly for logistics, you'll need at least 1 bus for delivery and penetrating interior parts of the territory. This is where the VSR comes in.

3. Capability: This means that you need to have basic knowledge of the FMCG industry. It is recommended that you are ambitious. Once the money starts rolling in many distributors become laid back and rest their oars.

4. Business Ethics: Lastly, business ethics. Including the usual and necessary business ethics, you need to also align with the company's value. Also, you should not be one that hoards vital info that could help your business and by extension the company to grow. Some of the info could be; market, sales, credit etc).

Like other businesses, FMCG has pros and cons.
Some of the pros are;
1. You get discounts and rebates
2. Strong presence in the territory and beyond. Which translates to increased revenue.
3. Exclusive rights to sell the brand in the territory
4. Opportunity to control more brands and get juicier offers.
5. Greater buying power.

The major cons I can think of being a distributor may probably be that ;
1. Initial capital outlay could be fairly high.
2. Controlling too many brands in a territory can make you lose (some Distributors control tens and hundreds of brands) focus and pay less attention to growth and brand performance.

...

Quite informative. Thank you.

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Trottle:
Hi SooCute and others,

Becoming a Distributor for an FMCG company is a great, stable way to invest and get steady income especially in Nigeria. Unlike other volatile industries/sectors, you are assured of steady cash-flow and stability that is increasingly becoming absent in other industries/sectors.

I work for an FMCG company that own well established brands (SNIPER, PURIT & CARAT) and various products in Nigeria and West Africa, so I talk based on what's obtainable in the industry.

I'll be using our perspective and the Nigerian (West African) context to answer your question, and I'm sure it is most likely the same for other FMCG organizations too. Now to your question. To become a distributor for an FMCG, four major criteria will be considered:

1. Financial Capacity: Do you have the required fiscal resources to stock your warehouse with enough product to serve the market without experiencing major and consistent stock-outs? And as your business grows, you should have the prospect of expanding it and investing an agreed amount of money within an agreed period of time.

2. Logistics: Pertaining to logistics, you need to or be willing to procure a warehouse with an agreed capacity, you need to or be willing to get an office space for the company's manager & Staff.

In addition, you'll need to have a 4-6 staff strength (usually a Van Sales Rep, Market Sales Rep, Account Officer, Operational Manager and Store Keeper) to run the business smoothly. Note: The company will assign a Key Account Executive who will be seeing to the management and day-to-day administration of all your assets (human & material. The 4-6 staff will be managed by the KAE, BUT recruited by you.

Lastly for logistics, you'll need at least 1 bus for delivery and penetrating interior parts of the territory. This is where the VSR comes in.

3. Capability: This means that you need to have basic knowledge of the FMCG industry. It is recommended that you are ambitious. Once the money starts rolling in many distributors become laid back and rest their oars.

4. Business Ethics: Lastly, business ethics. Including the usual and necessary business ethics, you need to also align with the company's value. Also, you should not be one that hoards vital info that could help your business and by extension the company to grow. Some of the info could be; market, sales, credit etc).

Like other businesses, FMCG has pros and cons.
Some of the pros are;
1. You get discounts and rebates
2. Strong presence in the territory and beyond. Which translates to increased revenue.
3. Exclusive rights to sell the brand in the territory
4. Opportunity to control more brands and get juicier offers.
5. Greater buying power.

The major cons I can think of being a distributor may probably be that ;
1. Initial capital outlay could be fairly high.
2. Controlling too many brands in a territory can make you lose (some Distributors control tens and hundreds of brands) focus and pay less attention to growth and brand performance.

Note: We are currently expanding and receiving applications for Distributorship of the aforementioned brands (SNIPER, PURIT & CARAT) in Kaduna State. If you are interested in securing distributorship rights, send a mail with the title 'PROSPECTIVE KD' to: ibrahim.abubakar@saroafrica.com

Regards.

Nice1

You can become a distributor of my farm produce. My farm produce is cucumber. Before the end of the year, we hope to move to watermelon. I'm a farmer. You can sell at 10% commission

Trottle:
Hi SooCute and others,

Becoming a Distributor for an FMCG company is a great, stable way to invest and get steady income especially in Nigeria. Unlike other volatile industries/sectors, you are assured of steady cash-flow and stability that is increasingly becoming absent in other industries/sectors.

I work for an FMCG company that own well established brands (SNIPER, PURIT & CARAT) and various products in Nigeria and West Africa, so I talk based on what's obtainable in the industry.

I'll be using our perspective and the Nigerian (West African) context to answer your question, and I'm sure it is most likely the same for other FMCG organizations too. Now to your question. To become a distributor for an FMCG, four major criteria will be considered:

1. Financial Capacity: Do you have the required fiscal resources to stock your warehouse with enough product to serve the market without experiencing major and consistent stock-outs? And as your business grows, you should have the prospect of expanding it and investing an agreed amount of money within an agreed period of time.

2. Logistics: Pertaining to logistics, you need to or be willing to procure a warehouse with an agreed capacity, you need to or be willing to get an office space for the company's manager & Staff.

In addition, you'll need to have a 4-6 staff strength (usually a Van Sales Rep, Market Sales Rep, Account Officer, Operational Manager and Store Keeper) to run the business smoothly. Note: The company will assign a Key Account Executive who will be seeing to the management and day-to-day administration of all your assets (human & material. The 4-6 staff will be managed by the KAE, BUT recruited by you.

Lastly for logistics, you'll need at least 1 bus for delivery and penetrating interior parts of the territory. This is where the VSR comes in.

3. Capability: This means that you need to have basic knowledge of the FMCG industry. It is recommended that you are ambitious. Once the money starts rolling in many distributors become laid back and rest their oars.

4. Business Ethics: Lastly, business ethics. Including the usual and necessary business ethics, you need to also align with the company's value. Also, you should not be one that hoards vital info that could help your business and by extension the company to grow. Some of the info could be; market, sales, credit etc).

Like other businesses, FMCG has pros and cons.
Some of the pros are;
1. You get discounts and rebates
2. Strong presence in the territory and beyond. Which translates to increased revenue.
3. Exclusive rights to sell the brand in the territory
4. Opportunity to control more brands and get juicier offers.
5. Greater buying power.

The major cons I can think of being a distributor may probably be that ;
1. Initial capital outlay could be fairly high.
2. Controlling too many brands in a territory can make you lose (some Distributors control tens and hundreds of brands) focus and pay less attention to growth and brand performance.

Note: We are currently expanding and receiving applications for Distributorship of the aforementioned brands (SNIPER, PURIT & CARAT) in Kaduna State. If you are interested in securing distributorship rights, send a mail with the title 'PROSPECTIVE KD' to: ibrahim.abubakar@saroafrica.com

Regards.

Nice

Thank you @Trottle for your input. I t well recieved.

@Viktry thanks alot. I am not looking at perishable goods.

Glite2018:

Nice1

Hello bro, kindly strike out my email from your quote.

Thanks.

LikeAking:


Nice

Hello bro, kindly strike out my email from your quote.

Thanks.

Trottle:
Hi SooCute and others,

Becoming a Distributor for an FMCG company is a great, stable way to invest and get steady income especially in Nigeria. Unlike other volatile industries/sectors, you are assured of steady cash-flow and stability that is increasingly becoming absent in other industries/sectors.

I work for an FMCG company that own well established brands (SNIPER, PURIT & CARAT) and various products in Nigeria and West Africa, so I talk based on what's obtainable in the industry.

I'll be using our perspective and the Nigerian (West African) context to answer your question, and I'm sure it is most likely the same for other FMCG organizations too. Now to your question. To become a distributor for an FMCG, four major criteria will be considered:

1. Financial Capacity: Do you have the required fiscal resources to stock your warehouse with enough product to serve the market without experiencing major and consistent stock-outs? And as your business grows, you should have the prospect of expanding it and investing an agreed amount of money within an agreed period of time.

2. Logistics: Pertaining to logistics, you need to or be willing to procure a warehouse with an agreed capacity, you need to or be willing to get an office space for the company's manager & Staff.

In addition, you'll need to have a 4-6 staff strength (usually a Van Sales Rep, Market Sales Rep, Account Officer, Operational Manager and Store Keeper) to run the business smoothly. Note: The company will assign a Key Account Executive who will be seeing to the management and day-to-day administration of all your assets (human & material. The 4-6 staff will be managed by the KAE, BUT recruited by you.

Lastly for logistics, you'll need at least 1 bus for delivery and penetrating interior parts of the territory. This is where the VSR comes in.

3. Capability: This means that you need to have basic knowledge of the FMCG industry. It is recommended that you are ambitious. Once the money starts rolling in many distributors become laid back and rest their oars.

4. Business Ethics: Lastly, business ethics. Including the usual and necessary business ethics, you need to also align with the company's value. Also, you should not be one that hoards vital info that could help your business and by extension the company to grow. Some of the info could be; market, sales, credit etc).

Like other businesses, FMCG has pros and cons.
Some of the pros are;
1. You get discounts and rebates
2. Strong presence in the territory and beyond. Which translates to increased revenue.
3. Exclusive rights to sell the brand in the territory
4. Opportunity to control more brands and get juicier offers.
5. Greater buying power.

The major cons I can think of being a distributor may probably be that ;
1. Initial capital outlay could be fairly high.
2. Controlling too many brands in a territory can make you lose (some Distributors control tens and hundreds of brands) focus and pay less attention to growth and brand performance.

[b]Note: We are currently expanding and receiving applications for Distributorship of the aforementioned brands (SNIPER, PURIT & CARAT) in Kaduna State. If you are interested in securing distributorship rights, send me a mail with the title 'PROSPECTIVE KD' .

Regards.

Excellent!!!