FMCG distributor.

Definition of distributor.

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Before we discuss about role of distributor , we must know the definition of distributor.

Distributor means a businessman ,who purchase from company or super stockist  in bulk quantity and sells to retail or wholesale market in small quantity . In simple he is a channel partner,  acts as  middleman between company or super stockist  and the market.. The term distributor itself implies that,  he does distribution in a defined geography with some defined products.  He has exclusive distribution right of  a particular geography and some particular product. He plays a vital role in FMCG distribution channel. He is the key player to success in FMCG business. Either urban market or rural market , effective distribution depends a lot on him. He is the only source for wholesaler and  retailer for that particular product.

He acts as independent business man,  deals with some company’s  product.  He appointed and authorized by the company to sell company product, but he cannot use company’s brand name. He works on behalf of company.  Generally in FMCG , distributor cannot work with competitive brands. Maximum company prefers legal agreement with distributor.