Understanding the FMCG Distribution Channel: A Complete Guide
Definition of FMCG Distribution Channel
FMCG distribution channel is the way that FMCG products get from the people who make them to the people who buy them. They are the paths that goods, information, and money take through the system.
Some manufacturers of fast-moving consumer goods (FMCG) like to deal directly with customers, but most use a network of stores to get their products to customers. Do you know what the requirements are for a good FMCG Distribution Channel? A good FMCG distribution channel network is set up through planning, effective thought processes, effort, and investment.
Furthermore, from the public’s perspective, creating a distribution channel creates new job opportunities for laborers. Along with this, it also helps a wide range of people gain access to FMCG products. Especially, from a competitive standpoint, a strong distribution network gives companies that make things an edge over their rivals. So, distribution and channel management are essential parts of a company’s business strategy.
Types of FMCG products
FMCG products are your fast-moving consumer goods. The name justifies the products. This is because the products start selling as soon as they hit the shelves. There are multiple categories that fall in the FMCG category. People buy these things often, use them up quickly, and sell a lot of them because they are cheap and in high supply. In fact, a few common examples are sodas and chips.
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Fun fact: Do you know the opposite of FMCG? They are slow-moving consumer goods. These goods tend to have a longer shelf life, like furniture and appliances.
Let’s look at the different types of FMCG products with Myanmar Golden Heart
Food and Beverages
This includes a lot of foods and drinks that people eat and drink every day, like Maggi noodles, sodas, soft drinks, and packets of chips. Even bottled water falls into this category due to its short life span and high turnover rate.
Healthcare Products
Healthcare care products are also fast-moving consumer goods because they are bought often, don’t last long, and are sold widely. These include products like plasters, bandages, syringes, etc.
Home Care Products
Household goods are also in this group because they are usually standard, not very durable, and sold in large quantities at low unit prices. There are things like kitchen towels, toilet paper, bleach, dusters, and more.
