Process & Business Expansion
Posted 20 Aug 2019, Editor's Desk
No matter how big your business is, it is an uphill task to open your stores in every corner of the country.
A good distribution network can help your business grow rapidly and extend reach across the length and breadth of the country.
Before understanding how to find distributors in India to scale up your business, let’s first understand what are the advantages and disadvantages of the distribution network.
Advantages of Distribution Network
Low Sales and Marketing Cost
If you deploy your salesman and open stores all over the country, it will cost you very high, but selling through distributors will reduce your cost, and increase profitability.
Strong distribution network helps you increase your reach in remotest parts of the country, where you cannot reach yourself. It increases your market reach and sales.
If you get trustworthy partners in the market, it helps you sell your products with more speed. You need to build a chain of distributions that is loyal to you.
Through a strong distribution network, you can test your product rapidly and bring the required changes in your product as per market demand.
A large network of distributors increases your speed of delivery of product in the market against your competitors. All FMCG companies like Hindustan Unilever Limited, Coca Cola, P&G, Dabur, and Patanjali have spread all over the country so rapidly through a powerful distribution network.
Disadvantages of Distribution Network
Risk of Distributor Brand
The image of a distributor in a particular area has a high potential to affect your brands’ sale in that area. If a distributor has a bad image then it will affect your brand adversely.
Delay in Payment
If you give a long credit period to distributors, who delay in payment on the purchase of products, then it is going to hurt your business and increase the cost of capital.
Selling through distributors asserts little control over the complete sales process, as you don’t sell a product directly to a consumer, hence you have limited control over the way distributors present your products to customers.
Reduced Feedback Cycle
Since a distributor is not your employee, it is difficult to get actual customer’s feedback to understand their need and bring the required changes. You cannot compel them to get customer’s feedback.
Since you have to take care of margin of a retailer, distributor, wholesaler, and purchasing cost of the customer, many times, you are compelled to reduce your own margin, while increasing the capital cost.
Now with the help of following 11 tips, let’s understand how to find distributors in India:
Tip #1: Sales Representative
It is the first tip on how to find distributors.
Sales representatives work at ground level to sell your product in the market, by “visiting door to door”.
Tip #2: Channel Sales Executive
They are responsible for “building channel partner” in the market for selling your product. You need to have channel sales executives in every city across the country to promote your sales among distributors. This will also help you in selling through distributors.
Tip #3: Join the Industry Association
To know how to find distributors in India, you need to understand the industry association.
In every industry, there is an association, where many big and small business persons converge at one place to work towards a common agenda.
You can also “build a chain of distributors" through an industry association.
Tip #4: Trade Shows
It is one of the tips on how to find distributors in India.
In trade shows, vendors, distributors, wholesalers, manufacturers, consumers, exporters, importers, buyers, and suppliers of a particular industry come under one roof, where you can get “bulk order and big manufacturing contracts.”
Tip #5: Meet the Existing Distributors
It is the fifth tip on how to find distributors in India.
Another way to extend your distribution network is to “get the reference from existing distributors”, who are aware of their location. It can help you to “get a hold on the market” without much effort.
Tip #6: Wholesalers and Distributors Website
The technology has made spotting the wholesalers and distributors easy through an online platform.
You can visit their website to build your distributor chain without extensive expenses. It will help you in selling through distributors.
Tip #7: Subject Matter Expert
Make field visits to understand which product has a high demand among distributors and retailers. You can ask the existing distributors about which product has the highest penetration in the market and make your distribution policy accordingly.
It is another tip on It is the first tip on how to find distributors in India.
Tip #8: Keep an Eye on Your Competitors
Along with building a strong distribution network, you need to understand what your competitors are doing to get an idea about their marketing strategy.
Tip #9: Use of your Website and Social Media to Generate Leads
Try to create your website and social media platform, mention the process of becoming a distributor and advantages to them, to build your strong network.
Tip #10: Meet Alliance Expert
There are many alliances /agents available in the market that can help you in building a partnership to expand your distribution network.
Tip #11: Outdoor Advertisement
Outdoor advertisement tools like posters, pamphlets, and billboards are also necessary to build your distribution network in the market.
If you follow the given tips on how to find distributors in India, it will certainly help you grow your business as much as you want not only in India but all over the world.