How to Start a Successful FMCG Distribution Business in Nigeria: Beginners Guide


How to Start a Successful FMCG Distribution Business in Nigeria: Beginners Guide

Fast Moving Consumer Goods is known as FMCG. 

You use these products every day.

A few examples of fast-moving consumer goods are things like food and drink, groceries, personal care, cleaning supplies, stationery, and so forth.

They are inexpensive, so despite inflation many people can still afford them. Therefore, FMCG distribution is a good choice for anyone looking to launch a business in Nigeria.

Particularly food and beverages, which make up about 40% of FMCGs, have a short shelf life for the majority of these goods. This indicates that because the FMCG distribution industry has a high turnover rate, it will always be relevant.


Benefits of FMCG Distribution in Nigeria

You're on the right track if you're thinking about starting an FMCG distribution business because it has many benefits in terms of;

FMCG products are highly in demand

There are many different products from which to choose.

In comparison to other business types, it poses little risk.

The FMCG industry is profitable because of the attractive margins and high return on investment (ROI).

Due to the established viability of many FMCG producers' business models, setup costs are not prohibitively expensive.

There is little to no technical expertise needed in this field. Regardless of social class, background, or educational accomplishments, anyone can work in this company.

You might be wondering what the obstacles are and how to get around them.

Priorities come first. You require details.

It's crucial to have a general understanding of how to launch an FMCG distribution business in Nigeria. The good news is that researching the FMCG industry is simple. Once you have gathered sufficient data, it is time to move in the direction of your choice.


Tips Top Start a Successful FMCG Distribution Business in Nigeria

How to Start a Successful FMCG Distribution Business in Nigeria: Beginners Guide

Whatever region of Nigeria you reside in, we've outlined some steps for starting an FMCG distribution business. We'll go over them now.


• Choose the FMCG Brands you want to Carry

There are a ton of brands to choose from, both domestic and foreign, which is one amazing aspect of the FMCG industry. You must determine which ones are most popular with local customers and move the fastest. Some products perform differently across the nation, it has been found.


• Register and Incorporate your Business

The next action is to file a business registration form with the Corporate Affairs Commission (CAC). Similar to business plans, this service is provided by consultants, particularly attorneys. As soon as CAC approves your desired business name, it is simple.


• Pick a Suitable Location for the Warehouse

You must have previously heard this. Location is crucial. Spend some time looking for a location that fits both your needs and your budget. One trick is to set up shop close to a busy intersection where similar businesses are already established. Make sure there aren't many rodents in the area or facility as an added bonus.


• Schedule Suppliers and Delivery Personnel

You need to think about a number of things when it comes to supplies and delivery, including who your suppliers will be, how your products will get to you, and how frequently they will be delivered. The business depends heavily on it. The level of trust your customers have in your company will be impacted if highly sought-after products are infrequently available.


•  Promote your Products and Services

You are almost ready to take off at this point. Start introducing your new business to your friends and family. Utilize Facebook, WhatsApp, and other social media sites to promote your company. Join the appropriate trade associations and business chambers. Don't stop spreading the word. Find mentors who can also serve as your guides.


• Maintain Records of Payments and Inventory

These are crucial operations. Any FMCG company that does not monitor these two factors runs the risk of failing. Use technology to automate as much as possible. As your business expands, try to limit your cash usage as much as you can. Thankfully, you can accomplish this with a number of tools.


• A Capable and Devoted Staff is Another Essential Component

You will encounter some difficulties at first. Any business should expect this.

Today, the majority of FMCG companies are hiring distributors through a variety of channels.


Final Thought

The best way to learn about any business is to get involved in it. Until you're in the middle of making things happen, you might not be aware of some facts and secrets.

So, keep an eye out for fresh opportunities.

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