 |
| Photo-Image Credited to Wigmore Trading Store |
Investing in biscuits business as a wholesale distributor in Nigeria is the most profitable and smartest move because it is in the Fast Moving Consumer Goods sector (FMCGs).
Biscuits are a staple snacks for local school kids, pupils, attractive girls, junior/second school female students, female undergrads, rich parents'school kids, professionals, alike making the demand consistently high because they love its sweets with soft drinks for their personal enjoyment, they want to consume biscuits some other days daily. That gives you the opportunity to walk in as a major/minor distributor.
Here’s what I want to share with you through this blog post to make you understand better:
Have you not seen different kinds of brands in the competition market on the same product (biscuits in different colors) in Nigeria today?
Yes. Good!
Let me tell you that Nigeria’s snacks are really booming because it is hot like a cake. You know what? Young adults and even kids love chocolate biscuits, wheat biscuits.
They want to consume it some time daily. Biscuits in Nigeria are everywhere like bread put on the table in the display. We know it because we see it everywhere in this part of the world including Nigeria. And people can't ignore it even when they know it can't fill their stomach.
Are you looking for a steady and scalable business opportunity with low investment for business? Then becoming a biscuit distributor might be right for you. It might be your golden ticket. Don't lose your golden ticket to others in the marketplace.
But ho, how do you open your biscuit distribution business in Nigeria? Do you want to know? Then let me walk you through this blog post to learn how to become a major player in the biscuit distribution chain. Are you ready? Good?
But you must understand some popular selling biscuit brands might require less than N10 million to invest in your distribution business to make you load 100k, 200k, 500k, 1 million cartons of biscuits in a van or truck, depending on your financial capacity.
I learned that one of the male Igbos or Ibo men told me through a WhatsApp message that he wanted to invest N1 million in noodles as a distributor, but the care customer service rejected him, requiring him N15 million to become a major player for a noodles company. Why? Because it was a hot cake. It can make you rich.
Let me break down the steps:
1. Conduct Your Market Research
Conducting your market research is important because it helps you find right what biscuit consumers want whether expensive or cheap. Local students and pupils can't buy some biscuits if you sell it expensive in your region. International or rich students and pupils won't like to.buy biscuits if you sell it cheap like N10, N20, N50 as a retailer.
Okay. Before putting any investment down on your distribution business, you need to understand the local landscape because not all biscuits sell equally in every region.
Therefore, you need to identify what kind of popular brands like NASCO Group, Pure Bliss,Yale, Beloxxi or McVities most people in your area want to consume daily.
Are they in your area buying more Pure Bliss daily than others? Then study the competition to know who your existing distributors in your territory are.
You need to know their strengths and weaknesses. You need to find out their strengths and where they are falling short ( e.g, late work, late deliveries, limited stock).
2. Register Your Business Name
And if you want to deal with large manufacturing companies like Ok Foods, Dufil Prima Foods, or Sumal Foods, you must be a legal entity. You must register your own business name with the Corporate Affairs Commission (CAC). And you must ensure you have your TIN (Tax Identification Number) ready, as most manufacturers will require it for documentation.
3. Secure Your Warehouse and Logistics.
The reason you need a space is because biscuits are fragile and have a shelf life. So you should look at where you should establish a warehouse in space.
Finding a space ensures it is dry and cool because it can prevent the biscuits from getting soft or spoiled. And your warehouse in the space should be accessible, and it should be easily reachable by large supply truck(s) and also your own delivery vans.
And for logistics, you’ll need to buy one van or mini-truck for distributing your products to customers around the zones within your city. You’ll at least need a reliable delivery van or mini-truck to move your products from the warehouse to the retailers/wholesalers in the zones somewhere. Or you can use any other vehicle for delivery business transactions if you have.
4. Become A Partner for A Company
Decide which level you want to operate with any company of your choice, be it a mega-Distributor; be it sub-distributor, depending on your financial capacity. To become a mega distributor, it means you buy directly from the factory and it might cost you millions.
And to become a sub distributor, it means you buy indirectly from a sub distributor and it doesn't cost you much because you buy in bulk/volume with any other amount you can afford to.
Then look for the sales dept you can contact by visiting the headquarters or regional official of the brand you want to operate with. And you will meet the requirements from (any).brand of your choice.
Most companies in Nigeria will require an initial deposit or a minimum first-order quantity. Maybe this ranges from N2 to N10 or N20 million, depending on the brand’s scale.
Maybe most of them have different requirements to become a major player in the distribution business. And you need to find out from them before you decide which requirement fits you.
Their key requirements may involve high capital (covers stock, warehouse, and van); essential warehouse and it must be pest-free; high delivery van for reaching retailers; medium sales team to help with field marketing. If you pass their requirements, you are lucky to become a major distributor.
5. Build a Distribution Network
It means you have a good relationship with any customers somewhere you want to distribute your stocks to them daily.
To build a strong distribution network, you must know who customers are and where they operate there. Then make a strong relationship with them so that you can supply what they require.
Having a network with customers involves supermarkets and grocery stores: open market wholesalers; small kiosks and "aboki" shops and schools and canteens.
And you must go and build a strong relationship with them anywhere you come across through parties, shops, etc.
6. Master Your Financial Record
Mastering your finances on business transactions wisely means mastering your financial records on business transactions. You must know your stocks go out and come in daily and how many volumes your stock remains.
Remember the profit margin per carton might seem small, but when you sell thousands of cartons, you will be surprised how much you make money daily because the biscuit business is a ‘volume game’ and you must know how to play it correctly.
It means you must know how to record financially each time you make sales. Check your financial records carefully. Check it every day. And also you must keep a close eye on your overhead costs, especially fuel for your delivery vans and warehouse rent.
However, to become a successful biscuit distributor in Nigeria requires resilience and a good knowledge for logistics. Are you ready?
Remember that the product, that is biscuit, is a daily necessity for millions everywhere, then the potential for growth is massive and large. Then start small or big if you must. Then master your route and rescale as your capital grows.
Any questions? Any comments? Drop it here in the comment box. I want to hear from you. Stay tuned with me in the next article
No comments:
Post a Comment