Distributor
A channel partner who buys goods from a brand, stocks them in a territory, and sells to retailers while carrying credit and inventory risk.
Full definition
A distributor is the principal channel partner in Indian FMCG and dairy distribution. She buys goods from the brand at a wholesale price, holds them in her own godown, deploys her own DSRs and delivery vehicles, extends credit to retailers, and absorbs the inventory risk. Her margin is the gap between the brand's billing price and the price she charges retailers. A typical mid-sized FMCG distributor in India covers 300-600 retail outlets.
Distributors are the working capital of Indian distribution. They finance the brand's reach into tier-2 and tier-3 markets that the brand could never afford to serve directly. Losing a distributor is losing a territory, and that is why brands invest heavily in distributor relationships, schemes, and now digital tools.
Modern order management platforms put distributors and their teams on the same software as the brand, creating end-to-end visibility from primary to secondary sales.
Real-world example
Sharma Agencies is a Parle Products distributor in South Delhi who services 450 kirana stores, 12 supermarkets, and 30 HoReCa accounts.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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Related terms
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