Indomie Distribution business can be very lucrative in Nigeria, for example, a while back, there was an article in the Nigerian Finance and Investment Weekly Paper, which talked about a Nigerian woman who was a high school graduate. She became an entrepreneur out of necessity, starting as a distributor of Mouka Foam, with nothing more than N200,000.
This was however a big challenge, because the manufacturing company wanted an investment of N400,000, an amount that she did not have. This did not deter her, as she proceeded to negotiate with the company, it was successful; as she surprisingly got her deal and they accepted whatever investment she had.
Since then, she has come a long way, and is making a lot more returns on the business than her initial investment. She makes an income greater than N200,000 every month from her distribution business. Distribution business is a highly lucrative business venture for any willing entrepreneur.
INDOMIE DISTRIBUTION BUSINESS
The first De United Foods Industry Limited, which was commissioned in the year 1995 in Ota,Ogun State is the first instant noodles manufacturing plant in Nigeria, and the largest in Africa.
Over the past 23 years in the Nigerian market, Dufil Group has had a remarkable impact on the Nigerian culinary landscape. Their number one product; indomie instant noodles which appeals to several demographic groups has become a household name across the country.
Fast consumer moving goods (FCMG) Entrepreneurs have seized this major business opportunity to make money and also create employment for people.
To start the indomie distribution business, one needs to first register with the company; to register of course, you must meet certain criteria. A distributor must have a minimum of N2 million to be qualified to start the business. You must have a large warehouse or more to store your goods. A distributor must start business with a minimum of five thousand cartons of any indomie brand.
To distribute your goods, you must also have a distributor van or any vehicle that can comfortably transport your goods. To know note about indomie distribution business, read the article on his to start an indomie distribution business in Nigeria.
PROFITABILITY OF INDOMIE DISTRIBUTION BUSINESS IN NIGERIA
For indomie noodles manufacturers, pushing a large quantity of goods into the market requires an effective and highly efficient distribution channel, and this is what indomie distributors help them to achieve. That purchase the indomie brands in bulk, break them down into smaller units and then sell them off to retailers, who further break them down to sell to consumers. Just like any other business, the basic idea running an indomie distribution business in Nigeria, is to buy and sell goods at a profit. As an indomie distribution, your stakes at the business is necessarily higher than those lower the chain of distribution. What sets it apart is the quantity of goods purchased; in this case, you are to purchase a minimum of 5000 cartons, to sell to several sub-distributors around you.
With this kind of business, you stand to gain a lot, in terms of profit. Due to its relatively high demand in Nigeria, indomie noodles brand has a very high turn over for investors. Secondly, the indomie noodles brand, holds a secure position in the market; with little competition as well. Indomie is quite easy to market and distribute. Once you’ve established a relationship with other sub-distributors, it is correct to assume that you will enjoy huge yields on the business.
WAYS TO MAKE PROFIT FROM INDOMIE DISTRIBUTION
If you are considering starting up an indomie distribution business, you will need to device an appropriate marketing strategy, which considers market penetration strategies. With a good marketing strategy in place, you can gain initial attraction for your indomie distribution business in Nigeria. You will also need some advertising and marketing strategies to make your customers aware of your product offerings and also to get more retailers for your distributorship. If you can get your business right; an indomie distribution business in Nigeria can be one of the most reliable and steady income sources that you can find in Nigeria.
There are so many other perks to be gained from indomie distributorship business in Nigeria. A few of them are;
- Year End Gift( YEG): Every year, De United Foods Limited( Dufil Prima), rewards its stakeholders in and around the country. The year end gifts is usually given to distributors and other stakeholders, based on the profits made by Dufil Prima Ltd, for the year. The company decides to share part of its profits with their distributors all over the country.
- Exclusivity: This involves, simply selling a particular commodity and no other. Indomie noodles manufacturer pays its distributors for the exclusive sales of indomie noodles brand. Although this happens after a year; it is another exciting way of gaining profitability from indomie distribution in Nigeria.
- Profit margin: Another way you can gain profitability from indomie distribution business is through your profit margin. All indomie distributors have a higher profit margin than other stakeholders lower the distribution chain. The profit margin is just the difference between the price you buy from the company ( your cost price) and the price the company asks you to sell at( selling price). Now, the company has made it in such a way that your profit margin, as a distributor is relatively high. For example, for brands between 70g – 100g, you are to sell with a profit margin of N50. While indomie brands of between 200g-305g comes at a profit margin of N100. So you can see that indomie distributors do generate a lot of revenue and consequently huge profits from their distributorship business.
TURNOVER FROM INDOMIE DISTRIBUTION BUSINESS
Before now, indomie enjoyed monopoly as the only noodles brand in the Nigerian market. Though this is no more true; still the company’s long operational track record and their continuous expansion and productivity has made it a prominent player in the rapidly growing consumer food sector of the Nigerian economy. Its market dominance in the noodles sector and growing presence in the pasta, cooking oil and snack segments has further enforced indomie brand producers as a leader in the noodles market. What this implies is that; the indomie noodles brand has a very high turnover rate in the consumer food segment, invariably; indomie distributors are well positioned to benefit from this trend.
The company also provides incentives and rewards for distributors with high turnover rate.
For more contact information, you can teach this online platform;
Dealers Arena; This is an online platform where different manufacturers’ products information is being disseminated, giving opportunities to distributors and other bulk buyers to purchase these products at wholesale prices.
You can contact the platform via the following media:
Phone: +234(0) 9069236106, 08154522721
WhatsApp: +234(0) 9069236106