August 19, 2021 | 01 min read
The “Pay-Later” market in India is booming with millennials and Gen Zers opting to buy something now and pay later at no added cost, and sometimes with added benefits. This method of experiencing the product without spending a buck upfront gives the opportunity to enjoy the benefits, without having the need to pay for it instantly.
For brands, this can lead to an increase in demand due to the opportunity created.
And that’s the innovation that FMCG brands need today, and needs now!
The FMCG distribution channel depends on the prosperity of each individual in the system, in order to ensure that the product that has been manufactured and marketed, indeed reaches the consumer in time. But if every channel member doesn’t have substantial working capital, the product never reaches the end-user. Like, if the distributor faces a cash crunch and cannot stock products, the retailer can’t bring the product to his shop and vice versa.
Also, for retailers and distributors, a cash crunch can lead to a loss in the business and in times of Covid, it can even take the business down.
To resolve this, FMCG brands need to empower their sellers with cash credit, to ensure that the wheel of the trade does not stop due to the lack of funds.
Bizom’s Trade Financing solution makes this a reality for FMCG manufacturers. Using our supply chain financing solution, FMCG manufacturers can provide their distributors and retailers with an extended line of credit of the desired limit.
Brands can even introduce an Early Payments Program in their supply chain, helping sellers stock more while paying less.
The other advantage is, FMCG brands have their supply chain ecosystem spread over vast geographies. So it takes the brand a long time to gain back the cost incurred for making and selling the product.
But with this solution, FMCG brands can realise the profit as soon as the seller buys the stock from them. On the other hand, the seller gets the product at a discounted price, which needs to be paid at a later date with no added interest. This gives the seller the time to sell the stock in the market and earn the money he needs to pay back.
However, the biggest benefit that FMCG brands get, is the ability to monitor and sanction all credit purchases from one single dashboard, which gives them better financial visibility within the supply chain.
Bizom’s Trade Financing helps ensure that the flow of funds and products within the supply chain continues without any friction, and everyone gets paid without suffering a loss.
Thus, by decreasing the working capital gap with Bizom’s Trade Financing solution, FMCG companies will no longer lose out on business and can also build a stronger relationship with their sellers, by empowering them financially to grow their business. And in return, the brand will create something more significant than money. They will create value.
To know more about Bizom’s Trade Financing solution for FMCG brands, connect with us at email@example.com and schedule a free demo.