Start Baby Food Wholesale and Retail Business

A good money making venture is baby food wholesale/retail business. However each business type comes with different challenges. The venture is practicable full time or part time depending on your business plan.

A key factor in wholesale, retail is good sales and marketing skill. Purchasing products in bulk require huge capital therefore adequate funding is a priority. Another aspect is finding quality products at competitive prices. Every demography have popular products therefore leveraging on popular brands is a good business strategy.

Overview on Baby Food Industry

Huge budget multinationals drive the demand and penetration of the baby food products. The market is estimated to generate $72.7 billion by 2020 according to (alliedmarketresearch.com). An increase in demand is attributed to Urbanization, aggressive marketing, quality products.

Professional women are busy earning a living and rely on package baby food. Primary consumers are babies aged four months to two years. Other reasons are increase in world population, highly nutritious products.

Three major products in the baby food industry are prepared, milk formula and dried baby food with milk formula dominating the market.

baby eating
baby eating

Factors that Affect Baby Food Industry

Factors that affect baby food industry is urbanization and increase in working mothers. Others are increased birth rate, declining death rate, advanced technology, emerging markets and public awareness of nutrition.

  • Aggressive marketing
  • Awareness of nutrition
  • Large population of professional women
  • Urbanization
  • Increase breastfeeding
  • Increased birth rate
  • Reduction in death rate
  • Increased population

Types of Baby Food

There are different types of baby food based on the formula, age range purpose. We have dried baby food prepared baby food and milk formula.

  • Dried food
  • Milk formula
  • Other baby food
  • Prepared food

Steps to Start Baby Food Wholesale, Retail

 Before establishing the business write a plan and study the competition. Focus on popular brands, find sales outlets, rent a store. Purchase a bus or van to carry the products. Hire appropriate staff, register the business and secure funds. There are also tax considerations, insurance cover and marketing.

Steps

  1. Write a plan
  2. Study the competition
  3. Focus on popular brands
  4. Find sales outlets
  5. Rent a store
  6. Purchase a bus
  7. Hire appropriate staff
  8. Register the business
  9. Secure funds
  10. Tax considerations
  11. Insurance cover
  12. Marketing

Role of Wholesalers

Manufacturers of baby food need to sell their produce. The role of wholesalers is the collection and distribution of the finished product. Effective distribution of produce to retailers is the core function of a wholesalers.

Therefore they need transportation, warehouse facility and good logistic. Baby food wholesalers require huge funds to buy in bulk and hire staff. Other customers of wholesale distributor’s contractors, commercial stores, merchants and retailers.

Wholesale distribution trade is not limited to wholesalers but open to brokers, commission agents, manufacturers sales branches.

Baby Food Production

Role of Retailers

The baby food retailer buys the products from wholesalers or merchants. The buy from wholesalers and deal directly with local residents, small stores. Retailers gradually build their customer base from local residents in the area.

Licensing

Register the business as a limited liability company and open a bank account for the company. Get insurance cover and tax identification number.

Transportation

A major aspect of wholesale is carrying the goods to retailers. Overall costs is reduced by owning a mode of transportation. To distribute the product buy a heavy duty truck, bus or van.

Market

Popular outlets for baby food are beauty retailer, grocery stores, supermarkets, grocery store. Retailers sell directly to local populace and smaller retailers. Use flyers, billboards, business cards to attract customers. Effective networking, advertisement, organizing local events are marketing strategies to consider.

Who are Your Customer?

  • beauty retailer
  • grocery stores
  • supermarkets
  • grocery store
  • sell directly to local

Hire Staff

Staff requirements depends on the size and scope of the enterprise. Hire an accountant, store manager, sales personnel. Others are driver, storekeeper, cleaner and security guards.

  • Hire an accountant
  • Store manager
  • Sales personnel
  • Driver
  • Storekeeper
  • Cleaner
  • Security guards

Rent a Shop

A wholesaler needs a large shop to stock and move huge inventory. They need a mode of transportation like heavy duty trucks, buses or vans.

The store space requirement for retailers is moderately less than wholesalers. Retailers need a storefront in a busy area to attract patronage. The shop should have adequate parking a large sign in-front.

tony

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