20+ Best Dealership & Distribution Business Ideas in the Philippines

Last Updated – Jan 3, 2023 @ 8:54 am

Are you searching for lucrative business opportunities that you can start?

Trying your luck in dealerships or distribution may be perfect for you. Starting this type of business is an incredible idea for budding entrepreneurs like you who want to take on less risk, but still reap high rewards. 

If you want to check out dealership and distribution business ideas, take a look at this in-depth list below. You may just find inspiration for your next venture. 

What Is a Dealership Business?

A dealership business actively purchases products and goods from manufacturers and sells them as a part of its stock. 

Dealership businesses facilitate the trade of goods as part of their model. In other words, a dealer acts as a middleman between consumers and distributors.

For instance, when you go to a shop in the mall to check out new gadgets, you’re most likely talking to a dealer. 

Just like distributors, they are also authorized to sell goods in their area. Dealers also sell products or items of rival brands and get a profit by selling them at a higher price than what they paid. 

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What Is a Distribution Business? 

A distribution business mostly works as an independent entity that sells products from a manufacturer. This type of business is governed by a financial contract.

Distributors serve as a middleman for the supply chain, but they are directly connected with manufacturers. Part of their duty is to ensure that goods are supplied to the market. 

Most manufacturers authorize distributors in certain areas as part of their sales plan. After buying products in bulk, distributors sell them to other businesses such as shops.

Aside from selling goods, distributors are also bound by contract to offer technical support, repair, replacement, and other after-sales services. 

Depending on the contract, distributors may only be permitted to distribute products from one brand in their territory. Additionally, distributors can be the only source for dealers and retailers to purchase from.   

There are also distribution businesses that purchase products from manufacturers and combine them with other products to increase their total value before it is sold. 

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Dealers vs. Distributor

Both dealers and distributors are included in the supply channel, but these two terms are commonly interchanged. To help you understand these two better, we’ve gathered how they are different below.

• A dealer can sell specific products in a market, while distributors supply certain products to the market.
• Dealers connect with customers, while distributors link dealers and manufacturers.
• Dealers buy products to sell as part of their business’ stock, while distributors purchase products directly from manufacturers and sell them to retailers and dealers. 
• Dealers can sell a wide variety of products as part of their stock, while distributors strictly deal with a category of products.
• Dealers face tough competition in their market, while distributors usually have a monopoly in a certain area.

Related: How to Start a Business in the Philippines

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Top Dealership & Distribution Business Ideas in The Philippines

Want to try your luck in dealership and distribution? Here are some of the most lucrative business ideas you can try. 

Keep in mind that the required capital we listed is only an estimate and would greatly depend on your dealership/distribution scope. 

Soft Drinks & Alcoholic Beverages 

Alcoholic beverages are ingrained into Filipino culture. In fact, around 49.9% of men and 14.8% of women in the country drink alcohol. These drinks are served during social gatherings and enjoyed with food or pulutan.

On the other hand, people of all ages and walks of life love soft drinks. These fizzy drinks are a staple, especially during celebrations and hot days.

Required capital: at least Php15,000

Sample products: 

• Coca Cola
• Pepsi
• RC Cola
• San Miguel Beer
• Red Horse Beer
• Tanduay Rhum
• Jack Daniels 

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Car Dealership

This is one of the best-performing businesses in the country. Car dealerships offer a wide range of vehicles, ranging from economy cars to luxury sedans, SUVs, and vans.

Anywhere in the Philippines, cars have become a necessity so wherever you are located, you can surely make money out of it. The only downside for this business would be the huge capital required. 

Required capital: P50 million and above

Sample products:

• Suzuki
• Toyota
• Honda 
• Nissan
• Mitsubishi

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Automobile & Motor Parts

Automobiles and motor parts remain to be an important industry in the Philippines, largely due to the abundance of vehicles on the road. Up until now, the vehicle market is continually increasing and it is supported by a growing demand for spare parts and components.

Required capital: P1 million

Sample products: 

• Wheels
• Tires
• Brakes
• Steering system
• Front and rear axle
• Transmission system
• Engine
• Suspension system

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Organic Food

Organic food is produced without the use of chemical fertilizers and pesticides. This type of food is quickly gaining recognition for its health benefits and its outstanding taste and quality.

Required capital: P10,000

Sample products: 

• Livestock 
• Meats
• Dairy and eggs
• Fruits
• Vegetables 

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Snacks

If there’s one thing about Filipinos, it’s that we love snacking. Filipinos eat snacks all day long, from the morning, afternoon, and even evening. Many snack manufacturers in the country produce ready-to-eat snacks, in the form of salty chips, crispy treats, and other well-loved food.

Required capital: P500,000

Sample products: 

• Imported chips (Ruffles, Lays, Cheetos, Doritos)
• Jack and Jill Snacks (Mr. Chips, Chiz Curls, V-cut, Chippy, Piattos)
• Leslie’s snacks (Clover)

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Health & Beauty Products

Filipinos are known for their youthful glow. This can be attributed to the wide range of health and beauty products that are widely being used in the country.

Shampoos, facial masks, and lotions are very popular and can be found in local drugstores and even in retail stores. Health and beauty products are both used by men and women so the market is huge. 

Required capital: P15,000

Sample products: 

• Beautederm
• Unilever products (Rexona, Dove, Vaseline)
• P&G products (Olay, Safeguard, Ivory, Head & Shoulders)

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Petroleum Products 

Petroleum makes the lives of people easier. If you want to take advantage of the petroleum market in the Philippines, now is a good time to do so since the value of petroleum is high and you can make a huge profit from it. 

Required capital: P5 million

Sample products: 

• Gas station (Petrol, Total, Shell)
• LPG products (Solane Pryce Gas, Shellane)

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Perfume Distribution

Perfume is one of the most favored cosmetics for Filipinos today. The industry is dominated by several international brands, but there is still room for local products to shine.

Required capital: P15,000

Sample products: 

• Jo Malone
• Aficionado
• Body Fantasies
• Victoria’s Secret

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Construction Items

The construction industry remains to be one of the largest and most profitable industries in the country.

This is a highly in-demand business venture, especially if you start with materials used in residential and commercial construction. 

Required capital: P1.5 million 

Sample products: 

• Concrete 
• Bricks
• Cement
• Glass
• Tiles

Electrical Items

Filipinos are considered to be one of the most technologically-lifted countries in the world. The demand for electronic products is so high that merchants are repeatedly making orders to keep their shelves stocked.

Required capital: P500,000

Sample products: 

• Electric cables and wires
• Electrical box
• Explosion-proof enclosures
• Electrical connectors
• Circuit breakers 

Building materials

Building materials are essential for the infrastructure development of the country. Local construction companies are constantly making orders for building materials all year round. This is because there is a lot of demand for new houses, apartments, and commercial buildings.

Required capital: P500,000

Sample products: 

• Clay
• Wood
• Sand
• Cement
• Steel

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Medicine

Medicine is one of the most important products in the healthcare industry.

You can find a wide variety of medicine in local drugstores and pharmacies all over cities and provinces since most Filipinos do not hesitate to buy over-the-counter medicine when they experience minor health problems, such as fever or cough.

Required capital: P500,000

Sample products: 

• Unilab
• Pfizer

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Leather Products

Leather is highly rated among Filipino consumers, especially because it is known for its durability and elegance. The demand for leather products is gradually increasing now thanks to recent trends. 

Required capital: P15,000

Sample products: 

• Bags and totes
• Wallets
• Shoes and sandals

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Security & Surveillance Products

Security and surveillance are extremely important for businesses in all industries, as well as residential areas. These products protect individuals from robbers, as well as properties from petty crimes such as vandalism.  

Required capital: P200,000

Sample products: 

• CCTV cameras
• Alarms

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Smartphone

The smartphone market in the Philippines remains to be an enticing business venture because consumers are always looking for the latest trend in smartphones.

Required capital: P2 million 

Sample products: 

• iPhone
• Oppo 
• Samsung
• RealMe
• Vivo
• Huawei

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Tobacco Products

Many Filipino smokers are looking for tobacco products that are affordable yet high quality. 

Required capital: P50,000

Sample products: 

• Marlboro
• Mighty
• Philip
• Camel
• Fortune

Vape / Electronic Cigarette Products

Vapes have gained traction in the Philippine market in recent years. These products are extremely popular, especially among Filipinos who are trying to quit smoking cigarettes. 

Required capital: P50,000

Sample products: 

• SMOK
• Relx
• Toha
• Chillax

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Sports Goods

The sports goods industry in the Philippines remains to be promising, especially now that many Filipinos have tried sports to improve their fitness. There are also a lot of budding sports aficionados in the Philippines, which means that the demand for sports goods will continue to rise in the coming years. 

Required capital: P300,000

Sample products: 

• Surfboards
• Basketball equipment (nets, balls, shoes)
• Protective gears

Gym equipment

After the pandemic, many Filipinos have realized that health is wealth, and one of the best ways to take care of your health is to exercise. There are a lot of gyms in the Philippines that are packed with an abundant number of members who want to work on their physique and performance. 

Required capital: P50,000

Sample products: 

• Rack
• Plates
• Dumbbells
• Treadmills
• Ellipticals
• Rowers

Outdoor equipment

The Philippines is filled with natural wonders so it makes complete sense for outdoor equipment to constantly be in demand. Tourists and locals alike love to go on outdoor activities, such as camping and hiking.

Required capital: P50,000

Sample products: 

• Hammocks
• Tents
• Camping lights
• Hiking bags

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Furniture

Furniture is an essential part of every Filipino household. Many consumers are looking for various kinds of furniture that are suitable for their style, budget, and preference.

Required capital: P500,000

Sample products: 

• Beds
• Living room sets
• Cabinets
• Desks 
• Chairs and seating

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Agricultural Products

If you want to venture into agriculture, now is the best time to do so. The Philippines is a largely agricultural country and these products are always in high supply and demand.

People are encouraged to venture into the agricultural industry to ensure food supply for the country.

Required capital: P100,000

Sample products: 

• Rice
• Meats
• Feeds
• Corn 

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Fabric & Hosiery

The fabric and hosiery sector is an important part of the textile and garments industry. There are a lot of fabric and hosiery brands in the country, and they are constantly on the lookout for the latest products.

Required capital: P150,000

Sample products: 

• Cotton
• Spandex
• Socks
• Stockings, Tights, or Pantyhose 
• Piña fabric 
• Inabel 

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Jewelry

Many Filipino consumers are not afraid to spend money on jewelry, especially because gold is considered one of the safest investments.

Besides jewelry made with real stones and metals, there are also a lot of more affordable options that are only meant for styling and accessorizing. 

Required capital: P100,000

Sample products: 

• Necklaces
• Rings
• Bracelets
• Brooches
• Pendants 

Related Guide: Best Franchise Business Opportunities in the Philippines

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How to Start a Wholesale Distribution Business in the Philippines

Starting any kind of business is no easy feat. If you are planning to start a business in the wholesale distribution industry, we have put together a step-to-step guide to help you get started. 

Step 1: Analyze the market

You can’t just decide to start a wholesale business based on a whim. Your decisions have to be based on facts to lessen your likelihood of failure.

After all, you’re investing your time and effort into it. 

It is crucial to analyze the wholesale market thoroughly. In fact, this is probably the most crucial step of starting any type of business.

Do comprehensive research on what products are in demand in the market and find out where you can get them.

Step 2: Decide what products you want to distribute

Once you have analyzed the market, you can start narrowing down the products you want to sell. Only consider products that are in demand in the market, or have a huge profit potential.

For instance, if you noticed there are not enough rice distributors in your area, maybe you can start one.

Once you figure out what you want to sell, immediately look for reliable suppliers that have a proven track record.

Step 3: Draft your business plan

Your business plan will serve as your business’ guiding light. It should include a comprehensive marketing strategy, a financial plan, and a growth plan.

Wondering how to write a foolproof business plan? Check out this guide. 

Step 4: Get your capital

Now that you’ve figured out what business you want and how you can make money out of it, you need the funds to make it come to life.

Think about how much money you need to get your business running. A huge chunk of your budget should cover your inventory, transport, employee wages, and storage.

Assess if you have enough savings to start your business. If not, then you might have to get a loan. Here’s a guide on the best ways to fund your business in the Philippines. 

Step 5: Plan how to manage your inventory & get storage space

Wholesalers need space to store their stocks and inventory. You have to make sure that you have enough space to keep your inventory safe.

Planning ahead of time will help you avoid any issues with space. Look for warehouses or spare rooms you can rent to serve as your storage. 

Step 6: Register your company

You have to make sure to register your business before you start operating. This is to ensure that you are complying with the rules of doing business in the Philippines.

You can register your company in the Department of Trade and Industry (DTI), and Bureau of Internal Revenue (BIR). If you want to register a corporation, follow this guide. 

Step 7: Build a relationship with manufacturers & retailers

Your business will not be successful without manufacturers and retailers. After all, they supply you with products and buy your stocks, respectively.

Maintaining a good relationship with them will give you leverage in the market. 

Step 8: Hire employees

You can’t expect yourself to handle every single thing about your business. This is where hiring manpower comes into play. Hiring employees will help you maximize your productivity.

This is especially true if you are planning to run a business that requires a lot of manpower. When you have a wholesale business, you also need sales experts and agents to help you. 

Step 9: Choose suppliers & transport providers

This is another crucial step in starting your business. It is vital to choose the right suppliers and transport providers that are suitable for your business.

Make sure that you develop and build a good relationship with these people so you can have better negotiating power in the future. 

Step 10: Fine-tune your business skills

Starting your business may seem like an easy task, but there are so many things that you have to learn along the way.

For instance, you need to know about distribution and sales, especially when you’re just starting.

There are no better ways to learn these things than to get a mentor, learn from your experiences, and assess the strategies of your competitors. 

Step 11: Ensure you’re continuously giving top-tier service

While this may seem like a no-brainer, there’s no better way to guarantee that you maintain your competitive edge than through offering nothing but top-tier service.

Always make sure to provide the best service to your customers, suppliers, retailers, and other stakeholders whether it’s through your products or services.