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Global brands in India face mutiny as they bypass traditional distributors

The trusted middlemen that brands have traditionally relied on to reach millions of small neighborhood stores in 8,000 towns and 660,000 villages are in revolt

During the second wave, consumers are behaving differently as people are buying  more essential supplies online, price inflation in personal care is collapsing. (Photo: Bloomberg)
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Photo: Bloomberg

Andy Mukherjee | Bloomberg
From Unilever Plc to Colgate-Palmolive Co., consumer goods makers in India are facing distribution blues that have nothing to do with pandemic-induced shortages and bottlenecks. The trusted middlemen that brands have traditionally relied on to reach millions of small neighborhood stores in 8,000 towns and 660,000 villages are in revolt.

It’s a mutiny that the multinationals have invited upon themselves. 

About 90% of what gets consumed in the continent-sized economy flows through a pipe known as “general trade”: Brands appoint third-party distributors who stock bulk inventory, despatch goods in small quantities to shops in their area, collect cash and offer retailers

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