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Sunday, December 22, 2024 | 08:32 PM ISTEN Hindi

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Kiranas discover a new partner

The FMCG direct distribution system faces an existential threat

FMCG, kirana
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75-77 per cent of stock-keeping units across categories, says Nielsen, contribute less than 2 per cent to sales, with the trend visible in segments such as soft drinks, biscuits, and chocolates

Indrajit Gupta
The tussle on who gets to serve the ubiquitous kirana store owner is emerging as the next big battleground in India’s fragmented retail and distribution trade. The bugle was sounded more than two weeks ago, when the All India Consumer Products Distributors Federation wrote to over two dozen major fast-moving consumer goods (FMCG) companies, including Hindustan Unilever, P&G and Dabur, asking for a level playing field. Their ire was directed at the new breed of organised business-to-business (B2B) wholesalers, like Reliance Jiomart, Metro Cash and Carry, and Udaan. The association demanded parity with these B2B wholesalers on both prices and
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