From Unilever PLC to Colgate-Palmolive Co, consumer goods makers in India are facing distribution blues that have nothing to do with COVID-19 pandemic-induced shortages and bottlenecks. The trusted intermediaries 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 is a mutiny that the multinationals have invited upon themselves.
About 90 percent 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, dispatch goods in small quantities to shops in their area, collect cash and
FMCG distributors have suspended their boycott of certain products of oral care maker Colgate after talks with the company representatives over the issue of the price disparity between the traditional distributors and organised business-to-business channel.
A day after a virtual meeting with Colgate-Palmolive (India) Ltd (CPIL) representatives, the All India Consumer Products Distributors Federation (AICPDF) called off its stir to boycott certain products of the company starting from January 1, 2022.
Get latest articles and stories on Latest News at LatestLY. Leading oral care company Colgate-Palmolive on Wednesday said it has initiated talks with distributors who are boycotting some of its products in Maharashtra and a few other states over issues of price disparity between the traditional distributors and organised business-to-business channel. Latest News | Colgate Initiates Talks with FMCG Distributors Boycotting Its Products in Maha, Other States.
Last week, distributors had said they would stop selling products of Hindustan Unilever in Maharashtra as it has not engaged in discussions with them over issues of price disparity.