Tuesday, October 31, 2006

FMCG Wholesale Industry

One of member of FMCG Marketers, Gaurav asked me put some insights on Wholesale industry in India, its operation, key factors etc. Let me give you some pointers which may help you guys.

For any product category which is high selling will have wholesalers. Take the case of biggest FMCG product category - cigarettes or the next family of product categories - Personal products, all have a combination of wholesale and Retail Sale. The only difference between the two is the offtake levels, financial capacity and sometimes infrastructure to deliver to retailers.

Normally the rates for wholesale is cheaper than retail, as it is in bulk. This sometimes lead to price cutting in market. Both retail and wholesale have a role to play. Its always good to have high retail thruput (Total Retail Sales/ Total Sales) to have higher control of organization over the retailers. This will help the organization to launch new brands in future, increase visibility at the outlets, which is just because of relationship of organization saleman with Trade.

At the other end, in case of insufficient supply from factories or C&F, there will be sufficient stock to deliver to outlets to serve the conserve. Also, there are many markets which is practically and financially not possible for many organization to cover like less than 10K narkets, Here these small retailers in smaller markets get the stock from these wholesalers which are located at some distance from them.

Its really interesting to see wholesale mandis in some pockets in different areas.


Anonymous Anonymous said...

nice topic and keep posting

November 01, 2006 4:23 PM  
Blogger adi said...

well....that not the only role of w/s...it always gives u a proxy measure of the brand pull as their is no salesman push involved, also, the w/s v/s retail throughput levels need to be managed at the SKU level based on the PLC...

January 14, 2007 1:20 AM  
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