Waiting For Maturity In The Market

The sheer depth of India’s retail market will allow for the coexistence of traditional distributors and the new-age B2B distribution model

For new companies—Indian or multinational—entering the FMCG sector, building a distribution network in the country has been the most difficult task. It has taken FMCG companies decades to scale their reach while generating the right throughput for an efficient cost-to-serve framework. Mergers and acquisitions, joint ventures and alliances have been orchestrated to acquire the right distribution network. It has been a competitive moat for large companies but the biggest challenge in scaling up for small companies.