Over the last five decades, the Indian FMCG market has grown by leaps and bounds. The fast-moving consumer goods (FMCG) segment is the fourth largest sector in India. With 12 mn grocery retail outlets, a million wholesalers and distributors, and a multitiered structure, the Indian grocery retail ecosystem is one of the most complex in the world. India’s large population, and geography, make it difficult for FMCG manufacturers and brands to reach all retail stores efficiently.
A robust distribution network is essential for FMCG manufacturers to ensure that they grow their sales and have a wide geographical market reach. They are dependent on wholesalers, distributors, and sub-distributors to ensure that their products are stocked in as many retail stores as possible. They are also dependent on distributors sharing data with them to ensure that they can achieve business goals and expand their market share.
A lot of these distributors and sub-distributors stock and manage multiple brands and work with more than one manufacturer and are reluctant to use different DMS platforms for each manufacturer. Additionally, distributors have to deal with myriad challenges to share data with FMCG manufacturers like: